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)

e.g.

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