Open Innovation 2.0 - Martin curley opening final


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  • The transformation is everywhere. The pace of change is unrelenting and unless you want to rapidly become a relic you have to change ………. In ways you hadn’t likely considered even a few years ago!!!
  • Research challenges:-> Ambient sensing platform (User Participatory sensing- Smartphones etc…)
  • Move from equipment manufacturing (economists would refer to this as production of durable goods) and the move towards more 'added-value services' (another term I detest) to achieve customer outcomes better. So .... the literature says that firms add value by selling consultancy, integration, education, blah de blah... so this is the phenomenon called 'servitization'. In fact, some firms are earning more revenues from selling such 'services' than they are selling the equipment itself so this means more revenue. Some studies have shown that servitizing is difficult and while revenues may be high, profitability is low and some studies have shown that servitizing is so difficult that many have failed
  • Systemic/Systematic Innovation ProcessJoint Path-finding
  • Look at time of changeMarket Cap 8/2/2012 – Provided via Google FinanceKodak (EDEKQ) 138.64M Fujifilm (FUJIY) 8.32B Shutterfly (SFLY) 1.13BKodak peak 1998 - 2/3 of world’s market share, more than 145,000 employees - ~
  • IVI’s mission is to shift enterprise IT capability to the right, researching and disseminating improved management practices that will mature enterprise IT’s capability to convert technology’s potential into new business value and innovation for firms and industries. The IT-CMF forms the blueprint approach for developing an unifying IT value management approach. An evidence of IVI’s commitment to the accuracy and longevity of the IT-CMF can be observed in its investments to date in creating and expanding the framework, totalling over $10 million dollars and over 60,000 hours of human involvement and development.
  • Open Innovation 2.0 - Martin curley opening final

    1. 1. Prof. Martin CurleyVP Intel Labs, Director Intel Labs EuropeChair EU OISPG@OI2Dublin2013#OI2DublinIntroducingOpen Innovation 2.0
    2. 2. Richard Bruton T.D.Minister for Jobs,Enterprise andInnovationIrish GovernmentAlexander vonGabainEuropean Institute ofInnovation &TechnologyEliasCarayannisGeorge WashingtonUniversityLeif EdvinssonUniversity of LundVenkatRamaswamyUniversity of MichiganMeganRichardsEuropean CommissionAlexanderOsterwalderBiz Model InnovationWith video contributions from:Professor Stephen Hawking and European Commissioners Neelie Kroes, Máire Geoghegan-Quinn and Androulla Vassiliou.Justin RattnerManaging DirectorIntel LabsVP & CTO Intel CorpSean Sherlock T.D.Minister of State forResearch andInnovationIrish GovernmentThierry vanLandergemBell Labs /Alcatel LucentPaul SteinRolls RoycePeter VanManenMcLarenNaoise Ó MuiríLord Mayor of DublinSean O’DriscollGlen Dimplex2 days - 300 delegates - 3 venues - 1 technology showcase -public engagement activities – better cities competition -innovation luminary awards dinnerConferenceChairs:Bror SalmelinAdvisor DGConnectEuropeanCommissionMartin CurleyVP Intel Labs EuropeChair OISPG
    3. 3. …the Winds of Change“When the winds of change come, some peoplebuild walls, other build windmills”Brian and Sangeeta MayneLet’s go buildsome windmills!
    4. 4. OI2 Conference FocusWhat?• Sustainable Intelligent Living• Financial, Social &• Environmental SustainabilityHow?• Open Innovation 2.0FirmStart-upUniversityFirmNascentStart-upUserCo-innovatorCreativeCommonsGovernmentEcosystemsupport
    5. 5. Europe 2020 Strategy• Goal high levels of employment,productivity and social cohesion• five ambitious objectives – on– employment– innovation– education– social inclusion and– climate/energyGrowth GoalSustainableInclusiveSmart
    6. 6. Innovation Matters75% of US GDP growthcame from TechnologicalInnovation sinceWorld War IIUS Department of Commerce“Innovation doesn’t just change ourlives, it is how we make a living”President Obama
    7. 7. Innovation Adoption Matters“Innovation is not innovatorsinnovating, it is customersadopting”Michael Schrage, MIT80% of Innovation Valuecomes from the widespreadadoption of Innovation with20% of value coming from theproduction of Innovation(OECD)
    8. 8. From “Research to Retail”Knowledge is the crude oil ofthe 21st centuryCommissioner Maire Geogeghan QuinnData is the new GoldCommissioner Neelie Kroes“Innovation is not a sausage machine,You don’t get it by a plan imposed bygovernment and you can’t measure itjust by counting patents or even justspend on R&D. It is all about creativeinteractions between science andbusiness”.George Osborne, UK Chancellor
    9. 9. MassCollaborationSustainabilityDigitalTransformationsShared ValuethroughOpenInnovation2.0Key Mega Trends
    10. 10. DigitalTransformations
    11. 11. “Integrated electronics will make electronic techniques moregenerally available throughout all of society, performingmany functions that presently are done inadequately byother techniques or not done at all.” Gordon Moore90nm300mm130nm200mm180nm200mm250nm200mm65nm300mm45nm300mmFeature WidthWafer Size32nm300mmRelentless Pursuit of Moore’s LawOpens the Door to InnovationNumber of transistors on a chip doubles every ~2 years
    12. 12. …Moore’s law is colliding with many domainsGenomicsResearchMedicalImagingFinancialAnalysisWeatherPredictionOilExplorationDesignSimulationCloudComputingData CenterRefreshPoint of Sale IP CamerasPower Lines IP PhonesIn-VehicleInfotainmentHomeStorageSensors Net bookSecurity IPTV/IMS Military/AeroLearning Home AutoDigital Signage PortableMedicalNet topGaming Industrial PC PrintersMedical Transport Robotics FactoryAutomationMID
    13. 13. Sustainability
    14. 14. The Changing Shape of SocietyFrom Resource Based . . .
    15. 15. The Changing Shape of SocietyTo Knowledge Based
    16. 16. Resource Extraction and Growth
    17. 17. Source: Global Footprint NetworkIf consumption trends continue,we will need two Earths to support us.There is no Planet B!Jose Maria FigueresPlan CAn Inconvenient Truth: Our Collective ChallengeIf consumptiontrends continue,we will need twoEarths to support us.
    18. 18. Source: UNEP International Resource PanelResource Decoupling
    19. 19. Source: “A Smarter Shade of Green,” ACEEE Report for the Technology CEO Council, 2008.AutomobilesPassengerAirlinesAgricultureSteelManufacturingLightingComputerSystems40%121%132%167%339%2,857,000%1978 2008 Energy-efficiencyImprovement14.3 miles pergallon of gas20.0 miles pergallon of gas22.8 revenuepassenger milesper gallon50.4 revenuepassenger milesper gallon0.63 units ofoutput per unitof energy use1.46 units ofoutput per unitof energy use63 pounds ofsteel per MBtu167 pounds ofsteel per MBtuIncandescent lightbulb— 13 lumensper wattCompactflourescent bulb—57 lumens perwatt1,400 instructionsper second perwatt40,000,000Instructions persecond per wattIncreasing Energy EfficiencyICT leading sector in energy efficient improvements : need to takeadvantage of this out-performance.ResourceDecouplingOpportunity
    20. 20. MassCollaboration
    21. 21. Mass CollaborationEuropean Internet FoundationThe centralparadigm wepropose is that of aworld driven byMass Collaboration
    22. 22. Innovation moving out of the LabCentralized inwardlooking innovationClosed InnovationEcosystem centric,cross-organizationalinnovationInnovation NetworksEcosystemsExternallyfocused,collaborativeinnovationOpen Innovation
    23. 23. 40 Labs4000 R&D Professionals>400 collaborators in EcosystemIntel Labs Europe NetworkHarnessing the collective value of Intel’s R&D investments in Europe
    24. 24. A vibrant Pan-European Ecosystem
    25. 25. IntroducingOpen Innovation 2.0
    26. 26. OISPG Researching and Mapping the Landscape
    27. 27. Open Innovation 1.0Source: Henry Chesbrough
    28. 28. Triple Helix InnovationSource: Henry Etzkowicz
    29. 29. Innovation is changing faster than aspeeding bullet!
    30. 30. Life ca. 600 Million Years Ago (Precambrian)
    31. 31. First Multi-Cell Organisms
    32. 32. Cambrian Explosion ~530 Million Years ago
    33. 33. Open Innovation 2.0: A new MilieuFirmStart-upUniversityFirmNascentStart-upUserCo-innovatorCreativeCommonsGovernmentEcosystemsupport
    34. 34. … Re-imagining the World at Light SpeedFrom the Obvious…KnowledgeEducatingShoppingTravellingSharingIndustries established over a Centuryre-architected in under a DecadeCommunicatingEntertainingtototototototo
    35. 35. ConstructionNew ServicesSmart Grid… Re-imagining the World at Light Speed… to the Not so ObviousAgriculture The Way We WorkHotelsCarsFreelenaceGoogleHomeWhen the impossible…becomes possibletototototototo
    36. 36. Snapshots of OI2SharedVision &ValueQuadrupleHelixInnovationExponentialTechnologiesEcosystemManagement& CultivationAdoptionFocusHighExpectationEntrepreneurshipNetworkEffectsUserDrivenInnovationCo-Creation &InnovationPlatformsBusinessModelInnovationOpenness toInnovation &Culture21st CenturyIndustrialResearchSustainableIntelligentLivingSimultaneousInnovationIntersectionalInnovationFullSpectrumInnovationServitizationInnovationCapabilityManagementSocial InnovationStructuralCapitalInnovation
    37. 37. Shared Value• Re-conceiving the intersectionbetween society and corporateperformance• Find Win – Win outcomes• Profit through solvingBig problems
    38. 38. Intel Labs EuropeAdvance Intel by bringing the benefits of the ongoing digitalrevolution to European economy & society by:Advancing breakthrough researchForming close partnerships with theEuropean technology community
    39. 39. Quadruple Helix InnovationGovernment, Academia, Industry and Citizens collaborating together todrive structural changes far beyond the scope of any one organizationcould achieve on it’s ownGovernment/PublicAcademicIndustryCitizen
    40. 40. Intel Sustainable & Connected Cities InstituteInstitute Research Outputs• Novel user experiences• Understanding of future workloads• Future network architectures & protocols• Security & privacy insights• New opportunities in big data• Architectural requirements• New business models• A step on the way to creating moreenvironmentally friendly, sustainable citiesOpen Innovation at Work!The Testbed: LondonCollaborative Open InnovationThe Concept: driving the computing continuumand innovating the city of the future
    41. 41. Sustainable Connected Cities Dublin
    42. 42. Dublin as an exemplar of Open Innovation 2.0
    43. 43. Open Innovation Business ModelsSource: EU OISPG
    44. 44. Exponential Scaling and Growth
    45. 45. Creating Innovation PlatformsEngagement platforms“Assemblages of persons, interfaces,processes, and artifacts,purposefully designed to intensifyengagements to co-create value”from Prof V Ramaswami
    46. 46. HiLoVolumeofInnovationEffortsLast10yearsCoreprocessProcessEnablingprocessBusinessmodelFinanceNetworking ProductperformanceOfferingProductsystemService ChannelDeliveryBrand CustomerexperienceSource: Doblin AnalysisInnovation Efforts InnovationValue
    47. 47. Servitization• Shift from– From Products to Services– From Maximizing Consumption toOptimizing Asset Utilization andLongevity– From one time payment toannuities• Platforms for InnovationsWhat it is? IT is the enabler
    48. 48. Innovation SystemsFunding theInnovation PortfolioMeasuringInnovation Value / ImpactSetting Strategy & Managing InnovationDelivering / Scoping Innovation CapabilitySource: Martin Curley Intel / Innovation Value Institute - NUIM
    49. 49. European Innovation ScorecardInputs,Intermediate &Outputs indicators
    50. 50. Innovation Capability Maturity ModelsSystemic InnovationInitial / Ad-hocInnovationManaged InnovationSporadic InnovationDefined Innovation12345Managing innovation Funding innovationDeveloping innovationcapabilityAssessing innovationvalueContinuousrealignment ofpipelineAmplified budgetInnovationexcellencePredictable,probable andprofitableExplicit strategy Co-fundingInfrastructureintegratedProactive changemanagementManagementcommitmentFormal budgetallocationInfrastructureestablishedActive changemanagementTacit toleranceProject-basedallocationOccasional skunkworksInformalassessmentAd - hocSource: Martin Curley Intel / Innovation Value Institute - NUIM
    51. 51. Business Model & CanvasSource: Alex Osterwalder
    52. 52. Innovation FrameworksArchitecturalInnovationDisruptiveInnovationModularInnovationIncrementalInnovationSource: Henderson and Clark
    53. 53. Choice to be Made$139M $1.13B$8.32BDisrupter or Disrupted?
    54. 54. The Rise of the User• Observation and Surveying• Prototype Development• Testing (Usability, Feasibility, Market Testing• Piloting• Interactive User Feed-back• Incremental User Innovation Ideas• User Idea Generation• User Community innovation• Services by Definition “Co-creation”ConsumersIndustry R&D Led User/User Community LedUser as “Research-Object” User as InnovatorContributors InnovatorsSource: IPTS; Jean Claude Burgelman, 2007
    55. 55. CustomizationCustomizationExperiencesGoodsCommoditiesServicesCommoditizationCommoditizationStageDeliverMakeExtractThe progression ofeconomic valueSustainableIntelligent LivingSource: 2003 – James I. Cash, Jr.
    56. 56. Innovation Value ChainIdea GenerationIdeaImplementationIdea AdoptionHard? Harder HardesteffortEuropeanFundingHorizon 2020A potentialGamechangerM Curley Copyright Intel © 2013
    57. 57. Open Innovation 2.0: A new MilieuFirmStart-upUniversityFirmNascentStart-upUserCo-innovatorCreativeCommonsGovernmentEcosystemsupport
    58. 58. Open Innovation 2.0: A new MilieuValueEfficiencyQuality ofLife
    59. 59. All innovating together - moves the value needleValueEfficiencyQuality ofLife
    60. 60. Ecosystem Examples - SmartBay
    61. 61. SmartOcean Innovation Cluster
    62. 62. Virtual Ecosystems Example
    63. 63. IVI Vision: Drive a structural change in the way public and privatesector organisations manage IT for business value and innovationEnterpriseITcapabilitytodeliverbusinessvalueLevel of Firm / Industry AdoptionDatedprocesses/practices/Standardprocesses/practicesBestprocesses/practicesEmerging nextprocesses/practicesHighHighITValueContributionLowHighLowDigitalJobs
    64. 64. Synergy and Exponential TechnologiesSource: Goretex
    65. 65. Innovation: Ideas aren’t enough!Innovation =Ideas X Execution X AdoptionStrategic Innovation =Vision (Ideas x Execution x Adoption)Strategic Innovation is innovation in the context of a vision!
    66. 66. Accelerating the Sustainable CitySocietyPart Inspired by Rifkin: The Third Industrial Revolution
    67. 67. Accelerating the Sustainable SocietyPart Inspired by Rifkin: The Third Industrial RevolutionCreate a virtuous circle:energy efficiency/self sufficiency, new services and jobsValue CyclevsValue Chain
    68. 68. ..but it takes courage too.
    69. 69. Thanks!
    70. 70. More Information
    71. 71. Opportunities multiplyas they are seized!Dream, Dare, Do!