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Open collaboration strategies for SME\'s that want to drive innovation and productivity in organizations

Open collaboration strategies for SME\'s that want to drive innovation and productivity in organizations

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  • 1. Utilizing Open Collaboration Principles to Drive Innovation and Increase Productivity
    The What, Why and How for SME’s interested in Open Collaboration
    Suresh Fernando
    Partner, Radical Inclusion
    Dec. 4, 2009
    suresh@radical-inclusion.com
  • 2. “Imagination is more important than knowledge”
    • Albert Einstein
  • “Given enough eyeballs, all bugs are shallow!”
    Linus’ Law
  • 3. A Few Assumptions…
    • You want more clients!
    • 4. You want to save money
    • 5. You want deeper client and partners relationships
    • 6. You want to be ‘more connected’
    • 7. You want to be more intelligent: more knowledge, better information processing
    • 8. You want to innovate
    • 9. You want to run your organization more efficiently
  • What We Want To Accomplish
    Ensure you understand what open collaboration is
    Ensure you understand how the principles of open collaboration can be used to drive innovation and increase productivity in your organization
    Ensure you understand the challenges you will face and how we can help you to overcome them
    Identify specific models that might be applicable in your organization
    Describe Strategy and Implementation processes that will give you an idea how we will work with you.
  • 10. What is Open Collaboration?
    What is collaboration?
    The sharing of risks, resources, responsibilities and rewards
    The co-creation of content
    What is Openness?
    the collaboration strategy will reach across existing corporate boundaries.
    within the organization (inter organizational)
    across different organizations (intra organizational).
  • 11. Why Implement an Open Collaboration Strategy?
    Fostering Innovation
    Solving defined organizational problems
    Develop new products and services
    Modify or develop internal processes
    Increasing Productivity
    Reduce costs: using virtual meetings to reduce travel costs, for example
    Increase Frequency and Efficiency of Distributed Meetings: virtual capabilities allow organizations that operate across boundaries to collaborate more effectively
    Enter Into New Markets: This can be accomplished by joint development strategies, for example
  • 12. Management/
    Admin.
    Sales
    Accounting
    Inventory
    Open Collaboration
    Inside the Enterprise: across functional groups
    Eliminate silos
    Introduce platform to connect business units
    Operations
  • 13. Open CollaborationOutside Organizational Boundaries
    Enterprise Ecosystem
    Client
    Client
    Client
    Services Layer
    Organization
    Partner
    Partner
    Service Delivery Layer
    Support: Financing, Volunteers
    Support Layer
  • 14. Successful Open Collaboration Strategies
    Larger Organizations
  • 15. Which of the following models might work for your organization?
  • 16. Strategies You Can Implement With Open Collaboration
    Solve an internal problem by crowdsourcing
    Generate new product and service ideas by creating an innovation community
    Transform corporate culture by connecting your organization
    Co-creating products and services with your clients
    Developing collaborative research with clients and partners
    Forming a collaborative marketing association
    Forming a collaborative procurement network
  • 17. GoldCorpMobilizing an External Community to Solve an Internal Problem
    Goldcorp is a mining company that was faced with an underperforming mine based in the Red Lake area in Ontario, Canada
    They decided to open up their data on their mines via offering $575,000 in prize money to virtual prospectors.
    Within short order over 1400 mathematicians, students, consultants and of course geologists from over 50 different countries had downloaded the data
    The contest winner, a collaboration between Fractal Graphics and Wall & Associates from Australia, no member of whom had ever even seen the mine, built a powerful 3-D rendition of the mine.
    Subsequent drilling resulted in striking gold in four of the first five recommendations from the winners.
    In 1996 the mine produced at an annual rate of 54,000 ounces/year
    In 2001 it was producing at an annual rate of 504,000 ounces/year
  • 18. Proctor & GambleDeveloping a Collaborative Innovation Framework
    P&G implemented their Connect & Develop strategy to partner with other organizations to drive the organizations Research and Development process. The results have been no less than staggering.
    Five years after the company's stock collapse in 2000, P&G has doubled its share price
    Has dramatically increased the number of partnerships, licensing agreements etc. increasing rate of successful innovations threefold.
    Today, more than 35 percent of P&G’s new products in market have elements that originated from outside P&G, up from about 15 percent in 2000
    45 percent of the initiatives in P&G’s product development portfolio have key elements that were discovered externally
    R&D productivity has increased by nearly 60 percent
    P&G’s innovation success rate has more than doubled, while the cost of innovation has fallen
    R&D investment as a percentage of sales is down from 4.8 percent in 2000 to 3.4 percent today
    Internal Branding: “Connect and Develop” and “50% Rule” – 50% of all new innovations to come from external partners
  • 19. IBMFostering Innovation and Transforming Corporate Culture
    IBM developed social media strategy to connect their 380,000 employees (50% of which are mobile) and 200,000 contractors that are spread across 2000 offices in 50 countries.
    ThinkPlaceis an open discussion forum where ideas can be submitted, modified and reviewed collaborative by anyone in the organization
    Beehive is an enterprise social networking site similar to Facebook. Employees report that they use Beehive to essentially humanize their workplace by getting to know employees on levels that are not visible from within the corporate environment.
    Jamming is a real time mass collaboration brainstorming session. In 2006, IBM held InnovationJam, an internal brainstorming session that engaged 150,000 people from 104 countries and 67 different companies.
  • 20. LegoEmpowering a User Community to Co-Create Products
    Lego has developed a complete social media/consumer engagement strategy that includes a number of different touchpoints; a fan club, a social network, online movies, online games, and message boards. They are also working on a massively multiplayer game.
    What is most interesting is that they have opened up their software design process to roughly 120,000 designers who can design their own products. This serves the purpose of engaging closely with those that most care about the brand.
  • 21. IntelDeveloping a Collaborative Research Framework
    Traditional, roadmap driven research processes have been found to be strategically inadequate because:
    New technologies and products that might lead to new business lines and the altering of corporate strategy.
    Disruptive innovation that might threaten the existing product roadmap.
    In order to address this strategic constraint, Intel has made a commitment to developing and driving exploratory research processes. The four pillars of this strategy are:
    Providing collaborative research grants
    Developing collaborative research facilities in close proximity to universities
    Providing corporate venture capital
    Driving specific corporate research projects
    See Appendix for further details
  • 22. The Open Innovation AttitudeHow successful collaborators think
    Reference: Chesbrough, H. (2003), "Open Innovation: The New Imperative for Creating and Profiting from Technology", Harvard Business School Press.
  • 23. The Open Innovation Attitude How successful collaborators think
    Reference: Chesbrough, H. (2003), "Open Innovation: The New Imperative for Creating and Profiting from Technology", Harvard Business School Press.
  • 24. What is the relationship between open collaboration and innovationyou ask?Scalable Team Thinking
    No geographic
    or time constraints
    A problem we
    all want to solve!
  • 25. What is the relationship between communications and collective intelligence?Scalable Information Development
    No geographic
    or time constraints
    An information repository
    We build together!
  • 26. Why Open Collaboration Works
    • Leverage Collective Intelligence of whole organization… plus others outside organization
    • 27. Empowers all members of organization: ‘mailroom to boardroom!’
    • 28. Fosters innovation and creativity
    • 29. Cultivate leaders within the organization
    • 30. Leadership lies with contributors, not established hierarchy
    • 31. Team Participation can Scale
    • 32. More resources
    • 33. More ideas
    • 34. Creates culture of openness and transparency
    • 35. Creates sense of being part of much larger whole
  • Why Open Collaboration Works
    Acknowledges diversity of employee skills – not ‘pigeonholed’
    • Direct organizational benefit: access to additional knowledge
    • 36. Indirect organizational benefit: makes employees feel ‘fully valued’.
    Connects organization across boundaries
    Creates dialogue that results in new clients, partners…
    Creates dialogue that results in different perspective – thought is not constrained by organizational ‘group think’
    Information transfer accelerated – is viral
    Distributed Collaborative Intelligence: proportional to size of group
    Generates knew organizational knowledge; synthesis of cross boundary information
  • 37. Three Basic Ways To Capture Value from Open Collaboration
    Monetizing what is Co-created
    Developing Associated Products or Services:
    RedHat, for example, built a business providing consulting services in support of the Linux operating system.
    Indirect Benefits
    Position your organization as leaders in the community, develop brand recognition within the community etc.
  • 38. Challenges To Implementing Open Collaboration Strategies
    Effective collaboration will take time
    Agreeing on common goals is difficult
    Leadership needs to think differently
    Organizational culture needs to be changed
    Developing trust is difficult
    Resources for new projects are scarce
    Providing correct incentives to stakeholders
  • 39. Fortunately we will help you to address these challenges!
  • 40. From Networking To CollaborationUnderstanding the Evolution
    Prahalad and Ramaswamy, The Collaborative Continuum, Collaborative Strategies, Nov. 2001, p.3
  • 41. From Networking To CollaborationUnderstanding the Differences
    Prahalad and Ramaswamy, The Collaborative Continuum, Collaborative Strategies, Nov. 2001, p.3
    Camarinha-Matos, Luis M.; Afsarmanesh, Hamideh; Galeano, Nathalie; Molina, Arturo, Collaborative
  • 42. What Mistakes Should You Avoid?
    Focusing excessively on reducing costs as opposed to increasing revenues.
    Ineffective leveraging of collaboration partners
    Superior capabilities
    Local knowledge
    Failure to align collaboration and business strategy
  • 43. What are the Key Strategic Considerations?
    Ensure that the strategy is an organizational one
    Connect Your Collaboration Strategy to your Business Strategy
    Develop a clear leadership message
    Develop a culture of trust and openness
    Be willing to challenge existing organizational assumptions
  • 44. Identifying Your Goals, Objectives and Priorities
    Radical Inclusion has designed a questionnaire that will assist you to determine your organizational goals and what the best way to structure your open collaboration process is.
  • 45. Open Collaboration FrameworksStructural Possibilities
    Adapted from Pisano, Gary and Verganti, Robert, Which Kind of Collaboration is Right for You?, Harvard Business Review, 2008.
  • 46. Open Collaboration FrameworksIntra-Organizational
    Adapted from Pisano, Gary and Verganti, Robert, Which Kind of Collaboration is Right for You?, Harvard Business Review, 2008.
  • 47. Advantages/Disadvantages of Particular Frameworks
    Adapted from Pisano, Gary and Verganti, Robert, Which Kind of Collaboration is Right for You?, Harvard Business Review, 2008.
  • 48. Advantages/Disadvantages of Particular Frameworks
  • 49. Selecting the Correct Framework
    Depends on Organizational Goals and Priorities
    See the Radical Inclusion Organizational Assessment Questionnaire for a systematic method of assessment that maps from organizational goals to the correct framework
  • 50. Open Collaboration Strategic ProcessesFrom goals to implementation
  • 51. Collaboration ModulesStrategy and Implementation
    We expect that the overall process of engaging with enterprise clients to assess their existing strategy and to formulate and implement new strategy that will utilize open collaboration principles to drive innovation will be a modular process.
    The delivery will be in the form of specific modules that address the needs of a strategic initiative.
  • 52. Open Collaboration Strategic ModulesFiguring Out What To Do...
    Open Collaboration Strategy Assessment
    Open Collaboration Testing
    Selecting the Correct Collaboration Framework
    Assessing Collaboration Aims
    Developing the right Governance Mechanism
    Selecting the Correct Tools
    Formulating the Collaborative Community Development Strategy
  • 53. Open Collaboration Implementation ModulesDoing It
    Identification and Engagement of Key Stakeholders
    Developing Culture of Trust and Openness
    How To Build Virtual Teams
    Running Successful Virtual Meetings
    Developing Collaboration Spaces
    How To Market Your Strategy Internally