PRO-VE Conference Collaborative Networks

Innovation and Knowledge Management for Collaborative Networks. José Cláudio Terra

Fundação Instituto de Administração São Paulo, August 18th, 2011

How companies are organizing their innovation and knowledge management for collaborative networks?

1. Company-led formal innovation networks

2. Innovation 2.0 – Internet markets

Two Complimentary approaches

1. Company-led formal innovation networks

2. Innovation 2.0 – Internet markets

Two Complimentary approaches

Source: Época Magazine

Benchmark Study: “Best Practices in Open Innovation Systems”: Participating Companies

Brazil

Global

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Best Practices in Open Innovation Systems (OIS)

Philips established partnerships all over the innovation stages, from basic research to commercialization.

Besides, developed a technology park in Eindhoven that became worldwide renowned that was capable to attract the strategic competencies to the company.

Philips High Tech Campus offers infrastructure for their partners, e.g.: suppliers, consultants, patents office, venture capitalists, governmental research organizations, research specialists. It also offers paid services, such: offices for rental, incubation and laboratories.

“

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High Tech Campus, a new concept on Open Innovation System

• Modern technology park

• More than €500M in investments;

• Technology-based startups incubation

• The design stimulates and forces collaboration between partners

• Close to universities

• “Research Hotel” concept

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Best Practices in Open Innovation Systems (OIS) Philips High Tech Campus (Eindhoven)

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Companies are creating their own Open Innovation Systems, that are composed by...

Infrastructure

Processes and Governance

Partners´ Network relationship

Open

Innovation System

Organizational structure

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• Governance and Organizational Structure

• System’s Marketing • Open Innovation Processes

• Infrastructure • Business and Services Support • Partners and Network Management • Encouragement to Collaboration

• Partner Network composition • Partner role • Partner Relationship • Intelectual Property

• Open Innovation Objectives • Open Innovation focus and

strategy • System’s Location

“Best Practices in Open Innovation Systems”: Context

• TerraForum led a national and international research about tecnological innovation systems, with the purpose of evaluating how companies structure their open innovation activities.

• For this purpose, it was used the Four Dimensions Model, developed by TerraForum, which includes the four pillars for management of technological innovation systems .

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Strategy Support and

Services

Relational Organizational

• The repport result showed different practices adopted concerning open innovation around the world.

• Based on these results, TerraForum developed an Open Innovation Maturity Model, which is composed by four distinct levels:

The Maturity Model

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World Class

Advanced

Explorers

Beginners

Strategic Dimension

Dimension Beginners Explorers Advanced World Class

Strategic

• Innovation is not seen as strategic

• Partnerships for incremental innovations

•Historical

location.

• Innovation is part of the strategic direction

• Some radical innovations

• Focus in Research and Development

• Close to Universities

•Growth strategy based on innovation

• Participate in the entire innovation value chain.

• Close to the world centers of technological knowledge.

•Aspire to be world leader in innovation

• System’s exclusive strategy

• Partnerships in the entire R&D&I process ;

•Open innovation system with specific locus.

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Relational Dimension

Dimension Beginners Explorers Advanced World Class

Relational

• Few partners

• Partners for the development phases

•No formal policies on Intelectual Property

• Larger number of partners and bigger diversity.

• Partners for research, development and testing.

• Creation of basic intelectual properties policies.

•Global partnership networks

•Relationships beyond mere contracts.

• Partners part of all R&D&I and commercialization phases.

• Comprehensive IP Policies

• Partnerships for network support

• Leadership in programs for national and international research

• Strategic partnerships globally

• Intelectual Property as a source of value creation.

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Support and Services Dimension

Dimension Beginners Explorers Advanced World Class

Support and Services

• Few services or support infra-structure to the partner

• No specific partner training.

• No formal mecanisms focused on partner attraction, development or evaluation.

• No support for collaboration

• Infrastructure and equipments sharing

• Collaboration not specifically stimulated.

• Some mecanisms focused on partner attraction, development or evaluation.

• Support to innovation management services

• Invest on the partner,, acquire companies and technologies, perform spin-offs, joint-ventures and other strategic alliances.

• Support for collaboration among partners.

• Seeks to create local innovation systems, with exclusive infrastructure, Research support services, general services management

• Exclusive management with the purpose of constantly increase the system strength. Manage individual relationships and the partner network.

• Seeks to attract a variety of partnerships and invests in the development of the partners

• Support for collaboration among partners.

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Organizational Dimension

Dimension Beginners Explorers Advanced World Class

Organizational

• The R&D&I is part of the organization and is scattered among functional areas.

• No exclusive functional structures focused on open innovation

• No marketing iniciatives

• Funcional areas with dedicated teams to R&D&I.

• Governance: middle management and regular committees.

• Management with low degree of autonomy

• Actions in the early stages focused on brand strengthening

• Physical structures exclusive for P&D&I separated from the leader company.

• Formal areas dedicated to innovation with high degree of autonomy in the decision-making.

• Brand strengthening

• Physical structures appear as systems of Technological Innovation, separated from the company’s business as usual.

• Outsourcing of the physical structure management

• Governance with participation of parners and external entities

• Dedicated structures to the

system’s institutional relationship.

• Specific formal processes and tools

• Branding

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1. Company-led formal innovation networks

2. Innovation 2.0 – Internet markets

Two Complimentary approaches

Innovation 2.0 Value Chain

Clients, Universities, Research Centers, Suppliers, Partners and Competitors

• Investment • Co-development • Specific Solutions • Technology transfers

• Prediction • Opinions • Trends

• Ideas • Contests • Technologies

• Lead-users opinion

• Pilot Plans • Mass Feedback

• Technology Commercialization

• Viral marketing

Web 2.0

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Competitive Intelligence

Ideas and Insights

R & D & E Tests and

Prototypes Commercialization and Scaling Up

Innovation 2.0 Value Chain

Competitive Intelligence

Ideas and Insights

R & D & E Tests and

Prototypes Commercialization and Scaling Up

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Innovation 2.0 Formats

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Mar

ket

Co

mp

anie

s

Form

at /

Le

ade

rsh

ip

Innovation 2.0 Formats M

arke

t C

om

pan

ies

Form

at /

Le

ade

rsh

ip

Without Collaboration With Collaboration

Collaboration / Thematic Drive

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Innovation 2.0 Formats M

arke

t C

om

pan

ies

Form

at /

Le

ade

rsh

ip

Without Collaboration With Collaboration

Collaboration / Thematic Drive

Any Theme Specific Themes Any Theme Specific Themes

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Innovation 2.0 Formats M

arke

t C

om

pan

ies

Form

at /

Le

ade

rsh

ip

Without Collaboration With Collaboration

Collaboration / Thematic Drive

Any Theme Specific Themes Any Theme Specific Themes

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Final Considerations

Key Factors for Innovation and Knowledge Management Collaborative Networks

Open Innovation

System

Strategic Alignment

Collaborative Culture

Adequate Partners

Strong Relation Network

Support and Services for

Partners

Clearly Defined IP policies Organizational

Structure and Governance

Infrastructure and location

Funding

Stakeholders Support

Processes and KPIs for

Innovation Mgmt

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Open Innovation

System

Strategic Alignment

Collaborative Culture

Adequate Partners

Strong Relation Network

Support and Services for

Partners

Clearly Defined IP policies Organizational

Structure and Governance

Infrastructure and location

Funding

Stakeholders Support

Processes and KPIs for

Innovation Mgmt

© TerraForum

Worldview

Key Factors for Innovation and Knowledge Management Collaborative Networks

Open Innovation

System

Strategic Alignment

Collaborative Culture

Adequate Partners

Strong Relation Network

Support and Services for

Partners

Clearly Defined IP policies Organizational

Structure and Governance

Infrastructure and location

Funding

Stakeholders Support

Processes and KPIs for

Innovation Mgmt

© TerraForum

Worldview +

Active Management

Key Factors for Innovation and Knowledge Management Collaborative Networks

Thank you! José Cláudio Terra

Twitter: @claudioterra www.slideshare.net/jcterra

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