basic explaination of the concept of open innovation applied to the various phases of business

1. open innovation
by Carla Zorzo
for Domus Academy

2. “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

3. 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/

4. 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/

5. 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/

6. 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

7. 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

8. The Open Innovation Model
global
market
winning = global
companies companies
designed by Carla Zorzo - carlita.mail@libero.it

9. The Open Innovation Model
global
market
winning = global
companies companies
global
competences
designed by Carla Zorzo - carlita.mail@libero.it

10. 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

11. the role of the network
... and bottom up channels
company
individuals
clients
designed by Carla Zorzo - carlita.mail@libero.it

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

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 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

20. 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

21. 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

22. 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

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 this applied 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 for open entrepreneur
marketing
R&D production
customer
care
financing
consumption
creation
designed by Carla Zorzo - carlita.mail@libero.it