Frameworks and Practices of Social Innovation - Pietro Butté, Speaker at Social Business Forum 2013

1. Frameworks and
Practices of
Social Innovation
Strategic Business Forum presentation
June 13, 2013
CONFIDENTIAL AND PROPRIETARY

2. [2]
Goldcorp: Search for innovators
• Made available digital maps
• Value of gold found: $6 billion
• 55 sites identified that were previously unknown
• Getting ideas
• Search for innovators (contest)
Why
How
What
Results
Context • Limited success in pinpointing gold’s
underground location at Red Lake Mine
• >80% with significant gold reserves
4

3. [3]
Key messages
6There are at least six ways
you can foster (social)
innovation in your company
Social Innovation is
broader than Open
Innovation
S O C I A L

4. [4]
.
Open Innovation vs. Social Innovation
Source: adapted from H.W. Chesbrough, Open Innovation:The New Imperative for Creating and Profiting from Technology, 2003;
E. Huinzuig, Open Innovation: State of the art and future perspectives, 2010, OpenKnowledge analysis
Closed Open
Closed
Open
Innovation
outcome
Innovation
process
Closed
innovation
Public
innovation
Private
open
innovation
Open
source
Open
innovation
Social
innovation

5. [5]
.
Social innovation framework
Search Collaborative
Closed
Open
Model
Innovation
process
R&D online
innovation
Business model
innovation
Company-wide
idea management
Call for IP
ideas
Search for
innovators
Search for
consumer
innovators
Source: adapted from H.W. Chesbrough, OpenInnovation:The New Imperative for Creating and Profiting from Technology, 2003
J.Philips, Open Innovation Typology (in A Guide to Open Innovation and Crowdsourcing, by Paul Sloane), 2006, OpenKnowledge analysis
2
5
4
6
1
3

6. [6]
.
Social innovation framework
Search Collaborative
Closed
Open
Model
Innovation
process
Source: adapted from H.W. Chesbrough, OpenInnovation:The New Imperative for Creating and Profiting from Technology, 2003
J.Philips, Open Innovation Typology (in A Guide to Open Innovation and Crowdsourcing, by Paul Sloane), 2006, OpenKnowledge analysis
Big R&D Co.
Health Co.
Fashion Co.
2
1
3
4
6
5

7. [7]
P&G: Call for IP ideas
• Launched an open innovation program charged
with bringing the outside in
• Share of outside innovation grew from 15% to 50%
in 4 years
• 1,000+ external companies and individuals involved
• Getting ideas
• Finding talent
• Call for IP ideas
Why
How
What
Results
5

8. [8]
Lego: Search for consumer innovators
…
6
• Contest, community building
• Provide product ideas and help evaluate which
are best
• Getting ideas
• Evaluating ideas
• Causing conversations
• Search for consumer innovators
Why
How
What
Results

9. [9]
Lego Cuusoo
…
6

10. [10]
.
Social innovation framework
Search Collaborative
Closed
Open
Model
Innovation
process
R&D online
innovation
Business model
innovation
Company-wide
idea management
Call for IP
ideas
Search for
innovators
Search for
consumer
innovators
Source: adapted from H.W. Chesbrough, OpenInnovation:The New Imperative for Creating and Profiting from Technology, 2003
J.Philips, Open Innovation Typology (in A Guide to Open Innovation and Crowdsourcing, by Paul Sloane), 2006, OpenKnowledge analysis
2
5
4
6
1
3

11. [11]
Why R&D online innovation
Between
R&D central
function and
satellites
Source: 2012 McKinsey R&D survey with 1,283 executives; Organizing R&D for the Future, by Capozzi, Van
Biljon and Williams, Sloan Management Review, 2013
<50%
Among R&D
satellites
Companies where R&D
collaborate very effectively
<25%
The issue … … and a possible solution
• “High performers are more
likely to […] use social media
to collaborate internally,
engage external partners and
crowdsource ideas”
• “Leveraging online
collaboration tools in support
of knowledge sharing and
virtual teaming is essential
across a global R&D footprint”
2012 R&D Survey results
R&D ONLINE INNOVATION
1

12. [12]
Who to engage?
Organizational Network Analysis (ONA)
Benefits
• Verify network
status (network,
relations, nodes)
• Selection of key
people, like
potential key idea
generators and
evaluators
Big R&D Co.
1

13. [13]
Why business model innovation
Source: Alex Osterwalder, Yves Pigneur, Business Model Generation, 2010
BUSINESS MODEL INNOVATION
2
Business model canvas
Key
partnerships
Key activities
Key
resources
Cost
structures
Customer
relationships
Channels
Revenue
streams
Value
propositions
Customer
segments

14. [14]
Why business model innovation Health Co.
2

15. [15]
25%
50%
100%=51
Potentially
innovative
12%
Total
Number of ideas, percent
Adaptation No value
2%
Disruptive
12%
Continuous
improvement
Business Model innovation results Health Co.
2

16. [16]
Why a company wide idea management
• Engage employees on a worldwide basis to
work together and generate innovative ideas
• Foster a cultural change toward new values or
reinforce older values of the company
3

17. [17]
Innovation idea management: process
• Teams of experts
evaluate best ideas
• Approved ideas and their
passionate supporters go
on to the next stage of
implementation
• Identify
innovation
challenges
that face a
business
issue
Key
activities
Key
features • Collaboration
• Efficiency
• Business
focus
• Structured review
• Teams
• Workflow
• Generate ideas
• Co-create:
comment, criticize,
vote
• Over a set period of
time
Challenge Explore Evaluate
Ideas
Health Co.
3

18. [18]
.
Social innovation framework
Search Collaborative
Closed
Open
Model
Innovation
process
R&D online
innovation
Business model
innovation
Company-wide
idea management
Call for IP
ideas
Search for
innovators
Search for
consumer
innovators
Source: adapted from H.W. Chesbrough, OpenInnovation:The New Imperative for Creating and Profiting from Technology, 2003
J.Philips, Open Innovation Typology (in A Guide to Open Innovation and Crowdsourcing, by Paul Sloane), 2006, OpenKnowledge analysis
2
5
4
6
1
3

19. [19]
How to choose: start with a clear objective definition
Community
management
Collaborative
platform
Outcome/
Activity flow
KPIs
The workflow and
procedures through which
activities get done
Definition of
desired outcome
Who to
engage
Source: OpenKnowledge analysis
Community
Technology
Measures
Process
PeopleObjective