19-6-2012                         Open Services Innovation                         by Marion Debruyne, Wim Vanhaverbeke an...
19-6-2012                              Flanders DC – Companies3 Flanders DC Kenniscentrum                                 ...
19-6-2012                                 Flanders DC – General Public            5Flanders DC Kenniscentrum              ...
19-6-2012     Open Innovation in Services: 2 sides of the same coin           Upstream open innovation = with Partners    ...
19-6-2012       They have all done it… 9|    Flanders DC Kenniscentrum           | 19-06-2012 | Creativity Talk: Open Serv...
19-6-2012       Design with partner:       Janssen Pharmaceutica: Healseeker              Project started in early 2011 as...
19-6-2012       Design with partner:       Healseeker: Value Delivery              Endorsed by ZITSTIL in Belgium         ...
19-6-2012       Design with partner:       What can we learn from Janssen?              Partnerships for Open Innovation  ...
19-6-2012                             In some service industries,                                 co-creation with custome...
19-6-2012Design with customer:Innotribe: Value Creation       Innotribe gives bright minds from       within and outside t...
19-6-2012Design with customer:Innotribe: Value Capture       Swift managed to change its       corporate culture and      ...
19-6-2012                             …and     Swift is NOT alone        practising Open innovation in        the financia...
19-6-2012Design with customer:Idea Board: Value Creation       Financial institutions are able to       express their idea...
19-6-2012Design with customer:Idea Board: Value Capture       The project is strengthening the       bond between Eurex an...
19-6-2012       Upstream + Downstream possibilities:       Our Framework                            With Partner   Design ...
19-6-2012       Co-produce with partner:       Cab Sense: Value Creation              The purpose of the app is to        ...
19-6-2012       Co-produce with partner:       Cab Sense: Value Capture              Sense Networks uses Cab Sense to     ...
19-6-2012       Upstream + Downstream possibilities:       Our Framework                            With Partner   Design ...
19-6-2012Co-produce with customer:Arena: Value Creation       People with different interests       create value for each-...
19-6-2012Co-produce with customer:ABN Amro: Value Capture      Boost in internal communication      and alignment      Per...
19-6-2012       But where exactly is the value created for       the customer?                     Search and             ...
19-6-2012       Many in one service bundles:       The Brussels Loft                                                      ...
19-6-2012       You don’t need to focus on just one stage!                     Search and                                 ...
19-6-2012Design with partner:KLM & EC Solution       Working together in thinking out the       future of air travel      ...
19-6-2012Design with customer:KLM In Touch community      Started in 2008 as a virtual club of      frequent fliers      C...
19-6-2012       Co-produce with Customer:       KLM Bluenity              First community site for frequent fliers        ...
19-6-2012                                 Thank you for listening                                 Questions time!     53 |...
19-6-2012       Sources 2/3              Honebein, P., E., Cammarano, R., F.,2005, Creating Do-It-Yourself Customers, Thom...
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Fdc open services innovation creativity talk 190612final

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Open Innovation in services

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Fdc open services innovation creativity talk 190612final

  1. 1. 19-6-2012 Open Services Innovation by Marion Debruyne, Wim Vanhaverbeke and Livia Pijakova Flanders DC Kenniscentrum Flanders DC - Mission Stimulating Creativity in Stimulating Entrepreneurship in Flemish Entrepreneurs Flemish Creative Industries2 Flanders DC Kenniscentrum 1
  2. 2. 19-6-2012 Flanders DC – Companies3 Flanders DC Kenniscentrum Flanders DC – Schools 4 Flanders DC Kenniscentrum 2
  3. 3. 19-6-2012 Flanders DC – General Public 5Flanders DC Kenniscentrum Open Services Innovation by Marion Debruyne, Wim Vanhaverbeke and Livia PijakovaFlanders DC Kenniscentrum 3
  4. 4. 19-6-2012 Open Innovation in Services: 2 sides of the same coin Upstream open innovation = with Partners YOUR COMPANY Downstream open innovation = with Customers7| Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Value co-creation is the new paradigm Commoditization risk? More products and innovations How to be different? More Information, MARKET Value co-creation more choices Forum of conversations Customers are part of value chain More informed, network and between customers, From product-centric to personalize companies & communities customer experiences empowered customer Word of mouth Peer influence Customers are the best or the worst marketing toolSources: Adapted from Prahalad, C.K, Ramaswamy (2004). The future of Competition: Co-creating Valur with Customers. Harvard Business Review Flanders DC Kenniscentrum 4
  5. 5. 19-6-2012 They have all done it… 9| Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Upstream + Downstream possibilities: In Focus: Design Co-produce With Partner HealSeeker by J&J Cab Sense Design with Co- Co-produce Partner with Partner Co- Amro Co-produce Customer Swift ABN Design with EUREX – with Customer Customer Deutsche Boerse Customer With10 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 5
  6. 6. 19-6-2012 Design with partner: Janssen Pharmaceutica: Healseeker Project started in early 2011 as a result of an internal innovation bootcamp Sparked by the desire to provide holistic treatment to children with ADHD Janssen teamed up with a psychiatric clinic Yulius, a computer game developer RANJ and a patient organisation ZITSTIL Innovative approach to behavioural therapy – computer game to train children in time management and planning as a complement to pharmacotherapy11 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Design with partner: Heal Seeker: Value Creation Game is to be used as a complementary therapy recommended by physicians Children with ADHD are undergoing behavioural therapy sooner and in a playful way Plans to internationalise once successful in the Dutch-speaking market12 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 6
  7. 7. 19-6-2012 Design with partner: Healseeker: Value Delivery Endorsed by ZITSTIL in Belgium Multi-channel approach in distribution: online and through ZITSTIL 2-pronged strategy in launching – running clinical trials to prove game efficacy, but also launching it without claims13 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Design with partner: Healseeker: Value Capture Product is still in the pre-launch phase Pre-clinical research shows possible efficacy in achieving the learning goals The initiative opened up new doors to the gaming market for Janssen – games geared towards other therapeutic areas may follow So far the investment was done by Janssen alone, for future RANJ may share some of it and become a partner14 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 7
  8. 8. 19-6-2012 Design with partner: What can we learn from Janssen? Partnerships for Open Innovation spark up by serendipity: be open to new contact and maintain your network If you are in a sector, which is regulated, involve the legal department from day 1 Do not be afraid to step out of your comfort zone to innovate – trust your partners15 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Upstream + Downstream possibilities: Our Framework Design Co-produce With Partner HealSeeker by J&J CabSense Customer Swift ABN Amro EUREX – Deutsche Boerse With16 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 8
  9. 9. 19-6-2012 In some service industries, co-creation with customers is DIFFICULT. But NOT im possible! 17 | Flanders DC Kenniscentrum| 19-06-2012 | Creativity Talk: Open Services Innovation Design with customer: Swift: Innotribe Global cooperative ensuring secure messaging and transactions within and between supply chains mainly in the financial industry Innotribe started on 2009 as an internal company tool 2 main functions: change the company culture and change the company positioning to the outside world Flanders DC Kenniscentrum 9
  10. 10. 19-6-2012Design with customer:Innotribe: Value Creation Innotribe gives bright minds from within and outside the company an opportunity to realise their business ideas A new channel of meaningful communication within the company but also opens the company up to outside world Swift is connected to 8000 banking institutions The unique position enables them to create an innovation hubFlanders DC KenniscentrumDesign with customer:Innotribe: Value Delivery The virtual Innotribe is seamlessly connected to physical conferences Sibos Sibos conferences are organised to recruit smart thinkers and get them to present their ideas in a “Dragon’s Den” setting. Participants have 5 minutes to present their idea without powerpoint The prize is 50 000 EUR or Swift’s involvement in developing the ideaFlanders DC Kenniscentrum 10
  11. 11. 19-6-2012Design with customer:Innotribe: Value Capture Swift managed to change its corporate culture and reposition itself as an innovative company As a result of the success, in 2011, Swift set up an incubation framework of 5 Million EUR to be able to support more than just a single winning idea About 10% of NPD idea inflow comes from Innotribe – currently there are 2 projects about to be launched as a ventureFlanders DC KenniscentrumDesign with customer:What can we learn from Innotribe? It may take time for an open innovation initiative to settle in in your organisation, but do not give up! Make a clever combination of online and offline to keep the ball rolling between events.Flanders DC Kenniscentrum 11
  12. 12. 19-6-2012 …and Swift is NOT alone practising Open innovation in the financial industry… 23 | Flanders DC Kenniscentrum| 19-06-2012 | Creativity Talk: Open Services Innovation Design with customer: Eurex: Idea Board Operating in the business of selling derivatives in the financial market The initial starting point to strengthen the innovation capability of the company and use every opportunity to communicate with their customers Started in 2010, reaching about 350 members by 2011 Flanders DC Kenniscentrum 12
  13. 13. 19-6-2012Design with customer:Idea Board: Value Creation Financial institutions are able to express their ideas on new financial products to a neutral and safe party 10% of the creative inflow in Eurex’s NPD process comes from the idea community There are ideas that sparked up within the community in the NPD pipeline about to be launchedFlanders DC KenniscentrumDesign with customer:Idea Board: Value Delivery Any one of the members can post an idea to a virtual idea box. This one is considered by the experts at Eurex and evaluated. Some ideas may be further developed on a forum, which his part of the Idea Board. Then the whole community can contribute to the development. (only if IP is not sensitive) No reward is offered, companies benefit from the financial products created in this collaboration.Flanders DC Kenniscentrum 13
  14. 14. 19-6-2012Design with customer:Idea Board: Value Capture The project is strengthening the bond between Eurex and its customers, but also fostering innovation within the company by opening up the company culture. The Idea Board community would never have come together in face- to-face!Flanders DC KenniscentrumDesign with customer:What can we learn from Eurex! Your customers can become your partners in development Give them room to co-create and they will do so out of their own goodwill Practice soft launch, start with your best customers they will then pull others in If you cannot organise co-creation face-to-face a secured virtual environment will do the job Maintain the feedback loopFlanders DC Kenniscentrum 14
  15. 15. 19-6-2012 Upstream + Downstream possibilities: Our Framework With Partner Design Co-produce HealSeeker by J&J CabSense Customer Swift ABN Amro EUREX – Deutsche Boerse With29 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Co-produce with partner: Sense Networks - Cab Sense All taxis in New York are equipped with a GPS device connected to a register The analytical capabilities of Sense Networks combined with NYC Taxi &Limousine Commission give opportunity to provide a new service App launched in 2008 for iPhone, Android and Motorola Predictions of most probable taxi locations are projected onto the map of the city as a heatmap30 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 15
  16. 16. 19-6-2012 Co-produce with partner: Cab Sense: Value Creation The purpose of the app is to improve the service experience of travelling by taxi beyond the service process It helps match taxi providers and taxi seekers in a more efficient way31 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Co-produce with partner: Cab Sense: Value Delivery App is free of charge and downloadable from iTunes, Android Motorola markets Upon installing app, users can make use of many functions: navigation to the point with most available taxis, time slide to plan your night etc… New taxi data are fed into the system to make the prediction algorithm more accurate32 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 16
  17. 17. 19-6-2012 Co-produce with partner: Cab Sense: Value Capture Sense Networks uses Cab Sense to showcase the power of their machine learning algorithm – their main product Increase in revenue and passenger satisfaction for NYC Taxi & Limousine Commission Greater satisfaction and service efficiency for the taxi hailers.33 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Co-produce with partner: What can we learn from Sense Networks? If you own a good technology, look outside its current application Look for partners in the new market that have access to the target group Use the app market to showcase what your technology can do to fuel your revenue growth34 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 17
  18. 18. 19-6-2012 Upstream + Downstream possibilities: Our Framework With Partner Design Co-produce HealSeeker by J&J CabSense Customer Swift ABN Amro EUREX – Deutsche Boerse With35 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Co-produce with customer: ABN Amro: Arena Arena has been set up by the Dialogues House – one of ABN Amro’s ventures to facilitate intra- company conversation and to help people share ideas and jobs. The company believes that radical ideas come from connecting people with similar interests Flanders DC Kenniscentrum 18
  19. 19. 19-6-2012Co-produce with customer:Arena: Value Creation People with different interests create value for each-other and the company The idea was to foster the company culture and facilitate creative thinkingFlanders DC KenniscentrumCo-produce with customer:Arena: Value Delivery Arena serves as a micro-jobbing market with open positions Amount of hours per week is standardised across all tasks so they are equal Employees are allowed to give up a task they dislike as long as they take on another one they like The original task owner is still responsible for the resultFlanders DC Kenniscentrum 19
  20. 20. 19-6-2012Co-produce with customer:ABN Amro: Value Capture Boost in internal communication and alignment Performance boost – workforce is happier and more productive Lower employee turnover Leaner StructureFlanders DC KenniscentrumCo-produce with customer:What can we learn from ABN Amro? Open innovation does not need to happen solely in the R&D field Partners for Innovation don’t necessarily need to be outside the boundaries of your company Collaboration is easy and successful as long as there is a common goal equally attractive to all parties involvedFlanders DC Kenniscentrum 20
  21. 21. 19-6-2012 But where exactly is the value created for the customer? Search and Service Purchase Selection Experience Example of Gamification/ Co-created advice: Many in one service Customisation: OI Amazon bundles: Raytheon & Disney Netflix prize Brussels Loft, KLM meet & seat NU.nl41 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Co-created advice: Netflix 400 000 participants competing and collaborating to design the best recommendation system in the movie rental industry Netflix knew it probably wouldn’t win on price with the likes of Walmart, so it competed smart Walmart, Blockbuster and others competed at the purchase point Netflix chose a different strategy and created a value beyond the service result42 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 21
  22. 22. 19-6-2012 Many in one service bundles: The Brussels Loft Focus on independents and entrepreneurs You rent a desk, but you get much more Exposure to fellow independent experts Networking, mutual service exchange and collaboration on projects43 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Gamification/Customisation: Raytheon & Disney Set up by Raytheon as part of a wider strategic MathMovesU programme in 2009 Goal is to secure future employee base by promoting engineering education amongst younger generation Partner up with Walt Disney Imagineering to let children design their own roller coaster ride Combination of Fun & Maths Education44 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 22
  23. 23. 19-6-2012 You don’t need to focus on just one stage! Search and Service Purchase Selection Experience Example of Many in one service Gamification/ co-created advice: OI bundles: Customisation: KLM Bluenity YourAirportTransfer & KLM meet&seat KLM45 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation You CAN Combine Upstream + Downstream possibilities: Air France KLM Design Co-produce With Partner EC Solution KLM iSeatz Customer KLM Meet&Seat KLM In-Touch KLM Bluenity With Community46 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 23
  24. 24. 19-6-2012Design with partner:KLM & EC Solution Working together in thinking out the future of air travel Permanent baggage tags with interactive display and smart frequent flier cards with comprehensive travel information used as travel documents too Easy check in and check out, no airport hassle for the passengers Significant process efficiency improvement and decrease in investment costs for drop off machines for KLM! Less disposable material used every day!Flanders DC KenniscentrumCo-produce with partner:KLM YourAirportTransfer - door-to-door service KLM’s partner to provide a 1-stop shop for organising the entire travel Saves the customer time by providing seamless transport from door-to-door makes the whole journey more comfortable by reducing uncertainty as taxis are informed of any delays and accommodate for thatFlanders DC Kenniscentrum 24
  25. 25. 19-6-2012Design with customer:KLM In Touch community Started in 2008 as a virtual club of frequent fliers Currently around 550 members from all over the world interact in English KLM uses the input from this community for qualitative market research and new product development Members feel special and feel that KLM cares, so they stay loyal The whole organisation is more consumer-centricFlanders DC KenniscentrumCo-produce with Customer:KLM Meet & Seat Launched in February 2012 first on flights from Amsterdam to San Francisco, Sao Paolo and NYC Matching passengers sitting next to one another through their social network profile Upon booking, passengers opt in to share details of their Facebook or Linked-in profile and they will get to see profiles of other passengers travelling in return Result: More fun and meaningful networking on board!Flanders DC Kenniscentrum 25
  26. 26. 19-6-2012 Co-produce with Customer: KLM Bluenity First community site for frequent fliers launched in 2005 Fellow travellers share tips on hotels, restaurants and shopping in and around destination cities This makes it easier to book the right hotels and places for business meetings for newbies Passengers can make their trip plans public on the community so fellow passengers at the same destination can join them Flanders DC Kenniscentrum What can you do and where do you fit in? Look at your customer’s decision-making journey - Where does your customer seek value? - Where is value being created for the customer now? Examine the value chain of your company -Where is value created? -What are other opportunities? What ecosystem do you need to build? -Which partners will enable you to co-create the value?52 | How can your role in the ecosystem enable you Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation to capture value? 26
  27. 27. 19-6-2012 Thank you for listening Questions time! 53 | Flanders DC Kenniscentrum| 19-06-2012 | Creativity Talk: Open Services Innovation Sources 1/3 99Designs, company information, http://bit.ly/MHdk6e Abimo, Survivalgids, Interview with Sarah Kumar, 2012 ABN Amro, Arena, In-depth Interviewm, 2011 Air France, Bluenity, http://bit.ly/JJu3CJ Alam, I., 2002, An Exploratory Investigation of User Involvement in New Service Development, Journal of the Academy of Marketing Science , Vol. 30, No. 3 Anthony, M., 2012, KLM Meet and Seat – social seating for airlines, StratChat, http://bit.ly/Kqn9ar ArtistShare, company information, http://bit.ly/GTbT0g Bernoff, J., Schalder, T., 2010, Empowered, Unleash your employees, Energise your customers, Transform your business, Harvard Business Review Press Brussels Loft, Interview with Bernard Perelsztejn, 2012 Brustein, J., 2012, The Push to Make Cab Rides Smarter, New York Times, http://nyti.ms/M5CKLB Coyote, Conmpany Information, http://bit.ly/dGupxM Deuze, M., 2007, Convergence Culture in Creative Industries, International Journal of Cultural Studies, 10:243 Edvardsson, B., et al, (2010) Involving Customers in new service development, Imperial College Press Gallaugher, 2008, Netflix, Cinematch Contest Case Study, http://bit.ly/JZfeLa Gustafsson, A., et al, 1999, Customer Focused service development in practice: a case study at Scandinavian Airlines System, International Journal of Service Management Industry, Vol.10, 4 54 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 27
  28. 28. 19-6-2012 Sources 2/3 Honebein, P., E., Cammarano, R., F.,2005, Creating Do-It-Yourself Customers, Thomson Janssen Pharmaceutica, Interview with Annik Willems, 2012 Johnson, C., 2009, Disneys Sum of All Thrills Ride Lets Kids Use Math Skills , Switched.com, http://aol.it/MT7LZ Kaulio, M., A.,1998, Customer Consumer and user involvement in product development: A framework and a review of selected methods, Total Quality Management, Vol.9, No 1 Kiva, company information, http://bit.ly/ZS3o KLM, Interview with Charles Hageman, 2011 KLM, Interview with Ignaas Caryn, 2012 Kuusisto, A., Riepula, M., 2008, Customer Interaction in Service Innovation: Seldom Intensive but often decisive, International CINet Conference Proceedings, Valencia, Spain, 5-9 Sept 2008 Lets Vlaanderen, company information, http://bit.ly/sVNKVV Miller, C., C., 2009, Designing a Ride and Learning Math at Epcot, New York Times Blog, http://nyti.ms/3slbMX OhMy News, Company Information, http://bit.ly/dzYDV9 Prahalad, C.K, Ramaswamy (2004). The future of Competition: Co-creating Valur with Customers. Harvard Business Review Prandelli, E., et al, (2008), Collaboration with customers to innovate: Conceiving and marketing products in the networking age, Edward Elgar Publishing Reporter.co.za., company information, http://bit.ly/GALnvp55 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation Sources 2/3 Rhodes, M., 2008, Social media diary 07/11/2008 – Air France-KLM, Fresh Networks, http://bit.ly/8IEJknvard Rubin, J., 2066, Jet Blue Story booth, Coolhunters.com, http://bit.ly/GTLX8S Sawhney, M., et al, 2004, Creating Growth with Services, MIT Sloan Management Review, Winter 2004, Vol. 45, No. 2 Sellaband, company information, http://bit.ly/jdU6sM Sense Networks, Cab Sense, http://bit.ly/L2XLXH Shalal-Esa, A., 2009, Raytheon, Disney collaborate on math ride, Reuters, Wed Oct 14, 2009 Smith, T., 2009, New Interactive Simulated Thrill ride opens up at Epcot in Disney World, http://bit.ly/12i3PK Swift, Interview with Konstantin Peric, 2011 Task Rabbit, Company Information, http://bit.ly/zYIl6u Thomke, S., 2003, R&D Comes To Services: Bank of America’s Pathbreaking Experiments, Harvard Business Review, April 2003 Tripadvisor, company information, http://bit.ly/aP43ID UZ Gent, Survivalgids, Interview with Philippe Gevaert, 2012 Van Looy, B., et al, 1998, Services Management, And Integrated approach, Second Edition, Prentice Hall Wikipedia, company information, http://bit.ly/Imnh Zopa, company information, http://bit.ly/GUPDGw, http://bit.ly/HdbOCO56 | Flanders DC Kenniscentrum | 19-06-2012 | Creativity Talk: Open Services Innovation 28

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