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Making Open
Innovation Work
“…a philosophy or a mindset that they
should embrace within their organization.

This mindset should enable their
organization to work with external input to
the innovation process just as naturally as it
does with internal input”

- Making Open Innovation Work, 2011
Directed




               Directive, invitational             Directive, participative
Instructions




   None        Suggestive, invitational            Suggestive, participative


               Relatively few             Invitations            “Everyone”




                                                                    Credit: OVO Innovation
• Alliances, consortia, JVs (All)
• Facilitated Networks (Many)
• Town Hall Meetings (General Mills)
• Supplier Summits (Intuit)
• Entrepreneur Days (Intuit)
• Selected Partnerships (All)
It’s just innovation!
FMCG        3M     MasterCard       PHARMA


       Suntory   ThomsonReuters




Cycle time, money, IPR and conservatism
Questions and reflections
Big versus small – the
differences
#1 Culture of innovation


#2 Allocation of resources


#3 Speed of decision-making
Why big companies
need small companies
#1 They live on the cutting edge!


#2 They break the rules and take more risks!


#3 They are closer to markets!


Big companies bring scale and access to markets!
Why things go wrong
#1 Trust is not established!


#2 They don’t do the homework!


#3 More focus on own gains rather than win-win!
Create simple letter of understanding that
outlines working principles for partnership
Set expectations upfront to avoid the “false
positives” mode
Questions and reflections
Interaction and involvement are key
elements for open innovation as well as
social media.

Companies need to build strong capabilities
on this intersection if they want to out-
innovate their competitors.
Seed now to reap
future benefits!
Social Graph            Interest Graph

Relationships between   Expansion and contraction
individuals online      of social networks around
                        interests and events
25
What are the barriers
for adoption?
#1 What’s in it for me?


#2 Purpose is not defined!


#3 Too many digital visitors; few residents!


#4 More questions than answers!
Discovery: HIGH


Incubation: LOW / HIGH


Acceleration: HIGH


Internally: HIGH
Questions and reflections
People first, processes next then ideas


Executives are not the key issue (TBX)
 T (Top Down):Get the executives onboard and make them
personally committed to the innovation activities. Without
executive support, no change occurs.

 B (Bottom Up):Value creation begins with people, one by
one, team by team. Nothing happens unless you get the
employees engaged and involved.

 X (Across):The biggest challenges will come from middle
managers placed across the organization due to narrow focus on
own P&L.

 (O) for Outsiders:Include external sources as you move towards
open innovation.
People first, processes next then ideas


Executives are not the key issue (TBX)


Organizing for open innovation?
Direction, training and time
Get the book
                                                 for free on
                                                15inno.com!




Let’sstay in touch!


        www.15inno.com
        15inno by Stefan Lindegaard at LinkedIn Groups
        stefanlindegaard@me.com
        Twitter: @lindegaard
        Google+: Stefan Lindegaard

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Making Open Innovation Work, Singapore, Jan 20

  • 2.
  • 3. “…a philosophy or a mindset that they should embrace within their organization. This mindset should enable their organization to work with external input to the innovation process just as naturally as it does with internal input” - Making Open Innovation Work, 2011
  • 4.
  • 5. Directed Directive, invitational Directive, participative Instructions None Suggestive, invitational Suggestive, participative Relatively few Invitations “Everyone” Credit: OVO Innovation
  • 6. • Alliances, consortia, JVs (All) • Facilitated Networks (Many) • Town Hall Meetings (General Mills) • Supplier Summits (Intuit) • Entrepreneur Days (Intuit) • Selected Partnerships (All)
  • 7.
  • 9. FMCG 3M MasterCard PHARMA Suntory ThomsonReuters Cycle time, money, IPR and conservatism
  • 10.
  • 11.
  • 13. Big versus small – the differences
  • 14. #1 Culture of innovation #2 Allocation of resources #3 Speed of decision-making
  • 15. Why big companies need small companies
  • 16. #1 They live on the cutting edge! #2 They break the rules and take more risks! #3 They are closer to markets! Big companies bring scale and access to markets!
  • 17. Why things go wrong
  • 18. #1 Trust is not established! #2 They don’t do the homework! #3 More focus on own gains rather than win-win!
  • 19. Create simple letter of understanding that outlines working principles for partnership
  • 20. Set expectations upfront to avoid the “false positives” mode
  • 22. Interaction and involvement are key elements for open innovation as well as social media. Companies need to build strong capabilities on this intersection if they want to out- innovate their competitors.
  • 23. Seed now to reap future benefits!
  • 24. Social Graph Interest Graph Relationships between Expansion and contraction individuals online of social networks around interests and events
  • 25. 25
  • 26. What are the barriers for adoption?
  • 27. #1 What’s in it for me? #2 Purpose is not defined! #3 Too many digital visitors; few residents! #4 More questions than answers!
  • 28. Discovery: HIGH Incubation: LOW / HIGH Acceleration: HIGH Internally: HIGH
  • 29.
  • 31. People first, processes next then ideas Executives are not the key issue (TBX)
  • 32.  T (Top Down):Get the executives onboard and make them personally committed to the innovation activities. Without executive support, no change occurs.  B (Bottom Up):Value creation begins with people, one by one, team by team. Nothing happens unless you get the employees engaged and involved.  X (Across):The biggest challenges will come from middle managers placed across the organization due to narrow focus on own P&L.  (O) for Outsiders:Include external sources as you move towards open innovation.
  • 33. People first, processes next then ideas Executives are not the key issue (TBX) Organizing for open innovation?
  • 34.
  • 36. Get the book for free on 15inno.com! Let’sstay in touch! www.15inno.com 15inno by Stefan Lindegaard at LinkedIn Groups stefanlindegaard@me.com Twitter: @lindegaard Google+: Stefan Lindegaard

Editor's Notes

  1. establish benefits
  2. my belief, start with a story to iilustrate this
  3. establish benefits
  4. establish benefits
  5. establish benefits
  6. establish benefits
  7. establish benefits
  8. establish benefits
  9. establish benefits
  10. establish benefits
  11. need to know
  12. the mindset you need
  13. the mindset you need
  14. it happens everywhere, a pharma company LinkedIn story explain how some of the tools / services can help innovation
  15. establish benefits