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Open Innovation: what is it & why it mattersRoland Harwood : 23/02/2011 23/02/2011 1
Introducing 100%Open 23/02/2011 2 100%Open is dedicated  to open innovation.   Our know-how  helps you co-innovate  better, cheaper and faster.
23/02/2011 3 Innovating with partners  by sharing the risks  and the rewards. What we mean by open innovation?
23/02/2011 4 Explore > Extract > Exploit “Open Innovation is a  U-Shaped Process.” Paul Vanags, OXFAM
Playing Poker not Chess 23/02/2011 5
23/02/2011 6 What are we ‘actually’ going to do? “The only thing harder than starting something new,  is stopping something old.” Russell Ackoff
Two Models of Open InnovationDiscover and Jam February 23, 2011 7 Discover Jam ,[object Object]
Is a competitivemarketplaceamongst customers, suppliers or users
The innovation process is mediated  by a Trusted Agent
Innovations are extracted through  a linear process
Tend to be internal routes to market (e.g. license deals)
Starts with a ‘who’ question: finding partners to explore a broad opportunity
Is a cooperative community & process , with customers, suppliers or users
The innovation process is facilitated  through a Catalyst
Innovations are built using an iterative process
Tend to be external routes to market (e.g. joint ventures),[object Object]
Case Studies Landscape 23/02/2011 9 Customers Suppliers Partners
23/02/2011 10 Find your top 1%,  and understand what motivates them? Case Study 1
Case Study 1Virgin Atlantic 23/02/2011 11 Virgin Atlantic’s return on investment has been 10:1, better value than using a commercial third party for system development, and for more radical ideas.
Trust the community to  do the heavy lifting. 23/02/2011 12 Case Study 2
Case Study 2E.ON Power to the People is a customer-led innovation programme from E.ON that launched in October 2011 seeking new £10m ideas, products or ventures. 23/02/2011 13
Askinteresting questions. 23/02/2011 14 Case Study 3
Case Study 3Orange 23/02/2011 15
23/02/2011 16 Start at the end. Case Study 4
23/02/2011 17 Case Study 4Proctor & Gamble We invited the UK’s design community to respond to two briefs on fabric care (narrow) and wellness (broad), to find global new markets worth $100 million.
“The future reveals itself through the peripheral.” JG Ballard 23/02/2011 18 Case Study 5
23/02/2011 19 Case Study 5McLaren & NATS McLaren’s predictive F1 software allows air traffic controllers to predict how aircraft are likely to act at airports, overcoming costly and dangerous uncertainty.

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Get ambition roland harwood

  • 1. Open Innovation: what is it & why it mattersRoland Harwood : 23/02/2011 23/02/2011 1
  • 2. Introducing 100%Open 23/02/2011 2 100%Open is dedicated to open innovation.   Our know-how helps you co-innovate better, cheaper and faster.
  • 3. 23/02/2011 3 Innovating with partners by sharing the risks and the rewards. What we mean by open innovation?
  • 4. 23/02/2011 4 Explore > Extract > Exploit “Open Innovation is a U-Shaped Process.” Paul Vanags, OXFAM
  • 5. Playing Poker not Chess 23/02/2011 5
  • 6. 23/02/2011 6 What are we ‘actually’ going to do? “The only thing harder than starting something new, is stopping something old.” Russell Ackoff
  • 7.
  • 8. Is a competitivemarketplaceamongst customers, suppliers or users
  • 9. The innovation process is mediated by a Trusted Agent
  • 10. Innovations are extracted through a linear process
  • 11. Tend to be internal routes to market (e.g. license deals)
  • 12. Starts with a ‘who’ question: finding partners to explore a broad opportunity
  • 13. Is a cooperative community & process , with customers, suppliers or users
  • 14. The innovation process is facilitated through a Catalyst
  • 15. Innovations are built using an iterative process
  • 16.
  • 17. Case Studies Landscape 23/02/2011 9 Customers Suppliers Partners
  • 18. 23/02/2011 10 Find your top 1%, and understand what motivates them? Case Study 1
  • 19. Case Study 1Virgin Atlantic 23/02/2011 11 Virgin Atlantic’s return on investment has been 10:1, better value than using a commercial third party for system development, and for more radical ideas.
  • 20. Trust the community to do the heavy lifting. 23/02/2011 12 Case Study 2
  • 21. Case Study 2E.ON Power to the People is a customer-led innovation programme from E.ON that launched in October 2011 seeking new £10m ideas, products or ventures. 23/02/2011 13
  • 23. Case Study 3Orange 23/02/2011 15
  • 24. 23/02/2011 16 Start at the end. Case Study 4
  • 25. 23/02/2011 17 Case Study 4Proctor & Gamble We invited the UK’s design community to respond to two briefs on fabric care (narrow) and wellness (broad), to find global new markets worth $100 million.
  • 26. “The future reveals itself through the peripheral.” JG Ballard 23/02/2011 18 Case Study 5
  • 27. 23/02/2011 19 Case Study 5McLaren & NATS McLaren’s predictive F1 software allows air traffic controllers to predict how aircraft are likely to act at airports, overcoming costly and dangerous uncertainty.
  • 28. “All our work is about being social.” 23/02/2011 20 Case Study 6
  • 29. 23/02/2011 21 (Reluctant) PioneersLEGO Lego Mindstorms is LEGO’s most successful product range ever and has helped shift their strategy from a toy manufacturer to an innovation platform.
  • 31. What does this mean for you? Open innovation is common in creative processes but not necessarily in how organisations are actually run. Not all the smart people work for you. Organisationscan't do everything by themselves. Use networks proactively for innovation as well as marketing and fundraising. Can be effective way to solve problems that are bigger than one organisation alone (e.g. funders, agencies). Open innovation is a systematic way of exploring potential for new income through social networks.  23/02/2011 23
  • 32. Questions, questions, questions… Why open innovation? - Where is growth going to come from and what is the role of open innovation in achieving that goal?  How can we amplify what we do well? - What are the right incentives, processes, mindsets that we can build upon? What are we actually going to do next? – What should we use open innovation for and who should we be innovating with? 23/02/2011 24
  • 33.
  • 38.
  • 39. 23/02/2011 27 Thank you Roland Harwood Co-Founder & Networks Partner South Building | Somerset House | Strand |London | WC2R 1LA Phone: +44 (0)20 8133 1006 Email: roland@100Open.comWeb: www.100Open.com Twitter: @rolandharwood

Editor's Notes

  1. 100%OpenNestaMe – EdinburghMe – Music/Publishing/Science/Investment/EntrepreneurOpen Innovation – best expressed by Hollywood film set or theatre production
  2. Creativity/ideas are becoming commodified
  3. DavidWe recently ran a customer co-creation programme with E.ON where we were initially a little overwhelmed by the number of ideas submitted and felt pressure to respond to them all. The trick here was to sit back for a little while and let the community do the heavy lifting. i.e. have voting or commenting mechanisms on your online community which allows other members of the community to sift out the best ideas and let the cream rise to the top. Of course you still need to dip in occasionally if the community has mistakenly got carried away with creating 'a perpetual motion machine' but actually this seldom happens, and it's about enabling and trusting your community to do the right thing.
  4. DavidWe recently ran a customer co-creation programme with E.ON where we were initially a little overwhelmed by the number of ideas submitted and felt pressure to respond to them all. The trick here was to sit back for a little while and let the community do the heavy lifting. i.e. have voting or commenting mechanisms on your online community which allows other members of the community to sift out the best ideas and let the cream rise to the top. Of course you still need to dip in occasionally if the community has mistakenly got carried away with creating 'a perpetual motion machine' but actually this seldom happens, and it's about enabling and trusting your community to do the right thing.
  5. RolandMobVol first then OSCR (link to P&G)Last year we ran another project with Orange which was about crowdsourcing social media applications. The initial challenge was targeted at social entrepreneurs, charities and technical developers and so was slightly complicated in scope and we started with a very difficult challenge. However through much discussion and debate we managed to boil down the challenge to the following question: "How can people do good in 5 minutes or less using their mobile phone?" which is much easier to understand and really seemed to capture the imagination of the target audiences. The trick here is to ask open questions that are both not too broad but also not too specific, but instead aim for the sweet spot between these two extremes where there is room to be innovative.
  6. A landmark study of 800 companies across 17 countries by Cambridge University recently proved that Innovation success is primarily dependent on corporate culture - not process, star hires, R&D spend, budget or national culture. 
  7. Davidask/pose the questions but don’t answer them (yet)
  8. RolandFind your top 1% and understand what motivates them. – Virgin AtlanticEnable and trust the community to do the heavy lifting. – EONStart at the End. – P&G vs OrangeAsk open and interesting questions. – OrangeDevelop your peripheral vision. – McLaren & NATSSet ambitious targets (and publish them widely). - Oracle