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A Strategic Approach to Open Innovation - Jeffrey Phillips


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In this session, Jeffrey Phillips examines the critical questions you should ask as you establish an open innovation framework: which technologies or ideas? Which partners and how many? Which methods? By taking a strategic approach to open innovation, you’ll find the right ideas or partners more effectively, and you’ll accelerate new products to market more quickly.

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A Strategic Approach to Open Innovation - Jeffrey Phillips

  1. 1. A Strategic Approach to Open Innovation With Jeffrey Phillips
  2. 2. About the Conference 6 Education-packed sessions
  3. 3. About Jeffrey Phillips Jeffery Phillips Jeffrey is a senior consultant and leads our consulting practice. He is responsible for thought leadership, project engagements and business development. Jeffrey has led innovation projects in the US, Western Europe, South Africa, Latin American, Malaysia, Dubai and Turkey. He has expertise in the entire “Front End of Innovation”, with specific focus on trend spotting and scenario planning, obtaining customer insights, defining an innovation process and open innovation. He is the author of three books about innovation, Relentless Innovation, 20 Mistakes Innovators Make and Make us more Innovative. He also writes the Innovate on Purpose blog, which ranks as one of the top blogs about innovation.
  4. 4. Open Innovation
  5. 5. • Brief OVO Introduction • Closed and Open Innovation • Types and Methods • The future of (open) innovation
  6. 6. About OVO • OVO is a consulting firm helping our clients build sustainable innovation capabilities. • We work primarily with large, distributed organizations that seek to make innovation an internal, consistent, repeatable capability • We believe innovation can become a core capability, backed by a definitive process or approach and trained, engaged advocates
  7. 7. Our Publications Our Blog Our whitepapersOur books
  8. 8. Innovation best practices • Get lots of ideas • Use diverse teams, built of people with different experiences, different perspectives • Combine ideas and technologies; build on existing ideas • Explore/Discover/ Experiment
  9. 9. Build, Add, Copy, Combine
  10. 10. Filament Bamboo, Cotton, Cardboard, Wood, Platinum Power Source AC current or DC current Mount Screw, Flat ring, Grooves, Bayonet
  11. 11. Menlo Park was Open Innovation
  12. 12. Large Hadron Collider at CERN
  13. 13. The best innovation comes from…. Lots of ideas Diverse Perspectives IP and Technology
  14. 14. Question: can my company do internal innovation effectively without tapping into the ideas, intellectual property and technology available in the global marketplace?
  15. 15. Arthur Lafley, CEO of P&G
  16. 16. Closed Innovation
  17. 17. “Closed” Innovation For the purposes of this discussion we’ll define “closed” innovation as innovation activities that rely exclusively on the ideas, insights and technologies of the company. No external participation or insights will be involved.
  18. 18. Internal Idea Generation
  19. 19. Advantages / Disadvantages Advantages • Rely only on internal team • Faster to conduct • No need to educate the team • Far fewer intellectual property concerns • Full ownership of ideas Disadvantages • Idea scope may be constrained • May lack critical knowledge or insights • May be unaware of emerging trends, ideas or technologies
  20. 20. Open Innovation
  21. 21. “Open” Innovation Open innovation is an umbrella term that describes a range of techniques to search for, find, acquire and implement new ideas, intellectual property, technologies or products, OR to spin out the same to other companies.
  22. 22. The book that defined it In 2005 Henry Chesbrough published Open Innovation, which was one of the first books to name and define the activities surrounding what we now call open innovation.
  23. 23. Open Innovation Types Technique Definition Partners Technology Scouting Internal resources or external teams seeking emerging research or technologies that can address product challenges PreScouter Lux Research Contests Broadcast challenges to a selected population that seek solutions to a specific problem. For example, BP created a contest after the Gulf Oil spill seeking ideas to remove crude oil from the Gulf waters. Anyone was welcome to submit ideas or technologies. This was an Open, public contest, but the way the contest is framed and publicized, and who is allowed to respond, can be moderated. Hyve Hype Spigit Blind RFPs Firms provide a means to connect a firm seeking a new solution or technology with “solvers” through a blind matching process. The firm seeking a new technology develops an “RFP” with specific technical specifications. NineSigma, Innocentive and other firms solutions like them publish these RFPs and seek responses. These firms provide some initial validation of the proposed solutions and can make introductions as appropriate. NineSigma Innocentive Crowd- Sourcing Crowdsourcing is similar to a contest in that a firm seeking ideas implements a “suggestion box” or other means of capturing ideas for products or solutions from its customers. Dell’s IdeaStorm site is probably the most well-known. In just over seven years of operation, the site has received almost 22,000 ideas and over 500 of those ideas have been implemented. IdeaScale Wazoku Chaordix Vetted Partnerships P&G’s Connect+Develop partnerships represent co-development or joint development “Open Innovation” relationships. P&G identifies key suppliers, partners and even competitors to work with, reducing barriers and sharing more information. These vetted partnerships are similar to work Hollister has done with its trusted suppliers. DSM Sponsored Research Working with universities or research institutions to indicate specific areas of vital research or actually sponsor research is another way to develop Open Innovation and acquire new technologies or products. Various Institutions Brokers/ KOLs/ Conferences Many industry conferences and VC conferences are also Open Innovation venues, seeking to connect entrepreneurs and small businesses that have interesting new technologies with larger businesses who may wish to acquire or license those technologies. Key Opinion Leaders (KOLs) can introduce or act as brokers EpiCenterIP Tynax
  24. 24. Advantages / Disadvantages Advantages • Broader array of ideas, IP and technologies to choose from • Broader array of expertise • No need to reinvent the wheel • May combine ideas, channels and business models Disadvantages • May expose some of your strategic thinking to 3rd parties • Ideas/technologies may come at a cost • Legal/IP issues; ownership issues
  25. 25. Evolution of Corporate Innovation
  26. 26. Types and Methods
  27. 27. Open Innovation Framework Instructions None Directed Invitations Relatively Few “Everyone” Directed, Invitational Directed, Participative Suggestive, Invitational Suggestive, Participative ©OVO Innovation 2006-2017.
  28. 28. Open Innovation Techniques • Different Open Innovation techniques introduce varying amounts of risk and provide different kinds of ideas or technologies. • While all techniques are viable, innovation teams must choose carefully according to their needs and expectations • The techniques are plotted according to the instructions offered and number of companies to invite – using an OVO matrix 354/24/2017 These techniques require close relationships and deeper discussions to provide results These techniques expose strategic goals to a broader audience These techniques often lead to ideas or further research rather than solutions
  29. 29. Categorized another way Source: Bagherzadeh & Brunswicker (2015)
  30. 30. Open Innovation Methodology Gene Slowinski
  31. 31. An Innovation Bazaar
  32. 32. Innovation Marketplace Participants
  33. 33. Channels or Interactions
  34. 34. Lessons learned Exposing your strategy • “No other company would be seeking this technology”
  35. 35. Lessons learned Building partnerships before you need them
  36. 36. Lessons learned Being able to accurately determine the value of internal and external IP
  37. 37. (Open) Innovation Future • No distinctions • Broaden the definition • Speed and agility • Organize platforms and ecosystems • Achieving experiences
  38. 38. Beyond technologies and products
  39. 39. Platforms and Ecosystems
  40. 40. To what end? • Products • Linked to platforms • Supported/Surrounded by ecosystem partners • Seamlessly linked to provide a total customer experience Product Platform Ecosystem Experience
  41. 41. Implication • Start with the customer’s experience goals in mind • Determine which solution partners we need • Define the appropriate open innovation methods or tools to invite them in From Sinek’s book Start with Why
  42. 42. Two ecosystem approaches Same ecosystem partners (Carriers, software developers, musicians, etc) Different methods (Dictate the platform and ecosystem versus encourage developers for the platform)
  43. 43. Watch this play out in real time
  44. 44. Old closed/open innovation • Examine ideas and technologies • Identify interesting capabilities • Develop a product • Promote to customers New innovation • Define “experiences to be had” that customers want • Identify relevant platforms and ecosystem partners • Build relationships and prototype experiences
  45. 45. Understand the drivers of change Product Lifecycles are Shrinking
  46. 46. Cultural Change • Where the idea is from doesn’t matter, what matters is that it drives value for customers • Need to eliminate the “Not Invented Here (NIH)” mentality • Must view third parties as partners rather than competitors. Find a way to get to “yes”
  47. 47. More about how and what
  48. 48. Open or Closed Innovation?
  49. 49. How to contact me @ovoinnovation 703-714-7345 x789
  50. 50. 62 Q&A
  51. 51. 63 Don't Miss the Next Session!