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Technology is anything
that was invented
after you were born”

               Alan Key
Disruptive
           Closed
           Integrated
Innovation
           Radical
           Open
           Incremental
           Strategic
           Systemic
                             Esteve Almirall
           . . .   esteve.almirall@esade.edu
                              almirall@lsi.upc.edu
Innovation isn't what
innovators do....it's what
customers and clients adopt.


      Michael Schrage – M.I.T.
3 + 1 + R
0)
?
1)
Early in the morning
on February 14, 1876
filled a caveat for a patent
describing a
telephone
that used a
liquid
microphone
and remained in the basket ...
…. . .shortly before noon
Bell's lawyer filled a
patent and requested
that the filing fee be
entered immediately
Late that afternoon, the fee
for Gray's caveat was
entered on the cash blotter
however, the caveat was not
taken to the examiner until
the following day.
Gray abandoned his caveat
and that opened the door
to Bell being granted U.S.
Patent 174,465 for the
telephone on 7 March 1876
2)
in the 1990´s
started a company called
Fuse to develop the quot;Dell
of the Consumer
Electronics.quot; One of the
devices he had in mind was
a small hard disk-based
music player …. . .
Fuse failed
Fadell offered the idea to Philips
Fadell offered the idea to
     Real Networks
in 2001
hires Fadell
Apple assembles a 35 person team lead by Tony Fadell

        Philips
        IDEO
        General Magic
        Apple
        Connectix
        Web TV
6 months later
The 30GB, 5th Generation Video iPod of 2005
          has around 400 inputs
      with an average value of $0.05
3)
The previous state of the art in aviation
manufacturing was to have global partners
work from a common blueprint to produce
parts.—Actually, whole sections of the
airplane—that were physically shipped to a
Boeing assembly plant near Seattle to see if
they fit together.

There, successive iterations of the planes
were built and refined with onsite teams from
around the world.
Instead, on the 787 parts are designed
concurrently by partners, and
virtually quot;assembledquot; in a computer model
maintained by Boeing outside its corporate
firewall.

Ultimately, completed sections of the plane
will be picked up by three specially fitted 747s
and carried to a Boeing facility in Everett,
Wash.

Thanks to the online modeling, Boeing can
now trust its global partners with the process
of creating entire sections of the plane,
from concept to production.
50 partners
130 locations
>4 years
Customers, including pilots and
flight attendants, were asked to
provide input before the design
was handed off to design
partners.




           Scott Griffin – Vice-president and CIO - Boeing
+1)
Innovation

       Before                After
   Invention           Commercialization
   Product             Business, incl.
                       business model
   Technology driven   Business / value
                       driven
   Internally          Internal
   generated           integration of
                       internal and
                       external stuff
   Engineering’s job   Everyone’s job
Closed innovation                                 Open Innovation
The smart people in the field work for us.       Not all the smart people in the field work for
                                                 us. We need to work with smart people inside
                                                 and outside the company.

To profit from R&D, we must discover it,         External R&D can create significant value:
develop it, and ship it ourselves.               internal R&D is needed to claim some portion
                                                 of that value.

If we discover it ourselves, we will get it to   We don't have to originate the research to
the market first.                                profit from it.
The company that gets an innovation to the Building a better business model is better than
market first will win.                     getting to the market first.
If we create the most and the best ideas in If we make the best use of internal and
the industry, we will win.                  external ideas, we will win.
We should control our IP, so that our            We should profit from others' use of our IP,
competitors don't profit from our ideas.         and we should buy others' IP whenever it
                                                 advances our business model.

                                                                      from http://www.openinnovation.eu
Finding Ideas/Partners/Technologies
    a massive filtering problem


              The Unwashed


               The Suspects


              The prospects

                   The
                finalists
                   The
                 Partner
                    (s)
Innovation Intermediaries
                  (inbound – outbound)

   Knowledge brokers.
   Connectors (Nine Sigma & Yet2.com)
   Marketplaces (Innocentive).
   Scouting.
  …...
who invented the mountain bike
Living Labs aim to provide
structure and governance to the
user involvement in innovation
+R)
inventor   >   networks   >– crowds
What hard
problem is being
solved here?
Institutions are structures and mechanisms of social
order and cooperation governing the behavior of a set of individuals.
                                 social purpose
Institutions are identified with a                        and
permanence, transcending individual human lives and intentions, and
with the making and enforcing of rules governing cooperative human
behavior.

The term, institution, is commonly applied to customs and behavior
patterns important to a society, as well as to particular formal
organizations of governmentand public service. As structures and
mechanisms of social order among humans, institutions are one of the
principal objects of study in the social sciences,
including sociology, political science and economics. Institutions are a
central concern for law, the formal regime for political rule-making and
enforcement. The creation and evolution of institutions is a primary
topic for history.
Traditional answer:
 1) Create an institution
Traditional answer:
 1) Create an institution
 2) Use the institution.
we used to live in a
world of products
made in companies
is this the only
possible way?
Where is the
coordination?
Where is the
coordination?
Where is the coordination?




            vs.
1) When you form an institution you
   take a management problem.
1) When you form an institution you
   take a management problem.
2) An institution needs structure.
1) When you form an institution you
   take a management problem.
2) An institution needs structure.
3) Institution have boundaries that
   are inherently exclusionary.
1) When you form an institution you
   take a management problem.
2) An institution needs structure.
3) Institution have boundaries that
   are inherently exclusionary.
4) Institutions creates a professional
   class.
Is there any
other way?
The face of innovation
     is changing,

  are we?
?
esteve almirall
esteve.almirall@esade.edu
      almirall@lsi.upc.edu

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LivingLabs & Open Innovation

  • 1.
  • 2. Technology is anything that was invented after you were born” Alan Key
  • 3. Disruptive Closed Integrated Innovation Radical Open Incremental Strategic Systemic Esteve Almirall . . . esteve.almirall@esade.edu almirall@lsi.upc.edu
  • 4. Innovation isn't what innovators do....it's what customers and clients adopt. Michael Schrage – M.I.T.
  • 5. 3 + 1 + R
  • 6. 0)
  • 7.
  • 8.
  • 9.
  • 10. ?
  • 11. 1)
  • 12. Early in the morning
  • 14.
  • 15.
  • 16. filled a caveat for a patent
  • 17. describing a telephone that used a liquid microphone
  • 18. and remained in the basket ...
  • 19. …. . .shortly before noon
  • 20.
  • 21. Bell's lawyer filled a patent and requested that the filing fee be entered immediately
  • 22. Late that afternoon, the fee for Gray's caveat was entered on the cash blotter however, the caveat was not taken to the examiner until the following day.
  • 23. Gray abandoned his caveat and that opened the door to Bell being granted U.S. Patent 174,465 for the telephone on 7 March 1876
  • 24.
  • 25.
  • 26. 2)
  • 28.
  • 29. started a company called Fuse to develop the quot;Dell of the Consumer Electronics.quot; One of the devices he had in mind was a small hard disk-based music player …. . .
  • 31. Fadell offered the idea to Philips
  • 32. Fadell offered the idea to Real Networks
  • 35. Apple assembles a 35 person team lead by Tony Fadell Philips IDEO General Magic Apple Connectix Web TV
  • 36.
  • 38.
  • 39. The 30GB, 5th Generation Video iPod of 2005 has around 400 inputs with an average value of $0.05
  • 40.
  • 41.
  • 42.
  • 43. 3)
  • 44.
  • 45.
  • 46. The previous state of the art in aviation manufacturing was to have global partners work from a common blueprint to produce parts.—Actually, whole sections of the airplane—that were physically shipped to a Boeing assembly plant near Seattle to see if they fit together. There, successive iterations of the planes were built and refined with onsite teams from around the world.
  • 47. Instead, on the 787 parts are designed concurrently by partners, and virtually quot;assembledquot; in a computer model maintained by Boeing outside its corporate firewall. Ultimately, completed sections of the plane will be picked up by three specially fitted 747s and carried to a Boeing facility in Everett, Wash. Thanks to the online modeling, Boeing can now trust its global partners with the process of creating entire sections of the plane, from concept to production.
  • 49.
  • 50. Customers, including pilots and flight attendants, were asked to provide input before the design was handed off to design partners. Scott Griffin – Vice-president and CIO - Boeing
  • 51. +1)
  • 52. Innovation Before After Invention Commercialization Product Business, incl. business model Technology driven Business / value driven Internally Internal generated integration of internal and external stuff Engineering’s job Everyone’s job
  • 53.
  • 54.
  • 55.
  • 56.
  • 57.
  • 58. Closed innovation Open Innovation The smart people in the field work for us. Not all the smart people in the field work for us. We need to work with smart people inside and outside the company. To profit from R&D, we must discover it, External R&D can create significant value: develop it, and ship it ourselves. internal R&D is needed to claim some portion of that value. If we discover it ourselves, we will get it to We don't have to originate the research to the market first. profit from it. The company that gets an innovation to the Building a better business model is better than market first will win. getting to the market first. If we create the most and the best ideas in If we make the best use of internal and the industry, we will win. external ideas, we will win. We should control our IP, so that our We should profit from others' use of our IP, competitors don't profit from our ideas. and we should buy others' IP whenever it advances our business model. from http://www.openinnovation.eu
  • 59. Finding Ideas/Partners/Technologies a massive filtering problem The Unwashed The Suspects The prospects The finalists The Partner (s)
  • 60. Innovation Intermediaries (inbound – outbound)  Knowledge brokers.  Connectors (Nine Sigma & Yet2.com)  Marketplaces (Innocentive).  Scouting. …...
  • 61.
  • 62. who invented the mountain bike
  • 63.
  • 64.
  • 65. Living Labs aim to provide structure and governance to the user involvement in innovation
  • 66.
  • 67.
  • 68.
  • 69. +R)
  • 70. inventor > networks >– crowds
  • 71. What hard problem is being solved here?
  • 72. Institutions are structures and mechanisms of social order and cooperation governing the behavior of a set of individuals. social purpose Institutions are identified with a and permanence, transcending individual human lives and intentions, and with the making and enforcing of rules governing cooperative human behavior. The term, institution, is commonly applied to customs and behavior patterns important to a society, as well as to particular formal organizations of governmentand public service. As structures and mechanisms of social order among humans, institutions are one of the principal objects of study in the social sciences, including sociology, political science and economics. Institutions are a central concern for law, the formal regime for political rule-making and enforcement. The creation and evolution of institutions is a primary topic for history.
  • 73. Traditional answer: 1) Create an institution
  • 74. Traditional answer: 1) Create an institution 2) Use the institution.
  • 75. we used to live in a world of products made in companies
  • 76. is this the only possible way?
  • 79. Where is the coordination? vs.
  • 80. 1) When you form an institution you take a management problem.
  • 81. 1) When you form an institution you take a management problem. 2) An institution needs structure.
  • 82. 1) When you form an institution you take a management problem. 2) An institution needs structure. 3) Institution have boundaries that are inherently exclusionary.
  • 83. 1) When you form an institution you take a management problem. 2) An institution needs structure. 3) Institution have boundaries that are inherently exclusionary. 4) Institutions creates a professional class.
  • 85. The face of innovation is changing, are we?
  • 86. ?
  • 87.