Open innovation typology

Open Innovation Typology All materials © NetCentrics 2008 unless otherwise noted

Key Points
Open Innovation is gaining popularity in the innovation space
However, Open Innovation is a generic term for a number of tools and techniques
The only common thread is working with customers or partners to gain ideas
It’s important to understand the differences between the different techniques

“ Open Innovation”
Open Innovation is a term coined by Henry Chesbrough to refer to a number of methods for gaining ideas from customers and business partners.

Representation
Open Innovation is usually represented by this funnel graphic

Open Innovation
In it’s simplest form, open innovation is a suggestion box that your customers can use to submit ideas
More sophisticated versions rely on vetted partners
Other open innovation programs use contests to solve problems – like the X-Prize

Our Framework
OVO has a framework to help our clients think about “open” innovation using two characteristics:
Who can participate?
How are they directed to submit ideas?
Let’s look at this in a framework.

Open Innovation and Crowdsourcing The typology we’ll review was included in a chapter in the recently published book Open Innovation and Crowdsourcing

Open Innovation Framework Instructions None Directed Invitations Relatively Few “ Everyone” Directed, Invitational Directed, Participative Suggestive, Invitational Suggestive, Participative

Directed, Invitational
Example: P&G Connect + Develop
Vetted partnerships that form “proprietary networks”
Only invited firms can participate, terms and conditions are established previously
Excellent for exchanging ideas with a small team of trusted partners

Directed, Participative
Example: Gulf Oil Spill idea contest
A contest to submit ideas to solve a specific problem or opportunity
Anyone can submit ideas to solve a stated problem
Good for broad participation and seeking novel or unusual solutions

Suggestive, Invitational
Example: IBM’s Idea Jams
People with specific insights or knowledge are invited to submit ideas that they believe are important
Jams and other campaigns allow invited participants to submit ideas about anything they believe is important
Good as a “birds of a feather” idea generation session.

Suggestive, Participative
Example: Dell’s IdeaStorm, Starbucks MyStarbucks Idea
Anyone can submit an idea about any topic
Freely accessible to anyone on the planet with access to the internet. Any possible idea can be submitted
Excellent as a listening post to spot customer ideas and trends. Number of ideas can be overwhelming

Other “Open Innovation” types
There are other types of open innovation that fit within the framework:
Using Innocentive or Nine Sigma to present a problem to the community at large
Technology transfer – “spin in” or “spin out”

Key Takeaways
Open innovation is a generic term that aggregates a number of tools and techniques that:
Require vastly different investments
Engage different customer segments
Result in very different types and quantities of ideas
Decide the goal, then choose the technique

For More Information
Contact OVO
Phone: 919-844-5644
Email: [email_address]
Web: www.ovoinnovation.com

Open innovation typology

by Jeffrey Phillips

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