This is an official presentation about Open Innovation by Wim Vanhaverbeke in collaboration with Nir-vana Platform. >>> Contact us for the full (+ audio) presentation to our communication contact: Belén Caparrós - belencaparros@easyinnova.com -

1. Managing open Innovation in
SMEs
Learning Points for Managers and Academics
Prof dr Wim Vanhaverbeke
Hasselt University,
ESADE Business School
National University of Singapore
Hasselt – Barcelona - Singapore – 2017

4. Overview
1. Unlearn the traditional OI-Framework for large companies
2. Embed OI in an SME’s strategy / business model
3. Understand the role of the entrepreneur
4. OI : in search of external key resources or competencies
5. Managing your innovation network
6. Understand OI-management as a dynamic and ongoing process
Curana as illustration
4

6. Can we copy OI management from large
firms to small firms?
1. No portfolio of innovation projects (no funnel concept)
2. SMEs want to create new business opportunities and
become more profitable (BM innovation) – OI is a
consequence of this search for business opportunities
3. OI in SMEs is managed by the entrepreneur or founder,
not by the VP Open Innovation or OI-team
4. OI between small companies takes the shape of networks
which are governed in informal ways with an entrepreneur
as linking pin
6

8. How an entrepreneur creates value?
• Vision / basic insight of the entrepreneur:
• Diverse: From the obvious to hard to articulate:
• Curana: developing bike accessories with sleek modern design
• QOD: A provider of a healthy sleep
• I styling : virtual shopping for fashion goods
• BM conception: from days to years
• QOD:
• Who can define “what is a healthy sleep?”
• How to translate these insights into technical specs for a functional quilt?
• Istyling : piecewise development of the BM (body scanner)
• Articulating a BM may take time: A process view on BM formation
• There is no grand design – discovery driven growth strategy +
experimentation (Rita McGrath)
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9. The role of the entrepreneur?
1. Vision / basic insight of the entrepreneur in driving
the business change
2. Developing and managing the network of partners
• on or hands off approach?
The success of the OI-network hinges on the
entrepreneur
• If he leaves then the OI- strategy and network implode
9

10. THE RELATIONAL / OI DIMENSION
4.
Creating and sharing
value with partners:
10

11. Open innovation essentials for SMEs
• Combination of internal and external knowledge (external design company and
polymer extrusion manufacturer) key resources or competencies
• Progressively increasing the network of partners:
– Locus of innovation is in the network
– External network management by central firm
– Growth economic strength ≠ growth firm size
• Innovation as a tool to shape your company’s destiny and that of the industry
(more control points and higher profitability)
• Dynamics in networks: crucial assets will be integrated into main company
(design in Curana; R&D in QOD) – tensions!
• Innovation networks:
– deliver a sustainable competitive adavntage
– barriers in changing strategy (lock-in in ecosystems)

13. Managing your innovation network
(key process @ Curana)
• Connecting partners (SMEs and other knowledge partners) is based on strong
personal ties between the main partners
• Trust + transparency about the objectives of the partners
• Time and money have to be invested
• Does everybody want to take risk?
• Important that the different firms are prepared to grow together
• Cooperation is easier between companies of the same size
• Over time assimilate the knowledge of different partners. Become smarter by
knowing more partners (knowing who) and knowing more than your partners
• …
13

14. Managing your innovation network
(key process @ Curana)
• Project management (central partner) with partners is quite
different from internal project management
– Each one is busy with a part of the project : costs easily raise
excessively
• Tensions will pop up after a while
– Good relationships may become under pressure
– Open innovation? Open communication!
– Organize (mutual) evaluation session with partner(s)
– Open bookkeeping with main partners (their problems will be yours)
– Set out rules for disloyal behavior
14

16. 16
6.
OI as a tool for
business
transformation ?

17. The need of a process view
• OI management gradually develops as the network develops
– Significant changes in managing the network
• PRoF
• OI leads to business transformations
– QOD: becomes a technology provider thanks to OI
but
– Dingens barometers has been decimated
• Excellent OI project
• Not coping with the underlying economic trend
• OI has transformative power for SMEs (QOD, Curana) but is no silver bullet
for success (Dingens, Jaga, Curana)
– Need to observe OI in SMEs over a long time horizon
17

18. 2003
2006
2006 2017
20142011

19. Exnovate as a network of excellence for OI-
practitioners and scholars?
• www.exnovate.org (case studies available)
• Four teaching cases @ www.iveycases.com
• I organize 2 day seminars for SME managers
• PhD course open innovation at ESADE (9th time in January
2018)
• WOIC 2017 – San Francisco, December 2017
• Open Innovation Community on Facebook and
Linkedin
• MOOI-project

20. www.exnovate.org
wim.vanhaverbeke@uhasselt.be