Open Innovation in a Globally Integrated Enterprise
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Open Innovation in a Globally Integrated Enterprise

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Presentation given by Matthias Kaiserswerth, Director, IBM Research - Zurich Laboratory, PRISMA Innovation Night, March 18, 2009

Presentation given by Matthias Kaiserswerth, Director, IBM Research - Zurich Laboratory, PRISMA Innovation Night, March 18, 2009

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    Open Innovation in a Globally Integrated Enterprise Open Innovation in a Globally Integrated Enterprise Presentation Transcript

    • Zurich Research LabOpen Innovation in a Globally Integrated EnterpriseDr. Matthias KaiserswerthDirector, IBM Zurich Research Lab © 2009 IBM Corporation
    • Building a smarter planetAgendaIntroduction to IBM Zurich Research LabSmall and medium businesses in a “flat world”Collaborative Innovation at IBMInnovative small and medium businessesNext steps © 2009 IBM Corporation
    • Building a smarter planetIntroduction to IBM Zurich Research LabSmall and medium businesses in a “flat world”Collaborative Innovation at IBMInnovating small and medium businessesNext steps © 2009 IBM Corporation
    • Building a smarter planetIBM Zurich Research Lab Zurich Research Focus Areas Lab population: ~ 320 persons Computer Science: Security and Privacy, • Regular employees 240 Business Integration Technologies, • Pre-docs 50 Systems Management • Post-docs & visiting scientists 30 Systems: Server Technology, Accelerator Technology, I/O Link Technologies, System Software, Energy Management Collaboration with external Storage: Tape Technologies, Heads and partners Actuators, Storage Systems, Memory and Probe Technologies • University projects 30 • Industrial partners 30 Math & Computational Science: Business • Govt. programs 30 Optimization, Computational Sciences, Data Analytics >30 different nationalities Science & Technology: Semiconductors, Systems, Beyond the Transistor, Nanotechnology, Biotechnology4 © 2009 IBM Corporation
    • Building a smarter planetIBM Labs are Globally Integrated More than 3,000 scientists and engineers at 8 labs in 6 countries IBM spent $6B in 2008 on R&D Watson Zurich 1945 1956 Beijing 1995 Almaden Tokyo 1955 1982 Austin Haifa Delhi 1995 1972 19985 © 2009 IBM Corporation
    • Building a smarter planetAgendaIntroduction to IBM Zurich Research LabSmall and medium businesses in a “flat world”Collaborative Innovation at IBMInnovative small and medium businessesNext steps © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabThe reality of living in a globally integrated world is upon us.Frozen credit markets and limited access to capital.Economic downturn and future uncertainty.Energy shortfalls and erratic commodity prices.Information explosion and risk/opportunity growth.Slowing superpowers and emerging economies.Increasingly complex supply chains and empowered consumers. The world is connected: economically, socially and technically.7 © 2009 IBM Corporation
    • Building a smarter planet Zurich Research Lab The world is smaller and flatter.8 © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabIBM Global CEO Midmarket Study The Midmarket Enterprise of the future is focused on … 1 2 3 4 Business New breed of Greater need for Global model informed and corporate social growth innovation collaborative responsibility strategies consumer programmes © 2009 IBM Corporation
    • Building a smarter planetWhat you told us... Rethinking what is done in-house and through collaboration  The increasingly informed and collaborative consumer  Increasing investments in corporate social responsibility Optimism about becoming more global and about tapping into the rising purchasing power of emerging economies © 2009 IBM Corporation
    • Building a smarter planetAgendaIntroduction to IBM Zurich Research LabSmall and medium businesses in a “flat world”Collaborative Innovation at IBMInnovative small and medium businessesNext steps © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabWhat is innovation? “Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value” National Innovation Initiative © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabThe changing nature of innovation  Key factors driving change – Dynamics of a flattening world – Emergence of new capabilities – Evolution of information technology – March of commoditization – Massive shift in demographics – Unpredictability and impact of change  Innovation in the 21st century – Open – Collaborative – Multi-disciplinary – Global © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabWhy does innovation matter?  Generates high-value, higher-paying jobs  Fuels wealth creation and profitability  Creates new industries and markets  Spurs productivity and economic growth  Raises standard of living  Goes beyond invention © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabOpen, collaborative innovation What would happen if we could… – Bring our top technologists and consultants together to envision Venture Capitalists ISVs the future of innovation? IT Analysts Business Partners Investors Alumni – Invite our innovation ecosystem Regulatory to join in the conversation? Bodies Innovation Clients Ecosystem Universities – Partner with those ecosystem Community Leaders participants to address the Employees Standards Policy- challenges and opportunities Bodies makers Competitors that emerge? © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabInnovationJams © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabThe result of IBM InnovationJam © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabCan you Jam? Absolutely © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabEvolution of a PartnershipIBM Research’s Public-Private Partnership with ETH IBM and ETH Zurich Information IBM and ETH Zurich open Center for Security Center form $90 million Advanced Silicon created with ETH partnership in Electronics and Credit Suisse nanoscience September 2003 August 2001 June 2008 © 2009 IBM Corporation
    • Building a smarter planetA Model for Collaboration For the first time in Switzerland will Industry and Academia not only share research infrastructure, but actually create it in a joint effort. ● Investment of 90 Mio USD ● IBM constructs the building ● ETH rents space for a minimum of 10 years ● Both joint and individual research projects ● Available to more organizations © 2009 IBM Corporation
    • Building a smarter planetAgendaIntroduction to IBM Zurich Research LabSmall and medium businesses in a “flat world”Collaborative Innovation at IBMInnovative small and medium businessesNext steps © 2009 IBM Corporation
    • Innovative Collaboration Varioprint AG and IntexyS Photonics What’s innovative? • Intexys Photonics and Varioprint AG Partnered with the IBM Zurich Research to develop a cost competitive, optical data transmission solution to increase the bandwidth between processor chips.22
    • Building a smarter planetDisruptive and Radical InnovationBandwidth Density of Objects All Electrical All Optical  Today, optical interconnects are used for long-distance intra-cluster connections due to high bandwidth (BW) capabilities  As BW requirements increase, optics IBM Federation Switch will be able to provide a cost- copper and optical interconnect versions performance advantage for even shorter distances, for backplane and card level interconnects © 2009 IBM Corporation
    • Building a smarter planetOptical Interconnect: A Supplier Ecosystem Optical printer circuit board Multinational Partner Optical connectors Multinational Partner + European Startup Opto-electronic transceivers © 2009 IBM Corporation Card-to-card optical interconnect prototype
    • Building a smarter planetBuilding and Maintaining a Health Ecosystem  Broadly speaking, there are two foundational components of an effective keystone strategy. The first is to create value within the ecosystem […] the second is to then share the value within the ecosystem (Iansiti, 2004)  “Successful innovation requires tracking your partners and potential adopters as closely as you track your own development process” (R. Adner, 2006) Supply Chain Ecosystem Strategy Actively create and “manage” supplier base, create value for suppliers ( support adoption of the technology in an entry market). Track ecosystem risk. © 2009 IBM Corporation
    • Innovative Collaboration Max Bahr, do it yourself store automates inventory What’s innovative? • IBM Dynamic Inventory Optimization Solution performs eighty to ninety percent of Max Bahrs inventory replenishment. • There is no ERP system involved Smarter Business Outcomes • Increased average shelf availability to 99.1% (93.5% is the average shelf availability in retail) • Over 90% of the items planned are automatically replenished26
    • Innovative Collaboration Numhi Technologies, reinventing medical records What’s innovative? • 3D avatar links to medical records at Danish Hospital • Collaborating with IBM with its go to market strategy and in product licensing Smarter Business Outcomes • Supports hospitals strategy for a paperless environment • Improves doctor patient experience • It will allow doctors to see more patients and diagnose them more accurately.27
    • Building a smarter planetAgendaIntroduction to IBM Zurich Research LabSmall and medium businesses in a “flat world”Collaborative Innovation at IBMInnovative small and medium businessesNext steps © 2009 IBM Corporation
    • Building a smarter planet Zurich Research LabTo realize the potential organizations need to do three things – theunderlying enabler is open collaboration and innovation 1 2 3 FOCUS ON VALUE EXPLOIT OPPORTUNITIES ACT WITH SPEED Do more with less Capture share Manage change  Cash/capital focus  Disrupt weak competitors  Clearly communicate simple goals  Flexibility  Acquisitions  Seek and leverage experience Focus on the core Build future capabilities Leadership  Businesses  Protect and acquire talent  Get the information to act  Initiatives  Initiatives  Set the agenda Re-align relationships Change your industry Risk and transparency  Financial solidity of  Bold moves  Business performance suppliers, partners  Position globally management and analytics and customers  Risk management  Revisit/renegotiate © 2009 IBM Corporation
    • Building a smarter planet Zurich Research Lab30 © 2009 IBM Corporation