APRIRSI PER INNOVARSI:
i vantaggi per le aziende
Workshop organizzato da TasLab
nell'ambito del Progetto CentraLab
Sede de...
Fase 2: Panel di esperti
• Francesca Gleria, “Progetto innovazione, sviluppo ICT e
organizzazione”, Provincia autonoma di ...
3
Open Innovation
Business Model Innovation
Lean Innovation
Gino Tocchetti
4
A definition for OI
“The use of porpusive inflows and outflows of
knowledge to accelerate internal innovation,
and expan...
5
Open Innovation vs Crowdsourcing
vs Co-Creation
source: Open Innovation vs Crowdsourcing vs Co-creation
http://www.wazok...
6
Open Innovation vs Crowdsourcing
vs Co-Creation
Open innovation is an inclusive, social way of solving complex
issues an...
7
Co-Creation
“An active, creative and social process, based on
collaboration between producers and users that is
initiate...
8
The rise of attention
• April, 2003: publication of Open Innovation
Google search on “open innovation”: 200 links
• Apri...
9
The logic
• Good ideas are widely distributed today. No one has a
monopoly on useful knowledge anymore.
• Innovation is ...
10
OI Reasons
• Useful industrial knowledge is abundant, not scarce
• Equal importance of external knowledge to internal
•...
11
OI Advantages
● Reduced cost of conducting research and development
● Potential for improvement in development producti...
12
OI Best Practices
Market intelligence: In order for open innovation to work for your
business, it is important to be up...
13
OI Disadvantages
● Possibility of revealing information not intended for
sharing
● Potential for the hosting organizati...
14
Open vs Closed Innovation
● The increasing availability and mobility of skilled
workers
● The growth of the venture cap...
15
Open vs Closed Innovation
source: Henry Chesbrough, Haas School of Business, UC Berkeley and
Esade Business School, Ram...
16
Open Standard vs Open Source vs OI
The “How Open” issue
Open Standard is a model for increasing innovation faster for t...
17
New Business Development (old)
18
New Business Development (new)
source: Henry Chesbrough UC Berkeley, Open Innovation: Renewing Growth from
Industrial R...
19
Possible objectives
• New Partnerships
• New Technologies
• New Business Opportunities
• Accelerate Time to Complete R&...
20
Possible objectives
source: Open Innovation Executive Survey, UC Berkeley Fraunhofer Institute, 2013
21
Challenges
source: Open Innovation Executive Survey, UC Berkeley Fraunhofer Institute, 2013
22
Metrics
source: Open Innovation Executive Survey, UC Berkeley Fraunhofer Institute, 2013
23
Models of Open Innovation
• Product platforming
• Idea competitions
• Customer engagement
• Collaborative product desig...
24
OI and Business Model Innovation
What and How
Business
Model
Products
Services
Challenge:
new way to create
and capture...
25
No business model lasts forever
Every business model has an expiring date
Alex Osterwalder
If companies fail to find a ...
26
Discovering New Business Model
• Business models do not emerge from planning. They
emerge from discovery.
• There is a ...
27
startup corporate
Lower upside,
lower downside
Internal external focus
Governed by managers
Must not disrupt
core busin...
28
startup corporate
Initial founders may be
long gone
Internal external focus
CEO optimizes
established
business model
dr...
29
startup corporate
Entrepreneurs must go
to a single place
- many must say yes
- only one No can stop
Subsequent financi...
30
Business Model Canvas
source: Business Model Generation, di Alex Osterwalder, 2010
31
A set of hypotheses
32
A set of OI opportunities
33
Lean Enterprise: 3 Strategies
1) Incubate internally
Organize a Lean Startup Machine or run an Hackathon.
Lowest moment...
34
OI Trends
● Industry penetration: from pioneers to mainstream
● R&D intensity: from high to low tech
● Size: from large...
35
OI Trends (2)
● Startups are Overtaking R&D as the Key Source of New
Ideas
● Open Innovation is Going Mainstream
● Inno...
36
OI Issues
● Patent valuation remains quite problematic
● Secondary markets require better information on
valuation
● So...
37
OI Issues (2)
● Opening up the innovation process creates a
challenging situation of managing dispersed virtual
R&D tea...
38
Essential Bibliography
39
Gino Tocchetti
Gino Tocchetti
Ecosistema XXI
@ecosistema21
#exxi
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Open Innovation, Business Model Innovation, Lean Innovation

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APRIRSI PER INNOVARSI: i vantaggi per le aziende -
Workshop organizzato da TasLab, nell'ambito del Progetto CentraLab -
Sede della Provincia Autonoma di Trento, Sala Wolf, 12/6/14 -
#aprirsixinnovare

Open Innovation, Business Model Innovation, Lean Innovation

  1. 1. APRIRSI PER INNOVARSI: i vantaggi per le aziende Workshop organizzato da TasLab nell'ambito del Progetto CentraLab Sede della Provincia Autonoma di Trento, Sala Wolf, 12/6/14
  2. 2. Fase 2: Panel di esperti • Francesca Gleria, “Progetto innovazione, sviluppo ICT e organizzazione”, Provincia autonoma di Trento • Luca Capra, Trentino Sviluppo • Giuseppe Angelini, Confindustria Trento • Elisabeth Graf, Verona Innovazione • Nicola Doppio, Trento RISE • Gino Tocchetti (moderatore), Ecosistema XXI - EXXI
  3. 3. 3 Open Innovation Business Model Innovation Lean Innovation Gino Tocchetti
  4. 4. 4 A definition for OI “The use of porpusive inflows and outflows of knowledge to accelerate internal innovation, and expand the market of external use of innovation, respectively” Chesbrough, Van Haverbeker and West - 2006 > ideas can come from anywhere > ideas must be commercialized through business models source: Henry Chesbrough, Haas School of Business, UC Berkeley and Esade Business School, Ramon Llul University - May 2014
  5. 5. 5 Open Innovation vs Crowdsourcing vs Co-Creation source: Open Innovation vs Crowdsourcing vs Co-creation http://www.wazoku.com/blog/open-innovation-vs-crowdsourcing-vs-co-creation/
  6. 6. 6 Open Innovation vs Crowdsourcing vs Co-Creation Open innovation is an inclusive, social way of solving complex issues and improving processes. Crowdsourcing occurs when an organisation outsources projects to the public. Crowdsourcing requires a lower level of engagement and involvement than open innovation and co- creation. Co-creation relates more specifically to the relationship between an organisation and a defined group of its stakeholders, usually its customers. source: Open Innovation vs Crowdsourcing vs Co-creation http://www.wazoku.com/blog/open-innovation-vs-crowdsourcing-vs-co-creation/
  7. 7. 7 Co-Creation “An active, creative and social process, based on collaboration between producers and users that is initiated by the firm to generate value for customers.” (C.K. Prahalad and Venkat Ramaswamy, Co-Opting Customer Competence, 2000). While crowdsourcing is people creating a great idea for you, co- creation is about people working with you to make a good idea even better. Co-creation is also a way of enhancing customer engagement by directly involving them in the company’s value creation and product development processes. source: Open Innovation vs Crowdsourcing vs Co-creation http://www.wazoku.com/blog/open-innovation-vs-crowdsourcing-vs-co-creation/
  8. 8. 8 The rise of attention • April, 2003: publication of Open Innovation Google search on “open innovation”: 200 links • April, 2013: ten years later Google search on “open innovation”: 453 million links source: Henry Chesbrough, Haas School of Business, UC Berkeley and Esade Business School, Ramon Llul University - May 2014
  9. 9. 9 The logic • Good ideas are widely distributed today. No one has a monopoly on useful knowledge anymore. • Innovation is now done within networks of firms, rather than within a single firm • Not all of the smart people in the world work for us. source: "Open Innovation and Open Business Models: A new approach to industrial innovation", OECD Conference, Henry Chesbrough (2006)
  10. 10. 10 OI Reasons • Useful industrial knowledge is abundant, not scarce • Equal importance of external knowledge to internal • Spillovers can be managed, not only unintended - Outside-in - Inside-out • The business model is central for commercializing R&D • Type I and Type II errors in R&D project evaluation • IP must be managed strategically for innovation • The rise of innovation intermediaries and crowdsourcing • New metrics needed to assess innovation performance source: Henry Chesbrough, Haas School of Business, UC Berkeley and Esade Business School, Ramon Llul University - May 2014
  11. 11. 11 OI Advantages ● Reduced cost of conducting research and development ● Potential for improvement in development productivity ● Incorporation of customers early in the development process ● Increase in accuracy for market research and customer targeting ● Potential for synergism between internal and external innovations ● Potential for viral marketing source: Wikipedia
  12. 12. 12 OI Best Practices Market intelligence: In order for open innovation to work for your business, it is important to be up to date with what other companies are up to. This means that you need have a specific team of employees that will concentrate on getting the latest news in the specific business industry. Brand reputation: It is also important that your business has a good reputation especially if you want to acquire other companies’ cooperation. Sense of community: Do not forget to let your employees know if a project or an idea that they are working on is in-house or outsourced through open innovation. Cross fertilization in other sectors: It is also important that your company is also open to the possibilities that other businesses may have certain interests in your ideas, project and innovations. Openness to foster volunteerism: If you want cooperation, then you must also be willing to give in and cooperate as well. source: UnchBuzz
  13. 13. 13 OI Disadvantages ● Possibility of revealing information not intended for sharing ● Potential for the hosting organization to lose their competitive advantage as a consequence of revealing intellectual property ● Increased complexity of controlling innovation and regulating how contributors affect a project ● Devising a means to properly identify and incorporate external innovation ● Realigning innovation strategies to extend beyond the firm in order to maximize the return from external innovation source: Wikipedia
  14. 14. 14 Open vs Closed Innovation ● The increasing availability and mobility of skilled workers ● The growth of the venture capital market ● External options for ideas sitting on the shelf ● The increasing capability of external suppliers These four factors have resulted in a new market of knowledge. Knowledge is not anymore proprietary to the company. It resides in employees, suppliers, customers, competitors and universities. If companies do not use the knowledge they have inside, someone else will. source: Wikipedia
  15. 15. 15 Open vs Closed Innovation source: Henry Chesbrough, Haas School of Business, UC Berkeley and Esade Business School, Ramon Llul University - May 2014
  16. 16. 16 Open Standard vs Open Source vs OI The “How Open” issue Open Standard is a model for increasing innovation faster for the users' benefit by the creation of a transparent game field where interoperabiility and room for incomers are assured Open Source can be a more efficient model for getting more innovation faster in a community that shares a common problem or sees a common opportunity. Open Innovation is a more efficient model for creating innovation faster for a company that is focused on its own problem or opportunity and is unable, for whatever reason, to cede control. source: “Open Standard, Open Source and Open Innovation”, Elliot Maxwell, 2006
  17. 17. 17 New Business Development (old)
  18. 18. 18 New Business Development (new) source: Henry Chesbrough UC Berkeley, Open Innovation: Renewing Growth from Industrial R&D, 10th Annual Innovation Convergence, Minneapolis Sept 27, 2004
  19. 19. 19 Possible objectives • New Partnerships • New Technologies • New Business Opportunities • Accelerate Time to Complete R&D • Manage risks of innovation • New revenue sources from R&D • Reduce costs of R&D • ... source: Henry Chesbrough, Haas School of Business, UC Berkeley and Esade Business School, Ramon Llul University - May 2014
  20. 20. 20 Possible objectives source: Open Innovation Executive Survey, UC Berkeley Fraunhofer Institute, 2013
  21. 21. 21 Challenges source: Open Innovation Executive Survey, UC Berkeley Fraunhofer Institute, 2013
  22. 22. 22 Metrics source: Open Innovation Executive Survey, UC Berkeley Fraunhofer Institute, 2013
  23. 23. 23 Models of Open Innovation • Product platforming • Idea competitions • Customer engagement • Collaborative product design and development • Innovation networks • Lean Startup / Lean Enterprise source: Wikipedia (extended)
  24. 24. 24 OI and Business Model Innovation What and How Business Model Products Services Challenge: new way to create and capture value Challenge: Ecosystem design, Growth and Sustenance Traditional Product Development System Challenge: becoming an innovation partner of choice Closed Open changing the what changing the how source: Henry Chesbrough, Haas School of Business, UC Berkeley and Esade Business School, Ramon Llul University - May 2014
  25. 25. 25 No business model lasts forever Every business model has an expiring date Alex Osterwalder If companies fail to find a new business model, they eventually become disposable Steve Blank
  26. 26. 26 Discovering New Business Model • Business models do not emerge from planning. They emerge from discovery. • There is a robust, validated model of business model discovery from startups  Business Model Canvas  Customer Development  Agile Development • How do these apply in a corporate context?
  27. 27. 27 startup corporate Lower upside, lower downside Internal external focus Governed by managers Must not disrupt core business Try to leverage corporate assets High risk, high reward External focus Governance by owners Clean sheet of paper CEO
  28. 28. 28 startup corporate Initial founders may be long gone Internal external focus CEO optimizes established business model drives away the misfits who challenge it Founder(s) is the creator of the business model External focus CEO pivots until a viable business model is discovered then focuses on scaling Board
  29. 29. 29 startup corporate Entrepreneurs must go to a single place - many must say yes - only one No can stop Subsequent financing driven by performance vs budget May go up or down, depending on whether company is having a good or bad year Entrepreneurs must shop around >10 picthes to get an initial financing One Yes is enough to start Subsequent financing driven by performance vs milestones Finance
  30. 30. 30 Business Model Canvas source: Business Model Generation, di Alex Osterwalder, 2010
  31. 31. 31 A set of hypotheses
  32. 32. 32 A set of OI opportunities
  33. 33. 33 Lean Enterprise: 3 Strategies 1) Incubate internally Organize a Lean Startup Machine or run an Hackathon. Lowest momentum, high control. Share resources and equity. 2) Acquire early Find unproven businesses that fit your innovation thesis and let them grow organically. High control, high momentum. Acqui-hire. 3) Invest in outside startup Extend a loan to be restructured as equity (convertible note), or purchase equity outright. Low control, high momentum. Learn validating how to invest source: Lean Enterprise, Trevor Owens, 2014
  34. 34. 34 OI Trends ● Industry penetration: from pioneers to mainstream ● R&D intensity: from high to low tech ● Size: from large firms to SMEs ● Processes: from stage-gate to probe-and-learn ● Structure: from standalone to alliances ● Universities: from ivory towers to knowledge brokers ● Processes: from amateurs to professionals ● Content: from products to services ● Intellectual property: from protection to tradable good source: The Future of Open Innovation, Oliver Grassmann, 2010
  35. 35. 35 OI Trends (2) ● Startups are Overtaking R&D as the Key Source of New Ideas ● Open Innovation is Going Mainstream ● Innovation is Becoming Everybody’s Business ● The “Sharing Economy” is Unstoppable ● The Rise of the CINO ● Crowdsourcing Will Continue to Gain Clout in Large Organizations source: Robert Tucker
  36. 36. 36 OI Issues ● Patent valuation remains quite problematic ● Secondary markets require better information on valuation ● Some minimal protection is essential to stimulate risk- taking, and it seems equally clear that extremely strong patents strangle any follow-on inventions that build on them ● SMEs are the largest number of companies in an economy, but they are underresearched in the open innovation literature source: The Future of Open Innovation, Oliver Grassmann, 2010
  37. 37. 37 OI Issues (2) ● Opening up the innovation process creates a challenging situation of managing dispersed virtual R&D teams. These teams are more difficult to energize, coordinate and enable in their knowledge creation ● No holistic model of open innovation that includes the innovation process’s determinants and industry specifics, as well as the limits to opening it up. source: The Future of Open Innovation, Oliver Grassmann, 2010
  38. 38. 38 Essential Bibliography
  39. 39. 39 Gino Tocchetti Gino Tocchetti Ecosistema XXI @ecosistema21 #exxi

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