open innovation

by Carla Zorzo
for Domus Academy
“Innovation is increasingly about having groups of people coming together to leverage their diverse
          talents and expertise to solve multi faceted challenge that cross multiple disciplines.
To make this happen within your organization and byond as you move towards open innovation requires
       a networking culture that is designed, supported and modeled by your company’s leader.”

                                                                                 Stefan Lindegaard




designed by Carla Zorzo - carlita.mail@libero.it
before... the Closed Innovation Model




                                                      During most of the 20th century:
                                                      vertical integration of the research function
                                             INVES

                                                             a large research laboratory was a great
                                                  T


                                         M
                                                             competitive advantage
                                    EN
                               TS


                                                                 new products
                 FITS
                                   ATIONS




            RO

                                      R&D
                                                                 innovations

             €
        P




                                                                 high profit margins to re-invest in the research
                        INVE
        TS




                                 OV




            MEN
                   ST                                            intellectual propriety
                                N




                                         IN




designed by Carla Zorzo - carlita.mail@libero.it                                          http://www.quickmba.com/entre/open-innovation/
before... the Closed Innovation Model




                                                         �����������
                                                                         new market




                                                                                             current
                                                                                             market




                                                     ��������            new market



 TIME

                     ideas are developed through                        just the most promising are
                                 internal research                     realized and introduced on the market


designed by Carla Zorzo - carlita.mail@libero.it                                  http://www.quickmba.com/entre/open-innovation/
the crisis of Closed Innovation Model



the closed innovation paradigm has eroded due to the following        factors:


     Increased availability of highly-capable outsourcing          partners

     Increased mobility of skilled                  workers

     Expansion of venture                    capital

     External options for unused                    technologies




 designed by Carla Zorzo - carlita.mail@libero.it                                http://www.quickmba.com/entre/open-innovation/
The Open Innovation Model




                                                   Open Innovation is a term promoted by Henry
                                                   Chesbrough (professor and executive director at the
                                                   Centre for Open Innovation at the University of California,
                                                   Berkeley) in his book Open Innovation back in the 60s: The
                                                   new imperative for creating and profiting from technology. The
                                                   concept is related to user
                                                                         innovation, cumulative
                                                   innovation, Know-How Trading, mass
                                                   innovation and distributed innovation.




designed by Carla Zorzo - carlita.mail@libero.it                                                    http://www.wikipedia.org
The Open Innovation Model




                                                       �����������
                                                                               new market


                                                                                      current
                                                                                      market


                                                                               new market

                                                   ��������




 TIME

                     internal research sets the                      external resources integrate the
                         right questions                              development with fresh inputs


designed by Carla Zorzo - carlita.mail@libero.it
The Open Innovation Model

                                                           global
                                                           market




       winning =                               global
     companies                                 companies




designed by Carla Zorzo - carlita.mail@libero.it
The Open Innovation Model

                                                            global
                                                            market




       winning =                               global
     companies                                 companies




                                                              global
                                                           competences

designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


there are institutional ways to apply the open innovation...




                                                                      business
                                                    company           services




                                                               governament


 designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


... and bottom             up channels



                                                                  company


                                                    individuals




                                                              clients




 designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


together they create an interconnected                     system


                                                                                   business
                                                                  company          services

                                                    individuals




                                                              clients
                                                                            governament


 designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


the advantages of such a system




                                                                                 business
                                                                                 services

                                                                       TI O
                                                                     VA




                                                                          N
                                                                     NO
                                                                     company




                                                                  IN
                                                    individuals
                                                                               governament


                                                     clients




 designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


the advantages of such a system




                                                         M
                                                       GE E
                                                                                        business
                                                                                        services




                                                    N GA

                                                                  NT
                                                                              TI O
                                                                            VA




                                                                                 N
                                                                            NO
                                                       E                    company




                                                                         IN
                                                           individuals
                                                                                      governament


                                                            clients




 designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


the advantages of such a system




                                                           M
                                                         GE E
                                                                                          business
                                                                                          services




                                                      N GA

                                                                    NT
                                                                                TI O
                                                                              VA




                                                                                   N
                                                                              NO
                                                         E                    company
                                               BUZZ




                                                                           IN
                                                             individuals
                                                                                        governament


                                                              clients




 designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


there are institutional ways to apply the open innovation...



                                                     need




          company                                              external
                                                               expertise




                                                    solution


 designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


there are institutional ways to apply the open innovation...



                                                     need
                                                                €€

                                                               external        service
          company                                              expertise   =   provider




                                                    solution


 designed by Carla Zorzo - carlita.mail@libero.it
the business stages



                                           institutional open innovation



                                       R&D                production


                financing                           creation                         customer
                                                                   marketing          care



                                                                           consumption




designed by Carla Zorzo - carlita.mail@libero.it
the institutional Open Innovation


                                                    Invention            NineSigma
                                                    Machine                                       yet2.com           idea
                                                                                                                  connection
                                                         OPEN INNOVATION
             ideasicle.                                  SERVICES PROVIDER
               com                                                                                OPEN INNOVATION
                                                                                                     PLATFORM
                                                            strategic        InnoCentive
                                                             design                                                 Spigit
                       EXPERT                                studio
trada.com          SOURCING
                                            presans

                                                                                           triz


                                                                                                           technology
                                                                                           INNOVATION        broker
                                   H-Farm                                                  MANAGEMENT
                                                     BUSINESS                               SOFTWARE
                                                    INCUBATOR
                                                                                                   Brightidea
                                                                                   inkling
                                                                technology
                                                                   parks

 designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


... and bottom             up channels


                                                     need        open
                                                                 brief

                                                    €€                          communities
                                                                external
          company                                               expertise   =   users
                                                                                experts



                                                    possible
                                                    solutions


 designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


... and bottom             up channels


                                                     need



                                                                                communities
                                                                external
          company                                               expertise   =   users
                                                                                experts



                                                    possible
                                                    solutions


 designed by Carla Zorzo - carlita.mail@libero.it
the role of the network


... and bottom             up channels


                                                     need



                                                                                communities
                                                                external
          company                                               expertise   =   users
                                                                                experts

                               €€
                                                    possible
                                                    solutions


 designed by Carla Zorzo - carlita.mail@libero.it
the business stages



                                              buttom-up open innovation



                                      R&D                 production

                                                                                   customer
              financing                             creation        marketing         care



                                                                          consumption




designed by Carla Zorzo - carlita.mail@libero.it
the business stages
                                         Examples
                                             corporate initiatives
                                                   Research & Development platforms
                                                   local business and cultural promotor




                                      R&D                      production

                                                                                               customer
              financing                                creation              marketing            care



  Examples                                                                            consumption
     click and pledge
        donation portals and social networks
        no-profit fund rising
        profit fund rising


designed by Carla Zorzo - carlita.mail@libero.it
the business stages
                                                              Examples
                                                                  open source hardware: 3D painters
                                                                                                   Arduino




                                      R&D                 production

                                                                                                                 customer
              financing                             creation              marketing                                 care



                                                                                        consumption
 Examples
     prosumption
        DIY
        from copyright to right to copy



designed by Carla Zorzo - carlita.mail@libero.it                     http://blog.makezine.com/archive/2009/12/open-source-hardware-2009-the-def.html
the business stages


                                                                 Examples
                                                                     blogging




                                      R&D                 production

                                                                                    customer
              financing                             creation        marketing          care



                                                                           consumption
 Examples
     rate & comment
        prosumption
        blogging



designed by Carla Zorzo - carlita.mail@libero.it
the business stages


                                                                 Examples
                                                                     blogging




                                      R&D                 production


              financing                             creation                         customer
                                                                   marketing          care




 Examples                                                                  consumption
     rate & comment
        prosumption
        blogging



designed by Carla Zorzo - carlita.mail@libero.it
the business stages




                                      R&D                 production

                                                                                   customer
              financing                             creation        marketing         care



 Examples                                                                 consumption
     customizing
        upgrading
        hacking
        sharing


designed by Carla Zorzo - carlita.mail@libero.it
how is this applied by businesses?




designed by Carla Zorzo - carlita.mail@libero.it
Open innovation examples: threadless.com


                                                                 I post my design



                                                     I rate it                I host it




                                                                                              F
                                                                                               R&D
                                                    I suggest                 I rate it
                                                   changings                                  C
                                                                                                   P
                                                                 I rate it
                                                                                              M
                                                                                          C
                                                                                              CC
designed by Carla Zorzo - carlita.mail@libero.it
Open innovation examples: threadless.com


                                                              I get payed


                                                                            I produce
                                                   I buy it                 and sell it




                                                                                              F
                                                                                               R&D
                                                   I buy it                 I buy it
                                                                                              C
                                                              I buy it
                                                                                                   P
                                                                                              M
                                                                                          C
                                                                                              CC
designed by Carla Zorzo - carlita.mail@libero.it
Open innovation examples: Quirky


                                                                 I post my design



                                                     I rate it                 I evaluate it




                                                                                                   F
                                                                                                    R&D
                                                    I suggest                  I rate it           C
                                                   changings
                                                                                                        P
                                                                 I curate it
                                                                                                   M
                                                                                               C
                                                                                                   CC
designed by Carla Zorzo - carlita.mail@libero.it
Open innovation examples: Quirky


                                                                   we finalize
                                                                   the project

                                                   we finalize                   we finalize
                                                   the project                   the project




                                                                                                   F
                                                                                                    R&D
                                                   we finalize                   we finalize       C
                                                   the project                   the project
                                                                                                        P
                                                                 we finalize
                                                                 the project                       M
                                                                                               C
                                                                                                   CC
designed by Carla Zorzo - carlita.mail@libero.it
Open innovation examples: Quirky


                                                                      I get payed


                                                                                    I produce and
                                                   I pre-buy it                       distribute it




                                                                                                       F
                                                                                                        R&D
                                                   I pre-buy it                     I pre-buy it       C
                                                                                                            P
                                                                  I pre-buy it
                                                                                                       M
                                                                                                   C
                                                                                                       CC
designed by Carla Zorzo - carlita.mail@libero.it
open business for open entrepreneur



                                                                marketing
                                        R&D        production
                                                                            customer
                                                                              care


                financing



                                                                   consumption

                                 creation




designed by Carla Zorzo - carlita.mail@libero.it

Open innovation

  • 1.
    open innovation by CarlaZorzo for Domus Academy
  • 2.
    “Innovation is increasinglyabout having groups of people coming together to leverage their diverse talents and expertise to solve multi faceted challenge that cross multiple disciplines. To make this happen within your organization and byond as you move towards open innovation requires a networking culture that is designed, supported and modeled by your company’s leader.” Stefan Lindegaard designed by Carla Zorzo - carlita.mail@libero.it
  • 3.
    before... the ClosedInnovation Model During most of the 20th century: vertical integration of the research function INVES a large research laboratory was a great T M competitive advantage EN TS new products FITS ATIONS RO R&D innovations € P high profit margins to re-invest in the research INVE TS OV MEN ST intellectual propriety N IN designed by Carla Zorzo - carlita.mail@libero.it http://www.quickmba.com/entre/open-innovation/
  • 4.
    before... the ClosedInnovation Model ����������� new market current market �������� new market TIME ideas are developed through just the most promising are internal research realized and introduced on the market designed by Carla Zorzo - carlita.mail@libero.it http://www.quickmba.com/entre/open-innovation/
  • 5.
    the crisis ofClosed Innovation Model the closed innovation paradigm has eroded due to the following factors: Increased availability of highly-capable outsourcing partners Increased mobility of skilled workers Expansion of venture capital External options for unused technologies designed by Carla Zorzo - carlita.mail@libero.it http://www.quickmba.com/entre/open-innovation/
  • 6.
    The Open InnovationModel Open Innovation is a term promoted by Henry Chesbrough (professor and executive director at the Centre for Open Innovation at the University of California, Berkeley) in his book Open Innovation back in the 60s: The new imperative for creating and profiting from technology. The concept is related to user innovation, cumulative innovation, Know-How Trading, mass innovation and distributed innovation. designed by Carla Zorzo - carlita.mail@libero.it http://www.wikipedia.org
  • 7.
    The Open InnovationModel ����������� new market current market new market �������� TIME internal research sets the external resources integrate the right questions development with fresh inputs designed by Carla Zorzo - carlita.mail@libero.it
  • 8.
    The Open InnovationModel global market winning = global companies companies designed by Carla Zorzo - carlita.mail@libero.it
  • 9.
    The Open InnovationModel global market winning = global companies companies global competences designed by Carla Zorzo - carlita.mail@libero.it
  • 10.
    the role ofthe network there are institutional ways to apply the open innovation... business company services governament designed by Carla Zorzo - carlita.mail@libero.it
  • 11.
    the role ofthe network ... and bottom up channels company individuals clients designed by Carla Zorzo - carlita.mail@libero.it
  • 12.
    the role ofthe network together they create an interconnected system business company services individuals clients governament designed by Carla Zorzo - carlita.mail@libero.it
  • 13.
    the role ofthe network the advantages of such a system business services TI O VA N NO company IN individuals governament clients designed by Carla Zorzo - carlita.mail@libero.it
  • 14.
    the role ofthe network the advantages of such a system M GE E business services N GA NT TI O VA N NO E company IN individuals governament clients designed by Carla Zorzo - carlita.mail@libero.it
  • 15.
    the role ofthe network the advantages of such a system M GE E business services N GA NT TI O VA N NO E company BUZZ IN individuals governament clients designed by Carla Zorzo - carlita.mail@libero.it
  • 16.
    the role ofthe network there are institutional ways to apply the open innovation... need company external expertise solution designed by Carla Zorzo - carlita.mail@libero.it
  • 17.
    the role ofthe network there are institutional ways to apply the open innovation... need €€ external service company expertise = provider solution designed by Carla Zorzo - carlita.mail@libero.it
  • 18.
    the business stages institutional open innovation R&D production financing creation customer marketing care consumption designed by Carla Zorzo - carlita.mail@libero.it
  • 19.
    the institutional OpenInnovation Invention NineSigma Machine yet2.com idea connection OPEN INNOVATION ideasicle. SERVICES PROVIDER com OPEN INNOVATION PLATFORM strategic InnoCentive design Spigit EXPERT studio trada.com SOURCING presans triz technology INNOVATION broker H-Farm MANAGEMENT BUSINESS SOFTWARE INCUBATOR Brightidea inkling technology parks designed by Carla Zorzo - carlita.mail@libero.it
  • 20.
    the role ofthe network ... and bottom up channels need open brief €€ communities external company expertise = users experts possible solutions designed by Carla Zorzo - carlita.mail@libero.it
  • 21.
    the role ofthe network ... and bottom up channels need communities external company expertise = users experts possible solutions designed by Carla Zorzo - carlita.mail@libero.it
  • 22.
    the role ofthe network ... and bottom up channels need communities external company expertise = users experts €€ possible solutions designed by Carla Zorzo - carlita.mail@libero.it
  • 23.
    the business stages buttom-up open innovation R&D production customer financing creation marketing care consumption designed by Carla Zorzo - carlita.mail@libero.it
  • 24.
    the business stages Examples corporate initiatives Research & Development platforms local business and cultural promotor R&D production customer financing creation marketing care Examples consumption click and pledge donation portals and social networks no-profit fund rising profit fund rising designed by Carla Zorzo - carlita.mail@libero.it
  • 25.
    the business stages Examples open source hardware: 3D painters Arduino R&D production customer financing creation marketing care consumption Examples prosumption DIY from copyright to right to copy designed by Carla Zorzo - carlita.mail@libero.it http://blog.makezine.com/archive/2009/12/open-source-hardware-2009-the-def.html
  • 26.
    the business stages Examples blogging R&D production customer financing creation marketing care consumption Examples rate & comment prosumption blogging designed by Carla Zorzo - carlita.mail@libero.it
  • 27.
    the business stages Examples blogging R&D production financing creation customer marketing care Examples consumption rate & comment prosumption blogging designed by Carla Zorzo - carlita.mail@libero.it
  • 28.
    the business stages R&D production customer financing creation marketing care Examples consumption customizing upgrading hacking sharing designed by Carla Zorzo - carlita.mail@libero.it
  • 29.
    how is thisapplied by businesses? designed by Carla Zorzo - carlita.mail@libero.it
  • 30.
    Open innovation examples:threadless.com I post my design I rate it I host it F R&D I suggest I rate it changings C P I rate it M C CC designed by Carla Zorzo - carlita.mail@libero.it
  • 31.
    Open innovation examples:threadless.com I get payed I produce I buy it and sell it F R&D I buy it I buy it C I buy it P M C CC designed by Carla Zorzo - carlita.mail@libero.it
  • 32.
    Open innovation examples:Quirky I post my design I rate it I evaluate it F R&D I suggest I rate it C changings P I curate it M C CC designed by Carla Zorzo - carlita.mail@libero.it
  • 33.
    Open innovation examples:Quirky we finalize the project we finalize we finalize the project the project F R&D we finalize we finalize C the project the project P we finalize the project M C CC designed by Carla Zorzo - carlita.mail@libero.it
  • 34.
    Open innovation examples:Quirky I get payed I produce and I pre-buy it distribute it F R&D I pre-buy it I pre-buy it C P I pre-buy it M C CC designed by Carla Zorzo - carlita.mail@libero.it
  • 35.
    open business foropen entrepreneur marketing R&D production customer care financing consumption creation designed by Carla Zorzo - carlita.mail@libero.it