Dissecting open innovation

© Chawton Innovation Services/Title.ppt/Version/date/initials
1
Open Innovation & IP
Donal O’Connell
Chawton Innovation Services

Table of contents
Introduction to Open Innovation
Dissecting Open Innovation
Intellectual Property
Some challenges
The keys to success

Introduction to Open Innovation

Open Innovation

'Not all the smart people work for you'

Dissecting Open Innovation

The OI pie
Why not do it internally?
Who are the externals?
How to link to these external?
Open vs closed approach?
What type of innovation is involved?
When to do it?
What legal framework is needed?
How should IP be handled?
What metrics to use?
What should be communicated?
What challenges may exist?
How to succeed?

Why not do it internally?
Not all of the smart people work for
you.
Complexity means that you probably
cannot do it all yourself anyway.
Simple economics means that you
probably cannot afford to do it
all yourself.
Trying to do it all means that you
may lack focus.
Your internal innovating may not be
succeeding.

Who are the externals?
Customers,
Suppliers,
Universities,
SMEs,
Individuals,
Communities,
Organisations,
Competitors,
plus more.

How to link to these externals?
Engaging directly with customers
Gathering ideas via the web
Using 'dating type services'
Using the IP of others
Innovating with suppliers
Working with Start-Ups
Utilising innovation networks
Running competitions
Participating in Innovation Hubs
Hosting external innovators
Creating Developer Forums
Using contract R&D.
Using Open Source.
Working with universities.
Participating in patent commons
initiatives.
Running partnerships programs with
others
Participating in research consortia.
Conducting open research calls.
Establishing user communities.
Participating in Standards
development.
Having a new technology scouting
organisation.
Participating in externally funded
research projects.

Open vs closed approach?
Puddles vs oceans Calm vs turbulent

What type of innovation is involved?
Product
Service
Process
Business model
New versus improvement
Incremental versus radical
New market
New use case

When to do it?
Pure research stage.
Technology development stage.
Business opportunity analysis stage
Product development stage.
Testing & evaluation stage
Product launch stage.
Product already in production and on
sale phase..

What legal framework is needed?
When to introduce legal issues?
How to introduce legal issues?
When to move from a non-
confidential to a confidential
environment?
What issues to address within the
legal framework?
How to negotiate the various legal
issues so as to achieve a win-win?
Being a good OI partner!

How should the IP issues be handled?
Definition of IP
Ownership of the IP,
Usage of the IP,
The transfer of rights between the
parties if necessary,
Various timing issues which may
need to be considered,
Any reward and recognition awards
for external inventors,
The applicable National Laws.
It is also important to look at more
complex IP issues such as …
… Covenant not to sue.
… Doctrine of exhaustion.
… Endeavour terms.
… Grant back clauses.
… Infringement.
… Indemnity.
… Liability.
… Warranties.

What metrics to use?
Costs
Quality
Efficiency
Value add

What should be communicated?
Advertise the the company is ‘open
for business’ as far as OI is
concerned.
Maybe tell about some key goals and
objectives.

Intellectual Property

Appreciating intangibles
Intellectual capital
Intellectual assets
Intellectual property

A variety of different IP rights
Patents
Trademarks
Design rights
Copyright
Domain names
Database rights

IP's legal basis.
Legal foundations
Business aspects

How IP adds value
Freedom of action
Product differentiation
Revenue Business influence
Enabling a technology
Cost competitiveness
Bundled with technology and know-how
Positive Image / Perception
Tax benefits
Investment

The IP environment

IP maturity

Challenges

Some misunderstandings
Open to all?
Free, no costs involved?
IP free zone?

Challenges with open innovation
Absence of collaboration partners.
Poor specification of the work to be
conducted.
Conflict in goals.
Un-realistic expectations by one or
more parties.
Not knowing what the other party
can do.
Physical distance.
Lack of an external collaborative
innovation process.
Unable to absorb external
collaboration results.
Lack of time.
Lack of finances.
Lack of resources.
Legal difficulties.
Lack of experience.
Poor leadership.
Poor management.
Lack of communication.
Cultural misunderstandings.
Legal issues
IP issues.

Keys to success

The key to success with OI
Leadership from the top is
definitely needed.
Ensure values, mindset and attitude
which embrace OI
An OI strategy & action plan should
be created and implemented.
Advertise the the company is ‘open
for business’ as far as OI is
concerned.
Integrate IP into your OI process.
The company needs to actively scan
and scout for external ideas.
Review the overall organisational
structure and the mode of
operation.
Have internal champions for
external innovations.
Step into the shoes of the
externals.
Train, coach and mentor the
external innovators.
Have an external ideas review
mechanism and prioritisation
scheme in place.

Thank you
Please check out Chawton Innovation Services at
...www.chawtoninnovationservices.co.uk

Dissecting open innovation

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