Presentation given at breakfast briefing of the IT Forum Rhein-Neckar on Jan 31, 2013.

1. Dr. Jochen Friedrich
Technical Relations Executive
Open Innovation –
The examples of Open Standards and
Open Source
© 2013 IBM Corporation
© 2009 IBM Corporation

2. The “Webolution” – Innovation driven by Openness
Mid 1990s Early 2000 Today 2020
Pre-web Web 1.0 Web 2.0+ ???
Telephones, fax HTML, CSS, XML “The read/write web” Increased global
… Standards Standards combined integration
Newspapers,
books, Browsers, Plug- for technology Pre-dominance
magazines, etc. ins integration of “Digital
E-commerce, Interoperability Natives”
Encyclopedias
web-based forms Global integration Constant
Internet, ftp
Dynamic but not transformations
Office suite Blogs, wikis, social for smarter
desktop very interactive networks, virtual
web pages solutions
Local disk worlds
storage Mostly inbound Web-based email, => Room for
Floppies information office applications, new wave of
More and more etc. innovation
open SOA, SaaS, Cloud
2 © 2013 IBM Corporation

3. The Potential for Innovation – a world getting smarter
– more instrumented, interconnected, intelligent
Smart traffic Intelligent Smart food Smart Smart energy Smart retail
systems oil field systems healthcare grids
technologies
Smart water Smart supply Smart Smart Smart regions Smart cities
management chains countries weather
Technology integration and flexible connection of information,
computing resources and people
Openness plays a key role
3 © 2013 IBM Corporation

4. Innovation – Technology and Process Integration
• Business model – Innovation in the structure and/or financial model of
the business
• Operational – Innovation that improves the effectiveness and efficiency
of core processes and functions
• Products/services/markets – Innovation applied to products or services
or “go-to-market” activities
“Ignite innovation through business and technology integration –
Use technology as an innovation catalyst by combining it with
business and market insights.”
[IBM Global CEO Study 2006, p 4. (Research with 765 CEOs worldwide)]
“To innovate, High-growth CIOs actively integrate business and IT
across the organization 94 percent more often than Low-growth
CIOs. “There is no innovation in my organization without the
involvement of IT,” said a Government CIO in Brazil.”
[IBM Global CIO Study 2009, p. 14.(Research with 2,500 CIOs Worldwide)]
4 © 2013 IBM Corporation

5. Open Standards Promote Innovations for a Smarter Planet
SMARTER IS … Insight SMARTER IS … Green SMARTER IS … Working
Enable innovative services in Appliances, meters and Reduce cost and
response to customer sensors adjusting consumption development time, increase
requests and a changing dynamically based on usage – agility and flexibility and
business environment cutting cost and avoiding improve access to design
brown/black outs information
“Leverage innovation to deliver "green" infrastructures that
are highly efficient and overlay the physical infrastructure
with digital intelligence. [...]
Embrace intelligent systems that use open standards to
provide near realtime information for better management of
the infrastructure, water quantities, or, even, entire
transportation systems.”
[Results from the IBM Eco-efficiency Jam 2010. (51 hour Jam with 1600
experts in lead roles from more than 60 countries)]
5 © 2013 IBM Corporation

6. Open Ecosystem for Innovation
■ Open Standards Open Computing
– Facilitating exchange of data by integrating
different technologies
– Promoting interoperability by using published Open
open specifications Architecture
■ Open Architecture
– Increasing collaboration by simply extensible Collaborative
business processes, e.g. SOA Innovation
– Innovation within open infrastructures and via
the combination of technologies, e.g. Cloud Open Open
Standards Source
■ Open Source
– Promoting innovation by leveraging
development expertise of the open source
community
– Follow the collaborative model successfully
applied in open source (crowd sourcing)
6 6
© 2013 IBM Corporation

7. Open Innovation – Operating in a New Equilibrium
Open
Proprietary
Innovation
Innovation
Collaboration Advantages
Advantages - Community
- Control - Common foundation
- Uniqueness - Cost
- Focus
It is no longer about proprietary or open
It is about playing well with both, e.g. integrating Open Source
technologies alongside proprietary technologies.
7 © 2013 IBM Corporation

8. Open Standards vs. Open Source
Pretty often there is confusion between the terms and concepts of
“open standards” and “open source”.
Open Standard Open Source
Plan/ Blueprint telling you Code, actual concrete
what you must do if you software;
actually get around to
It may implement open
building something
standards;
Is developed and maintained It is built and maintained in
in a particularly transparent a particularly transparent
way and is “freely” available way with community
and implementable. involvement, and is
“freely” available.
8 © 2013 IBM Corporation

9. Standards …
■ … facilitate market access by making sure that regulatory
requirements are met (presumption of conformity) – especially in the
regulated areas of health, safety and the environment;
■ … ensure interoperability by providing standardised interfaces,
protocols, messages etc. and thus giving information on how to
connect technology components and on how content is coded;
■ … promote innovation by driving the exploitation of technologies and
enabling and triggering innovation on the level of the implementation of
standards;
■ … foster competition by allowing exchange and replacement of
technologies, avoiding vendor lock-in and creating a level playing field
for technology providers.
9 © 2013 IBM Corporation

10. Global ICT Standardisation Eco-System
IEC ISOISO ITU
“private” consortia
JTC 1
Small, mostly
CENELEC CEN ETSI
OASIS
Others...
IEEE
IETF
W3C
OGF
CEN/Cenelec Forum
National National National
Committees Bodies Organisations
(e.g. DKE, UTE, BSI, (e.g. DIN, AFNOR, (e.g. TB ETSI, CF
CEI) BSI, UNI) ETSI, GIETSI,DTI)
FORMAL STANDARDISATION
NATIONAL DELEGATION DIRECT PARTICIPATION
10 10 Feb 23, 2012 © 2013 IBM Corporation

11. The debate about Open Standards
■ An open standard is developed and
maintained by independent people from Open Closed
multiple organizations in an
Implementation
independent group.
Development
Maintenance
Modification
Acquisition
■ No one product provider dictates the
standard, makes rules that the standard
must conform to his or her products, nor
“plays the system” so that his or her
products will be the only
implementations. Open Closed
■ An open standard is freely available to
Implementation
and implementable by anyone. This
Development
Maintenance
Modification
Acquisition
needs to include those creating open
source software if the standard relates to
software interoperability.
Heated debate about: - Royalty-free licensing
- No IPR encumbrances
11 © 2013 IBM Corporation

12. Open Standards in the Market Place
● Forthe internet and
the world wide web
the dominant
licensing model is Applications OAGi
Royalty-free; OASIS
● The higher-up in the
Middleware/
technology stack the Middle layer W3C
more is Royalty-free
the dominant model;
IETF
● Some
Infrastructure
organisations IEEE
explicitly adopted an ETSI Ecma
IPR policy which has Base
only Royalty-free or technology
allows for Royalty- FRAND Royalty-free
free as an option
Standards in the area of software interoperability should
be Open Standards available on a Royalty-free basis.
12 © 2013 IBM Corporation

13. Open Innovation and Standards Strategy
Implementation
Base Innovation matrix:
Technology
Techno- Standard
Integration
logy
Innovation
TECHNOLOGY TECHNOLOGY
CONTRIBUTION EXPLOITATION
Key strategic aspects
Standardisation is a voluntary business
decision.
Openness is a business decision based
on a clear business case.
Without opening up some opportunities
are likely to be missed.
13 © 2013 IBM Corporation

14. Open Source: Driver for Innovation
Open Source drives IBM broadly contribute to Open Source technology
innovation and leading development and integrates Open Source technologies:
edge technologies.
A current example is Cloud
with the
OpenStack Foundation.
OpenStack is a global collaboration of
developers and cloud computing
technologists that seek to produce a
ubiquitous Infrastructure as a Service
(IaaS) open source cloud computing
platform for public and private clouds.
Open Source...
... is a major driver of innovation => Open Innovation.
... needs to be able to implement and use standards => Open Standards.
… can be supported by Royalty-free standards for software interoperability.
© 2013 IBM Corporation

15. Crowd sourcing – open data for open innovation
DIGITAL AGENDA FOR EUROPE
“[...] governments can stimulate content markets by making public sector
information available on transparent, effective, nondiscriminatory terms.
This is an important source of potential growth of innovative online Open
services. The re-use of these information resources has been partly
harmonised, but additionally public bodies must be obliged to open up Data
data resources for cross-border applications and services.” (section 2.1.1,
p. 5)
● free, web-based platform (http://cityforward.org)
● enables users - city officials, researchers, academics and
interested citizens world-wide - to view and interact with
city data while engaging in an ongoing public dialogue about cities
Users can explore and analyse data collected from numerous public sources featuring
metropolitan areas, cities and smaller geographic areas
City Forward’s exploration tools help identify patterns, trends and correlations in the data
that may reveal new insights and point to new areas for further investigation.
15 © 2013 IBM Corporation

16. Innovation and Openness – High on Political Agenda
“By the end of the Commission's next mandate, I want
Europe to have become not just a 'knowledge society', but
an 'innovation society.' I plan to make this one of my top
personal priorities. Indeed, I want it to be an important part
of my legacy.
[…]
“... the application of innovations like Web 2.0 to business and public life is
changing the way in which innovation happens. It is becoming more open
and collaborative. Once the preserve of a select elite, it now involves a
much wider range of actors. […] crowd-sourcing and co-creation are now
the order of the day!
We need a new policy that reflects these changes. This means that we will
have to, well, innovate!“
[President Barroso, European Innovation Summit 2009. Source of photo: EU Commission: Audiovisual
Services.]
16 © 2013 IBM Corporation

17. Thanks very much for your attention ...
… Happy to answer your questions...
17 © 2013 IBM Corporation