COMMUNITY DRIVEN INNOVATION

Iain GrayVP, Global ServicesRed Hat Inc.April 20th, 2012

Innovating in Tough Times: Practical Ways for Innovating when Budgets are

Tight and Resources are Limited

Scarce$

TimeTalent

AbundantCreativity

ToolsKnowledge

“Connectedness”SpeedData

Traditional ManagementChallenge

New ManagementChallenge

“There are always more smart people outside your company than within”

- Bill Joy, Sun Microsystems.

Community Driven Innovation

Community Innovation at Red

Hat

Community Innovation at Red

Hat

Who Else is Leveraging the Community?

Who Else is Leveraging the Community?

What Does Community

Innovation Mean for My

Organization?

What Does Community

Innovation Mean for My

Organization?

Community Innovation at Red

Hat

Community Innovation at Red

Hat

Who Else is Leveraging the Community?

Who Else is Leveraging the Community?

What Does Community

Innovation Mean for My

Organization?

What Does Community

Innovation Mean for My

Organization?

1993 1999 2002 2006 2008 2010 2011

$1 BILLION REVENUE

2012

OPENSOURCELEADER#1

Red Hat built a $1B+ business selling free software

Community-Based Product Development Process

We participate in & create upstreamprojects.

We build & support open communitiesaround integrated projects.

We enable software & hardware partners to participate at every stage of development.

We commercialize theseinnovations together with a richecosystem of services & certifications

PARTICIPATE

INTEGRATE

STABILIZE

100,000+PROJECTS

SUBSCRIPTION MODELKNOWLEDGEBASE

OPTIONAL TRAINING CURRICULA AVAILABLE

HARDWARE & SOFTWARECERTIFICATION

SOFTWARE ASSURANCE

GLOBAL SUPPORT SERVICES

UNLIMITED

24/7

MULTI-LINGUAL

MISSION-CRITICAL

MULTI-VENDOR CASE OWNERSHIP

STABILITY WITH PRODUCT LIFECYCLEOF UP TO 10 YEARS

UPDATES, PATCHES & UPGRADES

SECURITY RESPONSE TEAM

CUSTOMER PORTAL & FORUMS

AWARD-WINNING SUPPORT

Fedora is where our customers see the future

Using traditional model, Fedora development would have cost about $10.8B

http://www.linuxfoundation.org/sites/main/files/publications/estimatinglinux.html

Many Fedora contributors are software developers

But contributors also work on marketing, design, documentation, translation, support, testing, website design, usability, IT, distribution, legal and licensing issues.

Fedora Technical Support Community

“Given enough eyeballs, all bugs are shallow”- Linus’ Law

US Navy’s Standardization Mission

JP Morgan’s Plumbing Problem

Community Innovation at Red

Hat

Community Innovation at Red

Hat

Who Else is Leveraging the Community?

Who Else is Leveraging the Community?

What Does Community

Innovation Mean for My

Organization?

What Does Community

Innovation Mean for My

Organization?

Community Innovation Pyramid

Innovate within a

Community

Innovate through a

Community

Listen to the Community

Listen to the Customer

Community Innovation Pyramid

Innovate within a

Community

Innovate through a

Community

Listen to the Community

Listen to the Customer

Participation

Control

“What’s in it for me”

Level 1: Listen To The Customer

Customers pay for influence

Level 2: Listen To The Community

Making the Community Work for Me

Level 3: Innovate Through a Community

Leveraging the Community to Innovate

What’s in it for me?

Level 4: Innovate Within A Community

Catalyzing a Community. Sharing IP

Listen to the Customer – The Promise of Big Data Analytics

Agenda

Community Innovation at Red

Hat

Community Innovation at Red

Hat

Who Else is Leveraging the Community?

Who Else is Leveraging the Community?

What Does Community

Innovation Mean for My

Organization?

What Does Community

Innovation Mean for My

Organization?

Listening to the Community• Does the community exist?• Does the collaboration platform

exist?• Do you have the brand power to

motivate participants?• What’s in it for the participants?• What changes are needed to

ensure your org. is receptive to outside ideas?

• How will you deal with ideas that are accepted and rejected?

Leverage the Community• Where do the skills and

experience I need live and how do I connect with them?

• Can I modularize my problem so it can be farmed out?

• How does this limit potential solutions to my problem?

• What changes are needed to my IP governance process to deal with external IP?

• How do I avoid N.I.H resistance?

Innovating within the Community• What’s my motivation for

innovating within a community?• Does a community exist or do I

need to create it?• What role do I want to play in the

community?• Am I willing and able to ‘give to’

as well as ‘take from’ the community?

• How does my governance model need to change to accept shared IP?

• How does my org. structure need to change to accept shared IP?

Conclusion• Red Hat’s story is an example of how community-driven

innovation drives not only ‘doing more with less’ but creates results that benefit our customers and the community

• The Red Hat model may not be the starting point for everyone, but there are many other great examples of companies that are bridging the gap between internally and externally-driven innovation

• Think about motivations for community-driven innovation: what are your motivations, how will your community participants be motivated

• Think about how your organization needs to change to accept community input.

Thank You!iain@redhat.com