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Bluenove Opening Innovation Conference


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How 'Open Innovation' can contribute to the development of a Mobile Marketing ecosystem

Bluenove Opening Innovation Conference

  1. 1. Septembre 2nd, 2008 ‘ Open Innovation’ & the Mobile Marketing Ecosystem Mobile Marketing 2008 Congress Warsaw
  2. 2. <ul><li> is a strategic consulting firm specialized in ‘Opening Innovation’ for major corporations and brands </li></ul><ul><li> has a strong track record in developing and launching innovative services with high-tech startups </li></ul><ul><li> is an active and credible evangelist in the area of Open Innovation in France and in Europe </li></ul><ul><li> provides its ‘Lab Innovation Partnership platform’ (LIPP) methodology to design and implement Open Innovation programmes </li></ul><ul><li> is developing and supporting Open Innovation programmes for Orange, La Poste,.. </li></ul>Who is bluenove ?
  3. 3. <ul><li>Open Innovation ? </li></ul>
  4. 4. <ul><li>‘The smartest people always work for someone else’ </li></ul><ul><ul><ul><li>( Bill Joy, co-founder of Sun Microsystems,1990) </li></ul></ul></ul>What is ‘Open & Collaborative Innovation’ ?
  5. 5. <ul><li>‘… Open innovation means that valuable ideas can come from inside or outside the company and can go to market from inside or outside the company as well. This approach places external ideas and external paths to market on the same level of importance as that reserved for internal ideas and paths to market during the Closed Innovation era.’ </li></ul><ul><ul><ul><li>( Book ‘Open Innovation’, 2003, Henry Chesbrough, Harvard Business School Press) </li></ul></ul></ul>What is ‘Open & Collaborative Innovation’ ?
  6. 6. What is ‘Open & Collaborative Innovation’ ? Internal collaboration Innovative ecosystem customers startups Major Corporations Universities Players from other industries External collaboration Major Corporations and brands Outside-In (partnerships, M&A, JV,…) Inside-out (spin-offs,…)
  7. 7. Close the Gap with external innovation Research Development Current Market and Business Model Technology acquisition Technology in-licensing External research projects from Universities and Labs (Public or from other corporations) Technology from startups Venture investing Internal R&D Spin-Off Spin-Off New Markets and Disruptive Business Models +
  8. 8. Why Open Innovation ? External collaboration plays a key role in nearly 50 percent of P&G's products. We've collaborated with outside partners for generations but the importance of these alliances has never been greater.  Our vision is simple. We want P&G to be known as the company that collaborates — inside and out — better than any other company in the world.                                  Chairman of the Board and Chief Executive Officer
  9. 9. <ul><li>Results : </li></ul><ul><li>Outside Influenced Innovations : generating a dramatic growth in business </li></ul><ul><ul><li>2000: +15% growth </li></ul></ul><ul><ul><li>2006: +35% growth i.e. 4 billion $ of new revenues every year as a result of innovation they generated from the outside : not a single Venture Capital fund can claim they have generated such an amount of revenues…from nothing. P&G has revolutionized their business </li></ul></ul><ul><ul><li>2008 : Target of 50% achieved </li></ul></ul>Why Open Innovation ?
  10. 10. Why Open Innovation ? <ul><ul><li>Impact of ‘Open Innovation’ on revenues versus growth in R&D spent: </li></ul></ul>47.7% $76.4 billion $ 39.9 billion Net Sales 14.2% $2.1 billion $ 1.8 billion R&D spent % change 2007 2000
  11. 11. What Open & Collaborative Innovation is & is not <ul><li>OI is not just about : </li></ul><ul><li>Core business </li></ul><ul><li>Outsourcing </li></ul><ul><li>Cost reduction </li></ul><ul><li>The R&D department </li></ul><ul><li>Partnerships with other industrial partners </li></ul><ul><li>Hiding what you don’t how to know </li></ul><ul><li>M&A </li></ul><ul><li>OI is about : </li></ul><ul><li>Innovation & collaboration </li></ul><ul><li>Blue Ocean </li></ul><ul><li>Growth </li></ul><ul><li>Change management </li></ul><ul><li>Relationships with startups, universities, customers </li></ul><ul><li>Openly communicate what you don’t know how to do </li></ul><ul><li>New Corporate Venturing & Partnership models </li></ul>
  12. 12. A very successful OI programme launched by Microsoft 3 years ago: Microsoft IDEES <ul><li>Based on partnerships with startups and VCs </li></ul><ul><ul><li>Support to Startups through marketing & PR, consulting & IT resources, meeting & working space in Microsoft facilities, introduction to VCs </li></ul></ul><ul><li>An excellent Corporate Communication platform positioning Microsoft as the partner of choice for early-stage startup software companies in France </li></ul><ul><li>After almost 3 years and 50 partner companies out of a deal flow of about 400 companies, Microsoft is able to claim that in average these 50 partners : </li></ul><ul><ul><li>raised 3 millions Euros </li></ul></ul><ul><ul><li>hired 16 people </li></ul></ul><ul><ul><li>Had a 400% growth rate </li></ul></ul><ul><li>The Microsoft IDEES program is going to be deployed internationally starting 2008 </li></ul>
  13. 13. <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>Our poll : </li></ul>What is ‘Open & Collaborative Innovation’ ?
  14. 14. <ul><li>‘ Open Innovation’ programmes currently supported by bluenove : </li></ul><ul><li>zoom on the ‘OPSUP’ </li></ul>
  15. 15. Orange has started 2 years ago an Open Innovation programme to develop their Web 2.0 ecosystem <ul><li>To launch new 2.0 services and enrich the existing ones such as : , , , , … </li></ul><ul><li>The ‘Orange Partner Start Up Programme’ in 2 years has </li></ul><ul><ul><li>Identified more than 200 startups wordwide </li></ul></ul><ul><ul><li>Has contacted about 100 </li></ul></ul><ul><ul><li>Has done more than 30 opportunity analysis and business cases </li></ul></ul><ul><ul><li>Has signed 10 partnership contracts </li></ul></ul><ul><ul><li>Is launching 5 new services/features </li></ul></ul><ul><li>The ‘Orange Partner Start Up Programme’ is now part of the organization: </li></ul><ul><li>Starting 2008, the OSUP scope will be extended also to the following areas beyong web & mobile 2.0: </li></ul><ul><ul><li>Location Based Services and contact-less (RFID, NFC…) </li></ul></ul><ul><ul><li>Enterprise solutions </li></ul></ul><ul><ul><li>Digital Entertainment </li></ul></ul><ul><ul><li>Etc. </li></ul></ul><ul><li>The OSUP has been designed by : bluenove will keep supporting the OSUP for the next 2 years </li></ul>
  16. 16. <ul><li>Deliver and implement a ‘Corporate Open Innovation’ programme : </li></ul><ul><ul><li>By building a sustainable business and technological ecosystem around Orange and its platforms </li></ul></ul><ul><ul><li>Through the development of relationships and partnerships with Start-Up companies and Venture Capital funds (Worldwide) </li></ul></ul><ul><ul><li>Creating and launching innovative services/products/enablers and disruptive business models </li></ul></ul><ul><li>Mostly in the area of Mobile/Web 2.0 (communities, social networking, user generated content), social media, audience, advertising & entertainment related services (video, TV, music, games), </li></ul><ul><li>Based on convergence (mobile, IPTV, web, content) </li></ul>The ‘Orange Partner Start Up Programme’(OPSUP) mission
  17. 17. <ul><li>Objectives : </li></ul><ul><ul><li>A ‘partnership platform’ based on the ’Corporate Open Innovation’ philosophy </li></ul></ul><ul><ul><li>aiming at developing a dynamic and sustainable ecosystem around, OAD and the greater Orange Group </li></ul></ul><ul><ul><li>through the creation of a “ virtuous triangle ” to generate speed and value to Orange </li></ul></ul>How does it work ? <ul><li>Provide new product /service or be part of </li></ul><ul><li>a new « mash-up » or enabler </li></ul><ul><li>Share development and experiment of first </li></ul><ul><li>launch & new business model </li></ul><ul><li>Provide funds to early-stage companies </li></ul><ul><li>Or support for partnership with FT-Orange </li></ul><ul><li>if already in their portfolio </li></ul><ul><li>Provide a first key pilot project /contract & </li></ul><ul><li>international development potential </li></ul><ul><li>Support early-stage fund raising </li></ul><ul><li>M&A opportunities </li></ul>A unique ‘partnership platform’ delivering ’Open Innovation’ Customers FT-Orange VCs Start-Up
  18. 18. Close the Gap with external innovation Research Development Current Market and Business Model Technology acquisition Technology in-licensing External research projects from Universities and Labs (Public or from other corporations) Technology from startups Venture investing Internal R&D Spin-Off Spin-Off New Markets and Disruptive Business Models + Current OPSUP scope
  19. 19. inputs outputs Deliverables Internal sourcing from : R&D,, I labs External sourcing from : Web Sites, press releases, conferences… Bring value Challenging “ Make or buy” Develop a standalone project from scratch Contribute to the ecosystem development Build a label approach to improve internal processes (purchasing, legal…) OPSUP process et deliverables (pipeline 2007) “ On demand” sourcing of partners / enablers (> 200 identified) (> 80 contacted) (> 30) (> 10) (> 4) Pilot contract 3 Opportunity studies 1 MoU 2 Beta test project management BETA Collaboration Contribution Problems solving Final launch 4
  20. 20. Relying on the ‘Lab Innovation Partnership Platform’ (LIPP) methodology <ul><li>6 layers of support, services and tools : </li></ul><ul><li> Programme ROI tracking system </li></ul><ul><li>Communication : internal and external (PR) </li></ul><ul><li>LIPPnet : collaborative intranet/extranet 2.0 and knowledge & best practices management </li></ul><ul><li>Processes (MoU, monthly report,…) and organization (steering committee, interfaces with Purchasing, Legal,…), pipeline management </li></ul><ul><li>Know how : to attract, select, deal with and support the startups and their management team for the projects take-off and management </li></ul><ul><li>People & training : a team of 3/4 people to run the programme + training modules to deploy Open Innovation change (1-Open innovation, 2-Venture Project Management) </li></ul>Support layers as key succes factors
  21. 21. Best practises / lessons learnt <ul><li>1) a specifically designed partnership contract/MoU which is co-signed with the purchasing department to create momentum and speed very early in the partnership process </li></ul><ul><li>2) no exclusivity nor IP issues dealt during a first 'opportunity phase' of collaboration, again to create extra pressure on the Corporate organization to deliver faster Time To Market and first mover advantage </li></ul><ul><li>3) no direct investment, but rather support the startups to help them raise funds with third party VCs thus contributing to the development of sustainable partners within the ecosystem as well as initiate extra opportunity flows from the VC community </li></ul>
  22. 22. <ul><li>‘ Orange Partner Start Up Programme’ case studies </li></ul>
  23. 23. <ul><li>After reviewing numerous start-ups, mob-it was considered as unique with many specificities : </li></ul><ul><ul><li>The ability to deliver a very efficient web-to-mobile experience </li></ul></ul><ul><ul><li>A generation on-the-fly of a widget app from a website, fully personalized </li></ul></ul><ul><ul><li>No pre-installation process, no configuration </li></ul></ul><ul><ul><li>Not another Widget universe, complex to understand for the users </li></ul></ul><ul><ul><li>Easy to transfer </li></ul></ul><ul><ul><li>A very simple idea : the mobile device, with its small screen, its presence in our pocket, is the natural « to go » extension of the web . </li></ul></ul><ul><li>We are focusing at leveraging our services such as Pikeo </li></ul><ul><li>As mob-it allows the mobilization of websites, through an installed application on the phone </li></ul><ul><ul><li>Pikeo could benefit from the technology to provide micro-albums </li></ul></ul>Case Study: mob-it by NPTV
  24. 24. inputs outputs Opportunity studies 1 Beta test project management BETA launch Q4 - 2007 4 Deliverables Start-up screening from our 2.0 companies networks Processes and deliverables: in real life On your mobile 6 months public beta test 3,5 months 3,5 months = 7 months from meeting To beta Pilot contract 3 MoU 2
  25. 25. <ul><li>a simple button on any album </li></ul><ul><li>a click on the album, a phone number... </li></ul>Case Study: mob-it <ul><li>a SMS is then received on the mobile phone with a wap link (wap push) </li></ul><ul><li>a click and the installation begins </li></ul><ul><li>the application automatically launches... </li></ul><ul><li>no prior installation or configuration </li></ul><ul><li>virality through the click of a button </li></ul><ul><li> (web to mobile + mobile to mobile) </li></ul>
  26. 26. <ul><li>OSUP MoU has been highly valuable for mob-it </li></ul><ul><ul><li>New prestigious clients : Universal Music, Marathon Group (TV production company), Canal+ </li></ul></ul><ul><ul><li>Mob-it has been selected by Eureka for a 900 K€ public funding </li></ul></ul><ul><li>As the pilot is being launched, OSUP is now providing support to mob-it team </li></ul><ul><ul><li>Communication on the product : Press Releases, Newsletters, Conferences and shows to present the company. As an example of the OSUP contribution, we invited to this conference the CEO, Jerome Chouraqui. (Feel free to share and meet with him) </li></ul></ul><ul><ul><li>Financial : the company is currently looking for 1 million €. OSUP is organizing meetings with VCs thus bringing credibility to the project.This conference is also an opportunity to meet VCs. </li></ul></ul>Case Study: mob-it
  27. 27. <ul><li>Vringo have developed a community video ringtone service relying on Web servers, scripts as well as mobile phone clients. It allows friends to configure the video ringtone which will play on their friends’ phone when they call. </li></ul><ul><li>Among other service providers (usually based on IMS ), Vringo was considered unique : </li></ul><ul><ul><li>Vringo’s architecture does not require any modification to operator telecom systems or mobile phones radio stack. </li></ul></ul><ul><ul><li>Vringo have developed an end-to-end synchronization solution between their servers and a wide range of mobile phones already (Symbian Series 60, Windows Mobile, Sony Ericsson (≥JP7), Nokia S40 (≥5th edition). </li></ul></ul><ul><ul><li>They have filed a number of patents which FT R&D have verified </li></ul></ul><ul><li>Vringo can be seen as Personalisation 2.0 and its virality across mobile phones within a community of buddies could facilitate the roll-out of community services on mobile phones (MOC) as well as the uptake of the “Internet” options (“Internet Max” in France) </li></ul>Case Study: Vringo
  28. 28. inputs outputs Opportunity studies 1 Trial with Lab’O BETA trial Q2 - 2008 4 Deliverables Start-up screening from our 2.0 companies networks Processes and deliverables Jan 2008 Mar 2008 Jun 2008 Jul/Aug 2008 1 months Pilot contract 3 MoU 2 Prepare launch with OFR 5
  29. 29. Orange & Vringo inputs & deliverables <ul><li>Billing management </li></ul><ul><ul><li>Data – flat fee </li></ul></ul><ul><ul><li>UGC upload (if necessary) </li></ul></ul><ul><ul><li>Premium content </li></ul></ul><ul><li>Content (local & international partners) </li></ul><ul><li>Free SMS routing to Orange customers to enable SMS wake-up </li></ul><ul><li>Embedded clients signature (WM & J2ME) to enable SMS wake-up </li></ul><ul><li>Devices selection to match user installed base </li></ul><ul><li>Promotion of the service within MOC </li></ul><ul><li>And looking further into an advertising model… </li></ul><ul><ul><li>Advertising network </li></ul></ul><ul><ul><li>Call Data Records (required to determine which video played on whose phone) </li></ul></ul><ul><li>Service development </li></ul><ul><ul><li>Mobile clients </li></ul></ul><ul><ul><li>Web site </li></ul></ul><ul><ul><li>Mobile site </li></ul></ul><ul><li>Content (international outside of France Telecom / Orange partners) </li></ul><ul><li>Interop with other operators (e.g. Bouygues & SFR in France) </li></ul><ul><li>Promotion of MOC & mobile Internet bundle in Vringo invitations </li></ul>Private alpha on :
  30. 30. <ul><li>V4x is a company selling authoring tools for Mobile Interactive TV </li></ul><ul><ul><li>The solution is designed to repurpose content for mobiles, allowing to add the interactive metadata on existing video content </li></ul></ul><ul><li>Among other service providers, V4x was considered as unique : </li></ul><ul><ul><li>V4x’s platform is a technology enabler that makes Mobile TV a compelling experience. Working with original content, “mixing” it best for the small screen, and distributing it through a range of channels, V4x are the company delivering real, “made-for-mobile” programmes. </li></ul></ul><ul><ul><li>They have a complete software suite in ASP mode, from creation of interactive metadata to publishing </li></ul></ul><ul><li>Result? </li></ul><ul><ul><li>Lead to a proof of concept of an end-to-end mobile TV factory : from creation of interactive metadata, the end-to-end delivery on a unicast network and the browsing / rendering of this interactive info on a specific mobile </li></ul></ul>Case Study: V4x
  31. 31. <ul><li>A repurposing tool for video on mobile, bundled with an interactivity editing tool </li></ul>Case Study : V4x <ul><li>Interactivity information is added to the video stream, and displayed under the video picture </li></ul><ul><li>Interactivity allows : </li></ul><ul><ul><li>click-to-call </li></ul></ul><ul><ul><li>click-to-wap </li></ul></ul><ul><ul><li>click-to-SMS </li></ul></ul><ul><li>This will allow integration of voting, quizz, interactive ad banners into broadcast or unicast mobile TV </li></ul><ul><li>This interactivity can be scheduled using a calendar or triggered manually during a live event </li></ul>Ex : voting for the next clip on a music channel
  32. 33. thank you [email_address]