Open innovation & co-creation to transform businesses (By Zane Smilga)
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Transcript of Open innovation & co-creation to transform businesses (By Zane Smilga)
CO-CREATION AND OPEN INNOVATION TO TRANSFORM BUSINESSES 1
CONFIDENTIAL Template Innovation Day 2017 CONFIDENTIAL
CO-CREATION AND OPEN INNOVATION TO TRANSFORM BUSINESSES
Zane SmilgaCoordinator, Inno [email protected]
TRACK 2 - SERVITIZATION & NEW BUSINESS MODELS
CO-CREATION AND OPEN INNOVATION TO TRANSFORM BUSINESSES 2
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CONTENT
1. CO-CREATION AND OPEN INNOVATION: A “MUST HAVE” COMPETENCE IN FUTURE
2. ESSENTIALS TO MAKE IT WORK FOR YOU
3. LEAN ROUTES FOR A SMART START
CO-CREATION AND OPEN INNOVATION TO TRANSFORM BUSINESSES 3
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DOES HUMAN NATURE SUPPORT OPEN INNOVATION?
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I S O P E N I N N O V A T I O N R E A L L Y W O R T H I T ?
NOPE.
frustrating, slowand risky!
YES.
speedy, beneficial with
exponential growth
F A I L U R E R A T E S O F S T R A T E G I C A L L I A N C E S : 5 0 T O 7 0 %
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I T ` S H U M A N N A T U R E T O T H I N K I N “ U S ” V S “ T H E M ” co-creation requires trust, common vision, flexibility
A reliable enemy can be preferable to an unpredictable friend, as at least we know where we are with them.
http://changingminds.org/explanations/trust/what_is_trust.htm
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YET “COOPERATION SKILLS” HAVE ALWAYS BEEN BASIC TO SURVIVAL
In the beginning we were simply another smart, social ape trying to survive in the wild.
T O D A Y S A P I E N S R U L E T H E W O R L D .
..because we could cooperate in extremely flexible ways with countless numbers of strangers towards common goals.
Yuval Noah Harari,
Sapiens: A Brief History of Humankind
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CO-CREATION & OPEN INNOVATION: ENABLER FOR FURTHER EVOLUTION
2.5 M Y AGOEVOLUTION OF GENUS HOMO IN AFRICA
200,000 Y AGOHOMO SAPIENS EVOLVE
70,000 Y AGOCOGNITIVE REVOLUTION
13,000 Y AGOHOMO SAPIENS: THE ONLY HUMAN SPECIE SURVIVED
12,000 Y AGOAGRICULTURAL REVOLUTION
500 Y AGOSCIENTIFIC REVOLUTION / RISE OF CAPITALISM
200 Y AGOINDUSTRIAL REVOLUTION
People could increasingly rely on the skills of others for survival
100-50 Y AGOMARKETING REVOLUTION
50-30 Y AGOINNOVATION REVOLUTION
15-5 Y AGOOPEN INNOVATION 1.0 & 2.0REVOLUTION
Millions of years of evolution have designed us to think and live as community members. Within a mere two centuries we have become alienated individuals?
Co-creation & open innovation once again the key to business survival & transformation
Adapted from Yuval Noah Harari,Sapiens: A Brief History of Humankind
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RE-INVENTING OPEN INNOVATION & CO-CREATION TO FIT TODAY`S ECONOMY…
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INTER-CONNECTED WORLD IS THE NEW NORMAL
Sharing economy, Circular economy, IoT, Industry 4.0, self driving traffic systems, smart cities…
Working together in an inter-connected system is the core element of new economy
The innovation basis of many industries today has increased both the need to access new technologies and capabilities from outside the company
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COMPETITIVE EDGE IS AN EVER MORE COMPLEX EQUATION
THE RULES OF COMPETITIVENESS HAVE CHANGED
Companies need to transform and base their competitive strategies in business ecosystems where platforms, not products, rule. It is not limited anymore to their own assets.
(F) NEW COMPETITIVENESS=
agility & strength of your company and the entire eco-system
products + services + communities + technology platforms co-created with partners with a lean eco-system management …
YOUR COMPANY
CO-CREATION WITH THE ENTIRE BUSINESS ECO-SYSTEM
TOTAL SOLUTION
PartnersSuppliers
CustomersCompetitors
Products, services, technology platforms,
sharing access models…
Well connected & integrated set of solutions
to holistically meet the needs of customers
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INNOVATING FOR FUTURE INDUSTRY IS ABOUT BEING READY FOR ALTERNATIVE (POSSIBLE) SCENARIOS
In many cases there is no guarantee on one particular future industry scenario…
What are the options?
A. Preparing for all possible scenarios?
B. b) Together with other industry leaders shape & be in control of the future scenario?
C. c) Preparing your organization and processes to react fast when first signals of change are visible…
in 2015 the smart home market was still a battlefield of competing niche products and isolated protocols
KEY UNCERAINTY 1: MARKET CONVERGENCEKEY
UN
CERA
INTY
2 -
DEM
AND
SCENARIO 3
PEOPLE REMAIN SCEPTICAL ABOUT TOO MUCH TECHNOLOGY AT HOME
SCENARIO 2
SMART HOME HITS THE MASSES – A FEW BIG PLAYERS DOMINATE
SCENARIO 1
SMART HOME HITS THE MASSES – MYRIAD NUMBER OF SOLUTIONS & PLAYERS
SCENARIO 4
SMART HOME REMAINS NICHE – A FEW BIG PLAYERS DOMINATE
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STRONG INNOVATORS USE MULTIPLE SOURCES OF INNOVATION ALREADY TODAY
Being a strong innovator today means having an innovation platform with a large variety of external innovation sources & partners.
E X T E R N A L S O U R C E SI N T E R N A L S O U R C E S
I N N O V A T I O N S O U R C E
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INNOVATION SERVICE PROVIDERS MAKE IT EASIER TO DO OPEN INNOVATION
Hub organizations –innovation service providers – have unique cross-industry experience & knowledge that no other organization posses under one roof.
These players are co-creation partners that allow companies to enter totally new markets & businesses.
The also act as a buffer & bridge in case of complex partnerships with other parties
EXPERTS & LEAD USERS,
START-UPsSMEs
PSR: UNIVERSITIES/ RESEARCH
LARGECOMPANIES
P A S T E X P E R I E N C E
= c r o s s -
i n d u s t r y k n o w l e d g e
e x p e r i e n c e & c o n n e c t i o n
l u g g a g e
INNOVATION SERVICE PROVIDER
COMPANY XFROM
INDUSTRY Y
o p e n i n n o v a t i o n p r o j e c t
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CO-CREATION & TRANSFORMATION ESSENTIALS
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Any large-scale human cooperation –whether a modern state, corporate, a medieval church, an ancient city or an archaic tribe – is rooted in common myths that exist only in people’s collective imagination.
Thus, the secret of cooperation in ancient civilization was probably the appearance of fiction.
Yuval Noah Harari,Sapiens: A Brief History of Humankind
WE CAN COOPERATE = WE SHARE THE SAME VISION
Having a strong co-created vision is part of open innovation success.
Creating a vision together with a new group of strangers is an open innovation 2.0 competence
COOPERATION INTENSITY Long term partnership
One time knowledge transfer/interaction
Sharing business model
INTE
R-L
INKA
GE
ENVISIONING FUTURE MARKET SCENARIO TOGETHER
ENVISIONING FUTURE BUSINESS MODEL TOGETHER
ENVISIONING FUTURE BUSINESS ECO-SYSTEM TOGETHER
ENVISIONING FUTURE PRODUCTS & SERVICES TOGETHER
Sharing product / service
development track
Cooperation on the same value
chain/ business eco-system
Addressing the same
market/industry
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ENVISIONING: A PROMISE & GUIDE TO FUTURE
Nobody can give a guarantee for events in future.
Yet, it has an essentialtwofold effect:
- guides rational innovation efforts
- bonds people physiologically as a visionary inspiration & a shared goal
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A CLEAR & ALIGNED BUSINESS AMBITION
Forming a WIN-WIN partnership with clear & aligned business goals
All partners need to feel treated fair & have non discriminatory rights to share benefits. It is an emotional pre-condition leading to trust.
“money is the most universal and most efficient system of mutual trust ever devised.”
Money is the only trust system created by humans that can bridge almost any gap. Even people who don’t know each other can nevertheless cooperate effectively.
Yuval Noah Harari,Sapiens: A Brief History of Humankind
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SKETCHING THE FUTURE OF SHARED BUSINESS UPFRONT
Drawing a clear picture of future business eco-system will make sure that co-creation partners are aligned & can trust each other on sharing business benefits at a later stage.
Monetary, data, service, product flows…..
Next to business planning, it is also s a risk & misunderstanding management.
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An internal or external intermediary party helps to:
- connect companies in relevant partnerships
- guide a co-creation to secure interests of all parties
- manage joint envisioning, planning & partnership building
- facilitate discussions, consensus and mutual understanding
- Fill the gaps and provide a complementary expertise
SOMEBODY NEEDS TO MAKE A BRIDGE TO ENABLE OPEN INNOVATION
“Merchants, conquerors and prophets were the first people who managed to transcend the binary evolutionary division, ‘us vs them’, and to foresee the potential unity of humankind.”
Yuval Noah Harari,Sapiens: A Brief History of Humankind
PARTNER 1
PARTNER 2
PARTNER 3 PARTNER 4
CROSS-INDUSTRY BRIDGEMARKER &
INNOVATION EXPERT
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TRANSFORMING ORGANIZATION TO ENABLE OPEN INNOVATION
1. Structure & processes
to support and enable Open Innovation;
Who & how can pick up the question on potential partnership request and opportunities?
2. Investment & leadership sponsorship
How can it be financed?
3. Culture
Incentives and rewards
Support of bridgemakers.
Will people accept & devote themselves to new co-creation initiatives?
FINANCE THE PARTNERSHIPINVESTMENT
Start-ups R&D centers / universities
suppliers
SMEs & Large companies
CONSIDER THE PARTNERSHIPDEDICATED PROGRAMS & STRUCTURES
A P O O L O F P O T E N T I A L C O - C R E A T I O N & O P E N
I N N O V A T I O N P A R T N E R S
competitors
customers
MAKE THE PARTNERSHIP SUCCESSCULTURE & BRIDGEMAKER`S SUPPORT
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FOCUS EFFORTS ON EARLY SIGNS OF LONG TERM TRENDS WITH HIGH GROWTH POTENTIAL
To be ahead of the industry you need to scout for early signs of change in market, technologies, consumption patterns, legislation…
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ABILITY TO WORK WITH MULTIPLE SOURCE OF INPUT FOR INNOVATION
When trying to transform business there is a lot of “newness” to handle…
New types of technologies, markets,
complementary products/services,
business models, resources,
capabilities….
It is relatively expensive, yet it is cheaper & faster to access them from outside the company
PATENTS & TECHNOLOGIES…FUTURE DOMINANCE &
EVOLUTION
MARKET PATTERNS & EVOLUTION POTENTIAL
COMPETITION & RULES OF THE GAME
COMPETENCES
CUSTOMERS & BEHAVIOUR PATTERNS
CO-CREATION AND OPEN INNOVATION TO TRANSFORM BUSINESSES 24
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RE-THINKING & REINVENTING INNOVATION APPROACH
EVIDENCE BASED INNOVATION
Business transformation = tapping into unknown full with uncertainties and risks.
Customer validation will play an important role -testing ideas and concepts in the real world and checking their relevancy.
E V I D E N C E B A S E D I N N O V AT I O N /
V A L I D AT I O N
INSIGHTS & VALIDATION PLATFORM
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START WITH TEMPORARY INITIATIVES - DEDICATED SPRINTS WITH SELECTED PARTNERS
Fast-forward your open innovation project & see what the end result might look like, how customers will react and whether the partnership is right…
• every sprint has a specific goal (first working prototype, alternative concepts etc.)
• Joint business interests & customer needs are at the center of efforts
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NEW VEHICLES THAT MANAGE BOTH: INTERNAL & EXTERNAL SOURCES: A “MUST HAVE” TO STAY COMPETITIVE
Common models: corporate venture capital, accelerators, incubators, innovation labs, co-creation with partners.
Safe environment for experimentation, rapid incubation and fast failure that will enable any business to speed up the evolution of ideas and opportunities.
Investment needs
Org
aniz
atio
nal
ch
ange
Innovation labs
Co-creation with partners
Accelerators
Incubators
Corporate venturing
F I R S T M O D E L S T O T R Y
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SINCE 2010 A RAPID GROWTH OF THE MOST COMMON TOOLS
These tools have an evolution from being first an experimentation platform to becoming a strategic innovation source & co-creation platform
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OPEN INNOVATION: IS IT FOR YOU?
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OPEN INNOVATION CAN ACCELERATE BUSINESS TRANSFORMATION
ENVISION THE FUTURE OF YOUR MARKET &
BUSINESS
IDENTIFY THE KNOWLEDGE/
TECHNOLOGY/ EXPERTISE GAPS TO GET THERE
FIND A PARTNER TO FILL THE GAPS & ENGAGE IN
CO-CREATION &
ACCELERATE
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Innovation Day is an initiative of Masters in Innovation, the umbrella brand of the Verhaert Group which aims to connect, train and accelerate professional innovators.
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