Realising Value from Open Innovation
Partnerships

Dr Marian Garcia
Kent Business School, University of Kent, UK
Open Inno...
Agenda
 Open innovation definition and benefits
 What are key steps to establishing effective
partnerships?
 How to man...
External Innovation Focus is Essential
Open Innovation Model
The ‘Logic’ of Open innovation
“Use the best available”
• Combine internal and external ideas to shape
new business models...
Is it popular?
Open Innovation has substantial global appeal

2013 GE Global Innovation Barometer
http://files.publicaffai...
Profiting from External Knowledge

Issues of Open Innovation
» IP issues (managing and protecting)

» Relinquishing potent...
Working with Others – Practical Issues
- In any successful partnership you need
■
■

■
■

The necessary skills
Sufficient ...
Clear Strategy & Clear Alignment
 Know what you bring

 Know what your partner brings
 Alignment in strategies

 Minim...
Invest in your Partnerships


Married vs. one time fling



Establish trust and respect



Need clear communication


...
Focus on the Win-Win
If you wouldn’t sign both sides of the contract, you might want to
rethink the deal structure.

 Ren...
Measure what you want to achieve


Metrics lead to incentives



Measure your success and your partners



Incentives d...
Pick Your People, then Place them with Care
They may be your brightest innovation star, but that doesn’t
mean they will be...
Know When to ‘Walk’
 Understand BATNA
 Better to walk then to sign a bad deal
 “Pre-nups” are good for the unexpected
Thanks
Dr Marian Garcia
m.garcia@kent.ac.uk
Open Innovation is transforming the
competitive landscape
The Practice of Implementing Open Innovation Partnerships
Tangib...
Open Innovation is transforming the
competitive landscape
The Practice of Implementing Open Innovation Partnerships

Intan...
Promoting Innovation and Collaboration
 Next Meeting – Autumn 2014
 Feedback on ideas/topics for discussion
 NEW Crowds...
Kent Business School Open innovation Network (Presentation: 23 January 2014): Realising value from open innovation partner...
Kent Business School Open innovation Network (Presentation: 23 January 2014): Realising value from open innovation partner...
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Kent Business School Open innovation Network (Presentation: 23 January 2014): Realising value from open innovation partnerships (Dr Marian Garcia)

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Kent Business School Open innovation Network (Presentation: 23 January 2014): Realising value from open innovation partnerships (Dr Marian Garcia)

  1. 1. Realising Value from Open Innovation Partnerships Dr Marian Garcia Kent Business School, University of Kent, UK Open Innovation Network– Rochester, 23rd January 2014
  2. 2. Agenda  Open innovation definition and benefits  What are key steps to establishing effective partnerships?  How to manage partnerships to achieve mutually agreed-upon outcomes?
  3. 3. External Innovation Focus is Essential
  4. 4. Open Innovation Model
  5. 5. The ‘Logic’ of Open innovation “Use the best available” • Combine internal and external ideas to shape new business models • We should profit from others use of our IP and we should buy others IP were it advances us Open Innovation Principles • • • • • Not all the smart people work for us. External R&D can create significant value Internal R&D is required to claim some portion of it We don’t have to originate the idea to profit from it If we make the best use of internal and external ideas, we will win Getting unusual suspects to solve R&D puzzles Source: Harvard Business Review, May 2007
  6. 6. Is it popular? Open Innovation has substantial global appeal 2013 GE Global Innovation Barometer http://files.publicaffairs.geblogs.com/files/2013/01/GE_GIB_2013_Report1.pdf
  7. 7. Profiting from External Knowledge Issues of Open Innovation » IP issues (managing and protecting) » Relinquishing potential value » Identifying the proper sources and the right ideas » Overcoming organizational inertia and “not invented here” syndrome
  8. 8. Working with Others – Practical Issues - In any successful partnership you need ■ ■ ■ ■ The necessary skills Sufficient project resources Commitment at senior level Common aims & strategic alignment - Issues to consider and define carefully ■ ■ ■ ■ ■ What do you/partners bring Who does what What are timescales What is field of collaboration Contingencies Unless these points are well understood, thought out and planned, not even the cleverest legal agreements can save you from problems!
  9. 9. Clear Strategy & Clear Alignment  Know what you bring  Know what your partner brings  Alignment in strategies  Minimize any potential conflicts  Division of responsibilities
  10. 10. Invest in your Partnerships  Married vs. one time fling  Establish trust and respect  Need clear communication  Avoid surprises  Establish good governance  Always good to have a “pre-nup”  Fair balance in relationship  Share risks and rewards  Repeat business is always good
  11. 11. Focus on the Win-Win If you wouldn’t sign both sides of the contract, you might want to rethink the deal structure.  Renegotiated, or even cancel, a contract if it’s not working  It’s a partnership, not a sale  Don’t get greedy - Pigs get slaughtered  Each and every relationship and deal defines you;  If needed, fight for your partner within your own company “Anytime we kept too many marbles on our side, we never saw the results we hoped for.”
  12. 12. Measure what you want to achieve  Metrics lead to incentives  Measure your success and your partners  Incentives drive behaviours  Keep metrics simple  Keep an eye on value extraction
  13. 13. Pick Your People, then Place them with Care They may be your brightest innovation star, but that doesn’t mean they will be helpful at the negotiation table! • Open Innovation calls for a special skill set • Multi-functional, experienced internally, comfortable externally • Knowledge/experience count • But youth and passion are good • Blend of both “Our best and brightest scientists haven’t always been the best at building partnerships! This calls for a special skill set.” (P&G Vice President)
  14. 14. Know When to ‘Walk’  Understand BATNA  Better to walk then to sign a bad deal  “Pre-nups” are good for the unexpected
  15. 15. Thanks Dr Marian Garcia m.garcia@kent.ac.uk
  16. 16. Open Innovation is transforming the competitive landscape The Practice of Implementing Open Innovation Partnerships Tangible Factors Aligned objectives Project plans and management Resource expectations Contracts IP Meeting schedules Reporting Governance structures Cycle of initiation and termination What practices have been successful?
  17. 17. Open Innovation is transforming the competitive landscape The Practice of Implementing Open Innovation Partnerships Intangible Factors Trust and suspicion Corporate relationship Attitude – master/servant vs partner Personal relationship Openness What practices have been successful?
  18. 18. Promoting Innovation and Collaboration  Next Meeting – Autumn 2014  Feedback on ideas/topics for discussion  NEW Crowdsourcing Platform Access to our Academic and Student Community Ideas and Solution Competitions Do you have a challenge?

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