Post on 21-Apr-2015
description
Rick Wielens CEO– NineSigma Europe
Open Innovation 2.0 Stockholm March 2012
2011 © NineSigma, Inc.
Pop quiz
Biggest patent applicant in the world in 2010?
A. Philips B. Panasonic C. Huawei D. ZTE Corpora@on E. Apple
Pop quiz
Where does innova@on happen most? (R&D spending, Patents) a. Companies with more then 25,000 employees b. Companies with less then 25,000 employees
But: Would your company have hired him?
Innovation is shifting
outside the large entreprise
Company size in # employees
Source: Henry Chesbrough
Page Page
Trends in Patent Registrations Top 7 global consumer-packaged-goods (CPG) companies
In challenging companies on how they innovate and grow
We believe
R&D Ownership Avoid Risk Idea driven Assets
S&D /Collaborate & Integrate Access
Fail often Need driven Ecosystem
Enable and engage organizations to use open innovation and develop the right capabilities
It is not about ownership it is about Access
The future is new business models e.g. Car share (not rental!) ZipCar: a fleet of 1,000 cars in 2 years for rental WhipCar: no fleet but within 6 months over 1,000 cars available to rent
Organizations are not designed for innovation
….but for ongoing operations… • Resistance to innovation • Frustrating the money press
machine! • Predictable vs Uncertainty
Open Innovation Toolbox
RAPID PRODUCT PROTOTYPING
TECHNOLOGY MONITORING
LINKED INNOVATION / CROWDSOURCING
OI SKILLS ASSESSMENT & DEVELOPMENT
QUICK -‐ SCAN OPPORTUNITIES
TARGETED PARTNER SEARCH
TARGETED TECHNOLOGY SEARCH
SOLUTION SEARCH Solu=o
ns
Skills
Exper=se
Knowledge
OPEN INTELLIGENCE / LANDSCAPING
·∙ ·∙
Professor Frank Piller (MIT smart customiza=on & RWTH Aachen):
Open Innova@on is the formal discipline and prac1ce of leveraging the discoveries of unobvious others as input for the innova1on process through formal and informal rela1onships
What is Open Innova@on?
Examples of Collabora=ve Innova=on Outcomes
Where do these ideas and technologies come from?
Trusted networks
Suppliers
Consultants
Universi=es
Re=rees
Others
Other BU’s
Research center
Business Development
Other
Universi=es
Large companies
Small entrepreneurial companies
Private Laboratories
University Technology Transfer Offices
Individuals
NineSigma Affiliates
Na=onal Labs
Global Innova=on Community
Business Unit
Company
New solutions and ideas come from internal and external networks
...working backwards from customers needs often demands that we acquire new competencies and exercise new muscles, never mind how uncomfortable and awkward-feeling those first steps might be.... Jeffrey P. Bezos Founder and CEO Amazon April 2009, Letter to Shareholders
Need driven innovation
If I had an hour to solve a problem I'd spend 55 minutes thinking about the problem and 5 minutes thinking about solutions Albert Einstein
Need driven innovation
Ideas or Needs
Idea Driven Edisons way: 700 experiments Serial / itera@ve Pay for failures and success All costs for experiments internal Serial failures & experiments Pay for @me invested
Need Driven Einsteins way: 1 challenge Parallel: Expert Crowds Pay for success only Only costs for integra@on Parallel failures & experiments Pay for value received
The Innova@on and R&D Paradigm: You have to Fail oWen internally to Learn
THIS WILL NEVER WORK IN OUR INDUSTRY
VDMA FVA study (federa@on)
RFP: ID and topic*
Ins=tu=on Solu=on Technology
new known new known more info required
66198: Durable, non-‐lubricated gear materials
23 3 16 6 4
66204: Extraordinary fine par@cle removal from lubricated mechanisms
10 0 3 7 0
66207: Transla@onal research in bio-‐similar par@cle capture
7 0 6 0 1
66201: Low-‐fric@on hard surfaces 33 2 n.A. n.A. n.A.
VDMA Study / FVA (drivetrain / machine building federa@on Germany)
Need or challenge driven Innovation request:Tacit knowledge Expert crowd sourced: 10,000+ people whom we suspect that might have a solution Non Confidential: enables IP transfer and partnership 60% Industry: Business AND Academics 40% Surprise proposals people we did not contact
Open Innova@on Readiness: Absorp@ve capacity
Strategy
Culture
Organiza@onal structure
Systems / Methods
• Agenda segng: Innova@on and external knowledge
• Management commitment / support • Collabora@on and communica@on orienta@on • Innova@on orienta@on
• Structures and processes facilita@ng collabora@on and knowledge transfer
• Formaliza@on of Open Innova@on ini@a@ves (Open Innova@on process)
• Incen@ves-‐ and reward systems • Collabora@on and communica@on methods
Source: Prof.Frank Piller MIT/ RWTH Aachen
Open Innova@on Readiness: Absorp@ve capacity
What are the obstacles in your organiza@on that may prevent you from benefi@ng from an open innova@on ini@a@ve? Which micro mo@ves are driving this resistance? Which measures do you have in place to prevent intra-‐organiza@onal NIH? Can you transfer some of these measures to open innova@on? How do your present incen@ve structures support NIH, how could you promote PFI (Proudly Found Elsewhere)?
Engage th
e Inno
va=o
n Ecosystem
Enable Internal Teams to be Successful
New Technology, Partners, innova@on
People, Process Technology
Fully Leveraged Innova@on Ecosystem
Round up the usual Suspects
Enabling Open Innova@on focused across two primary dimensions
Open Innovation Road Map Prepare before you jump
Session A
Tools Workshop
Program Development
Execute OI projects
Innova@on Audit
Learnings and Roll out
Session B
Interviews and data collec@on
First Projects
Define scope and objec@ves
Training workshop, OI tool box
On-‐going program review & support
OI GOALS: • Solu@ons • Opportuni@es • Improvements • Breakthroughs • Value
Quirky in Numbers $200,000: Minimum upfront cost of building a conventional startup around a single product >200/ week ideators submit concept ideas online. Ideas must retail for less then $150 and should not require integrated software. Community of 65,000 members (growing 20%/month) influencers votes on ideas and develop them further
What is a good idea? The ultimate experimentation platform
30% payoff for ideators 2011 revenue: $6-10 million.Quirky has raised 12.6 million in funding. Staff: Today 40 planned 80
What makes Quirky best in open innova@on? 5. Demonstra@ng speed of innova@on -‐ despite the involvement of so many par@cipants and par@es. 4. LiWing the crowdsourcing model to another level -‐-‐ and developing the idea further than "just" ideas: plalorm for experimen@ng.... 3. Providing a plalorm for products origina@ng from deep user insights and offering anyone the plalorm of turning their necessity into real products. 2. Excellent example of agility and ACCESS over OWNERSHIP and value crea@on between openness and closeness. 1. Being one of the first companies that really(!) takes external contributors serious. Source: Frank Piller