The document provides an agenda and overview for a two-day workshop on leading research and innovation in expert organisations. Day one will cover themes such as culture and leadership, governance models, examples from companies and institutions, and stakeholder relationships. Day two focuses on topics like managing innovation from idea to implementation, new ways of working supported by social media, portfolio management, and reward systems. The workshop aims to provide participants with focused content and group work activities on open innovation practices using examples from companies like IBM, Google, Lego and Philips.

1. Leading Research and Innovation
in Expert Organisations
Minna Takala - QIS
October 2010
Materials Day 1

2. Leading Research and Innovation
in Expert Organisations
Focused on innovation in governments, research centres,
corporations and universities
Content Themes
• Culture and leadership supporting open innovation
• Governance models and service
• Examples of companies, institutions and open source communities
• Stakeholders and relationship management
• Managing innovation from idea to innovation
• New ways of working supported by social media
• Portfolio management and projects management
• Reward and recognition
Selected examples from
IBM, Google, Lego, P&G, Toyota, Philips & Nokia,
research and govermental institutions, universities
open source communities and social media

3. Minna Takala
www.minnatakala.com -
Twitter/@MinLii & @LinnaBikeShop
SlideShare/MinLii, Delicious/MinLii, SecondLife/ MinLii Hanson

4. AGENDA AT A GLANCE
1st
Day 2nd
Day
09:00 OPENING 09:00 Opening of the day
& review of previous days results
09:15 INTRODUCTION AND KICKOFF
• Agenda review
• Introduction to facilitators & participants
• Expected outcome of the workshop
09:15 FROM IDEA TO INNOVATION
ECOSYSTEM VIEW TO INNOVATION
10:30 – Coffee break – 10.45 10:30 – Coffee break – 10.45
CULTURE & LEADERSHIP
GOVERNANCE MODELS & SERVICES
WORK GROUP SESSION
NEW WAYS OF WORKING
SUPPORTED BY SOCIAL MEDIA
12:30 – Lunch – 13:30 12:30 – Lunch – 13:30
WHAT OTHERS ARE DOING
• Examples from companies
• Examples from institutions & universities
• Examples from open source communities
PORTFOLIO MANAGEMENT &
PROJECT MANAGEMENT
REWARD & RECOGNITION
- HOW TO ENHANCE PASSION FOR INNOVATION
14:45 – Coffee break – 15:00 14:45 – Coffee break – 15:00
WORK GROUP SESSION
STAKEHOLDERS &
RELATIONSHIP MGMT
CLOSING
• Summary
• Feedback
16:00 16:00

5. Theme 1
Leadership & Culture
Views of the Future
Trust & Attitude
Creating conditions fos success
Leadership & Management

6. 6
Images of Innovation
”IMAGES OF CHANGE”
Spatial image - the picture of the individual's location in the space around him.
Temporal image - an individual's picture of stream of time and his place in time.
Relational image - the picture of the universe as a system of regularities.
Personal image - the picture of an individual in the midst of the universe of persons, roles and
organizations around him.
Value image - the ordering of the scale of better and worse of the various parts of the whole image.
Emotional image - various items in the rest of the image are imbued with feeling or affect
Conscious,
unconscious &
subconscious image
- an individual is capable being conscious of all parts of the image with the same
degree of intensity, ability to perceive varies, a very small part of an image is exposed
to our internal view at the same time.
Certain / uncertain,
clear / vague images
- every aspect of a image is tinged with some degree of certainty and uncertainty.
Real / unreal image - an image of the correspondence of the image "itself" with some "outside" reality.
Public / private image - whether the image is shared by others or is peculiar to the individual.
Source: Kenneth Boulding (1956)

7. 7
Right balance between values based
leadership and fact based
management is crucial
Fact-Based Management
Values-Based Leadership
• Clear targets
• Common Management
principles and tools
• Common modular
processes
• Achieving Together
• Passion for Innovation
• Engaging You
• Very Human
Nokia Values

8. Leadership Role in Innovation System
• Providing a long-term view for innovation via strategy,
target setting and portfolio
• Enhancing integrated view of key leaders and manager to
the dynamics of innovation
• Nurturing key creation programs
• Managing relationships with key external stakeholders
• Assessing innovation implications of corporate, strategic
initiatives
• Providing an expert opinion and crucial judgment
• Managing the balance between business and technology
innovation such as organizational dynamics, portfolio,
resources and processes.

9. Theme 1 – Leadership & Culture
Group Work options & Examples
Group Work
• Values Exercise –
TOP 3 values for
innovation work
• Leadership versus
Management
Examples
• IBM – Values for innovation
• P&G – Connect & Develop
• Nokia – ”Passion for Innovation”
• Aalto University Design Factory
• User driven innovation in Finnish
context
• Reaktori
• Lulu Lemon

10. Theme 2
Governance Models & Services
Structure
Decision making
Processes
Products, services & solutions

11. Operational model defines organization, processes and
information system needs that are needed to implement strategies
and operationalize the business model

12. Beyond products and services
Product
Solution
Outsourcing
Service
Experience Trans-
formation
“Increased demand for advice and support
drives value from products, to services
to solutions and outsourcing.”
(Slywotzky, 1996)
“Progression of economic value:
make goods -> deliver services -> stage experiences -> facilitate transformations “
( Pine et all, 1999)

13. I SYSTEMS VIEW:
Services within and between
different systems
Social
system
People 
& High - touch
Physical
system
Atoms
& High tech
Information
systems
Bits
& High tech
People 
Organizations
Stakeholders
Social
environment
People 
<->
People 
People 
<->
Machines
People 
<->
IT
Machines
Buildings
Physical
environment
People 
<->
Machines
Machine
<->
Machine
Machine
<->
IT
Information
Technology
Network
Virtual
environment
People 
<->
IT
IT
<->
Machine
IT
<->
IT
People 
<->
People 
People 
<->
Machine
People 
<->
IT
Machine
<->
IT
IT
<->
IT
Machine
<->
People 
IT
<->
People 
Machine
<->
Machine
IT
<->
Machine

14. Theme 2 – Governance Models & Services
Group Work options & Examples
Group Work
• Reality process – what
are desired outcomes?
• Governance model
basics
Examples
• IBM – innovation activities
across the company and with
customers
• Toyota – lean mgmt principles
• Tekes – program portfolio
• SITRA – orchestrating societal
change
• Hub Helsinki

15. IBM’s Approach to Innovation
Challenge /
Opportunity
Idea Generation Incubation Validation Value realized
Research,
Corporate
IBM Lines of
Business
GTO / GIO /
IBV
Client (and
IBM) Challenges
Client
Challenges
InnovationJam
ThinkPlace
Communities
of Practice
Extreme
Blue
Biz Tech
Emerging Business
Opportunities
TAP
Alpha Works –LOB
with developer
community
IBM Internal
IBM Offerings
Partners
Clients
Clients
IBM innovation programs
Joint Innovation Partnerships
First of a Kind
Strong
governance
is crucial

16. Theme 3
Stakeholders & Relationships
Who are your stakeholders?
Value adding relationships
Infinite & Finite games

17. Stakeholders & Relationships
• Customers
• Suppliers
• Employees
• Shareholders
• Government
• 3rd sector organizations
…
• Stakeholders !!!
• Friends
• Partners
• Enemies
• Competitors
• Family members
• Strangers, VIPs
• Guests, visitors…
• Associates...

18. 18
Co-operation in Service Research
Stakeholders in Finland
Governmental Institutions &
Industry Associations
• The Federation of Finnish Technology
Industries
• TEKES - Finnish Funding Agency for
Technology and Innovation
• SITRA – The Finnish Innovation Fund
• The Academy of Finland
• VTT - The Finnish Research Center
Universities & Polytechnics
• Helsinki University of Technology TKK
• Lappeenranta University of Technology
LUT
• Tampere University of Technology TUT
• Oulu University
• Stadia Polytechnic
• ...

19. The Federation of Technology Industries
activates stakeholders with
BestServ Forum
• Joint collaborative network, funded
by Technology Industries &
members
• The vision: World Class industrial
service business is a competitive
advantage of Finnish Companies in
Global Markets. Services boost
industries’ international growth and
success.
• Collaborative working practices &
WebPortal for
sharing information
• Focus on
service business
research

20. 20
SITRA – the Finnish Innovation Fund
promotes service research for
Finnish government
and provides support with programs
• On-going innovation policy work
for Finnish Society – one of the
themes service business
• The report will be given to Finnish
Government in March 2008
• On–going program on network-
based operating models
2008 - 2010
• Mikko Kosonen
(ex- Nokia executive)
heading SITRA

21. 21
TEKES - Finnish Funding Agency for Technology and Innovation
supports service research with collaborative programs
Collaborative research and development programs
with companies, research centers and universities
Examples of programs enhancing service research :
New Industrial Paradigm program
(UTT - Uusi Teollinen Toimintatapa)
• 2000 - 2004
Innovative business Competence
and Management
( LIITO Uudistuva liiketoiminta ja johtaminen)
• 2006 - 2010
Nokia participation in Liito projects - examples
• Innovation Practices in New Business Creation in
Nokia Research Center – ONIONS
• Knowledge creation in Collaborative Innovation
and Networked R&D - INNOSPRING ACCESS
• Renewal and Redirection- New Management
Models for Supporting Innovation Implementation
- RENDEZ

22. Examples of Innovation practices
Company Example
IBM Innovation with clients, use of social media to support communities,
facilitated innovation community, “Technology Adaption Program”
and “First of the Kind” projects
P&G Focus on involving external stakeholder into innovation activities,
global 50% target set for new products
Philips InnoHubs (Singapore & Espoo, Finland) – places for innovation
accelleration and early user co-operation
F-Secure Encouraging employees and linking innovation champaigns with
agile/lean SW development
Lego Co-creation with users & developers, transformation of R&D /
innovation practices
Dell Using user feedback extensily, crowd sourcing with Dell Idea Storm
Google Innovation practices integrated in R&D ways of working , systematic
mechanisms for ideation,validation, investment & rewarding
22

23. 23
Source – P&G

24. © 2009 Noki 24

25. Stakeholder view:
Relationship with whom ?
Company
Financiers
Suppliers
Partners
Society
Employees
Customers

26. Finite and
Infinite
Games...
Finite Games
• The purpose is to win
• Improves by fittest surviving
• Winners exclude losers
• Winner takes all
• Aims are identical
• Relative simplicity
• Rules fixed in advance
• Rules resemble debating contests
• Compete for mature markets
• Short term decisive contests
• Externally defined
Infinite Games
• The purpose is to improve the game
• Improves by game evolving
• Winners teach losers better plays
• Winning widely shared
• Aims are diverse
• Relatively complexity
• Rules changed by agreement
• Rules resemble grammar of original
utterances
• Grow new markets
• Long term
• Internally defined
“A finite game
is played for the purpose
of winning,
the infinite game for
the purpose of continuing
the game …” (Carse, 1986)

27. Integration possibilities
- co-creation ??

28. From Value Adding
to Value Co-creation 1 (2)
• Industrial view
• Value creation is sequential,
unidirectionally transitive, best
described in “value chains”
• All managed values can be
measured in monetary terms
• Value is added
• Value is a function of
utility and rarity
• Values are
“objective” (exchange) and
“subjective” (utility)
• Customers destroy value
• Co-productive view
• Value creation is synchronic,
interactive, best described in
“value constellations”
• Some managed values cannot
be measured or monetized
• Values are co-invented,
combined and reconciled
• Exchange the source of utility
and rarity
• Values are”contingent” and
“actual” established
interactively
• Customers and suppliers co-
create value

29. From Value Adding
to Value Co-creation 2 (2)
• Industrial view
• Value is “realized” in transaction,
only for supplier (event)
• Three sector statistical models
applicable
• Services are a “separate” activity
• Consumption not a factor of
production
• Economic actors analyzed holding
one primary role at a time
• Firm and activity are units of
analysis
• Co-productive view
• Value is co-produced, with
customers and suppliers over time -
for both co-producers (relationship)
• Three sector statistical models no
longer applicable
• Services a framework for all
activities considered co-produced
• Consumers managed as factors of
production (assets)
• Economic actors analyzed as
holding several roles
simultaneously
• Interactions (offerings) are units of
analysis (Raminez , 1999)

30. Options in relationships...
• Design
TO - >or WITH <-> ?
• Inactive ?
• Proactive ?
• Reactive ?
• Interactive ?
• … postactive...
?
EXIT
LOYALTY
VOICE
(Hirchman, Albert, 1970)
(Ackoff, Russel )

31. Life cycle of a relationship
Time aspects ?
• Short term / long term
• Continuous / discontinuous …
• Temporary / permanent
Phases ?
• In the beginning… during …
at the end
Crisis ?
• Mergers & acquisitions
• Intensive growth / decline
• Transformation

32. Theme 3 – Stakeholders & Relationships
Group Work options & Examples
Group Work
• Stakeholder
identification
• Role analysis
Examples
• Nokia – co-creation with lead
users
• Philips – opening up &
InnoHub
• University -Industy
Collaboration
• Rendez research project
• Hub Helsinki
• Friendpreneurs