Open Collaborative Innovation Management


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Open Collaborative Systems (OCS) is a new approach to design the fuzzy frontend of innovation processes. It is based on the principals of openenss and collaboration.

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Open Collaborative Innovation Management

  1. 1. OCS Open Collaborative SystemsNew Excellence in the Fuzzy Frontend Innovation ManagementApril 2012Dr. Joachim von HeimburgInnovation Architect and Executive Advisor. joachim@jvhinnovation.deTelefon: 0049 172 6976534, 00966 5692 13145. www.jvhinnovation.deClemens FroweinHLP entwicklungspartner GbR . Voltastraße 31 . D-60486 Frankfurt . info@hlp-entwicklungspartner.deTelefon: 0049(69)43 00 820-00 . Telefax: 0049(69)43 00 820-10 .
  2. 2. Excellence in Fuzzy Frontend Innovation Open Collaborative SystemsBackground – time for paradigm change in early stage innovationStrategic agenda for most cooperations Relevant innovations are essential for the further future business growth and expansion Incremental innovations just not enough to stay in game Lack of more transformational and disruptive innovations for growth..and the Top Management experience with front end innovation process Attempts in designing more performing early stage process far behind the expectations Result: No innovative top sellers in the past years - nor in the pipelineThe root causes to be reflected Clear innovation strategy and orientation missing Discovery activities limited to invention / R&D Weak in the culture of innovationIt’s time for change: leaders have to innovate the innovation 2
  3. 3. Excellence in Fuzzy Frontend Innovation Open Collaborative SystemsFuzzy Front End: Challenge and BenchmarkingEarly stage insights from innovation champions Strategy driven early stage management Radical change in paradigm: Open Innovation: Leading companies are opening up Idea Sourcing: New ways / Platforms for generating ideas Innovation Eco Systems: Network management becomes competitive advantage Collaboration as a core competence Managing the fringes becomes key capability (trends, unconventional insights, non- obvious competitors,….) Differentiation between horizons: Breakthrough vs. transformational vs. incremental Broader view: From product innovation to business model innovation 3
  4. 4. Das Bild k annzurzeit nichtangezeigtwerden. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems Redesign Fuzzy Front End: Trend to Open Collaborative Systems Champions in search for collaboration and openess 4
  5. 5. Das Bild k annzurzeit nichtangezeigtwerden. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems “Invention comes in many forms and at many scales. The most radical and transformative of inventions are often those that empower others to unleash their creativity – to pursue their dreams. We are creating powerful self-service platforms that allow thousands of people to boldly experiment and accomplish things that would otherwise be impossible or impractical” CEO & Founder Jeff Bezos. 5
  6. 6. Excellence in Fuzzy Frontend InnovationBuilding the Open Collaborative System (OCS)Mission of the OCS: Identify and OCS Open Collaborative Systemincubate powerful innovative ideas andconcepts (manage the fuzzy front-end)Two elements:“Collaborative Ideation Space (CIS)”Vessel for ideation: interdisciplinaryteams are creating ideas“Open Innovation Ecosystem “Infusion of knowledge, insight andsupport to the CIS teams• OCS is a change in paradigm: People driven – not process based Open: Use the outside potentials and power Innovation Eco System: Competitive advantage in the network Beyond products: More innovation in design, communication, business models 6
  7. 7. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems Redesign Fuzzy Front End: Logic of the OCS 3 5 1 2 4 1 Set focus and install CIS 2 Generate powerful ideas and solutions within a dedicated CIS team 3 Empower the idea generation by infusing knowledge 4 Discuss and decide on ideas to move further 5 Create concept for transfer to the development/innovation process 7
  8. 8. Excellence in Fuzzy Frontend Innovation Open Collaborative SystemsRedesign Fuzzy Front End: What boosts innovativeness in OCS?CIS = team, room, platform, rules,tools, space, etc.Dedicated team for each CIS: Strong leader with power and end to end responsibility Experts / champions in relevant disciplines (formula, design etc.) Mix: Internal / external, young / experienced, locals / hubs etc. Team members (max 7-8) with (min.) 25% time, No processes - CIS teams will organize on their own Setup: Meet often (weekly) / full days; dedicated CIS “war-room”, Greenhouse or Hub Knowledge platform for support and collaboration platform “Soft” success factors are: great people, diversity, excellent collaboration skills, attitude 8
  9. 9. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems Redesign Fuzzy Front End: Design of the OCS Innovation Ecosystem The Mission: Empower CIS teams in their ability to create and innovate The Ecosystem provides “FUEL” for CIS teams Data, information, knowledge, ideas, consumer insights, technology etc. Managed by a champion and / or a team Every discipline is “OPEN”: Inside AND outside knowledge is available Challenge: Build a powerful network to the outside and learn Push / Pull interaction with CIS teams
  10. 10. Das Bild k annzurzeit nichtangezeigtwerden. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems Redesign Fuzzy Front End: High Flexibility with the OCS Use Setup Outcome CIS for Business Units Every business unit can have one or More incremental approaches, Initiatives more CIS where they generate ideas. more focus on innovation of Based on innovation strategy, within products and communication the budget allocated to unit CIS for Cross Unit Focus Topics are defined as strategic Incremental to (Focus Topic) initiatives for growth. Mostly cross transformational innovations, Initiatives unit innovations and funded by focus on new platforms, new central budget business / customer groups CIS for Greenhouse Broad and disruptive initiatives to Transformational to disruptive initiatives develop new rudiments for future innovations; focus on growth. An outside “Greenhouse” fundamentally new or Hub approach can be useful. opportunities, can also be used Could be funded e.g. with corporate for strategic initiatives venture 10
  11. 11. Das Bild k annzurzeit nichtangezeigtwerden. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems Redesign Fuzzy Front End: Connecting OCS to the implementation process Rapid Concept Design Idea prepare evaluate first concept Gate 1 Gate gate 1 Evaluate Idea: From Idea to Concept Design: Evaluate Concept: Idea Gate: Global Innovation Board Business potential Design Thinking, value max. Customer Test decision (go, hold, Develop or source First Product / Pack Design Pre Check Region kill) – based on Product challenges Communication basics (selling Prepare Gate 1 innovation strategy Fit to regions idea etc.) Business Model Design (Supply, Deliverables: Idea Price, Markets etc.) Sketch, rough business scenario, max. 3 months - responsible: CIS team view idea portfolio 11
  12. 12. Excellence in Fuzzy Frontend Innovation Open Collaborative SystemsChange & Innovation Culture: Towards a New OCS CultureWhat should top management do to foster an innovation culture? Become open to change -> learning culture which encourages challenging the status quo Any change carries risk. Accept it and reward managing risk - not avoiding risk Accept failure as part of learning Fail early and cheaply - not in a full scale plant. Vital sign: People share their failures Keep R&D focused on creating inventions but make innovation everybody’s job Do not worry about activities – only results countTo make the point: People are creative and many are ready to innovate – organization is often the limitation Top Management - and only the Top Management - sets the culture It needs to motivate managers / staff to integrate innovation into their daily operations All this requires personal, long term commitment, leading by example 12
  13. 13. Excellence in Fuzzy Frontend Innovation Open Collaborative SystemsThe Benefits of Excellence in Early Stage Innovation with OCS Average Performance Excellence / High Performance BUSINESS RESULTS Business growth driven mainly by Business growth powered by innovation invention (invention turns money into (Innovation turns knowledge into money knowledge → commercial success is → commercial success is more likely) uncertain) ENGAGEMENT Innovation and change driven by a few Innovation and change driven by many / (mainly R&D) all (cross-functional involvement and excellent collaboration) PACE OF CHANGE Moving slowly and minimize risk (never Moving fast and manage risk (fail fail, never learn) cheaply and learn from failures) INTEGRATION OF IDEATION - EXECUTION Ideas needs to be sponsored by top to Seamless integration of ideation with make it to execution (cross “valley of execution process (idea funnel feeding death” between idea and project) the stage gate process) 13
  14. 14. Excellence in Fuzzy Frontend Innovation Open Collaborative SystemsOCS created by.. Dr. Joachim von Heimburg Clemens Frowein Innovating to create business value is Studium des Wirtschaftingenieur- the theme of my professional life. I wesens und der Betriebswirtschaft an design and implement innovation den Universitäten TH Darmstadt und processes and structures and make JWG Frankfurt / Main. Assistent des them operational driving the business. Vorstands bei einem führenden As an independent Executive Advisor Systemhaus. and Innovation Architect I help Von 2004 bis 2011 war er companies to deliver better business Gesellschafter bei HLP Hirzel Leder & results by growing the innovation Partner, seit Oktober 2010 Partner bei capabilities of their organizations and HLP entwicklungspartner GbR. people. I enable higher levels of innovation by introducing and Clemens Frowein berät mit den Schwerpunkten Unternehmens- operating new innovation processes, und Geschäftsfeldstrategie, Innovationsmanagement, e.g. Open Projektmanagement und Organisationsentwicklung. NachInnovation, and new organizational structures, e.g. Corporate Branchen liegen die Erfahrungen in der Konsumgüterbranche,Venturing. I build diverse collaborative relationships across Chemische Industrie, Dienstleistungsbereich, bei IT Diensten undorganizational and functional boundaries via networking and auch im landwirtschaftlichen Bereich. Er unterstütztpartnering enabling the whole organisation to contribute to Unternehmen in der Orientierung und der Geschäftsentwicklunginnovation. insbesondere mit dem Konzept „Strategie Coaching“, wobei inStrong technical background (Ph.D. in physics) and commercial besonderer Weise „harte“ Faktoren (Geschäftslogik) kombiniertsense (member of European Business Leadership Teams, studies mit „weichen“ Faktoren (Dynamik der Organisation) in den Blickin economics). Multi-cultural experience through working in 7 genommen werden. Veröffentlichung zahlreicher Artikeln undcountries. Over 30 years of diverse work experience in Brand, Beiträgen sowie Vorträge zu den Themen Strategie undProduct and Technology Development. Innovation. 14
  15. 15. Excellence in Fuzzy Frontend Innovation Open Collaborative SystemsProcess Consulting for OCSConsulting based on outstanding senior team of experts with a good mix of skills,knowledge and experience. We believe in process consulting: creating skills, buildcapacities, enabling the people and the organizationTherefore we…1. offer new, state-of-the-art approaches and perspectives2. propose option of models and concepts for the solution3. help to tailor strong concepts – we do not believe in pre-fabricated approaches from consultants4. connect the competences and ideas in the organization – and we organize involvement5. facilitate collaboration and cooperation. This ensures energy for successful change6. coach top management, leaders and teams for orientation and changeWe ensure best results / impact by building and supporting a strong internal project teamand powerful governance. Step by step we will involve more people in the process. 15