Open innovation typology


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A brief overview of open innovation approaches or types. This framework was introduced in the book Open Innovation and Crowdsourcing.

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Open innovation typology

  1. 1. Open Innovation Typology All materials © NetCentrics 2008 unless otherwise noted
  2. 2. Key Points <ul><li>Open Innovation is gaining popularity in the innovation space </li></ul><ul><li>However, Open Innovation is a generic term for a number of tools and techniques </li></ul><ul><ul><li>The only common thread is working with customers or partners to gain ideas </li></ul></ul><ul><li>It’s important to understand the differences between the different techniques </li></ul>
  3. 3. “ Open Innovation” <ul><li>Open Innovation is a term coined by Henry Chesbrough to refer to a number of methods for gaining ideas from customers and business partners. </li></ul>
  4. 4. Representation <ul><li>Open Innovation is usually represented by this funnel graphic </li></ul>
  5. 5. Open Innovation <ul><li>In it’s simplest form, open innovation is a suggestion box that your customers can use to submit ideas </li></ul><ul><li>More sophisticated versions rely on vetted partners </li></ul><ul><li>Other open innovation programs use contests to solve problems – like the X-Prize </li></ul>
  6. 6. Our Framework <ul><li>OVO has a framework to help our clients think about “open” innovation using two characteristics: </li></ul><ul><ul><li>Who can participate? </li></ul></ul><ul><ul><li>How are they directed to submit ideas? </li></ul></ul><ul><li>Let’s look at this in a framework. </li></ul>
  7. 7. Open Innovation and Crowdsourcing The typology we’ll review was included in a chapter in the recently published book Open Innovation and Crowdsourcing
  8. 8. Open Innovation Framework Instructions None Directed Invitations Relatively Few “ Everyone” Directed, Invitational Directed, Participative Suggestive, Invitational Suggestive, Participative
  9. 9. Directed, Invitational <ul><li>Example: P&G Connect + Develop </li></ul><ul><li>Vetted partnerships that form “proprietary networks” </li></ul><ul><li>Only invited firms can participate, terms and conditions are established previously </li></ul><ul><li>Excellent for exchanging ideas with a small team of trusted partners </li></ul>
  10. 10. Directed, Participative <ul><li>Example: Gulf Oil Spill idea contest </li></ul><ul><li>A contest to submit ideas to solve a specific problem or opportunity </li></ul><ul><li>Anyone can submit ideas to solve a stated problem </li></ul><ul><li>Good for broad participation and seeking novel or unusual solutions </li></ul>
  11. 11. Suggestive, Invitational <ul><li>Example: IBM’s Idea Jams </li></ul><ul><li>People with specific insights or knowledge are invited to submit ideas that they believe are important </li></ul><ul><li>Jams and other campaigns allow invited participants to submit ideas about anything they believe is important </li></ul><ul><li>Good as a “birds of a feather” idea generation session. </li></ul>
  12. 12. Suggestive, Participative <ul><li>Example: Dell’s IdeaStorm, Starbucks MyStarbucks Idea </li></ul><ul><li>Anyone can submit an idea about any topic </li></ul><ul><li>Freely accessible to anyone on the planet with access to the internet. Any possible idea can be submitted </li></ul><ul><li>Excellent as a listening post to spot customer ideas and trends. Number of ideas can be overwhelming </li></ul>
  13. 13. Other “Open Innovation” types <ul><li>There are other types of open innovation that fit within the framework: </li></ul><ul><ul><li>Using Innocentive or Nine Sigma to present a problem to the community at large </li></ul></ul><ul><ul><li>Technology transfer – “spin in” or “spin out” </li></ul></ul>
  14. 14. Key Takeaways <ul><li>Open innovation is a generic term that aggregates a number of tools and techniques that: </li></ul><ul><ul><li>Require vastly different investments </li></ul></ul><ul><ul><li>Engage different customer segments </li></ul></ul><ul><ul><li>Result in very different types and quantities of ideas </li></ul></ul><ul><li>Decide the goal, then choose the technique </li></ul>
  15. 15. For More Information <ul><li>Contact OVO </li></ul><ul><ul><li>Phone: 919-844-5644 </li></ul></ul><ul><ul><li>Email: [email_address] </li></ul></ul><ul><ul><li>Web: </li></ul></ul>