Today & Tomorrow Dr. Matthew C. Heim Executive Vice President, - - PowerPoint PPT Presentation

Open Innovation: Yesterday, Today & Tomorrow

• Dr. Matthew C. Heim

Executive Vice President, inno360 APQC Knowledge Management Conference May 3, 2013

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What is Innovation?

To challenge the status quo, and to combine…

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…to create new value

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What is Innovation?

To challenge the status quo, and to combine… …to create new value

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The Old The New

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What is Innovation?

To challenge the status quo, and to combine… …to create new value

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The Art The Science

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What is Innovation?

To challenge the status quo, and to combine… …to create new value

The Logical The Emotional

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What is Innovation?

To challenge the status quo, and to combine… …to create new value

The Internal The External

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Open Innovation

…The process of going outside your company’s four walls (or your industry) to find or inspire new concepts, talents and technologies

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Open Innovation Yesterday

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“Open” Innovation Is Not New…….Or is it?

Innovation in the late 19th and early 20th centuries was mostly conducted by external research

• rganizations

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So What’s Different Today?

• Today’s organizational composition
• The speed of technological advancement
• The Internet
• The ways we communicate
• Our competitive environment

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The Evolution of Modern Open Innovation

2000: P&G’s Connect & Develop 2010-2013: Integration of Social Media 2003: “Open Innovation” term coined by Henry Chesbrough 2006: The Rise of ‘Crowdsourcing’ (Jeff Howe)

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Open Innovation Today

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3 Layers of Open Innovation

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Other Reasons for Going Outside…..

• Enhanced Intelligence
• Adjacencies = New Busines Opportunities
• New Sources of IP Revenue
• Not-So-Obvious Connections

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The Power of Adjacencies & Unobvious Sources

COMPANY ISSUE

Food Company Package Leaks

National Bank Customer Queuing Consumer Products Fabric Wrinkles Packaging Fast, Even Thawing SOLUTION SOURCE

Automobile Safety

Amusement Parks Semiconductors Life Sciences

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The World of Open Innovation

Ideation Product Design Product Development Business Model Development Product Improvement

What Tools To Use?

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The World of Open Innovation

Ideation Product Design Product Development Business Model Development Product Improvement

Crowdsourcing Netnography Expert Sourcing Crowdsourcing Expert Sourcing Expert Sourcing Expert Sourcing Crowdsourcing Netnography Expert Sourcing

R&D Engineering Demand Chain Supply Chain

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O p e n i n n o v a t i o n c a p a b i l i t y Time S TA G E 1

Experimental

Time

STAGE 1: EXPERIMENTAL

• Project/needs focused
• Experiment with service providers
• Learning to be Open
• New roles introduced
• New processes form
• Change management Issues

OI Development: A Corporate Maturity Model

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STAGE 2: FORMING

• Emerging best practices
• Key tools identified
• Emerging OI organization/champions
• Early tech scouting
• Changing reward systems
• Emerging metrics structure
• Information capture

Stage 1: Launch

O p e n i n n o v a t i o n c a p a b i l i t y Time S TA G E 2

Forming

S TA G E 1

Experimental OI Development: A Corporate Maturity Model

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O p e n i n n o v a t i o n c a p a b i l i t y Time S TA G E 2

Forming

S TA G E 3

Mature

S TA G E 1

Experimental

STAGE 3: MATURE

• Open Innovation becomes

both Strategic and Needs- Based

• Well defined OI organization
• Proactive executive sponsors
• Reward systems standardized
• Standard metrics and

reporting dashboards

• Semantic search capability
• Knowledge captured and

managed to drive competitive advantage

OI Development: A Corporate Maturity Model

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Today’s OI Challenges

• “NIH” Culture
• Outdated reward systems
• Executive level sponsorship
• Legal, Purchasing and Regulatory out of the loop
• Difficulty measuring OI effectiveness
• Leveraging existing suppliers & partners
• Finding the “right” OI professionals
• Difficulties capturing & managing outside knowledge

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Open Innovation Tomorrow

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Combining Today’s Tools…..

= Tomorrow’s Reality

Social Media Knowledge Management Open Innovation

OI works well with Social Media today KM systems interface with Social Media, but many companies use Social Media in lieu of KM

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Managing Outside Knowledge

Global Ecosystem Internal

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Managing Outside Knowledge

Global (Push) Ecosystem Internal

OI process brings new partners into the Ecosystem

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Managing Outside Knowledge

Global (Push) Ecosystem Internal

OI process brings new partners into the Ecosystem

Deep Web search

• IP databases
• Literature

Open Web search

• Netnography

Semantic search

• Deep & Open

……Web

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Managing Outside Knowledge

Global (Push) Ecosystem Internal (Manage)

KM designed to manage both Internal and Ecosystem knowledge

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The Future of Open Innovation

• Standardization of best practices and tools
• Emphasis on local economies (Triple Helix)
• Replacement of the conventional consortium model
• Expansion into non-manufacturing industries
• Formation of federated meta-networks
• Seamless integration with Knowledge Management
• OI provides KM with new sources of knowledge
• KM serves OI as a customer

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True Open Innovation requires Internal, Ecosystem and Global Community access Different tools are required for the various Open Innovation tasks Access to the right search networks is key to Open Innovation Success

Key Takeaways

Care should be given to find the “right” Open Innovation professional The future of both Open Innovation and Knowledge Management requires the integration

• f the two

Thank You!

• Dr. Matthew C. Heim

mheim@inno-360.com www.inno-360.com