How To Implement Open Innovation: OI Chess Paradigm

How to implement open innovation? OI Chess Paradigm 24h of Innovation Rob Veldt ( twitter.com/innpowerer ) May 15, 2009

ABOUT
ideavents

ideavents ( www.ideavents.com )
stimulate (open) innovation
offline, online or both
share knowledge & creativity
simplify innovation (“just put the heads together”)
4 pillars:
research & consultancy
events (e.g. www.ThinkTankThursday.com )
tools (e.g. www.cash4idea.com )
investments
experience & accessibility

PURPOSE
what this presentation is about

OI science => OI business
answers for mainstream business
current OI hype focused on output
‘ what should be possible…’
translate abstract OI theory to concrete toolbox
fill gap or lose momentum:
lot of trials, only few successes…
lucky or high involved customers
how to engage full potential?
underestimated organizational impact
searching…

approach
business approach
internal organization
focus on large organizations
NOT incidental open innovation ‘campaigns’
change model
toolbox
transform organization

OI Chess paradigm toolbox which provides a structured approach to transform organizations from closed to open , using leadership styles and organizational identity , with attention to people , operations , policy and culture .

SCHEDULE
overview

implement open innovation
intro: What happened??
overview: open innovation
impact
challenge
closed-open modelling
OI Paradigm
simplify (pretend it’s a game)
let’s play: OI Chess Paradigm

WHAT HAPPENED??
introduction

what happened??
globalization
competitive advantage
image
web2.0
The Long Tail (Chris Anderson, 2004)
new ways of working
recruitment
innovation
role of IPR (only vs. first)
traditional R&D vs. high speed knowledge sharing

OPEN INNOVATION
overview

DEFINITION Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. [This paradigm] assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology (Henry Chesbrough, 2003)

cooperate use available capacity gather The Long Tail build IPR portfolio open inside outside closed low # involved high # involved

co-creation (cooperate) open brainstorm (TTT) crowd-sourcing traditional R&D open inside outside closed low # involved high # involved

Advantages (some)
early involvement
low costs (early exit)
low risk (late financial commitment)
interaction
low investment (outsourced)
out-of-the-box
recruitment
etc.

IMPACT
what it means

impact on organization
openness
share to multiply
involve suppliers, costumers / consumers, experts, outsiders
change:
people
operations (processes & infrastructure)
policy
culture

result: change (e.g.)
people
learning, networking, incentives, ...
facilitate regular sharing of knowledge & creativity
web access
existing channels vs. own channels
policy
information policy (IPR?)
communication policy
culture
open, less hierarchy, organic, ...

LOSE MOMENTUM
what worries us

challenge
manage organizational change (LT)
people
policy
culture
situational leadership styles
customize to evolving situation
role of organizational identity
define where you’re heading (end point), trust / clearness
start top-down to develop bottom-up culture
align commitment & budgets with OID!

CLOSED-OPEN
how we would do it

managing change

people policy culture operations

change process basics
unaware / incapable
aware / incapable
aware / capable
unaware / capable
(aware / unaware / capable)
situational leadership

UI AI AC UC (AUC) (un)aware / (in)capable: TRY BE INFO USE

leadership styles

UI AI AC UC (AUC) (un)aware / (in)capable: TRY BE INFO USE

TRY BE INFO USE culture policy operations people closed open

TRY BE INFO USE culture policy operations people + organizalional identity closed open

transformational leadership
vision (OID), meaning, challenge
align identities, common mission
charisma
commitment / motivation
empowerment / learning
self-sacrifice; respect / trust, role model
flexible, no standards
instead of transactional leadership
task / performance driven, corrective, risk avoidance

OI PARADIGM
Conceptual model for closed-open transformation

Culture People Operations (processes & systems) Policy UI AI AC UC L E A D E R S H I P S T Y L E S O R G A N I Z A T I O N A L I D E N T I T Y

SIMPLIFY
OI implementation is complex, but what if it’s a game...

metaphors
how to convince?
power of metaphors
translate, simplify & align...
identify shared purpose
create common 'language'
let metaphors rule the game!
what’s the perfect methaphor for OI Paradigm?

CHESS Metaphor: become open organization

Why Chess?
archetype for serious game
strategy
anticipation & scenarios
clear goal & simple rules
collection of little steps (squares)
accurate
logical notation

b d a c 1 2 3 4

LET’S PLAY!
implement open innovation:

King
Organization heading to open innovation
core / core business
new organizational ID
protect with rest of chess pieces
one at the time

Queen
Transformational leader:
charisma
vision
committed to King / OID
role model during closed-open process
overview
Q: ‘covers your back’

Rooks
Management
supervise
covers both columns and rows
‘ castling’: moves king into safer position & rook to more active position
per column

Knights
Ambassadors:
involve early (scout)
jump over/solve hurdles
(informal) key figures
obstinate
other views
authentic
strategically important

Bishops
3th party ‘coach’:
knows rules of the game
guide through closed-open process
preach OI aims
overview paradigm
constant (color)

Pawns
invloved crowd(s)
employees, suppliers, customers / consumers, experts, outsiders
quick starters
promotes at finish
grows with success
pawn structure determines strategy

THE RESULT OI Chess Paradigm

TRY BE INFO USE culture policy operations people closed open +OID

PLAN OF ACTION OI Chess Paradigm

Plan of Action (1)
involve a neutral party to guide through the closed-open process
define new organizational ID (strategy)
translate to logic parts (squares)
assign roles (chess pieces)
assign transformational leader (Queen) to succeed the closed-open challenge
work per square, per column

Plan of Action (2)
favor ambassadors (Knights)
involve the crowd (Pawns)
anticipate (management a.k.a. Rooks)
use neutral party to maintain overview and continuity (Bishops)
do everything in order to serve the new organizational identity (King)

inventorise experience live the culture redefine map improve leverage evaluate experience develop exploit inform analyse apply adjust collect TRY BE INFO USE culture policy operations people closed open ambassadors (?) grow(?) create(?) attract(?) (AUC)

SO: SIMPLIFY! Recapitulation OI Chess Paradigm

OI science => OI business
focus on input to gain output
open innovation has high impact on internal organizations
translate abstract OI theory to concrete toolbox:
deal with all consequences separately
speak one language to adopt change
define manageable steps
OI Chess Paradigm to structure OI implementation

FEEDBACK & QUESTIONS
Please share!

Thanks!
Rob Veldt
+31(0)6-34501721
[email_address]
www.ideavents.com
linkedin.com/in/robveldt
twitter.com/innpowerer
We are a Bishop too... :-)

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How To Implement Open Innovation: OI Chess Paradigm

by Rob Veldt on May 13, 2009

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How To Implement Open Innovation: OI Chess Paradigm — Webinar Transcript