This was one of the sessions on Feb 12th 2011 at the ProductCamp Vancouver. These slides where prepared to moderate a discussion on open innovation concepts and challenges

1. Open Innovation
a brief introduction to open innovation and
what is means to a Product Manger

2. welcome & thank you
www.productcampvancouver.org
February 12, 2011
ProductCamp Vancouver

3. Conclusion
• lots of research being done on this field
• lots of companies in different sizes and maturity levels are using ir
• be aware, don’t get left behind and use what works for you

4. Invention vs. Innovation
Alexander Graham Bell

5. Invention vs. Innovation
Alexander Graham Bell Steve Jobs
“Inventions [...] do not necessarily lead to technical innovation. In fact the majority do not.
An innovation in the economic sense is accomplished only with the first commercial
transaction.” --Christopher Freeman

6. Today’s Story
a closed innovation system

7. Today’s Story
a closed innovation system
new product/service
science
&
H
technology He
Li
Na
Be
Mg
base B
Al
C
Si
N
P
O
S
F
Cl
Ne
Ar
K Ca Sc Ti V Cr Mn Fe Co Ni Cu Zn Ga Ge As Se Br Kr
Rb Sr Y Zr Nb Mo Tc Ru Rh Pd Ag Cd In Sn Sb Te I Xe
Cs Ba La Hf Ta W Re Os Ir Pt Au Hg Tl Pb Bi Po At Rn
Fr Ra Ac Rf Db Sg Bh Hs Mt Ds Rg ub uq
Ce
Th
Pr
Pa
Nd
U
Pm
Np
Sm
Pu
Eu
Am
Gd
Cm
Tb
Bk
Dy
Cf
Ho
Es
Er
Fm
Tm
Md
Yb
No
Lu
Lr
target
market
research development
investigations

8. How limited is it?
• unreached ideas
• limited knowledge of what the users want or how they want it
• missed opportunities and markets
• sticky information, company biased

9. Open Innovation | Open Source
not the same thing

10. Quirky.com

11. Social Development Concept
source: http://www.quirky.com/learn

12. Open Innovation Definition

13. Open Innovation Definition
src: Open Innovation: Researching a New Paradigm | Henry Chesbrough

14. Open Innovation Definition
src: Open Innovation: Researching a New Paradigm | Henry Chesbrough
“Open innovation is the use of purposive inflows and outflows of
knowledge to accelerate internal innovation, and expand the markets for
external use of innovation, respectively. [This paradigm] assumes that firms
can and should use external ideas as well as internal ideas, and internal
and external paths to market, as they look to advance their technology”

15. Open Innovation Definition
src: Open Innovation: Researching a New Paradigm | Henry Chesbrough
“Open innovation is the use of purposive inflows and outflows of
knowledge to accelerate internal innovation, and expand the markets for
external use of innovation, respectively. [This paradigm] assumes that firms
can and should use external ideas as well as internal ideas, and internal
and external paths to market, as they look to advance their technology”
huh?

16. Open Innovation Definition
src: Open Innovation: Researching a New Paradigm | Henry Chesbrough
“Open innovation is the use of purposive inflows and outflows of
knowledge to accelerate internal innovation, and expand the markets for
external use of innovation, respectively. [This paradigm] assumes that firms
can and should use external ideas as well as internal ideas, and internal
and external paths to market, as they look to advance their technology”
huh?
“Open innovation is using the market rather internal hierarchies to source
and commercialize innovations”.
-- Blog: Joel West, http://blog.openinnovation.net

17. Open Innovation
Source: Henry Chesbrough, UC Berkeley, Open Innovation:
Renewing Growth from industrial R&D

18. Idea Management
how to can open innovation be implemented
manage, interact
and collaborate
with external actors
design, develop
and launch what
market wants
collaborate, evaluate,
revise, prioritize;
internal & external
actors

19. Win/Loss Project Backlog internal Market Trend/Competition
user feedback future potential customer external ...
Inception idea
idea idea idea idea
Collaboration
collaborate collaborate
Evaluation
concepts
Prioritization
Implementation new
market

20. What does it mean to me?
• capturing ideas from a larger group
• using the new forms of collaborating with external actors
• managing the ideas
• turn the ideas into innovations or enhancements
“it’s not just interacting with users, the how is important”
- create the environment and the incentives - community
- manage the interactions - crowdsourcing
- capture ideas and do something with it - idea management
- be prepared to give up some control - culture shift

21. Innovation Incentive
• motivate your customers to participate, collaborate and innovate:
✓build a strong community
✓leverage your brand
✓score karma points
✓pay or prizes
✓people like challenges

22. Get your future users to design your product
“Today’s youth are confident,
assertive and vocal, Their lifestyles
and needs have evolved with the
times and they no longer
communicate in a traditional manner.”
-- Jeremy Soo, Managing Director & Head, Consumer
Banking Group Singapore, DBS Bank.

23. Design You Dream Heels
“Our shoe design contest lets you win
cash, free shoes, and the admiration
of heel fanatics everywhere!”

24. My Starbucks Idea
“You know better than anyone else
what you want from Starbucks. So tell
us. What's your Starbucks Idea?[...]
Share your ideas, tell us what you
think of other people's ideas and join
the discussion. We're here, and we're
ready to make ideas happen. Let's get
started.”

25. Innovation at Dell
“Dell helps drive the course of future
industry innovation through a time-
tested process that puts customer
needs first.”

26. BMW ConnectedDrive
Customer Innovation Lab
“Join us in developing telematics and
online services as well as driver
assistance systems of the future.”

27. What?!
“While many companies are
implementing open innovation
approaches, [German] Catholic
Church [...] is starting to adopt open
innovation techniques too”

28. Social Innovation
“InnoCentive harnesses collective
brainpower around the world to solve
problems that really matter.”

29. IBM | Jam
internal open innovation practice first; then external
“Since 2001, IBM has used Jam to
involve its more than 300,000
employees around the world in far-
reaching exploration and problem-
solving”

30. Some Challenges of Open Innovation
• leading edge knowledge is not public domain
• intellectual property considerations
• leakage of competitive information
• culture/policies/authority
• process inefficiency

31. Conclusion
• lots of research being done on this field
• lots of companies in different sizes and maturity levels are using it
• be aware, don’t get left behind and use what works for you

32. Thank you Shahed Khalili
www.pifpof.com
@shahedkhalili
shahed.khalili@gmail.com