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Ideas, knowledge and technology – a product development framework for open innovation
 

Ideas, knowledge and technology – a product development framework for open innovation

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Oral presentation of paper for the 21st COBEM

Oral presentation of paper for the 21st COBEM

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    Ideas, knowledge and technology – a product development framework for open innovation Ideas, knowledge and technology – a product development framework for open innovation Presentation Transcript

    • COB04851 IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION Fabiano Armellini – Escola Politécnica da USP/BRAZIL Paulo Carlos Kaminski – Escola Politécnica da USP/BRAZIL Catherine Beaudry – École Polytechnique de Montréal/CANADA 1 / 10
    • COB04851 IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION • Part of a collaborative research project between Escola Politécnica da USP and École Polytechnique de Montréal on open innovation (OI) in the aerospace industry; • Research project aims to verify whether openness practices are a trend in more conservative and traditional high-tech industry sectors, such as aerospace; • Research methodology includes a survey questionnaire that inquires companies about many of the practices that are part of the scope of study of open innovation; • Aerospace companies in Brazil (São Paulo) and Canada (Québec) are being interviewed since October/2010 for later analysis; • This paper is part of the literature review performed for establishing the boundaries of research; • It departs from an initial discussion on the concept of the word “idea”, followed by a literature review on knowledge management concepts and traditional classification of R&D activities (according to OECD manuals) to derive a product development framework suitable for open innovation. CONTEXT OF RESEARCH PAPER 2 / 10
    • COB04851 IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION • “Idea” comes from the Greek word ιδέα (idéa) or έ (eidéa), whose root is  (eidos), which stands for “image”; • In Classical Philosophy, the term is used to designate representations (images) of existing things; • Nowadays, though, the word “idea” has many different and equivocal meanings other than that. Instead, it may also stand for: • Notion or opinion; • Suggestion; • Concept; • Anything that comes into one’s mind • In innovation and product development texts, “idea” is a word often used but rarely defined.... A DISCUSSION ON THE CONCEPT OF THE WORD “IDEA” For this research project: “Knowledge” is an intellectual asset that can be found in many different levels of maturation: Idea is the element that allows “knowledge” maturation: 3 / 10 Datum Information Knowledge Technology Products / processes “Ideas are creative impulses that allow the combination of existing data, information, knowledge and technologies into new knowledge, technologies, products and/or processes.”
    • COB04851 IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION • Product development is regarded as a business process, i.e., it is a flow of activities that can be: • Formalized; • Measured; • Managed; • Optimized. • Examples of frameworks: • Evans (1959) • Cooper (1986) • Clarke et Wheelwright (1993) • Xerox Co. (1996) apud Chesbrough (2003) • Existing frameworks normally do not systematically look outside firm’s boundaries A QUICK REVIEW ON PRODUCT DEVELOPMENT FRAMEWORKS 4 / 10
    • COB04851 IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION 5 / 10 “Open Innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market.” (CHESBROUGH, 2003) “Three core open innovation processes: (1) The outside-in process: Enriching the company’s own knowledge base through the integration of suppliers, customers and external knowledge sourcing can increase a company’s innovativeness. (2) The inside-out process: earning profits by bringing ideas to market, selling IP and multiplying technology by transferring ideas to the outside environment. (3) The coupled process: coupling the outside-in and inside-out processes by working in alliances with complementary partners in which give and take is crucial for success.” (GASMANN et ENKEL, 2004) Not a theory, not a tool... A new way to see innovation
    • COB04851 IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION Starting framework: tripartite division of R&D as proposed by Frascati manual (OECD, 2002): Basic research aims the achievement of new knowledge: HOW CAN WE INCORPORATE COLLABORATION TO PRODUCT DEVELOPMENT? Applied research aims the discovery of practical application for available knowledge (new technologies): Finally, development aims the application of technologies into new or improved products and/or processes: 6 / 10 Basic Research Applied Research Experimental Development Pre-production Development Development Basic research information data knowledge Applied research knowledge information data technology Development knowledge information data technologies product
    • COB04851 IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION PRODUCT DEVELOPMENT FRAMEWORK 7 / 10
    • COB04851 IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION As a linear framework, this conceptual model incurs the limitation of this kind of models, not representing feedbacks that can happen in the knowledge maturation process in all steps of the funnel. Secondary knowledge and technologies can and are generated, for instance, during development. It is a fact that research also makes use of technologies, for example, those incorporated into the equipments used for research purposes. Those technologies are not represented in the framework, which constitutes another limitation of the model. Nevertheless, the framework presented previously has the advantage of successfully representing the mainstream of knowledge maturation within the PDP. One additional benefit of this model id that is allows the identification of the three core processes within open innovation within the funnel. LIMITATIONS AND ADVANTAGES OF THE CONCEPTUAL MODEL Indeed: • An outside-in process happens when knowledge and/or technologies enter a firm’s funnel. It is normally formalized by licensing or other intellectual property (IP) agreements or by an acquisition; • An inside-out process happens when knowledge and/or technologies leaves a firm’s funnel to be used by another firm. Likewise, it is normally formalized by licensing or other IP agreements or by selling; • A coupled process happens when collaboration arrangements uses knowledge and/or technologies from two or more institutions, with benefit to all institution funnels. It is formalized by mutual collaboration agreements, and likewise by licensing or other IP agreements. 8 / 10
    • COB04851 IDEAS, KNOWLEDGE AND TECHNOLOGY – A PRODUCT DEVELOPMENT FRAMEWORK FOR OPEN INNOVATION Brown, S.L.; Eisenhardt, K.M. (1995) “Product development: past research, present findings and future directions”, Academy of Management Review, Vol. 20, No. 2, pp. 343-78. Chesbrough, H.W. (2003) “Open innovation: the new imperative for creating and profiting from technology”, Harvard Business School Press. Clark, K.B.; Wheelwright, S.C. (1993) “Managing new product and process development – text and cases”, Harvard Business School, The Free Press. Cooper, R.G. (1986) “Winning at new products – accelerating the process from idea to launch”, Addison-Wesley. Cooper, R.G.; Edgett, S.J.; Kleinschmidt, E., 2001. “Portfolio management for new products”, 2nd edition, Basic Books. Evans, J.H., 1959. “Basic design concepts”, American Society of Naval Engineering Journal, November, 1959, pp.671-8. Gassmann, O.; Enkel, E., 2004. “Towards a theory of open innovation: three core process archetypes”, Proceedings of the R&D Management Conference, Lisbon, Portugal, July 6– 9, 2004. Krishnan, V.; Ulrich, K.T., 2001. “Product development decisions: a review of the literature”, Management Science, Vol. 47, No.1, pp.1-21. Liyanage, S.; Greenfield, P.; Don, R., 1999. “Towards a fourth generation R&D management model – research networks in knowledge management”, International Journal of Technology Management, Vol. 18, Nos. 3-4, pp.372-93. Loch, C.H; Kavadias, S. (eds.), 2008. “Handbook of new product development management”, Elsevier. OECD, 2002. “Frascati manual: proposed standard practice for surveys on research and experimental development”, 6th edition, Organization for Economic Co-operation and Development. OECD; EUROSTAT, 1997. “Oslo manual: guidelines for collecting and interpreting innovation data”, 3rd edition, Organization for Economic Co-operation and Development. Veybel, L.; Prieur, P., 2003. “Le knowledge management dans tous ses états - La gestion des connaisances au service de la performance”, Éditions d'Organisation. 9 / 10
    • COB04851 THANK YOU! Acknowledgments: