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Organizational set-up for Open Innovation

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    Organizational set-up for Open Innovation Organizational set-up for Open Innovation Presentation Transcript

    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx Service Offering Designing the organizational set-up for Open Innovation
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx - 2 - HOW SHOULD YOUR FIRM ORGANIZE FOR OPEN / COLLABORATIVE INNOVATION AFTER IT DIPPED ITS TOE INTO THE WATER?
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx Is this your situation? In the past, your firm has used quite a number of open approaches to innovation – including relatively new ones such as e.g. using intermediaries. Not in every case, results were satisfying – But there is enough substance to think about how to weave Open Innovation into the organizational fabric of the firm - 3 - ● You hear some voices that argue for a decentralized, non-regulated approach ● There are also voices argue for the opposite ● Some of your colleagues argue with a formalized approach ● Others want to keep a high degree of flexibility ● You wonder how other leading firms take on the challenge of organizational embedding of Open Innovation and what can be learned from their discussions and decisions ● You are also wondering what the best steps are to drive decisions on how to embed ooi
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx Then, innovation-3 might provide the solution ● We are sharing with you our insights about how leading firms are taking on the challenge of organizational embedding ● We advise on how to gauge the key factors that are influencing the optimal Open Innovation organization and Open Innovation processes ● We help you in deciding which of the potential approaches is the most appropriate for your firm ● We support you in breaking down this challenge into small steps that provide an optimal benefit / investment and risk position ● We help you on the implementation of the individual steps along the way - 4 -
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx „Organization“ defined in the innovation-3 sense - 5 - „Change the business“ ● Re-alignment ● Organizational innovation ● Kaizen „Run the business“ ● Value-add for internal / external customers Systems Information / Reporting Recruiting / Talent Development Objectives Operative value-adding processes Key Performance Indicators Communicationflowand Co-ordinationmechanisms Enabling infrastructure Hierarchy / Responsibilities Goals, rewards and incentives Decision making / Management processes Distribution of decision rights; Structuring, investigating, analyzing, decision-making (steps and committees), communicating Formal / codified components Informal / “hidden” components Hierarchy / Roles
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx The innovation-3 thinking model for answering the organizational part of Open / Collaborative Innovation - 6 - Central Decentral In- formal Formal ? ? ? Find the optimal balance in formality / centrality Key influencing factors are among others ● Innovation strategy (Extent of cross-x innovation, innovation timing, innovation paradigm) ● Open Innovation maturity ● General organizational design (Monolithic vs. autonomous Business Units) ● Search focus (innovation funnel) ● Other (CoE thinking, HR considerations) External- facing hubs Relevant corporate functions KPIs and funding Alignment includes orchestration ● … of internal Open Innovation organization with external portals / hubs ● … of Open Innovation with IP Management ● … of Open Innovation with M&A Weaving the Open Innovation organizational design into the org fabric (see page 5) Alignment Embedding
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx Some thoughts of our clients on designing the Open Innovation organization ● “We are a horizontally integrated company and aim at leveraging our market position and network of suppliers/clients to become the nexus of the evolving open innovation network. By doing so we want to increase the number of ideas coming in while decreasing R&D costs.” ● “As our strategy is horizontally oriented we need to put Open Innovation in the context of standardization (on non-competing areas) and leveraging the ecosystem of upstream and downstream players.” ● “We need to make sure that our Open Innovation organization reflects our timing strategies (First-to-market in …, early adopter in …).” ● “We are a ‘need seeker’. Walking in our customer’s shoes is the core of our innovation under- standing. Therefore our Open Innovation locus needs to be more in Marketing than R&D.” - 7 - Find the optimal balance in formality / centrality Alignment Embedding
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx Some thoughts of our clients on designing the Open Innovation organization ● “Our optimal mix of de-central vs. central depends on the choices we make regarding break- through vs. incremental innovation. We have strong Business Units, so a decentralized model would favor incremental innovation. If we want to shift our innovation attention more on breakthrough innovation, we need to isolate our Open Innovation team from the powerful Business Units.” ● “The organizational design we are looking for depends on the maturity of Open Innovation of our company. Should we find that a strong culture change is necessary then a lot of processes with a more formal structure will be needed to achieve it. It our culture is ready for openness and cooperation then a more decentralized design will be successful.” - 8 - Find the optimal balance in formality / centrality Alignment Embedding
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx Some thoughts of our clients on designing the Open Innovation organization ● We have found it very helpful that an 'External Interface' works through the nitty-gritty logistical issues that can be real roadblocks. In particular, dealing with IP issues.” ● “Leading US and German firms are integrating Open Innovation and M&A. We will see a lot more venturing departments (now often treated as part of M&A) migrating into OI hubs.” - 9 - Find the optimal balance in formality / centrality Alignment Embedding
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx Some thoughts of our clients on designing the Open Innovation organization ● “We have found that Open Innovation allows for ad-hoc OI initiatives, informally directed, driven by individual functional or Business Units. We have also found that in order to achieve impact, at some point the efforts need to be stitched together, provided with a more strategic direction, and aligned with the organization's objectives.” ● “One of the hybrid models to be considered should be Open Innovation-as-a-shared-service.” - 10 - Find the optimal balance in formality / centrality Alignment Embedding
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx Four roles are key in order to drive support of the adoption of Open / Collaborative Innovation by the organization - 11 - ● Mediators between the firm and the outside world. ● Paramount facilitators of Open Innovation, driving the cultural change needed within a company. External broker Internal broker Scout Champion ● Vision, passion and drive, talent for networ- king, decision-making, communication skills, and persistence ● T-shaped people ● Maintain strong relationships between technical groups and market-facing teamss. ● Mediators across functions and business units within the firm ● They know a lot of people, utilize all communication channels and thereby facilitate exchange of information and assets across the firm ● Extroverted, communicative people ● Vast reach across different areas of the firm ● Managers and senior technical experts, identifying future trends, needs and technologies outside ● Assume a strategy-focused or consulting position within the firm to identify global trends and technology shifts ● Deep expertise in a number of defined fields ● Collaborate with a network of peers (inter- nal and external) who are usually globally dispersed ● Senior leaders, usually executives, owning a portfolio of innovation initiatives. ● Determine the right mix of projects within their portfolio – including where / how to be open ● Responsible for executing collaboration with external resources once these have been identified and evaluated ● Through their senior position within the organization, they have great influence on incorporating Open Innovation into the corporate DNA.
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx Processes: The innovation-3 Want–Find–Get–Integrate–Manage framework Manage network Get Find Want Inte- grate ● Definition of “Where to be open” ● Briefing ● Definition of OI approach (“How to be open”) ● Cross-BU Internal search ● Refinement of Briefing ● Positioning in OI approach / Selection of OISP ● Preparation of win/win negotiations ● Win/win negotiations ● Integration in running innovation work ● Onboarding of external co-innovator Foresight - 12 - Strategy Scouting Ideation Concept Validation Scale-up
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx Network management For every process step, innovation-3 has Best Practices on hand Get Find Want Inte- grate ● Definition of “Where to be open” ● Briefing ● Definition of OI approach (“How to be open”) ● Cross-BU Internal search ● Refinement of Briefing ● Positioning in OI approach / Selection of OISP ● Preparation of win/win negotiations ● Win/win negotiations ● Integration in running innovation work ● Onboarding of external co-innovator Foresight - 13 - Strategy Scouting Ideation Concept Validation Scale-up ● Business model (Licensing, product acquisition, contract research, proof of concept leading to scale- up to manufacturing, joint development, supplier agreement, others) ● Description of problem (Text for external target audience, maybe even from totally different background; Images) ● Benefits of proposed solutions (ideally, quantified) ● Approaches of interest ● Approaches not-of-interest (non-scope) ● Timing ● Confidentiality / IP position ● Decision process Example
    • SLIDESETORGANIZATIONANDPROCESSES.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibitedSlide Set Organization and Processes.pptx - 14 - Would you like to start our conversation? Frank Mattes Founder and CEO, innovation-3 Grillparzerstr. 4 II / III 65187 Wiesbaden Tel.: +49-(0)611-59057-0 frank.mattes@innovation-3.com www.innovation-3.com