This document discusses innovation and open innovation. It suggests that true innovation requires accessing knowledge from outside an organization through open collaboration. An innovation marketplace or hub can help regions attract innovative talent and companies by building demand, removing barriers, improving attractiveness, and creating collaboration platforms. Becoming a leading innovation hub requires strong institutions, openness, incentives, long-term support, measurement, tolerance for failure, collaboration, and high quality of life.

1. Innovation in Government
Challenges & Opportunities
UAE 2015 Government Organizations Strategy Development Conference
March 11 – Burj Al Arab – Dubai
Christian De Neef
Fast Track Consulting – Brussels
biznessence – Brussels & Sao Paulo
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2. Who was leading the market in
“smart phones” in 1998?
smart phones
Then why didn’t Nokia bring the
ydd o g
1st Blackberry to market?
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3. Who was leading the market in
“personal music players” in 2001?
personal players
Then why didn’t Sony develop &
ydd o yd op
market the iPod?
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4. Who was leading the market in
“stunning skylines” 25 years ago?
stunning skylines
Then why isn’t the Dubai s y
ys u skyline
located on a US Coast?
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5. The Right Behavior, Mindset
h h h d
Vision
Leadership
Startup mentality
Professional approach
The right timing
ight
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6. Innovation & Government
Drive/Encourage
Innovative Innovation
Government Hub
Creating the right conditions
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7. Understanding Innovation…
d d
Every solution to a problem has already been
found/applied elsewhere!
Possibly in another context, industry, or even
context industry
scientific discipline…
Innovation is happening/can happen
anywhere
Organizations that are “open” to innovation will
ultimately reap the benefits
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8. Understanding Innovation…
d d
Let’s look at the “invention” of the Light Bulb!
First electric light: Humphry Davy (1800)
English scientist connected wires to a battery and a piece of
carbon, the carbon glowed, producing light (an electric arc)
Carbon paper filament: Sir Joseph Wilson Swan (1860)
worked well, but burned up quickly
Carbon fil
Cb filament i an oxygen-free bulb: Th
t in f b lb Thomas Alva
Al
Edison (1879)
experimented with thousands of different filaments
40 hours 1500 hours!
Tungsten filament: William David Coolidge (1910)
lasted even longer than the older filaments… until?
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9. Understanding Innovation…
d d
requires Knowledge
Successful a vast amount
Innovation of the right
Domain Specific
detailed, focused, precise
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Other Knowledge
broad, open, and… often surprising!
Is there any good reason to believe that this Knowledge would be
available “in” your Gov’t organizations, rather than “outside”?
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10. Innovation Levels
l
Invention A new, so far inexistent scientific concept/creation
“Researchling” A solution found in another discipline of science
p
“Borderling” A solution found IN ANOTHER sector or industry
“Knowling” A solution found WITHIN the sector or industry
“Actling”
Actling A simple, easily found and almost standard solution…
i l il f d dl tt dd l ti
True Invention represents only a fraction of a % of Innovation…
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11. Some Key Principles
l
Solution Driven
Few tools/techniques exist that deliver solution
direction, most of them only analyze problems…
Customer Driven
Organizations must listen to “the voice of the customer”
Innovation that is not adopted, is not innovation!
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Focus on Function
In-depth understanding of “function” allows us to find
fundamentally different solutions, not incremental
y ,
change, but… change of paradigm!
Systems evolve towards “ideality”
“function without resource”
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12. The Innovation Paradox…
h d
The greater the potential of an idea, the
harder it will be to find anyone willing to try
(and adopt) it!
Rejecting new ideas is mostly unrelated to
their potential
Samuel Morse vs. Alexander Graham Bell
Sony's B t
S ' Betamax vs. JVC's VHS
JVC'
So it’s not about Knowledge… Is it about Culture & Change?
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13. “If HP only knew what HP knows,
we would be much more
profitable”
(former CEO Lew Platt)
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14. Knowledge & Innovation Levels
ld l
Invention
“Researchling” “If we only knew what Academics & Science know…”
Cross-scientific collaboration, etc.
C i tifi ll b ti t
“Borderling” “If we only knew what Organizations Worldwide know…”
Multi-sectoral collaboration, technology databases, etc.
“Knowling” “If we only knew what Our Industry knows…”
Benchmarking, professional associations, certification, etc.
“Actling”
Actling “If we only knew what Our Organization knows…”
lk h tO O i ti k ”
Norms, standards, common knowledge, reuse, etc.
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15. A New Innovation Paradigm…
d
Traditional Innovation The New Paradigm
g
Inside the organization Open and collaborative
R&D is confined to a Everyone can have a
specialized department brilliant new idea
Patents keep ideas from
Pt t k id f Ideas are shared,
Id h d
spreading/being applied challenged, tested
Knowledge is power Knowledge is opportunity
Up to recently, more than In 2005, IBM made 500
90% of Procter & Gamble’s Linux related patents
27000 patents remained available to the community
unused… for free…
Traditionally, organizations protected ideas that they had
y, g p y
developed but did not market…
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16. A New Innovation Paradigm…
d
How does Open Innovation work?
Networks of organizations
Extended to users/clients
Unique complementary capabilities
Working in collaboration
This requires different skills, different culture
from protecting to… Sharing
from isolation to Collaboration
to…
These are the new sources of competitive advantage!
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17. A New Innovation Paradigm…
d
Why this (r)evolution?
We live in an exponential world
The complexity of products & services is increasing
It is no longer possible to master all skills and
competencies
There is a new supply of low-cost high-capability labor
pp y g p y
New economies develop unique skills and capabilities
Today’s technology is a facilitator for Collaboration
The new philosophy - Winning by sharing!
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18. A New Innovation Paradigm…
d
What is Collaboration?
NOT subcontracting
These work for Production,
NOT outsourcing not for Innovation
NOT offshoring
Collaboration in Innovation means…
Sharing globally dispersed knowledge
Acknowledging strengths and weaknesses of each partner
Accessing distant capability
Leveraging new capabilities
Sharing risks and b
Sh i ik d benefits
fit
Rewarding the ideas, not just the effort...
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19. A New Innovation Paradigm…
d
Critical
Mass
More ideas - Crowdsourcing
Integrated capability
Influence
User base
Lower
R&D Costs
Labor
Materials More/Better
Collaboration Ideas Innovation
Infrastructure
Superior
Capability
Agility
Skills Competencies
Skill & C t i
Process/Product Expertise
Conversation
Contextual
Knowledge
g
Market knowledge & access
b Partners and Suppliers
e Local Networks
Government Connections
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20. Innovative
Government
A New Innovation Paradigm…
d
(P)eople Communication and motivation
Recognition and rewards
Managing different cultures
Working in distributed teams
(B)usiness (T)echnology
(P)rocesses
Outcomes!
KM Platform
An Innovation “methodology”
Distributed development
Distribute work - integrate
Standardization – interfaces
components
Traceability
Capture best practices
(O)rganization
Standardization
Centralized/Distributed Management
Support Structure/Team
Principles & Policies
Developing new competencies…
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21. A New Innovation Paradigm…
d
Eli Lilly Procter & Gamble
Launched Innocentive (2001) Launched InnovationNet
Focus on Pharmaceutical Internal network for Innovation
Industry Management
Open to all scientists to Focus on P&G’s 7 500 scientists
P&G s
contribute (solvers) Open to 18 000 users worldwide
Open to all companies to buy Cross functional, cross
(seekers) organizational
Functioning in a very 10 million documents online
competitive landscape
Focus on KM & (i t
F (internal) Social
l) S i l
Establishes anonymous
Media
connections
30 000 patents searchable
Focus on Crowdsourcing
The Success Story
Not sharing participants’ IP
When searching for ways to control
The S
h Success S Story water hardness and improve
Eli Lilly found a new way to detergent performance, P&G
mass produce butanoic acid in developed a metal ion control
7 months - it might have technology it has reapplied to
taken two years in their own toothpaste, calcium-enhanced fruit
labs! drinks and bone strengthening
bone-strengthening
pharmaceuticals!
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22. Innovative
Government
A New Innovation Paradigm…
d
US Government
UK Government
Unofficial “Wisdom of the
“Power of Information”
Crowds” sites:
Taskforce
Fix This, Barack
“Show Us a Better Way
Show Way” White House 2
Competition (2008) Etc.
Focus on access to Gov’t Official site on policy making
information change.gov
Open to all to contribute Focus on participation
Focus on Crowdsourcing No IP but a changing
democracy
No IP but ideas, projects
The Success Story
The Success Story y
Initial tt
I iti l attempt at participative
tt ti i ti
1000’s of ideas submitted, gov’t: a discussion about
10’s prototypes funded healthcare where some of the
ideas raised will be
5 projects to be implemented
implemented by the new
administration…
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23. In a New World,
New Questions arise…
If we want anyone to submit ideas, how do we reach the
crowd?
Look for a concept: Who else is asking questions about this? -
social networking, C P etc.
il t ki CoP, t
If “anyone” can submit ideas, how do we deal with the
information overflow?
Sort through the answers - Analytics (BI), Semantic Search
(BI)
Should we select an innovative idea, how would we
compensate its author?
Marketplaces (Innocentive), shared benefit, royalties
In a collaborative environment, who actually “owns” the
Innovation?
Shared ownership = shared benefit
Other models possible…
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24. Innovative
Government
Promoting Open Innovation…
Find the right partner(s)
Must be WIN-WIN relationship in terms of capability,
potential benefits, sharing risks, etc.
Think PPP (public-private partnerships)
Define specific (smart) objectives
Open Innovation is not open-ended…
Establish l
E t bli h clear roles and responsibilities
l d ibiliti
Attract/secure the best people
Manage expectations and avoid conflict
Clear rules of engagement
Cl l f
Focus on people, not technology
Know what you will do with the resulting IP
Own it jointly or not?
Keep, sell, or publish?
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25. Innovative
Government
Being Open f Innovation…
for
Attract Innovation to the Promote Innovation
Gov’t from the Inside
Invite citizens, partners, Invite public servants
entrepreneurs to submit to submit ideas
ideas Reward initiative,
Organize competitions innovation,
entrepreneurship
Promote discussion
Promote discussion
Social media
Knowledge
Transparency
Management
Allow the crowd to vote
Communities of
Practice
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26. Innovation
Hub
The Innovation Marketplace
h k l
There is a Global Marketplace for Innovation!
Today, there is more...
demand from companies
regions competing
mobility of talent
... th
than there has ever been before in history!
th h b bf i hi t !
And...
… every region wants to b
i t t become THE Innovation Hub
I ti Hb
But...
… getting there is more challenging than ever!
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27. Innovation
Hub
Becoming THE Innovation Hub
b
Build a demand-driven system
Universities should be aligned with business needs
Remove hurdles
Funding available (before the VCs kick in)
No red tape
Improve attractiveness
Quality of life
Availability of resources
Manage your region as a Product!
Create a platform for collaboration
Enable consortia of academics, private research labs,
consultants, gov t, industry, etc
consultants gov’t industry etc.
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28. Innovation
Hub
Becoming THE Innovation Hub
b
Strong institutions, clear vision
Openness to global competition
Incentives for new entrants
Long-term support & nurturing
Measurement & analysis
Tolerance to f l
l failure & l
lessons l
learned
d
Collaboration between clusters/neighbors
Dialogue with industry and with all partners involved
Quality of Life - education, healthcare & coverage, leisure, etc.
Never forget - Companies do NOT Innovate People Innovate!
Innovate,
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29. Innovative
Government
Government 2.0
The conditions for change The (new) rules of the game
Wide adoption of internet Authenticity
technology Humaneness, not marketing
messages
Social media
Mistakes are allowed
Web 2.0
Collaboration
New governance models
Crowds, not gurus
C d t
Not top-down anymore
d
Community
Bottom-up = grassroots
A shift in values Joint success, not individually
Entrepreneurship
Gen X and Milennials
Independence
Trust and openness
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30. Innovative
Government
Government 2.0
Citizens and their government will share the same community
tools
Citizens will have access to all their data, online
Governments will poll citizens for opinion, idea, innovation!
Long-term strategies should remain (vision)
short-term small-scale plans will emerge (agility)
Overall, participation will increase, citizens will get involved
Trust will prevail
control over conversations (informal) will be low, but
control over information (formal/official) will be tight
This is much more than just... Government on-line (push)
It’s moving from Communication to Conversation!
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31. Innovative
Government
The keys to Government 2.0
hk
Trust
Comm
Identity
unity
Citizen
Conver Collabo
sation ration
Particip
ation
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32. If you want to know more…
f k
Christian De Neef
Seasoned business consultant, project director, working
at the crossroads of innovation management, knowledge
management & learning organizations
Former Di t at F jit Consulting (2005)
F Director t Fujitsu C lti
Fast Track Consulting – Brussels
biznessence – Brussels & Sao Paulo
christian.deneef@biznessence.com
www.linkedin.com/in/chrisdn
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33. THANK YOU!
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