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Open Innovation:
An Indian Experience
Innovation: the conventional model
Source: H Chesbrough, 2003
Open Innovation Model:
Developing knowledge to Connecting knowledge
Source: H Chesbrough, 2003
India Inc’s Innovation
Journey
• Strategic goals and customer needs
determine the journey
• An iterative process
• Start small, pilot and scale
• Five case studies
4
1. Innovation models
for a fast changing
technology landscape
2. Bringing the power of
the conglomerate to
innovate together
3. Infuse digital
transformation by
bringing in
entrepreneurial talent
Wipro Technologies
Innovation models for a fast changing
technology landscape
Source: Twitter
Source: Financialexpress.com
Models of Innovation
360 0
Partnerships
$100mn
Venture
Fund
Joint
Solutions
Internal
Open
Innovation Crowdsourcin
g Platform
Academic
Partnerships
Topcoder
Tel Aviv University
Showcase
Proactively
Strategic
investments in
select focus areas
Sell to- Buy
from- Innovate
with
Hackathons, idea
portals,
competitions
Photo by William Bout on Unsplash
Learnings
• Form a core team that facilitates
the process
• Lines of business own the goals
• Customers need and business
goals determine partnership
models
• Open innovation is a change
management process
Photo by Štefan Štefančík on Unsplash
Work in Progress
• Drive wider adoption of this
approach in the organisation
• Build a stronger framework to
drive trust between partners
• Build better models for
measuring value creation Photo by The Climate Reality Project on Unsplash
Tata Group
Bringing the power of the group
companies to innovate together
Source: tatainnoverse.com
Models of Innovation
• A central innovation unit facilitating
innovation teams in group companies
• Creation of an open innovation
platform – Innoverse
• Consortium based approach for
projects within group companies
• Project based partnerships with
startups
• Innoverse in its third season of
challenges in 2years of existence
• Over 40 challenges
• Prize money Rs.3L +
• Participation from a quarter of the group
companies
• Over 30 start up have participated
Source: tatainnoverse.com
Learnings
• Get early buys-in
• Be aware of IP building vs solutions
• Build awareness internally to drive adoption
• Startups can be expensive too!
Source: tatainnoverse.com
Work in Progress
• Overcoming the “not-invented-
here” syndrome
• Identify start-ups that can scale,
take risks and invest in resources
Source: tatainnoverse.com
Future Group
How do you infuse digital
transformation by bringing in
entrepreneurial talent
13
Photo by Paweł Bukowski on Unsplash
Models of Innovation
• Acqui-hired a competent digital
team - ‘Anchor Hires’
• Expertise of the team led to the
formation of a state of the art
Customer & Digital Lab
• Leverage the expertise to
incubate a new business
14
Photo by Álvaro Serrano on Unsplash
Models of Innovation
• Customer & Digital Lab acts as a
catalyst to bring entrepreneurial
energy to make things happen
• Plays the role of start-up evangelist
within the group while also mentoring
startup with their scaling issues
• Appoints a manager to find a pilot
within the group
15
Photo by Jacob Miller on Unsplash
Benefits and Learnings
16
New ways of workingLeap frog new
capabilities in digital
Infuse Entrepreneurial
Energy
• Customer
Experience
Management
• Analytics and mining
• Social and Mobile
capabilities
• New age order to
cash process
• SCM Automation
• Agile Processes
• Cross-functional
teams
• Digital Product
Management
• Experimentation
approach
• Work with networks
• Use hackathons to
kindle interest
• Co-create with
promising startups
• Provide help for
start-ups to scale
Unsplash
Give them the support and resources
and let them be- you will grow as the
startups will flourish
Source: Economic Times
“The new generation of startup
entrepreneurs have a radically
different approach to every
aspect of business: their minds
are wide open and they are
willing to experiment with new
ways of doing business” - Anand
Mahindra
MAHINDRA GROUP
Model of Engagement
Start-up incubations
Internal Startups
Private equity investments
Project Partnerships
Acquisitions
Unleash new potential: Blockchain, IOT
Smartshift and Trringo
Unrelated business and assess future potential:
Health care investment
Tech Mahindra + 30 startups,
Club Mahindra & GiftXOXO
firstcry.com, babyoye.com
Learnings
• Entrepreneurial and Federal culture
• Accept failures: Perseverance helps
• Involve internal R&D staff
• Transparent revenue sharing models
Image
Marico Innovation Foundation believes
that Innovation can spur creation and
sustenance of successful and
enduring Indian brands. That will
enable India to reposition itself as a
global economic superpower. "
- Harsh Mariwala, Founder, MIF
20
A dedicated resource and team to drive
open innovation is critical to ensure
success.
MARICO
Model of Engagement
Project Partnerships
Long term partnership
Startup Incubation and
Strategic Investments
Business process improvement: sales force
efficiency
Ascent: Marico Innovation Foundation: incubating
startups to develop ideas and scale up
Build new business capabilities:
Data analytics for business process
improvement
Learnings
• Early startups are more adaptive and can
create customized solutions
• Work on project partnerships; invest if
future capacity development possible
Image
Work in progress
• Lack of a scouting platforms
• Building trust and common intent with the
startups
• Maintaining momentum and commitment
levels of startups is important
• Startup specializes in one domain
Image
24
Models of Open
Innovation
Both corporations and
start-ups benefit
Resource
Requirement
1: Partner: ‘Testing Waters’
I like you and wish to explore working
with you. Lets solve a problem together
without too much investments or too
many risks  Project Partnerships
 Co-branded solutions
2: Build: ‘We are Friends’
We can work together, create or build
something new and leverage on
respective strengths
Source: Economictimes
 “Incubate and Adopt
 Partnerships with equity
involvement
3: Buy: ‘We are Family’
We are one entity with a common vision.
We all are different with unique identity
yet we understand each other, adapt and
live together
 Acquisitions
 Mergers
Success Factors
STAND-ALONE
INTEGRATE
Mature/late stage startups
Buy for product-lines,
customers
Early stage start-ups
Buying for IP, team and
revenues
Key Learnings
• Nimble, Entrepreneurial and Risk-taking
organizations
• Commitment and Perseverance
• Top management commitment & dedicated
resource
ImageThe New Innovation Organization
Key Learnings
• Involving business units and R&D teams
• Startups to show maturity to adjust and
leverage their strengths
• Transparency in communication
ImageBuilding Collaboration
Key Learnings
• Partner
• Build
• Buy
ImagePlan a phased approach
Open Innovation:
An Indian Experience

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SBAC 2018 Research Presentation by Dr. Ashita Aggarwal, Nilendra Pawar and C S Swaminathan

  • 2. Innovation: the conventional model Source: H Chesbrough, 2003
  • 3. Open Innovation Model: Developing knowledge to Connecting knowledge Source: H Chesbrough, 2003
  • 4. India Inc’s Innovation Journey • Strategic goals and customer needs determine the journey • An iterative process • Start small, pilot and scale • Five case studies 4 1. Innovation models for a fast changing technology landscape 2. Bringing the power of the conglomerate to innovate together 3. Infuse digital transformation by bringing in entrepreneurial talent
  • 5. Wipro Technologies Innovation models for a fast changing technology landscape Source: Twitter Source: Financialexpress.com
  • 6. Models of Innovation 360 0 Partnerships $100mn Venture Fund Joint Solutions Internal Open Innovation Crowdsourcin g Platform Academic Partnerships Topcoder Tel Aviv University Showcase Proactively Strategic investments in select focus areas Sell to- Buy from- Innovate with Hackathons, idea portals, competitions Photo by William Bout on Unsplash
  • 7. Learnings • Form a core team that facilitates the process • Lines of business own the goals • Customers need and business goals determine partnership models • Open innovation is a change management process Photo by Štefan Štefančík on Unsplash
  • 8. Work in Progress • Drive wider adoption of this approach in the organisation • Build a stronger framework to drive trust between partners • Build better models for measuring value creation Photo by The Climate Reality Project on Unsplash
  • 9. Tata Group Bringing the power of the group companies to innovate together Source: tatainnoverse.com
  • 10. Models of Innovation • A central innovation unit facilitating innovation teams in group companies • Creation of an open innovation platform – Innoverse • Consortium based approach for projects within group companies • Project based partnerships with startups • Innoverse in its third season of challenges in 2years of existence • Over 40 challenges • Prize money Rs.3L + • Participation from a quarter of the group companies • Over 30 start up have participated Source: tatainnoverse.com
  • 11. Learnings • Get early buys-in • Be aware of IP building vs solutions • Build awareness internally to drive adoption • Startups can be expensive too! Source: tatainnoverse.com
  • 12. Work in Progress • Overcoming the “not-invented- here” syndrome • Identify start-ups that can scale, take risks and invest in resources Source: tatainnoverse.com
  • 13. Future Group How do you infuse digital transformation by bringing in entrepreneurial talent 13 Photo by Paweł Bukowski on Unsplash
  • 14. Models of Innovation • Acqui-hired a competent digital team - ‘Anchor Hires’ • Expertise of the team led to the formation of a state of the art Customer & Digital Lab • Leverage the expertise to incubate a new business 14 Photo by Álvaro Serrano on Unsplash
  • 15. Models of Innovation • Customer & Digital Lab acts as a catalyst to bring entrepreneurial energy to make things happen • Plays the role of start-up evangelist within the group while also mentoring startup with their scaling issues • Appoints a manager to find a pilot within the group 15 Photo by Jacob Miller on Unsplash
  • 16. Benefits and Learnings 16 New ways of workingLeap frog new capabilities in digital Infuse Entrepreneurial Energy • Customer Experience Management • Analytics and mining • Social and Mobile capabilities • New age order to cash process • SCM Automation • Agile Processes • Cross-functional teams • Digital Product Management • Experimentation approach • Work with networks • Use hackathons to kindle interest • Co-create with promising startups • Provide help for start-ups to scale Unsplash
  • 17. Give them the support and resources and let them be- you will grow as the startups will flourish Source: Economic Times “The new generation of startup entrepreneurs have a radically different approach to every aspect of business: their minds are wide open and they are willing to experiment with new ways of doing business” - Anand Mahindra MAHINDRA GROUP
  • 18. Model of Engagement Start-up incubations Internal Startups Private equity investments Project Partnerships Acquisitions Unleash new potential: Blockchain, IOT Smartshift and Trringo Unrelated business and assess future potential: Health care investment Tech Mahindra + 30 startups, Club Mahindra & GiftXOXO firstcry.com, babyoye.com
  • 19. Learnings • Entrepreneurial and Federal culture • Accept failures: Perseverance helps • Involve internal R&D staff • Transparent revenue sharing models Image
  • 20. Marico Innovation Foundation believes that Innovation can spur creation and sustenance of successful and enduring Indian brands. That will enable India to reposition itself as a global economic superpower. " - Harsh Mariwala, Founder, MIF 20 A dedicated resource and team to drive open innovation is critical to ensure success. MARICO
  • 21. Model of Engagement Project Partnerships Long term partnership Startup Incubation and Strategic Investments Business process improvement: sales force efficiency Ascent: Marico Innovation Foundation: incubating startups to develop ideas and scale up Build new business capabilities: Data analytics for business process improvement
  • 22. Learnings • Early startups are more adaptive and can create customized solutions • Work on project partnerships; invest if future capacity development possible Image
  • 23. Work in progress • Lack of a scouting platforms • Building trust and common intent with the startups • Maintaining momentum and commitment levels of startups is important • Startup specializes in one domain Image
  • 24. 24 Models of Open Innovation Both corporations and start-ups benefit Resource Requirement
  • 25. 1: Partner: ‘Testing Waters’ I like you and wish to explore working with you. Lets solve a problem together without too much investments or too many risks  Project Partnerships  Co-branded solutions
  • 26. 2: Build: ‘We are Friends’ We can work together, create or build something new and leverage on respective strengths Source: Economictimes  “Incubate and Adopt  Partnerships with equity involvement
  • 27. 3: Buy: ‘We are Family’ We are one entity with a common vision. We all are different with unique identity yet we understand each other, adapt and live together  Acquisitions  Mergers
  • 28. Success Factors STAND-ALONE INTEGRATE Mature/late stage startups Buy for product-lines, customers Early stage start-ups Buying for IP, team and revenues
  • 29.
  • 30. Key Learnings • Nimble, Entrepreneurial and Risk-taking organizations • Commitment and Perseverance • Top management commitment & dedicated resource ImageThe New Innovation Organization
  • 31. Key Learnings • Involving business units and R&D teams • Startups to show maturity to adjust and leverage their strengths • Transparency in communication ImageBuilding Collaboration
  • 32. Key Learnings • Partner • Build • Buy ImagePlan a phased approach

Editor's Notes

  1. In India open innovation paradign is in its early stages. So, why is the journey slow and iterative I believe that it takes an enlightened CEO to see and believe that there are more smart people outside then inside the organization in your domain. It takes self awareness, humility and an entrepreneurial mindset coupled with non hierarchical organization that is not constrained by “NIH” syndrome to seek ideas from outside. And in the digitally connected world, the cost of seeking these ideas has greatly reduced without reducing the control we have on process. We at SPJIMR along with FF are conducting a research with Indian organizations to study their innovation ecosystem. Today we would be presenting a snapshot of five companies in our research sample and some key takeways for the corporates who wish to embark on this journey. studied such five I now request Mr Swaminathan to come and share three of these case studies.