Institute of Fundraising Convention - Open Innovation


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Talk by Roland Harwood and Lucy Gower from Institute of Fundraising Convention on July 1st 2013

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  • LUCY
  • Business strategy to help you achieve your organisations mission Innovation is crucial to survival
  • Why innovation is important Managing in the new normal – adapting to uncertainty 93% of fundraisers say the fundraising climate got toucher during 2012 and 89% expect their fundraising to get harder in 2013.69% had undertaken collaborative activity with others most commonly in the form of joint programmes or service operations 42 % expecting to deliver more with the same resource 67% experienced an increase in demand for services and 72% expect an increase in 2013Fundraising challenges – competition from other orgs 81% - donors uncertain about economic security 69%Statutory funding is being withdrawn Our donors needs are changing – the way we communicate is changing Look at the High Street – going out of business Kodak
  • The marketplace is crowded Who has a sponsored walk, coffee morning, night hike? You are not only competing with all the other charities that people give time and resource to – but also everything else that people do with their time and money
  • 1. Radical innovation = big leap / step change. Also called disruptive. Changes the way we do things. Itunes changed the way we listen to music Internet changed our world Risk associated to this – no charities are really operating in this space. It’s a scary place being tasked with the next big thing. Our aspiration and approach should be radical change – changing the world. Consider your attitude if you have to increase your income by 1% - to your attitude of increasing your income by 100%. Its your mindset and approach this is crucially important.
  • More often Small steps – incremental changes. Being challenging. Who is new in their role? Its NOW that you can ask lots of questions. Those of you who have been in your roles a long time – and are used to how ‘things are done round here’ challenge you to listen more – and consider the new persons point of view. Changing a process/product – NSPCC example Telephone fundraising 150k in first year Olympic cycling team – strategy for incremental innovation
  • Innovation can also be new product development – whether that is developing an entirely new product or service, or taking an existing one to a new audience, Or developing current products – taking them online for example.
  • It always starts with the problem – the reason why innovation gets a bad name is that it is often seen as frivolous/creative wokshops that do not generate ideas. Often that’s because people get really excited about ‘an’ idea – but if its not strategic – getting you to where you said you would go then you shouldn’t be doing it. Tell a story about wanting to develop an app – because someone else did it – have to be really clear on the problem you are trying to solve or the opportunity – and that it is strategic
  • ROLAND > LUCYGiving White Paper 2010 – that the Third Sector needed to be more innovative. Funding through Nesta for a range of programmes to drive giving – refer to Helens earlier session.Giving – not just money – but time, resources, skills and expertise. Grow the sector change the market. A programme offering support and coaching to charities to develop open innovation – brokering relationships with partners, helping internal collaboration – with staff and with donors, volunteers, supporters, service users. Innovation is about a series of connections. Driving change is hard. Doing new stuff is hard and sometimes you need help to make you a bit braver. 9 projects are currently being taken forward and developed. Important part of the programme is learning and sharing with the sector –project is still live and keep an eye on the Nesta website as
  • LUCYSimon Berry – DEFRA – job to get vital medicines to remote parts of Africa Negotiate with bottlers Using the negative spaces in coke crates. Started out with a bottle shape – missing one bottle. Then a slice – negative space no impact on capacity Then online, with a crowd, a tribe, a network of people develop better ideas – people with different expertise – inspired by Simon and what he is doing – making things possible beyond what Simon ever thought was possible
  • LUCYHow many work in big orgs? Teams in different parts of the UK – or even the world? It’s a challenge to get time together to develop ideas. How many if you have an idea know how to take it forward. What we find is that organsiations / individuals are good at coming up with ideas – but they get stuck. They get stuck because either they are not strategic, they don’t get internal buy in, and they get buried amongst day to day work. We worked with Oxfam to co-create their innovation process. The people who would be using the process to get their ideas to market designed their process. There is a toolkit of templates to help people atriculate, share and build test and prototype on ideas and Its is being used by the whole organisation – not just within fundraising. Along side that Oxfam are using an innovation platform. A strategic challenge is posted on the site for a set period of time – say a month. All staff can submit ideas, build on each others ideas – vote the good ones up and the bad ones down. At the end of the process the top ideas are reviewed by a team – and the ones with the greatest potential are developed further. The whole organisaiton can use this – even staff in the field – helps broker ideas and relationships – and better services and fundraising ideas – co produced.
  • ROLANDCo-drawing exercise
  • ROLAND > LUCYWho has volunteers, community fundraising, branches? Many many charities have really engaged networks – how much do you really tap into the skills and experience that these networks have. Do you know enough about them. Then there are networks outside your organisaion networks – corporate partners, major donors, other people that have skills and experience to help you – and solve your challenges.
  • LUCY This might work – BUT a learning point re the Open Innovation world – that when we do this there is ALWAYS a connection. We need to practice getting out more – and creating these networks – they need to be there ready to help – you cant create a network just for when you need one.
  • LUCY Summary slide
  • Institute of Fundraising Convention - Open Innovation

    1. 1. 100%Open 2013 100%Open @ IOF Convention Roland Harwood & Lucy Gower 1 July 2013 1
    2. 2. © 100%Open 2012 Open Up 201/07/2013 “No matter who you are, most of the smartest people work for someone else.” Bill Joy, Sun Microsystems
    3. 3. 100%Open 2013 3 Minute Joint Venture 1. Explain what you do. 2. Find out what your partner does. 3. Agree what you could do together. 4. Give your joint venture a name.
    4. 4. © 100%Open 2012 Innovation is… 01/07/2013 4 Innovating is....
    5. 5. “What you need to do differently to get to where you said you would go.” Ben Welch, Macmillan Innovation is…
    6. 6. Why Innovation is Important
    7. 7. Crowded Marketplace
    8. 8. Radical Big Leap
    9. 9. Incremental – small steps
    10. 10. Product Development
    11. 11. Innovation = Problem x Solution x Execution Innovation is…
    12. 12. © 100%Open 2012 Open Innovation 01/07/2013 12 Innovating with partners by sharing the risks and the rewards.
    13. 13. 100%Open 2013 13 Case Study 1 – The LEGO Group 1 July 2013 We helped LEGO create their open innovation strategy and develop an ideas platform rolled out to all employees and to an external community of 280,000 people.
    14. 14. 100%Open 2013 14 Case Study 2 – P&G 1 July 2013 We developed the Airlock for P&G to source new $100m opportunities. It enabled product designers insight into their requirements through a confidential process.
    15. 15. 100%Open 2013 15 Case Study 3 - Orange 1 July 2013 We helped Orange develop two open innovation and crowdsourcing programmes creating a new service, Fun Finder, and a new Giving App, Do Some Good.
    16. 16. © 100%Open 2012 Case Study 4 - Nesta We worked with Nesta on their recent Innovations in Giving Fund providing coaching and mentoring support for 28 big charities to develop new open innovations. 01/07/2013 16
    17. 17. © 100%Open 2010 Case Study 5 – Cola Life ColaLife uses the left over space in Coca-Cola crates to open up new distribution channels to carry ‘social products’ such as oral rehydration salts. 01/07/2013 17
    18. 18. © 100%Open 2012 Case Study 6 - Oxfam We worked with Oxfam to train their senior leadership team in innovation and to design a new innovation toolkit and internal innovation platform. 01/07/2013 18
    19. 19. © 100%Open 200901/07/2013 19 Lessons Learned “Innovation is a U-Shaped Process.” Paul Vanags
    20. 20. © 100%Open 2011 Co-Creation Drawing Rule 1: Draw only one line at a time Rule 2: No talking while drawing 1. Cooperation - One of you to take the lead 2. Cooperation – Repeat but reverse roles 3. Collaboration – Both decide together 4. Co-Creation – Neither decides, just draw 01/07/2013 20
    21. 21. © 100%Open 2011 Open Business Models & Buzzwords 01/07/2013 21 Co-Creative Collaborative Cooperative Closed Joint R&D Paywall Crowd-sourcing Delivery partnership Proprietary supplier Joint venture Alliance Open source Creative commons Minority stake Copyright Co-branding Spinout Majority stake Acquisition Market research Kaizen Membership org. Peer to peer Design platform Freemium Group buying Communities of interest Merger Cross licensing Franchise Profit share R&D
    22. 22. 100%Open 20131 July 2013 22 Two Models of Open Innovation • Starts with ‘what’ question: an innovation brief detailing a specific unmet need • Is a competitive marketplace amongst 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) Discover • 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) Jam
    23. 23. © 100%Open 201201/08/2012 23 100%Open Innovation Process Explore Extract Exploit Identify Interesting Questions and explore potential answers. Select the best innovations and potential partners. Prototype and take investable propositions to market.
    24. 24. © 100%Open 2011 Open Innovation Blueprint 01/07/2013 24 Who? Who should we innovate with and for whom? Employees, volunteers, supporters, brands, universities, suppliers? What? What are our open innovation challenges? Which unmet needs that lend themselves to a collaborative approach? Where? Where are we going to look for new opportunities? In existing and adjacent markets and geographies? Why? Why are we doing this and what is the incentive for our intended partners? To drive revenues or shift perceptions? How? How will the process work? Online/Offline? How fast? Business model? By what criteria will we make decisions?
    25. 25. © 100%Open 2012 Lessons Learned 2501/07/2013 “Innovation is a by-product of engaged networks.” Verna Allee
    26. 26. © 100%Open 2012 2 Degrees of Separation 1. Think of a project or problem where it would really help to be introduced to a specific person or organisation. 2. Introduce yourself and share the name of who you are trying to reach and why. 3. Does anybody else know that person or organisation directly, or else might know how to reach them? 01/07/2013 26
    27. 27. © 100%Open 2012 “Networking is only one letter away from not working.” Chris Powell 1 July 2013 27 The Agile Enterprise
    28. 28. © 100%Open 201001/07/2013 28 1. Always start with a problem or opportunity 2. Identify a win win proposition 3. Build your networks before you need them – internally and externally 4. Build long term trust relationships 5. Give > Get 5 Top tips for open innovation
    29. 29. 100%Open 2013 Thank You 1 July 2013 29 Roland Harwood and Lucy Gower Co-Founder & Director 100%Open | Somerset House | South Building | London | WC2R 1LA Phone: +44 (0)20 78133 1006 | +44 (0)7811 761 435 Email: Web: Twitter: @100Open