Presentation from Yesterday's Cutec conference in Cambridge

1. Cutec Presentation 9th JuneRoland Harwood 09/06/2011 1

2. 09/06/2011 2 Innovating with partners by sharing the risks and the rewards. Open Innovation Defined

3. Open Business Models 09/06/2011 3 Co-branding Spinout Alliances Delivery partnership Proprietary supplier Minority stake Out-licensing Joint venture In-licensing Collaboration Majority stake Royalties Co-Creation Crowd sourcing R&D Acquisition Market research Cooperation Ideas competition Closed Creative commons Suggestion schemes Customer feedback Open source

4. 09/06/2011 4 “Networking is only a letter away from not working.” Chris Powell Know-How or Know-Who?

5. June 9, 2011 5 Know-How & Know-Who?

6. “Not all the smart people work for you.” Bill Joy, Sun 09/06/2011 6 Lessons Learned

7. 09/06/2011 7 (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.

8. 09/06/2011 8 Lessons Learned Find and engage your top 1%.

9. 09/06/2011 9 Virgin Atlantic 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.

10. Trust the community to do the heavy lifting. 09/06/2011 10 Lessons Learned

11. E.ON Power to the People is a customer-led innovation programme from E.ON that launched in October 2010 seeking new £10m ideas, products or ventures. 09/06/2011 11

12. Askinteresting questions. 09/06/2011 12 Lessons Learned

13. Orange 09/06/2011 13 Orange ran an Airlock process to find the ‘Next Orange Wednesdays’ resulting in a new £20m service proposition, Last Second Tickets, which launches next month.

14. 09/06/2011 14 Lessons Learned “The future reveals itself through the peripheral.” JG Ballard

15. 09/06/2011 15 McLaren & 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.

17. Engage your top 1%.

18. Innovation is a U-Shaped Process.

19. Trust the community to do the heavy lifting.

20. Ask interesting questions.

22. 09/06/2011 18 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.com|david@100open.comWeb: www.100Open.com Twitter: @rolandharwood | @deeyesbee

23. 09/06/2011 19 Open Innovation Process - Discover Exploit Fast-tracked Airlock License Deal Proposition Explore Extract Exploit Decision 90 days Venture Submission Pitch Weekly Wants Expert Review Panel People YES Closed Track NO Protection Joint Venture Engaged Innovator Network Reject & Feedback Reject & Feedback IP Reverts Back Open Track Competitive Challenges Submission Expert Review Panel Prizes Awarded 100%Open investor/ partner networks

25. Is a competitivemarketplaceamongst customers, suppliers or users

26. The innovation process is mediated by a Trusted Agent

27. Innovations are extracted through a linear process

28. Tend to be internal routes to market (e.g. license deals)

29. Starts with a ‘who’ question: finding partners to explore a broad opportunity

30. Is a cooperative community & process , with customers, suppliers or users

31. The innovation process is facilitated through a Catalyst

32. Innovations are built using an iterative process

34. Uncover unmet needs or spot new opportunities for innovation

35. Co-create compelling new ideas, products or services

36. Filter the ideas and prototype innovations

37. Build and motivate collaborative teams

38. Create investable propositions with evidenced business plans

39. Form new collaborative business arrangements

40. Obtain the resources and commitments necessary