Open Collaboration: The Power of “We”
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Transcript of Open Collaboration: The Power of “We”
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Open Collaboration: The Power of “We”
Tamra Hall, Ph.D.
Vice President, Executive Partner
Gartner Executive Programs
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We Know Innovation is Important
"The most successful organizations co-create products and services with customers, and integrate customers into core processes." IBM CEO Survey
"We need diversity of thought in the world to face the new challenges," Tim Berners-Lee
"When the rate of change outside an organization is greater than the change inside, the end is near” Jack Welch
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Open Innovation
How do we harness the power of the crowd?
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The Crowd Wants to Contribute
“People are inherently creative and want to engage with organizations; they don’t want to have products and
processes imposed on them.”Venkat Ramaswamy & Fancis Gouillart
HBR, October 2010
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Build an Innovation Network
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Innovation Programs
Etc.
Focus Areas Resources
Business Objectives
Boundary Conditions
Strategic Platforms
Wicked Problems
Employees
Customers
Partners/Supplies
Market/Trend Watchers & Experts
Marketplaces
Tech/Business Media, Analytics
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ManagementOversight & decision making structures & competencies
OperationsNew ways of working
Products & ServicesGreater customer value
The Targets of Innovation Are Expanding ……. and success is dependent on explicit goals
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Open Innovation Focus
Novice Competent Expert
Expertise in Open Innovation
Products,Services,
& Markets
BusinessModel
Innovation
Business Focus
ProcessInnovation
Avoid – will draw little interest or
results
Avoid – will draw little interest or
results
Yes – if potential savings are
high; engage experts and key
partners.
Yes – start with one target.
Yes – include all targets, &
participants. Mine the social
Web.
Yes – include multiple targets.
Avoid – not for novices.
Yes – engage key participants
and mine the social Web.
Avoid – not for the average organization
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Innovation Networks can Contribute to Every Stage of an Enterprise's Innovation Process
Innovation Need Techniques Examples
Phase: Generate Ideas Concepts & ideas
Components
Patterns
Source to communities
Acquire from idea markets
Web-based pattern seeking
Netflix crowdsourcing
yet2.com
Social network analysis
Phase: Evaluate & Select ideas Prototyping
Comment, extend
Rank, vote, select
Acquire prototypes; scale up
Participants review, rank
Use prediction markets
P&G entrepreneur network
Lego User Group
Intrade Prediction Markets
Phase: Develop & Implement Co-develop
Outsource
License IP to others
Partner to develop
Source full development
Source key components
License solution/components
Co-research on Alzheimers
InnoCentive challenges
TopCoder ESPN Challenge
Xerox PARC
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Know the Sources of Innovation
Economist Intelligence Unit and Grant Thornton survey of Business Exec, June 2010
"Innovation: The Key to Future Success?" Global results shown here.
Global
U.S. only
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Engaging Customers
"You can't just ask customers what they want and then try to give that to
them. By the time you get it built, they'll want something new.“
Steve Jobs
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Lead Customers
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Engaging Business Unit Leaders
• Business simulations
• Exercises to envision the "company of the future"
• Focus groups with lead customers
• Expert conferences or networking events focused on future trends
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Building the Co-Creative Enterprise
“Generating new experiences for end customers often requires designing better experiences for internal players”
Venkat Ramaswamy & Fancis GouillartHBR, October 2010
“Stakeholders won’t wholeheartedly participate in co-creation unless it produces value for them”
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Open Innovation Enabled by Social Apps
ContributeIdeas
Evaluate/Select
(comment, rank & vote)
Develop
Internal Experts External
Scope ofParticipation
Participants
Social Applications Idea Generation
Crowdsourcing
Idea Markets
Prediction Markets
Challenge Events
Co-Design
Co-Development
Open Innovation Networks
… more
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In the "Landscape" of Innovation,Governments are not Well-placed
Fertile Fields for
Innovation
Some Flowers Bloom
Many Seedlings
Barren Ground for Innovation
Impetus for
Change
Attitude to Risk
Direct and compelling
Limited or diffused
Risk averse Risk taking
Competitive commercial
organizationsGovernments
Monopoly organizations
IT Leadership challenge:
To initiate and lead innovative change in an unreceptive
environment
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Usual Range for Government IT Organizations
Does your Innovation Approach Matchthe IT Organization's Positioning?
"IT provides support services but is not
strategically important"
The ButlerServe the business
"IT is a vital component of our business model"
The EntrepreneurCo-own the future
"IT is a cost of doing business"
The GrinderDo as the business says
"We depend on IT systems in our
business, so we giveit as much time as
we can afford"
The Team PlayerFormally collaborate
Business: Follower/Risk-Averse/Mature
Expected IT Role: Tactical/Utility
Expected IT Role:
Strategic/Transform
Business: Leader/Risk Taker/Change
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Open Innovation Defined by Cultural Shift
The Blind Spot of Open Innovation …
The Sweet Spot of Open Innovation …
Innovation is being first Innovation is ideas that are new to us
Competitors will discover our ideas
Our competitive advantage is design and execution, not just ideas
We don't know how to manage open innovation
We should start now and experiment to build competence
We know what customers want and need
Our customers (and prospects) have great ideas
If it's "not invented here", it probably won't work for us
We can multiply our innovation capabilities through open innovation
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Ability to Execute is Critical to Maintain Participation
Organizational Integration
Processes
Management • Key Managers capable of
launching new business endeavors
• Strong innovation portfolio governance
Market Awareness• Real-time market awareness
• Active ability to sense, analyze and respond to trends
• Rapid prototyping and experimentation to support fail or succeed fast
• High performing workplace
• High project execution capabilities
• Mass collaboration and social networking literacy
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Ideation: Best Practices and Pitfalls
Leadership creates clear imperatives for the need to change;
Focus on all dimensions of innovation;
Cultivator: Build out/on ideas;
Evaluate both evolution ideas and revolution ideas;
Dot on the horizon: Constantly on the lookout for changes.
Leadership fails to set the stage for the need to change;
Limit efforts to R&D (new Products & Services);
Gunslinger: settle on the first good idea;
Neglect new opportunities by selecting evolution ideas only;
Tunnel vision: Ignore internal or external changes
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Innovation Maturity Curve
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How is NASA Doing? What’s Next?