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

What is Innovation? To challenge the status quo, and to combine… + …to create new value Page · 2

What is Innovation? To challenge the status quo, and to combine… + The Old The New …to create new value Page · 3

What is Innovation? To challenge the status quo, and to combine… + The Art The Science …to create new value Page · 4

What is Innovation? To challenge the status quo, and to combine… + The Logical The Emotional …to create new value Page · 5

What is Innovation? To challenge the status quo, and to combine… + The Internal The External …to create new value Page · 6

Open Innovation …The process of going outside your company’s four walls (or your industry) to find or inspire new concepts, talents and technologies Page · 7 Page · 7

Open Innovation Yesterday Page · 8

“Open” Innovation Is Not New…….Or is it? Innovation in the late 19 th and early 20 th centuries was mostly conducted by external research organizations Page · 9 Page · 9

So What’s Different Today?  Today’s organizational composition  The speed of technological advancement  The Internet  The ways we communicate  Our competitive environment Page · 10 Page · 10

The Evolution of Modern Open Innovation 2010-2013: Integration of 2006: Social Media The Rise of ‘Crowdsourcing’ (Jeff Howe) 2003: “Open Innovation” term coined by Henry Chesbrough 2000: P&G’s Connect & Develop Page · 11 Page · 11

Open Innovation Today Page · 12

3 Layers of Open Innovation Page · 13 Page · 13

Other Reasons for Going Outside…..  Enhanced Intelligence  Adjacencies = New Busines Opportunities  New Sources of IP Revenue  Not-So-Obvious Connections Page · 14 Page · 14

The Power of Adjacencies & Unobvious Sources COMPANY ISSUE SOLUTION SOURCE Food Company Package Leaks Automobile Safety National Bank Customer Queuing Amusement Parks Consumer Products Fabric Wrinkles Semiconductors Packaging Fast, Even Thawing Life Sciences Page · 15 Page · 15

The World of Open Innovation Ideation Product Product What Improvement Design Tools To Use? Business Product Model Development Development Page · 16 Page · 16

The World of Open Innovation Netnography Crowdsourcing Ideation Expert Sourcing Netnography Supply Crowdsourcing Product Product Chain Crowdsourcing Improvement Design Expert Sourcing Expert Sourcing Demand Chain R&D Engineering Business Product Model Expert Sourcing Expert Sourcing Development Development Page · 17 Page · 17

OI Development: A Corporate Maturity Model O p e n i n n o v a t i o n c a p a b i l i t y STAGE 1: EXPERIMENTAL  Project/needs focused  Experiment with service providers  Learning to be Open  New roles introduced  New processes form  Change management Issues S TA G E 1 Experimental Time Time Page · 18

OI Development: A Corporate Maturity Model O p e n i n n o v a t i o n c a p a b i l i t y STAGE 2: FORMING  Emerging best practices  Key tools identified  Emerging OI organization/champions S TA G E 2  Early tech scouting  Changing reward systems Forming  Emerging metrics structure  Information capture S TA G E 1 Stage 1: Launch Experimental Time Page · 19

OI Development: A Corporate Maturity Model S TA G E 3 STAGE 3: MATURE O p e n i n n o v a t i o n c a p a b i l i t y  Open Innovation becomes both Strategic and Needs- Mature Based  Well defined OI organization  Proactive executive sponsors S TA G E 2  Reward systems standardized  Standard metrics and Forming reporting dashboards  Semantic search capability  Knowledge captured and S TA G E 1 managed to drive competitive advantage Experimental Time Page · 20

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 Page · 21 Page · 21

Open Innovation Tomorrow Page · 22

Combining Today’s Tools….. Open Innovation Knowledge Management OI works well with Social Media Social Media today KM systems interface with Social Media, but many companies use Social Media in lieu of KM = Tomorrow’s Reality Page · 23

Managing Outside Knowledge Global Ecosystem Internal Page · 24

Managing Outside Knowledge OI process brings new partners into the Global (Push) Ecosystem Ecosystem Internal Page · 25

Managing Outside Knowledge Deep Web search - IP databases OI process brings new - Literature partners into the Global (Push) Ecosystem Open Web search - Netnography Semantic search - Deep & Open Ecosystem …… Web Internal Page · 26

Managing Outside Knowledge Global (Push) Ecosystem KM designed to manage both Internal and Internal Ecosystem knowledge (Manage) Page · 27

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 Page · 28 Page · 28

Care should be given to Key Takeaways find the “right” Open Innovation professional True Open Innovation The future of both Open requires Internal, Innovation and Ecosystem and Global Knowledge Management Community access Access to the right requires the integration search networks is of the two key to Open Innovation Success Different tools are required for the various Open Innovation tasks Page · 29 Page · 29

Thank You! Dr. Matthew C. Heim mheim@inno-360.com www.inno-360.com