Open Innovation and Knowledge Networking @ Siemens


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Open Innovation and Knowledge Networking @ Siemens

  1. 1. ESC Rennes School of Business Siemens Strategy for Implementing Open Innovation Dr. Dirk Schneckenberg Cantine Numerique - Champs Libres 5 October 2011 in Rennes, France
  2. 2. ESC Rennes School of Business PROFILE OF SIEMENS Age Founded in 1847 Size 405.000 employees, 1640 locations in 190 regions Markets Industry, Energy & Health Scope Global enterprise Performance in 2009: Turnover 76.6 billion EUR, earnings 2.45 billion EUR
  3. 3. ESC Rennes School of Business RESEARCH PROBLEM OI Model Chesbrough Open up firm boundaries to let distributed knowledge flow from industry environments into corporate innovation Principles vs Implementation Principle of OI well accepted in theoretical discourse of management research We know less about the complex organisational processes during the corporate- wide adoption of OI strategies
  4. 4. ESC Rennes School of Business RESEARCH DESIGN Question How to bring open innovation in a large international firm from strategic vision at top management level to organisation-wide reality? Method In-depth case study and action research that combines primary and secondary data analysis to analyse the OI implementation at Siemens - Interviews of key open innovation evangelists in the organisation - Ongoing observation of the workforce & corporate culture - Content analysis of strategic documentation on open innovation and knowledge networking
  5. 5. ESC Rennes School of Business FINDINGS: THE OPEN INNOVATION DIAMOND Four key dimensions for implementing an open innovation strategy FIGURE: THE O PEN IN NO VATIO N DIAM O ND PRIN CIPLES CAPABILITIES CON TEXT TECHNO LO GIES
  6. 6. ESC Rennes School of Business OPEN INNOVATION DIAMOND: PRINCIPLES PRINCIPLES OI Strategy Foundation CA PABI LITIES CON TEX T Strong belief of leadership that future success of TECHN O LOG IES Siemens relies on capability to combine best ideas and industry players for every component of value chain External Environment Many project components are no longer produced by internal workforce. Siemens shifts both its development and production towards external industry players Aim of OI Strategy Leverage participation of employees and external stakeholders for the creation of new business ideas in the various industries in which Siemens operates -> New production realities lead to redesign of work organisation and allocation
  7. 7. ESC Rennes School of Business OPEN INNOVATION DIAMOND: CAPABILITIES PRINCIPLES Knowledge Networking CA PABI LITIES CON TEX T Knowledge Networking capability as core competence for TECHN O LOG IES Siemens to cope with volatile environments From centralised, monolithic to modular, networked work organisation Modules as core teams that take responsibility for specific project components Mindset of openness and capability to act flexible in uncertain contexts Intense networking to develop this cognitive and behavioural ability Switching Capability To balance opposing tensions in innovation freedom and reflection <-> operational pressure and time-scarcity bottom up creativity <-> top-down decision-making creative part <-> rigorous part of innovation Dynamical switching between hierarchy and network modes of work organisation Stepping back as managers to allow creative innovation <-> Rigorous decisions to transform inventions into corporate innovation
  8. 8. ESC Rennes School of Business OPEN INNOVATION DIAMOND: CONTEXT PRINCIPLES Innovation Niches CA PABI LITIES CON TEX T Corporate age and size TECHN O LOG IES Large firms vs agile start ups/ Old and big = less flexible and changeable Large size allows to create experimentation niches Innovation niche is a playground to apply OI principles for work organisation to limited group. If experiences are positive, principles can be scaled up Mental Models Conceptual and mental barriers: reasons to resist cultural change Traditional hierarchies and silo mentalities: hoarding of knowledge is power OI contexts: value of knowledge in sharing in open networks -> leads to increased visibility of expertise and reputation OI requires change of mental models so that workforce can develop openness of minds and managerial practices
  9. 9. ESC Rennes School of Business OPEN INNOVATION DIAMOND: CONTEXT PRINCIPLES Network Behaviour CA PABI LITIES CON TEX T people respond to two key drivers for platform adoption TECHN O LOG IES link between reputationin networks and opportunities to advance careers Reputation as modern currency for moving up ladder in organisations humaninstinct to help other people in critical situations Subcultures technologies only extend corporate culture and practice knowledge sharing behaviour of employees depends on predominant culture in specific groups corporate culture is breaking down in array of subcultures in different units development unit of Siemens has knowledge-sharing culture, unit members are not incentive driven consulting unit is knowledge-hoarding culture, incentives of unit members depend on total requests for service units
  10. 10. ESC Rennes School of Business OPEN INNOVATION DIAMOND: TECHNOLOGIES PRINCIPLES TechnoWeb 2.0 Ratio CA PABI LITIES CON TEX T To exchange knowledge and to bridge silo boundaries TECHN O LOG IES Helps people to identify cross-sector competences and to leverage synergies TechnoWeb 2.0 Features Combines a set of web 2.0 technologies - like wikis, blogs, microblogging, RSS feeds, tags, expert profiles and instant messaging Example urgent request: microblogging to reach to get rapid help from experts on a burning issue TechnoWeb 2.0 Adoption Process Pilot approach for incremental use of collaborative platform 1. Identify project group with open-minded middle manager 2. Develop pilot that combines cultural (OI workshops) and technological (collaborative tools) features 3. Facilitate platform adoption for work processes 4. Scale up pilot to wider population
  11. 11. ESC Rennes School of Business OPEN INNOVATION DIAMOND: TECHNOLOGIES PRINCIPLES Information Architecture information overflow as challenge for information architecture CA PABI LITIES CON TEX T knowledge workers follow variety of emerging trends TECHN O LOG IES options to focus, filter and canalise information move away from eMail as main communication tool Filter for Efficiency Technoweb design includes filter mechanisms to give different kinds of information different importance Represents business and knowledge communication streams in different ways Underlying Logic project-related business communication is obligatory for employees to follow community-related knowledge communication is voluntary, employees can dive into this stream when they find time
  12. 12. ESC Rennes School of Business CONTRIBUTIONS PRINCIPLES Holistic OI Implementation Model CA PABI LITIES CON TEX T OI Diamond as holistic view to conceptualise key TECHN O LOG IES dimensions for implementing OI strategy in large organisation Balance Four Dimensions Key managerial challenge is to balance complex interplay between the four dimensions of the OI diamond Develop Measures for All Dimensions Need to design and realise adequate measures in all four dimensions to move OI from strategic objective to corporate reality
  13. 13. ESC Rennes School of Business PRACTICAL IMPLICATIONS PRINCIPLES Principles CA PABI LITIES CON TEX T Define coherent OI strategy for your organisation TECHN O LOG IES Capabilities Focus on change of workforce mindsets and managerial practices Context Take one step after another, concentrate on your own culture first: internal openness precedes external openness of organisations Technologies Use platform of collaborative tools to design information architecture that enhances knowledge networking and open innovation behaviour
  14. 14. ESC Rennes School of Business Open Innovation and Knowledge Networking @ Siemens Contact Dirk Schneckenberg, Associate Professor for Strategy & KM ESC Rennes School of Business, 2 rue Robert dArbrissel, 35065 Rennes, France. E-mail: Thank you very much for your attention :-)