Designed to bring organisations – large and small - together who are interested in developing innovation both internally and collaboratively with others.

1. Realising Value from Open Innovation
Partnerships
Dr Marian Garcia
Kent Business School, University of Kent, UK
Open Innovation Network– Rochester, 23rd January 2014

2. Agenda
 Open innovation definition and benefits
 What are key steps to establishing effective
partnerships?
 How to manage partnerships to achieve mutually
agreed-upon outcomes?

5. External Innovation Focus is Essential

6. Open Innovation Model

7. The ‘Logic’ of Open innovation
“Use the best available”
• Combine internal and external ideas to shape
new business models
• We should profit from others use of our IP and
we should buy others IP were it advances us
Open Innovation Principles
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Not all the smart people work for us.
External R&D can create significant value
Internal R&D is required to claim some portion of it
We don’t have to originate the idea to profit from it
If we make the best use of internal and external ideas,
we will win
Getting unusual suspects to solve R&D
puzzles
Source: Harvard Business Review, May 2007

8. Is it popular?
Open Innovation has substantial global appeal
2013 GE Global Innovation Barometer
http://files.publicaffairs.geblogs.com/files/2013/01/GE_GIB_2013_Report1.pdf

9. Profiting from External Knowledge
Issues of Open Innovation
» IP issues (managing and protecting)
» Relinquishing potential value
» Identifying the proper sources and
the right ideas
» Overcoming organizational inertia
and “not invented here” syndrome

10. Working with Others – Practical Issues
- In any successful partnership you need
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The necessary skills
Sufficient project resources
Commitment at senior level
Common aims & strategic alignment
- Issues to consider and define carefully
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What do you/partners bring
Who does what
What are timescales
What is field of collaboration
Contingencies
Unless these points are well understood, thought out and
planned, not even the cleverest legal agreements can save you
from problems!

11. Clear Strategy & Clear Alignment
 Know what you bring
 Know what your partner brings
 Alignment in strategies
 Minimize any potential conflicts
 Division of responsibilities

12. Invest in your Partnerships
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Married vs. one time fling
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Establish trust and respect
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Need clear communication

Avoid surprises

Establish good governance

Always good to have a “pre-nup”
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Fair balance in relationship
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Share risks and rewards

Repeat business is always good

13. Focus on the Win-Win
If you wouldn’t sign both sides of the contract, you might want to
rethink the deal structure.
 Renegotiated, or even cancel, a contract if it’s not working
 It’s a partnership, not a sale
 Don’t get greedy - Pigs get slaughtered
 Each and every relationship and deal defines you;
 If needed, fight for your partner within your own
company
“Anytime we kept too many
marbles on our side, we never saw
the results we hoped for.”

14. Measure what you want to achieve
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Metrics lead to incentives
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Measure your success and your partners
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Incentives drive behaviours
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Keep metrics simple
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Keep an eye on value extraction

15. Pick Your People, then Place them with Care
They may be your brightest innovation star, but that doesn’t
mean they will be helpful at the negotiation table!
•
Open Innovation calls for a special skill set
• Multi-functional, experienced internally, comfortable externally
•
Knowledge/experience count
• But youth and passion are good
• Blend of both
“Our best and brightest scientists haven’t always
been the best at building partnerships! This calls for
a special skill set.” (P&G Vice President)

16. Know When to ‘Walk’
 Understand BATNA
 Better to walk then to sign a bad deal
 “Pre-nups” are good for the unexpected

17. Thanks
Dr Marian Garcia
m.garcia@kent.ac.uk

18. Open Innovation is transforming the
competitive landscape
The Practice of Implementing Open Innovation Partnerships
Tangible Factors
Aligned objectives
Project plans and management
Resource expectations
Contracts
IP
Meeting schedules
Reporting
Governance structures
Cycle of initiation and termination
What practices have been successful?

19. Open Innovation is transforming the
competitive landscape
The Practice of Implementing Open Innovation Partnerships
Intangible Factors
Trust and suspicion
Corporate relationship
Attitude – master/servant vs partner
Personal relationship
Openness
What practices have been successful?

20. Promoting Innovation and Collaboration
 Next Meeting – Autumn 2014
 Feedback on ideas/topics for discussion
 NEW Crowdsourcing Platform
Access to our Academic and Student Community
Ideas and Solution Competitions
Do you have a challenge?