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Ri Open Collaboration Innovation

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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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    Ri Open Collaboration Innovation Ri Open Collaboration Innovation Presentation Transcript

    • 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
    • “Imagination is more important than knowledge”
      • Albert Einstein
    • “Given enough eyeballs, all bugs are shallow!”
      Linus’ Law
    • A Few Assumptions…
      • You want more clients!
      • You want to save money
      • You want deeper client and partners relationships
      • You want to be ‘more connected’
      • You want to be more intelligent: more knowledge, better information processing
      • You want to innovate
      • 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.
    • 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).
    • 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
    • Management/
      Admin.
      Sales
      Accounting
      Inventory
      Open Collaboration
      Inside the Enterprise: across functional groups
      Eliminate silos
      Introduce platform to connect business units
      Operations
    • Open CollaborationOutside Organizational Boundaries
      Enterprise Ecosystem
      Client
      Client
      Client
      Services Layer
      Organization
      Partner
      Partner
      Service Delivery Layer
      Support: Financing, Volunteers
      Support Layer
    • Successful Open Collaboration Strategies
      Larger Organizations
    • Which of the following models might work for your organization?
    • 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
    • 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
    • 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
    • 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.
    • 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.
    • 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
    • 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.
    • 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.
    • 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!
    • What is the relationship between communications and collective intelligence?Scalable Information Development
      No geographic
      or time constraints
      An information repository
      We build together!
    • Why Open Collaboration Works
      • Leverage Collective Intelligence of whole organization… plus others outside organization
      • Empowers all members of organization: ‘mailroom to boardroom!’
      • Fosters innovation and creativity
      • Cultivate leaders within the organization
      • Leadership lies with contributors, not established hierarchy
      • Team Participation can Scale
      • More resources
      • More ideas
      • Creates culture of openness and transparency
      • 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
      • 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
    • 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.
    • 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
    • Fortunately we will help you to address these challenges!
    • From Networking To CollaborationUnderstanding the Evolution
      Prahalad and Ramaswamy, The Collaborative Continuum, Collaborative Strategies, Nov. 2001, p.3
    • 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
    • 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
    • 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
    • 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.
    • Open Collaboration FrameworksStructural Possibilities
      Adapted from Pisano, Gary and Verganti, Robert, Which Kind of Collaboration is Right for You?, Harvard Business Review, 2008.
    • Open Collaboration FrameworksIntra-Organizational
      Adapted from Pisano, Gary and Verganti, Robert, Which Kind of Collaboration is Right for You?, Harvard Business Review, 2008.
    • Advantages/Disadvantages of Particular Frameworks
      Adapted from Pisano, Gary and Verganti, Robert, Which Kind of Collaboration is Right for You?, Harvard Business Review, 2008.
    • Advantages/Disadvantages of Particular Frameworks
    • 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
    • Open Collaboration Strategic ProcessesFrom goals to implementation
    • 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.
    • 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
    • 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