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Practical Open Innovation


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I'm Innovation Program Manager with 15+ years of combined practical experience in Open Innovation, Technology Assessment and Drug Development, all based on solid industrial and academic background in Project Management, Biotechnology and Life Sciences.

When launching Open Innovation (OI) initiatives, companies face a number of challenging questions. What R&D problems can be successfully solved using the OI strategy? Which particular OI platform to choose from a plethora of available web-based and software products? How are external solutions to be evaluated and then integrated into an internal R&D process?

I help my clients tackle these issues using a simple step-wise approach. First, I work with clients on detailed problem definition in order to decompose complex R&D problems into a set of well-defined technical questions. Second, I help them select the optimal innovation platform(s) to find solutions to each of these questions. Finally, I assist them with creating an internal network for evaluating and implementing external solutions.

Published in: Business

Practical Open Innovation

  1. 1. How Open Is Your Innovation?Practical assistance in organizing and executingOpen Innovation projects AEugene Ivanov, PhDDemystIfyIng Open InnovatIon
  2. 2. What is Open Innovation? Open Innovation is a strategy of harnessing external sources of innovation to accelerate internal process of product, technology or service development. 2
  3. 3. From Closed to Open InnovationInternal Ideas Internal Ideas New Businesses Existing Markets Existing Markets External Ideas New Markets CLOSED INNOVATION OPEN INNOVATION Adapted from Chesbrough (2004) 3
  4. 4. Global Trends Driving Open Innovation• Shorter product life cycles• Explosion of knowledge• Blurring boundaries between scientific disciplines• Convergence of industries• Globalization of knowledge• The rise of Web-based social networks Adapted from Mattes (2011) 4
  5. 5. Benefits of Open Innovation • Reduced cost of the development of new products • Shorter time to market; accelerated profits • Reduced direct spending on R&D • Higher success rate for new products • Reduced risk of innovation projects by shifting R&D risk to innovation partners • Increased chances of “breakthrough” innovations 5
  6. 6. Open Innovation Typology high CO-CREATION CROWDSOURCING Practiced by: Supported by: − Apple − InnoCentiveLevel of Moderation − General Mills − IdeaConnection − Kraft Foods − NineSigma − Nike − − P&G − YourEncore − etc. − etc. IDEA GENERATION CORPORATE INNOVATION Supported by: − BrightIdea PORTALS Practiced by: − Imaginatik − Inova − Dell − Starbucks − Spigit − GE − Unilever − etc. − Kraft Foods − etc. low − P&G low high The Number of External Sources of Innovation 6
  7. 7. Five Stages of the Open Innovation Process Formulate and Collect and Identify Select Implement Broadcast Evaluate Problems Problems Solutions Problems Solutions• Define OI • Select R&D • Convert complex • Create • Implement strategy problems R&D problems infrastructure to solutions suitable for OI into a set of collect, evaluate• Create portfolio approach simpler technical and implement • Re-evaluate of R&D questions external portfolio of R&D problems • Establish solutions problems ownership • Select appropriate• Allocate budget OI platform for • Refine the and resources each question process 7
  8. 8. Creating a Balanced Portfolio of OI Projects Future Business TRANSFORMATIONAL DISRUPTIVE INNOVATION INNOVATION Creating New Products Creating New Markets 20% 5% INCREMENTAL 60% 15% “FAST FAIL” INNOVATION INNOVATION Current Business Improvement of the Testing New Markets Current Products Established Markets New Markets Adapted from Maddock (2013) 8
  9. 9. Selecting Suitable Projects for Open Innovation highAttractiveness of Technology GOOD CANDIDATES BAD CANDIDATES CASE-BY-CASE low weak strong Competitive Position Adapted from Mattes (2011) 9
  10. 10. Problem Formulation From a complex R&D … to a set of discrete, program… focused scientific projects PROBLEMS NOT SUITABLE FOR OI APPROACH PROBLEMS SUITABLE FOR OI APPROACH Cure for Cancer • Target Identification • Synthesis of active compounds • Development of analytical • Target Validation assays • Lead Generation • Animal model selection • Formulation development 10
  11. 11. Commercially Available OI Platforms C R O W D S O U R C I N G Idea InnoCentive Nine Sigma Connection Concept Design Prototype Late Development P R O D U C T D E V E L O P M E N T C Y C L E IN–LICENSING OUT-LICENSING BrightIdea Inno 360 E-Zassi YourEncore Spigit Wazoku Imaginatik Maven Inova ON–LINE EXPERTS AND INNOVATION MANAGEMENT SOFTWARE 11
  12. 12. Major Aspects of OI Project Management • Strategy – When should innovation be open or closed? – How will OI be integrated into general innovation strategy? – How should budget and resources be allocated? • Processes/IT Support – What are the most suitable IT platforms to support the process? – How will IP issues be handled? • Organization /Management – Which roles and responsibilities are required? – How should the process be managed? – Which success metrics will be applied? • Conclusion/Review – How will the results be analyzed and evaluated? – How will lessons learned be collected and communicated? 12
  13. 13. Services Provided by Eugene Ivanov• Open Innovation process workshops: – Framework – Alignment with corporate strategy – Infrastructure – Best practices• Selection of R&D problems suitable for Open Innovation approach• Open Innovation platform evaluation and selection• Problem statement development – Idea generation and prioritization – Problem definition• External solution acquisition, assessment and integration• Program evaluation and lessons learned 617.365.0822 13