all the intelligent people are located in darmstadt ... · chair for innovation management at...

All the intelligent people are located in Darmstadt!? Advances and obstacles for open innovation

Prof. Dr. Ellen Enkel

Head of Dr. Manfred Bischoff Institute of

EADS; Chair of Innovation Management

1

AGENDA

| Relevance of open innovation

| Activities and sources used

| Consequences of open innovation for knowledge markets and networks

6/15/2011 Prof. Dr. Ellen Enkel l Chair of Innovation

Management 2

PROF. DR. PHIL. ELLEN ENKEL

Dr. Manfred Bischoff Institute of Innovation Management of EADS | | Chair for Innovation Management at Zeppelin University

Research encompass subject areas in technology and innovation management, as well as entrepreneurship

Focus: open innovation and cross-industry innovations, innovation networks, innovation culture and innovation controlling.


Management 3

TODAYS CORPORATE REALITY

Decreasing research and development budgets

Shorter innovation cycles

Increasing employees’ mobility

Merging of technologies

Multiplicity of new business models, new corporations, new opportunities and risks

Opening up the innovation process (Open Innovation)


Management 4

OPEN INNOVATION IN PRACTICE I

Innovation Jam (2006)

biggest Online-Brainstorming worldwide

150.000 people| 72 hours| over 46‘000 ideas

IBM invests 100 Mio $ in further development and implementation of the best ideas

2005: Reorganization of the research and development structure through implementation of the Connect & Develop strategy

Emphasizing on opening the innovation process for external sources and strong engagement in networks

Open Innovation projects (external input of more than 50%) achieve 70% higher Net Present Value than internal projects.


Management 5

OPEN INNOVATION IN PRACTICE II

„We borrow with Pride“

Network with 500.000 external inventors

Investments in customer integration, min. of 500 customer visits per year

Verifiably more radical innovations realized through the systematic cross-industry approach

Regular cross-industry networks to future-orientated topics (Future Logistic, Future Living etc.) with other industries (e.g. HochTief, Geberit, Schindler, Hilti)

Development of a multi-perspectives future scenario


Management 6

DOES OPEN INNOVATION INFLUENCE COMPANY PERFORMANCE?

Intensity of the cooperation

Broad usage of sources

Laursen, K. & Salter, A. (2006). Open for innovation: the role of openness in explaining innovation performance among U.K.

manufacturing firms. Strategic Management Journal, 27, 131–150.


Management 7

OPENING UP THE INNOVATION PROCESS MEANS TRADING KNOWLEDGE AND GROWING MARKETS FOR KNOWLEDGE

Outside-in Process

External knowledge

Inside-out Process

Commercialization outside of the company

Coupled Process

Joint Innovation and commercialization

Boundaries of the company

Locus of innovation within the corporation


Management 8

Evaluation of companies‘ motives

Strongest motivations for OI are either efficiency increase (time-to-market) or growth based on innovation (entering new markets)

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4

3.66

3.97

3.85

3.49 3.53

3.79

Average values of motivation

N= 159

Open Innovation Study 2010


Management 9

WHO ARE THE MOST IMPORTANT SOURCE FOR INNOVATION? Abb 3: Kunden sind die wichtigsten Quellen des Wissens: Umfrage

unter 9017 Erfindern in Europa nach Wissensquellen (Skala 1-5)

Quelle: Giuri und Mariani 2005: „Everything you wanted to know about innovators“, by LEM Sant‘Anna in Pisa, Working Paper

0

0.5

1

1.5

2

2.5

3

3.5

Customers

and Users

Patent

Literature

Scientific

Literature

Competitors Technical

Conferences

Suppliers Universities

Research

Quelle: Giuri und Mariani 2005: „Everything you wanted to know about innovators“, by LEM Sant‘Anna in Pisa, Working Paper

0

0.5

1

1.5

2

2.5

3

3.5

Customers

and Users

Patent

Literature

Scientific

Literature

Competitors Technical

Conferences

Suppliers Universities

Research

Survey study with 9017 innovators in Europe (scale from 1-5)


Management 10

Usage of open innovation activities Cooperation with clients and suppliers is core activity

Average utilization Intensified utilization of

activities (categories 4 & 5)

Outside-In Process

Lead User Integration 3,24 45,90%

Integration of clients and/or suppliers 3,98 70,30%

Cross Industry Innovation 2,93 27,10%

Integration of idea platforms 2,85 27,40%

Online Brainstorming sessions 1,94 13,50%

Creativity workshops 3,22 44,90%

Crowdsourcing, client communities 2,24 19,30%

Listening post 1,83 8,80%

Inside-Out Process

Commercialisation by means of other firms (Joint Ventures, networks) 3,15 44,00%

Spin-offs, Management-Buy-Out s 1,74 8,60%

Corporate Ventures 2,11 14,10%

Commercialisation of own technologies on new markets 2,39 21,70%

Investments in other firms 2,25 17,50%

Mutual development

Mutual development with clients and/or suppliers 4,01 73,60%

Mutual development with other companies (own or external industry) 3,24 44,70%

Mutual development with universities and research institutes etc. 2,79 32,50%

New cooperative business models 2,25 19,60%

Please note. values are average values on a 5 point-scale (1 = not at all; 5 = to a high degree; 6 = not relevant); N = 159 incl. "not relevant"


Management 11

WHERE IS THE KNOWLEDGE COMMING FROM?

“Knowledge we have” “People we know” “People we don´t

know”

COMPANY COMMUNITY CROWD

Employees Customers

Investors Public


Management 12

THE CROWD´S POOL OF KNOWLEDGE


Management 13

Intermedia-

tes

Joint free solution finding

Corporate Initiatives

Market-places for

idea owners

Public initiatives

Example Initiatives

Crowd

iBridge Network

Ideas Campaign

Galaxy Zoo

Fold It

Zazzle

JuJups

Spreadshirt

Dream Heels

BMW Via

Ideas4Unilever

IBM Innovation Jam

Lego Factory

Electrolux Design Lab

Osram LED-Emotionalize

Produrct Ideation

& -Solutions

Branding &

Design

Apache

Firefox

Linux

Wikipedia

CrowdSpirit

Openstreetmap

Yahoo Answers

Software

Hardware

Source: adapted from Gassmann (2010)

GROWING MARKET FOR INTERMEDIARIES TROUGH OPEN INNOVATION

Intermedia-

tes

Joint free solution finding

Corporate Initiatives

Market-places for

idea owners

Public initiatives

Crowd

iBridge Network Ideas Campaign Galaxy Zoo Fold It

Zazzle

JuJups

Spreadshirt

Dream Heels

BMW Via

Ideas4Unilever

IBM Innovation Jam

Lego Factory

Electrolux Design Lab

Osram LED-Emotionalize

Produrct Ideation

& -Solutions

Branding &

Design

Apache

Firefox

Linux

Wikipedia

CrowdSpirit

Openstreetmap

Yahoo Answers

Software

Hardware

Intermedia-

tes



Management 14

INTERMEDIARIES HELP TO CONNECT COMPANIES AND THE CROWD

IdeaConnection

YourEncore

Innocentive

Intermedia-

tes

R&D Solution

Platforms

Marketing &

Design

Freelancer

Ideation

Platforms

NineSigma Yet2.com Innovaro

Hypios

RedesignMe 99designs

HumanGrid Amazon Mechanical Turk

Chaordix Idea Crossing Innovation Exchange


Management 15


TRENDS – WHERE IS THE JOURNEY HEADED?

| Search for new knowledge outside of the own value chain to identify existing solutions and copy successful business models


Management 16

CONTACT INFORMATION

Zeppelin University

Prof. Dr. phil Ellen Enkel

Head of Dr. Manfred Bischof Institute of Innovation Management of EADS

Chair of Innovation Management

Am Seemooser Horn 20

D-88045 Friedrichshafen | Bodensee

Tel. +49 7541 6009- 1281

E-Mail: [email protected]

Home: www.zeppelin-university.de

all the intelligent people are located in darmstadt ... · chair for innovation management at...

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