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SSE How To Manage Outside Innovation
SSE How To Manage Outside Innovation
SSE How To Manage Outside Innovation
SSE How To Manage Outside Innovation
SSE How To Manage Outside Innovation
SSE How To Manage Outside Innovation
SSE How To Manage Outside Innovation
SSE How To Manage Outside Innovation
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SSE How To Manage Outside Innovation

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SSE Media Management group assignment on the article of Boudreau and Lakhani "How to Manage Outside Innovation". Exemplified by the Nintendo Wii.

SSE Media Management group assignment on the article of Boudreau and Lakhani "How to Manage Outside Innovation". Exemplified by the Nintendo Wii.

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  • 1. 26.01.11<br />Stockholm School of Economics - Media Management 2011<br />1<br />How to manage outside innovation<br />Example: Nintendo<br />Group 1b<br />Nadine Nordland, Sven Ahrens,<br />Anton Israelsson, Fredrik Kihlberg<br />
  • 2. Outside innovation is done by markets and communities<br />26.01.11<br />Stockholm School of Economics - Media Management 2011<br />2<br />0<br />Outside innovation?<br />Competitive Markets<br />1<br /><ul><li>“Open innovation”
  • 3. Rely on outside knowledge
  • 4. External source of ideas
  • 5. External source of know-ledge
  • 6. $5 Mio. question: How to efficiently manage this knowledge?
  • 7. Formal, rule based, contracts
  • 8. Competitive, profit motive
  • 9. Value capture by platform owner through contracting or licensing</li></ul>Collaborative Communities<br />2<br /><ul><li>Informal, social interactions
  • 10. Cooperative relationships, sharing
  • 11. Extrinsic and intrinsic motivations
  • 12. Value capture through enhanced demand</li></li></ul><li>Three factors decide on which option to choose<br />26.01.11<br />Stockholm School of Economics - Media Management 2011<br />3<br />0<br />1<br />What type of innovation?<br />2<br />What’s the motivation?<br />3<br />What’s the business model?<br />
  • 13. Identify the type of innovation you want<br />26.01.11<br />Stockholm School of Economics - Media Management 2011<br />4<br />1<br />Cumulative knowledge<br />Broad experimentation<br /><ul><li>Build on past advances from others
  • 14. Integrate skills from many diverse people
  • 15. Example: Mozilla Firefox
  • 16. Millions of independent developers build one version after another</li></ul>Communities<br /><ul><li>Encourage experimentation
  • 17. Need to foster competition
  • 18. Need for heterogeneity
  • 19. Example: InnoCentive.com
  • 20. Companies look for an answer to a problem, individuals can develop solution, winner gets $$$</li></ul>Markets<br />
  • 21. The innovators’ motivation drives your decision<br />26.01.11<br />Stockholm School of Economics - Media Management 2011<br />5<br />3<br />Extrinsic Motivations<br />Intrinsic Motivations<br />Status<br />Signaling and Career<br />Fun and Enjoyment<br />Reputation<br />Money<br />Reciprocity<br />Identity<br />Learning and Skills<br />Autonomy<br />User Need<br />Challenge<br />Markets<br />Communities<br />
  • 22. There is no clear advice regarding the business model<br />26.01.11<br />Stockholm School of Economics - Media Management 2011<br />6<br />3<br />Integrator Platform<br />Product Platform<br />Two-sided Platform<br />External Innovators<br />Platform<br />Platform<br />Platform<br />External Innovators<br />External Innovators<br />Customers<br />Customers<br />Customers<br />Autonomy<br />Control<br />Apple App Store<br />Gore-Tex<br />Facebook Apps<br />
  • 23. Some remarks…<br />26.01.11<br />Stockholm School of Economics - Media Management 2011<br />7<br />4<br />Hybrid models are possible, too<br />Be flexible, change if necessary<br />Match the nature of the innovation<br />Tailor the solution to your business<br />This is not about giving up power<br />
  • 24. An example from the gaming industry: Nintendo Wii<br />26.01.11<br />Stockholm School of Economics - Media Management 2011<br />8<br />5<br />1<br />What type of innovation?<br /><ul><li>Blue ocean, groundbreaking
  • 25. Existing gaming industry</li></ul>So, how do I make this Wii successful?<br />2<br />What’s the motivation?<br /><ul><li>Game developers want $$$
  • 26. Developing what users want</li></ul>3<br />What’s the business model?<br /><ul><li>Licensing (Two-sided platform)
  • 27. No direct contact with consumer at game purchase</li></ul>Satoru Iwata, CEO Nintendo<br />Competitive Market<br />

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