The document discusses the concept of open innovation and open business models, emphasizing the importance of collaboration, knowledge sharing, and community engagement to drive new value. It highlights how various organizations, including Google and Intel, harness these strategies to foster innovation and maintain competitive advantage. Additionally, it outlines opportunities for associations to leverage open innovation for product development, reduce costs, and enhance customer loyalty.

1. Associations Next Using Open Business Models to Create New Value Chuck Davis, InnoCentive Jeff De Cagna, Principled Innovation Peter Turner, MCI Group August 18, 230-345pm Connecting Great Ideas and Great People

2. Session Flow What would you like to takeaway? What is open innovation & open business models? Why bother (WIIFM)? McKinsey explains Our view InnoCentive case study Follow up conversation for context Q&A Players to watch & learn Research on Open Innovation For more information

3. What US company is the most profitable company for its stockholders in the history of Wall Street? Courage to change Take calculated risks Learn & apply from early adopters

4. How large is your Brain? Engagement Models Member Relevance Business Product Development Governance

5. What are they? Open Innovation Uses “networks” rather than “hierarchies” to unchain creativity, fresh thinking, knowledge sharing and collaboration Open Business Model is the use of “communities” as a means of collaborative exchange driving new forms of revenue and profit potential (for all)

6. Why Bother? Manage Relationships Better Technology lets you delegate substantial control to insiders and outsiders by outsourcing work to them in networks Using consumers as innovators Using customers as product developers who buy and promote it Tapping into a world of talent Decentralized innovation via networks allows you to find specialists, free agents, and talent networks Mastering Web 2.0 as a “strategy of engagement” As early adopters learn to use these tools they will innovate smarter and faster ways for individuals and teams to create value through interactions (competitive advantage) Putting more science into management Explosion of management techniques…Google fosters innovation through an internal market: employees submit ideas, and other employees decide if an idea is worth pursuing or if they would be willing to work on it full-time. Intel integrates a “prediction market” with regular short-term forecasting processes to build more accurate and less volatile estimates of demand

7. Opportunity for Assns (Our View) Open Innovation for Associations Tap a wider network for knowledge and skill, lower costs to create products and services, speed time to market of products and services, promote the ability to share risks & rewards with others, and build stronger customer loyalty Traditional member value Consumer-centric Untapped blue ocean Producer-centric Your member’s value chain Learn Certify Networking Publish Advocate Where they learn Where they work Volunteer Closed Hierarchy Seek funding Collaborate freely Volunteer or Paid Open Network-centric Earn a living Generate Knowledge

8. Chuck Davis InnoCentive

9. Players to Watch & Learn Pure Players Big Idea Group Business Innovation Factory InnoCentive InnovationXchange NineSigma ArtistShare SellaBand Corporate World P&G’s Connect & Dev Nike’s NikePlus Intel’s Prediction Markets BBC’s Innovation Labs Mn Public Radio’s Public Insight Network

10. Research on Open Innovation Bain & Co - Customer-Focused Innovation Forrester Study - Customer Content, Participation, Purchasing Forrester Study 2006 - Audience Segmentation Gallup 2006: Strengths Development Culture & People Engagement HBR Study: Community Built Around Product Sells More Product How Business Uses Web 2.0 Tools - McKinsey Study Incentivizing Online Community - Various Innovation Using Emerging Business Units - London School of Business 2003 Innovative Service Concepts in the US - PeerInsight Lead User Method - MIT Sloan Rosabeth Moss Kanter - DNA of Organizational Confidence User Generated Content Motivators - BCG 2002 We the Media: Grassroots Journalism - Center for Citizen Media