This document provides an introduction to open innovation with examples. It discusses why innovation is important for companies in terms of economic growth and survival. Open innovation is defined as using external and internal ideas and paths to market to advance technology. Examples discussed include Goldcorp's challenge to find gold deposits, Netflix's prizes for improving their algorithm, and user innovation. Challenges with open innovation include the degree of openness, how to evaluate value and metrics. The document concludes by thanking the audience.

1. Introduction to OPEN INNOVATION
with Examples
Serdar Temiz
www.serdartemiz.com @serdar_temiz
presentation for CORPORATE ENTREPRENEURSHIP
course at Uppsala University
15 mar -17 www.serdartemiz.com

2. Why Innovation is Important for
Corporates?
15 mar -17 www.serdartemiz.com

3. Why Innovation is Important
Improve the world
Dominate / security
Economic growth
Improvement of public sector
organizations
Improve everyday life
Survival of organisations
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4. Turnover Rate in Fortune 500
• Dane Stangler and Sam Arbesman WHAT DOES FORTUNE 500 TURNOVER MEAN
www.serdartemiz.com
“Two thirds of the original
1955 list was gone within
three decades” William
Shanklin*
The rate at which large
American companies left
the Fortune 500 increased
four times between 1970
and 1990 a change of
almost 50% from the 1999
Fortune 500 to the 2009
Fortune 500
John
Micklethwait & Adrian Wooldridge,*
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5. What is best Innovation of Apple?
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6. What are these different things?
Hamel and Prahalad (1989):” in order to pursuit
strategic intent, company's core competence should
be defined.
In short run companies competitiveness can be
associated to price/ performance attributes of
current products in the market, but in long run, all
products are becoming standardized in terms of
product quality and cost, so outspending rivals
over R&D is not a core competence anymore,
companies should find different things as core
competence” (Prahalad & Hamel, 1989).
15 mar -17 www.serdartemiz.com

7. Chesbrough (2003):“A paradigm that assumes that firms
can and should use external ideas as well as internal ideas,
and internal and external paths to market, as firms look to
advance their technology”
Silicon Valley’s Orthodox Approach
Recall: Hamel and Prahalad (1989) ”harmonizing streams of
technology; organization of the work and delivery value;
communication, involvement and deep commitment to
working across organizational boundaries”.
15 mar -17 www.serdartemiz.com

8. Silicon Valley’s Orthodox Approach
“Use of purposive inflows and outflows of knowledge to accelerate internal
innovation, and expand the markets for external use of innovation, respectively”
(Chesbrough et al., 2006).
15 mar -17 www.serdartemiz.com

9. In Summary:
Use of external
• Knowledge
• People
• Technology
• Resources
to foster innovation inside the
organisation and….
Outflow of innovation
• Knowledge
• People
• Technology
• Resources to foster
innovative ecosystem
which in te return
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10. Is Open Innovation something new?
Sourced by collective invention
Competitive innovation
Licensing
Crowdsourcing / crowdfunding
Community-based competition
User-based/developed innovation
Open Source
Open data
And more..
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11. Examples
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12. 15 mar -17 www.serdartemiz.com

13. Problem Gold Corp
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14. Call: Goldcorp Challenge
Call: CEO Rob McEwen Decided to run a contest
Input: Provide access to the geological data of
the company's Red Lake Mine in Northern
Ontario
Request: Solvers to have a crack at finding its
richest gold deposits
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15. Result
1) 110 sites identified by the solvers, of which
50% were new, 80% of which produced gold.
2) 8 million ounces of gold found.
3) Company value up from $100 million to $9
billion. (Pre contest and post contest)
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20. KMZ/KML feed from http://flightwise.com/ for
LAX airport that were intended to display the
aircraft on Google Earth
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21. 15 mar -17 www.serdartemiz.com

22. Open Innovation in Goverment
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23. 15 mar -17 www.serdartemiz.com

24. 15 mar -17 www.serdartemiz.com

25. User Innovation
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26. Lead Users invent the techniques
1980
2000
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27. User Innovation
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28. www.serdartemiz.com

29. www.serdartemiz.com
thefirstbuild
Shell GameChanger
OrangeStartUp Quirky -a community-led invention platform

30. Back to our first question
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31. The Next Big Thing is…
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32. Challenges with Open Innovation
• It is not easy as it seems.
• Degree of Opennes
• How to bring value to company?
• What to adopt/what to not adopt?
• Metrics to evaluate?
• Absorptive capacity?
• And video…?
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33. Serdar Temiz
THANK YOU!
https://www.slideshare.net
https://www.slideshare.net/SerdarTemi/introduction-
to-open-innovation
www.serdartemiz.com temiz@kth.se @serdar_temiz
15 mar -17 www.serdartemiz.com