Organizational Competences for Open Innovation

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This is a presentation of intermediary results from a German R&D project about "Open Innovation and Organizational Competences"

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Organizational Competences for Open Innovation

  1. 1. Organizational Competences for Open Innovation in Small and Medium Sized Enterprises of the Digital Economy Joachim Hafkesbrink innowise GmbH Duisburg, 7.12.09 „ Competences Development and Process Support in Open Innovation Networks of the Digital Economy through Knowledge Modeling and Analysis“
  2. 2. Index Methodological Background A spotlight on the Digital Economy – proponents of Open Innovation How to define Open Innovation in the Digital Economy Linking Open Innovation and Competences Linking Organizational and Individual Competences Concluding remarks: some hypotheses on the future of Open Innovation in the Digital Economy
  3. 3. Methodological Background <ul><li>Underlying Methodology and Informational Background </li></ul><ul><li>Literature on Open Innovation </li></ul><ul><li>Conferences attendance ISPIM 2008 (Tours) and 2009 (Vienna) </li></ul><ul><li>Consultancy and Research on New Business Models in the Digital Economy/ New Media Industry </li></ul><ul><li>Four in-depth longitudinal case studies within the KOPIWA project („Competences Development and Process Support in Open Innovation Networks of the Digital Economy through Knowledge Modeling and Analysis“) </li></ul><ul><li>Online questionnaire (investigation within the BVDW – German Professional Association of the Digital Economy) </li></ul>
  4. 4. A spotlight on the Digital Economy – proponents of Open Innovation (1) Source: www . newmediaranking .de OVK Online Report 2009/02 Overview of figures and trends (ed. BVDW 2009) multiple digital segments „ steady growth even in the crisis“ „ highly dynamic project driven business“
  5. 5. A spotlight on the Digital Economy – proponents of Open Innovation (2) Technology and Market Convergence  need for collaborative innovation
  6. 6. A spotlight on the Digital Economy – proponents of Open Innovation (3) Games, BlueRay-Player, Internet + ??? Examples of technology convergence Playstation 3
  7. 7. How to define Open Innovation in the Digital Economy? (1) “ Open Innovation focuses on how to combine different competences or technological capabilities whether they are inside or outside the firm and apply them to commercial ends.” (Lazzarotti/Manzini 2009; Vanhaverbeke/Cloodt/Van de Vrande 2008)
  8. 8. How to define Open Innovation in the Digital Economy? (2) Facets of Open Innovation in the Digital Economy: Bottom-up: e.g. starter-kernel / common programming context (e.g. tools, languages, environments, etc), but no common project, a common goal or a common organizational context of production (e.g. Yahoo! Developer Network or programming discussion forums like http://php-forum.com/; and code sharing sites e.g., http://snipplr.com/) Top down: decisive common project context and programming goal , a centralized authority with control over the code base, organized in star-shaped networks with developers only communicating to one central hub. Development (Open Technology): technological development, where collaboration is more or less open to all and the innovative source technology is shared, licensed etc. between stakeholders to develop software programs or applications for different fields Application (Open Content): application development based on one or more technologies e.g. to enable and stimulate collaborative innovation and open business models that i.a. allow for crowd-sourcing in different application fields (e.g. social software applications like Web 2.0 platforms)
  9. 9. How to define Open Innovation in the Digital Economy? (3) Examples of Open Innovation in the Digital Economy: OSS Open Design Examples of Open Innovation in the KOPIWA project: MySQL Yahoo! Pipes Apache Commons Case Study „Mobile CMS“ Case Study Open SIM Case Study User Generated Learning Snippets LinkedIn Xing MySpace Facebook
  10. 10. Linking Open Innovation and Competences (1)
  11. 11. Linking Open Innovation and Competences (2) Macro-level Technology convergence Regulatory Push Diffusion of Enabling Technologies (mobile devices, broadband) Interaction between B2C, C2C, C2G …., „Prosumers“ New Lifestyles, Individualisation Meso-level Changes in supply chains Networking Communities Micro-level
  12. 12. Linking Open Innovation and Competences (3) Organizational Competences for Open Innovation Requirements based on comprehensive literature research (> 100 sources)
  13. 13. Linking Open Innovation and Competences (4) Moving from closed to open innovation: the challenge Closed Innovation (Innovation 1.0) Open Innovation (Innovation 2.0) Internal R&D Control over everything Siloed mind-set Collaboration = threat Internal & external R&D Laisser faire controlling open mind-set Collaboration = opportunity
  14. 14. Linking Open Innovation and Competences (5) Different Perspectives of Organizational Competences <ul><li>Structural View </li></ul><ul><li>Infrastructure </li></ul><ul><li>Policy </li></ul><ul><li>Culture </li></ul>Innovation 2.0 Innovation 1.0 <ul><li>Process View </li></ul><ul><li>Unfreezing </li></ul><ul><li>Moving </li></ul><ul><li>Freezing </li></ul>
  15. 15. <ul><li>10 Golden rules to kill (Open) Innovation: </li></ul><ul><li>Distrust all ideas coming from inferior levels and insist on approvals of superior levels! </li></ul><ul><li>Treat employees communicating external as a betrayers and always endorse the NIH syndrome! </li></ul><ul><li>Encourage reciprocal criticism! </li></ul><ul><li>Critizise without restraint and disable acclamations! </li></ul><ul><li>Treat disclosure of problems as blunder! </li></ul><ul><li>Always be in full control of everything! </li></ul><ul><li>Make reorganization decisions underhand and implement them abruptly! </li></ul><ul><li>Always ask for accurate justifications of information inquiries (who wants to know what?)! </li></ul><ul><li>Above all delegate savings programs! </li></ul><ul><li>Don’t forget that you, as an incumbent of a superior level, still are aware of the most important things in your business and nobody else! </li></ul>Linking Open Innovation and Competences (6) Unfreezing (  to slacken crusted organizational structures and processes)
  16. 16. Dynamic change capabilities overcome routines install philosophy of constant change improve self-organization ability install continuous learning improve responsiveness to uncertainty and ambiguity Linking Open Innovation and Competences (7) Moving (1) (  to configurate trials, working in a new way, gaining trust and commitment) Effective organizational structures and processes Install heterarchical and ad-hoc structures Build cross-functional interfaces Provide enabling spaces Develop dedicated rewarding systems Enable decentralized decision making Cultural openess Open up borderlines, communication and mindsets Develop identification and institutionally based trust Install knowledge friendly organizational structures Set up participative structures Admit high level of fault tolerance Supportive technological enhancement Introduce techniques to enable adductive thinking Install interactive collaboration tools Improve ability to use (collaboration) software for web interaction and knowledge elicitation
  17. 17. Linking Open Innovation and Competences (8) Internal collaboration   Enable internal networks to acquire external know how coordinate knowledge exchange across boundaries synergetically integrate creative capacities Networking capabilities   leverage individual and company network balance strong and weak ties manage serial, pooled or mutual inter-dependencies increase networking reputation, goodwill & trust induce synergetic interactions with universities, suppliers and users · ability of balancing transaction value and costs ability to leverage intermediary services for outside-in and inside-out processes outside-in/inside-out collaboration   bridge the cognitive distance between external and internal knowledge increase proximity to innovation partners develop gate-keeper competences enforce co-ideation, co-design and co-development capabilities strenghten active user involvement capability Moving (2) (  to configurate trials, working in a new way, gaining trust and commitment)
  18. 18. Linking Open Innovation and Competences (9) Re-Freezing (  to enable new organizational competences in ...) identification of technological opportunities, i.e. the ability to identify sources and gaining access to external and internal knowledge/ technologies elicitation and assimilation, i.e. the ability to recognize compatibility of external and internal knowledge/ technologies understanding/transforming, i.e. the ability to acquire, adjust and integrate external knowledge/ technology into the product / services development sharing/disseminating/exploitation, i.e. the ability to valorize integrated knowledge towards the market
  19. 19. Linking Organizational and Individual Competences readiness collaboration absorption Etc. Individual Competences Organizational Competences Research Question in KOPIWA: what are important individual competences that lever the organizational capability for Open Innovation in the Digital Economy?
  20. 20. <ul><li>The properties of digital technologies favor Open Innovation in the Digital Economy, with attributes of being distributed, collaborative, interactive and often systemic. </li></ul><ul><li>The shift to Open Innovation in the Digital Economy is – in contrast to other industry segments – an ongoing natural and evolutionary development, nothing special but still challenging. </li></ul><ul><li>In future the challenges of Open Innovation will increase as a result of diminuishing threshholds in using enabling technologies by a broader community of prosumers of digital products and services (swarm intelligence). </li></ul><ul><li>Swarm intelligence and increasing convergence of digital technologies rises additional requirements in terms of complex organizational and individual competences beyond professional skills, especially to develop new business models. </li></ul><ul><li>The Digital Economy is therefore desperately in need for a smart, prospective and responsive competences monitoring system. KOPIWA is the first step in that direction. </li></ul>Some Hypotheses on Open Innovation in the Digital Economy
  21. 21. Some Hypotheses on Open Innovation in the Digital Economy By the Way: Crowdsourcing is not.... Contact: Joachim Hafkesbrink Innowise gmbh Bürgerstr. 15 47057 Duisburg [email_address]

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