Open innovationintuit npuc


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Presentatie Jan Bosch over innovatie tijdens #studytripus

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Open innovationintuit npuc

  1. 1. Introducing Open Innovation at Intuit:Harnessing the Power of the CrowdJan Bosch, VP Open Innovation people
  2. 2. Overview•  Introducing •  How Intuit grows • Internal innovation • Open innovation • Lessons learned2 Intuit Proprietary & Confidential
  3. 3. From Research to Industry Innovation Open Innovation (Intuit, USA) Industrial Engineering Process (Intuit, USA) development Head of research lab Industrial (Nokia, Finland) research Professor of software engineering Academia (+ consulting) (RuG, Netherlands) (BIT, Sweden) Intuit Proprietary & Confidential
  4. 4. Intuit at a Glance A Leading Provider of Business and Financial Management Solutions •  Founded in 1983 •  FY 2009 revenue of $3.1 billion •  Traded on the Nasdaq: INTU •  Employs more than 7,800 people •  Offices across the U.S., Canada, India and U.K. •  Nearly 50 million people use our QuickBooks, Payroll, Payments, TurboTax, financial institution solutions and Quicken products and services Intuit Proprietary & Confidential
  5. 5. Revolutionizing People’s Lives…Solving Their Important Problems… Creating Innovative Products and Services Intuit Proprietary & Confidential
  6. 6. Our Ecosystem: Millions of Customersand Developers 19 million 7 million 1,600 TurboTax Small Business Financial Institutions Users Users serving 9 million End Customers 12 million 250,000 75,000 Consumer Accountants Developers Quicken Users Intuit Proprietary & Confidential
  7. 7. Markets and Opportunities Small Business: QuickBooks Tax Health Care Global Plus Payroll & Payments Financial Institutions7 Intuit Proprietary & Confidential
  8. 8. Fortune Top 100 Places to Work Intuit Proprietary & Confidential
  9. 9. Most Admired: Software Industry 7 Years in a row 2004 2005 2006 2007 2008 2009 2010 Intuit Proprietary & Confidential
  10. 10. Game Plan to Win: Connected Services Intuit’s focus is… By creating and acquiring… And capitalizing on three significant market trends… Intuit Proprietary & Confidential
  11. 11. Overview•  Introducing •  How Intuit grows • Internal innovation • Open innovation • Lessons learned11 Intuit Proprietary & Confidential
  12. 12. Intuit’s 3-Legged Growth Mergers & Internal innovation Acquisitions Open Innovation12 Intuit Proprietary & Confidential
  13. 13. Internal InnovationNew organic … are driven by 3 … which are outputs fromrevenues… factors… how we innovate Quantity of ideas Ideas (at bats) Priorities New organic Quality source revenue of ideas 1 ƒ ƒ (runs scored) (right pitch) People Execution against ideas Approach (mechanics) Page 13 Intuit Proprietary & Confidential
  14. 14. The Intuit innovation systemPage 14 Intuit Proprietary & Confidential
  15. 15. Internal Innovation Mechanisms•  Unstructured time•  Idea jams•  Tool: Brainstorm•  Intuit Labs•  Horizon planning15 Intuit Proprietary & Confidential
  16. 16. Unstructured Time 10% time•  Block and protect 10% of employees time –  Recognize in project schedules –  Aggregate into bigger blocks –  Establish a “no meeting day”•  Innovation events every 4-6 months –  Focused time and competition drive energy & results –  VP (and up) engagement…and customers are there, too –  Tracks for ‘prior work,’ ‘same day sprint,’ and ‘business challenges’•  Recognition, rewards and celebration of UT successes –  For teams (best award = more time) –  And for managers who enable teams –  Start with organizations with passion and drive…create & celebrate success•  Fun tools and clear, lightweight processes –  Idea visibility…enabling collaboration to improve ideas (Brainstorm) –  Matchmaking to get x-functional teams to critical mass (Brainstorm) –  Clear the obstacles to getting working code out fast ( –  Review groups and mentors in each businessPage 16 Intuit Proprietary & Confidential
  17. 17. •  35% engagement across Intuit; 50% at some customers•  6x new releases with 60% reduction in TTM – Viewmypaycheck: idea to in-market release in 3 months, it now has 90,000 active users and a 4.5 rating•  Fits naturally into existing workflows, e.g. email, and helps connect people with relevant skills and interests•  Recommended as the platform of choice by Bain & Co, etc. – Innovation tournament at a 45,000 employee services company and saw a 5x increase in participation from the previous year17 Intuit Proprietary & Confidential
  18. 18.…removing obstacles •  Step-by-step release checklist •  Covers IP, security, privacy, legal, branding, hosting, etc.Page 18 Intuit Proprietary & Confidential
  19. 19. Horizon planningBreakdown of our businesses & investment into 3 stages Extend & Defend Build Emerging Create Viable Core Businesses Businesses OptionsPage 19 Intuit Proprietary & Confidential
  20. 20. Overview•  Introducing •  How Intuit grows • Internal innovation • Open innovation • Lessons learned20 Intuit Proprietary & Confidential
  21. 21. Intuit’s Engagement with the Outside•  What Intuit has to offer –  Brand –  Customer base –  Products capable of acting as platforms for innovation –  Developer ecosystem –  Technology and market due diligence –  Marketing and distribution channels –  Infrastructure –  Equity•  What Intuit may receive –  The usual – M&A opportunities –  Access to complimentary technologies, products, services, business models and channels –  resources to support Intuit-funded development –  new applications and increased demand for Intuit products & services –  favorable terms on future development and commercialization agreements –  options to increase ownership in future21 Intuit Proprietary & Confidential
  22. 22. Phase 1: Establish Current State Open innovation A huge opportunity that we are exploiting to less than 30% of its potential; successes exist, though Structure of study 28 innovation leaders across the company interviewed More than 100 years of Intuit experience Several key inhibitors need to be addressed •  Mindset and Culture: Not Invented Here syndrome •  Organizational: Lack of executive attention; Intuit is insulated and inward focused •  Skills: Traditional open innovation core competencies eroding Proposed key initiatives •  Awareness: Open Innovation event •  Desire: quantitative Open Innovation objectives for BUs •  Capability: focus OI efforts on academia, VCs/startups, suppliers and crowdsourcing22 Intuit Proprietary & Confidential
  23. 23. For Each “Dimension” – Self Assessment* 70% Several interviewees included CDI in their assessment of Open Innovation with the 60% customer. The author respectfully disagrees with that assessment 50% 40% 30% 20% 10% 0% *Average of self assessment by innovation leaders on how effective their BU is in exploiting each “dimension” of Open Innovation on scale from 1-5 (5 being best), converted to percentage points.23 Intuit Proprietary & Confidential
  24. 24. Proposed Key InitiativesBuild Awareness•  Organize Open Innovation event (external and internal successes) Create Desire •  Quantitative (metrics-based) Open Innovation objectives for BUs •  Long term BU scenario planning workshops with external partnersDevelop Knowledge and Capability•  Focus Open Innovation efforts on: •  Academic partners – to break myopia •  VCs & startups – for non-M&A partnerships •  Suppliers – to drive growth by reducing Intuit investment in context•  Adopt crowdsourcing • For ideas and challenges: external Brainstorm Institutionalize Open Innovation •  Attention in Operating reviews •  Celebrate successes 24 Intuit Proprietary & Confidential
  25. 25. Phase 2: Undirected Open Innovation•  Academic partnerships: MIT Media Lab (Center for Future Banking) – Future of Payments workshop – Future of Personal Financial Management workshop – Broad attendance of sponsor weeks – Individual meetings between innovation leaders and research groups – Graduate students as summer interns at IntuitResults: Great at ideation – Intuit staff came away feeling energized and full of new ideas Technology transfer from Media Lab to Intuit Summer intern initiated 3 valuable innovations at BU Stanford Technology Venture Partners - Global Innovation Tournament25 Intuit Proprietary & Confidential
  26. 26. Entrepreneur Day #2What:•  Half day session with selected entrepreneurs and startup companies to explore partnershipsWhy:•  Find new business opportunities•  Source leading edge technologiesHow•  Broad call for proposals to several communities•  Involve BUs to select ~60 companies to attend•  Give each company speed dates and demo opportunity•  Provide feedback within 48 hoursResults•  Business partnerships in place, several trials ongoing now•  Entrepreneur day #1: 10% success rate; #2: > 25%•  Very positive feedback from participating companies•  Great exposure in (social) media26 Intuit Proprietary & Confidential
  27. 27. 27 Intuit Proprietary & Confidential
  28. 28. Strategic Supplier Innovation ContestWhat:•  Contest for strategic suppliers to submit innovative proposals for collaborative growth effortsWhy:•  Drive growth with already established partners•  Offer venue for strategic suppliers to differentiate and engage beyond current relationshipHow•  Announced at Strategic Supplier Summit•  Involve BUs to evaluate 60+ proposals from 30 suppliers (alliances)•  Selected a winner, two runner-ups and 38 ideas were followed up onResults•  Around 5 of the ideas taken forward by the BUs with strategic suppliers•  Very positive feedback from participating companies28 Intuit Proprietary & Confidential
  29. 29. Phase 3: Directed Open InnovationTransition to:•  Asking for technologies and solutions that we want to source from the outside•  Continuous interaction with communities and partners around innovation (instead of periodic events)•  Specifically: Crowdsourcing29 Intuit Proprietary & Confidential
  30. 30. Crowdsourcing Approaches30 Intuit Proprietary & Confidential
  31. 31. www.intuitcollaboratory.com31 Intuit Proprietary & Confidential
  32. 32. 32 Intuit Proprietary & Confidential
  33. 33. Four Use Cases … Share your best idea with us Send us your best collaboration proposal Look at our technology needs and solve them Participate in a challenge and win!33 Intuit Proprietary & Confidential
  34. 34. Phase 4: Integrating Open Innovation•  Up to now Open Innovation is still viewed as separate of “business as usual”•  Final stage is to embed open innovation as an integral part of innovation and development processes34 Intuit Proprietary & Confidential
  35. 35. Lessons Learned•  Even in a very innovative organization, opening up the innovation process to the outside is difficult•  In order to get early wins, focus initially on the late stages of the innovation process – revenue (even a little) is a great motivator•  InnoCentive/Hypios/NineSigma-style challenge formulation not successful internally (yet) – not sure if it fits Intuit or software companies in general•  Even if a topic is a strategic priority, a specific opportunity may still fail if it’s not on the internal top-3 or top-5 list•  Transition to undirected to directed open innovation (getting a shopping list) proved to be difficult•  Implementation at Intuit had to be adopted to our specific needs and particularities35 Intuit Proprietary & Confidential
  36. 36. Conclusion YOU already know the answer, but the Phase 1: Build awareness organization does not Events build awareness and create the first Phase 2: Undirected OI early successes Limited effort required from organization Getting a CDI driven company to express what it needs before it needs it Phase 3: Directed OI Software companies are different … Open innovation is an integral part of the Phase 4: Integrate OI innovation and R&D processes36 Intuit Proprietary & Confidential
  37. 37. Page 37 Intuit Proprietary & Confidential