Open Innovation

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Open Innovation

  1. 1. Open Innovation As a Collaborative Business Process Simon Reynolds simonreynolds.com.au twitter.com/simonnreynolds
  2. 2. Innovation Invention, New Ideas, Creating new products Traditionally has been closed innovation Driven by Technology Engineering and R&D Comes from Internal Research Creates false positives & false negatives
  3. 3. What is Open Innovation?
  4. 4. What is Open Innovation? Uses Internal AND External resources
  5. 5. What is Open Innovation? Uses Internal AND External resources Looking outside for answers
  6. 6. What is Open Innovation? Uses Internal AND External resources Looking outside for answers Solving problems
  7. 7. What is Open Innovation? Uses Internal AND External resources Looking outside for answers Solving problems Everyone is the best at something!
  8. 8. What is Open Innovation? Uses Internal AND External resources Looking outside for answers Solving problems Everyone is the best at something! Uses collaborative business systems to function
  9. 9. Why Open Innovation? "No single company is large enough or inventive enough to be an innovation leader without collaborating with an array of partners," A.T. Kearney 2008, "Open Innovation: the next frontier in innovation management."
  10. 10. Why Open Innovation? Spreads Risk and Cost Finding people to solve problems Finding out things you don’t know Solves Business Problems Finding new sources of growth Business and Value Generated - (P&G using only 10% of their developed patents) Invention itself is not going get market success (you can be inventive without being innovative)
  11. 11. Who does it?
  12. 12. Who does it?
  13. 13. Where IT fits in? What Open Innovation would be like WITHOUT IT •Severely diminished capacity to innovate •Mostly limited to mail and personal visits •Costly, time-consuming and limiting •Scope of possible innovators is limited to large companies and universities. IT gives many possibilities for open innovation: •Faster and wider communication •Ability to find innovators and innovations “the trouble was that uniquely prepared minds can be illusive, like the proverbial needle in the haystack” (Tapscott & Williams 2007) •Ability to Share resources •Ability to Distribute Processing
  14. 14. How is Open Innovation being used? “when a company gets big enough the ability to innovate within diminishes” Dr. Bob Iannucci, CTO of Nokia and Head of Nokia Research Center
  15. 15. How is Open Innovation being used?  Nokia – Forum Nokia, OKI, Beta Labs, Closed down research labs and opened ones next to universities  Procter and Gamble – 50% of innovations are developed from external parties, provide a webspace for innovators to partner with P&G, Innovation scouts *Pringle Chips printing process example*  Kraft – Provides a webspace for innovators to partner with Kraft to deliver innovations in various domains  IBM – More than half of their revenue is made by making technology which fits other’s needs (including competitors) (IBM Global Services)  Intel – Developed the open innovation framework that Nokia (and many others) uses  Ideagoras: - Market Places for ideas  Innocentive - Werner Mueller developed anti wrinkle technology for cotton clothes
  16. 16. Issues • Giving away business secrets, designs, & processes • Risk of losing your competitive advantage • Possibility of creating new competitors • Shared risk between those involved • May rely too heavily on others – what if they fail to perform? • Must be open with Others • Holding back important data or information can be costly
  17. 17. Where to find out more? https://www.pgconnectdevelop.com/ http://research.nokia.com/openinnovation http://www.kraftfoods.com/innovatewithkraft http://www.wikinomics.com Wikinomics: How Mass Collaboration Changes Everything - Don Tapscott 2006

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