This document discusses community driven innovation and how organizations can leverage external communities. It begins by introducing Red Hat's model of participating in open source communities to develop products in a cost effective manner. It then presents a community innovation pyramid with four levels: 1) listen to customers, 2) listen to the community, 3) innovate through the community, and 4) innovate within the community. The rest of the document provides advice on how organizations can operate at each level of the pyramid, including how to build and engage external communities, integrate community input, and adapt internal processes to support shared innovation.

1. COMMUNITY DRIVEN INNOVATION
Iain Gray
VP, Global Services
Red Hat Inc.
April 20th, 2012

2. Innovating in Tough Times: Practical
Ways for Innovating when Budgets are
Tight and Resources are Limited
Traditional Management
New Management
Challenge Challenge
Abundant
Scarce Creativity
$ Tools
Time Knowledge
Talent “Connectedness”
Speed
Data

3. “There are always more smart people outside your
company than within”
- Bill Joy, Sun Microsystems.

4. Community Driven Innovation
What Does
Community Who Else is Community
Innovation at Red Leveraging the Innovation Mean
Hat Community? for My
Organization?

5. What Does
Community Who Else is Community
Innovation at Red Leveraging the Innovation Mean
Hat Community? for My
Organization?

6. OPEN
#1 SOURCE
LEADER
$1 BILLION
REVENUE
1993 1999 2002 2006 2008 2010 2011 2012

7. Red Hat built a $1B+ business selling free software

8. Community-Based Product Development Process
100,000+
PARTICIPATE PROJECTS
We participate in & create upstream
projects.
We build & support open communities
INTEGRATE around integrated projects.
We enable software & hardware
partners to participate at every stage
of development.
STABILIZE We commercialize these
innovations together with a rich
ecosystem of services & certifications

9. KNOWLEDGEBASE
SUBSCRIPTION MODEL
CUSTOMER PORTAL
& FORUMS
HARDWARE & SOFTWARE
CERTIFICATION
SOFTWARE ASSURANCE
GLOBAL SUPPORT SERVICES
 UNLIMITED
 24/7
 MULTI-LINGUAL AWARD-WINNING
 MISSION-CRITICAL SUPPORT
 MULTI-VENDOR CASE
OWNERSHIP
STABILITY WITH PRODUCT LIFECYCLE
OF UP TO 10 YEARS
UPDATES, PATCHES & UPGRADES
SECURITY RESPONSE TEAM
OPTIONAL TRAINING CURRICULA AVAILABLE

10. Fedora is where our customers see the future

11. Using traditional model, Fedora development would
have cost about $10.8B
http://www.linuxfoundation.org/sites/main/files/publications/estimatinglinux.html

12. Many Fedora contributors are software developers
But contributors also work on marketing, design,
documentation, translation, support, testing, website
design, usability, IT, distribution, legal and licensing
issues.

13. Fedora Technical Support
Community
“Given enough eyeballs, all bugs are
shallow”
- Linus’ Law

14. US Navy’s Standardization Mission

15. JP Morgan’s Plumbing Problem

17. What Does
Community Who Else is Community
Innovation at Red Leveraging the Innovation Mean
Hat Community? for My
Organization?

18. Community Innovation Pyramid
Innovate
within a
Community
Innovate
through a
Community
Listen to the
Community
Listen to the Customer

19. Community Innovation Pyramid
Innovate
Participation within a “What’s in it for me”
Community
Innovate
through a
Community
Listen to the
Control
Community
Listen to the Customer

20. Level 1: Listen To The Customer
Customers pay for influence

21. Level 2: Listen To The Community
Making the Community Work for Me

22. Level 3: Innovate Through a Community
Leveraging the Community to Innovate

23. What’s in it for me?

24. Level 4: Innovate Within A Community
Catalyzing a Community. Sharing IP

25. Listen to the Customer – The Promise
of Big Data Analytics

26. Agenda
What Does
Community Who Else is Community
Innovation at Red Leveraging the Innovation Mean
Hat Community? for My
Organization?

27. Listening to the Community
• Does the community exist?
• Does the collaboration platform
exist?
• Do you have the brand power to
motivate participants?
• What’s in it for the participants?
• What changes are needed to
ensure your org. is receptive to
outside ideas?
• How will you deal with ideas that
are accepted and rejected?

28. Leverage the Community
• Where do the skills and
experience I need live and how
do I connect with them?
• Can I modularize my problem so
it can be farmed out?
• How does this limit potential
solutions to my problem?
• What changes are needed to my
IP governance process to deal
with external IP?
• How do I avoid N.I.H resistance?

29. Innovating within the Community
• What’s my motivation for
innovating within a community?
• Does a community exist or do I
need to create it?
• What role do I want to play in the
community?
• Am I willing and able to ‘give to’
as well as ‘take from’ the
community?
• How does my governance model
need to change to accept shared
IP?
• How does my org. structure need
to change to accept shared IP?

30. Conclusion
• Red Hat’s story is an example of how community-driven
innovation drives not only ‘doing more with less’ but creates
results that benefit our customers and the community
• The Red Hat model may not be the starting point for
everyone, but there are many other great examples of
companies that are bridging the gap between internally and
externally-driven innovation
• Think about motivations for community-driven innovation:
what are your motivations, how will your community
participants be motivated
• Think about how your organization needs to change to accept
community input.

31. Thank You!
iain@redhat.com