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

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. 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
Open Innovation
Business Model Innovation
Lean Innovation
Gino Tocchetti

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
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
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
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
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
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
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
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
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
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
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
Open vs Closed Innovation
source: Henry Chesbrough, Haas School of Business, UC Berkeley and
Esade Business School, Ramon Llul University - May 2014

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
New Business Development (old)

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
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
Possible objectives
source: Open Innovation Executive Survey, UC Berkeley Fraunhofer Institute, 2013

21. 21
Challenges
source: Open Innovation Executive Survey, UC Berkeley Fraunhofer Institute, 2013

22. 22
Metrics
source: Open Innovation Executive Survey, UC Berkeley Fraunhofer Institute, 2013

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
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
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
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
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
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
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
Business Model Canvas
source: Business Model Generation, di Alex Osterwalder, 2010

31. 31
A set of hypotheses

32. 32
A set of OI opportunities

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
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
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
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
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
Essential Bibliography

39. 39
Gino Tocchetti
Gino Tocchetti
Ecosistema XXI
@ecosistema21
#exxi