open innovation: yesterday, today & tomorrow km-oi presentati… · connect & develop...

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

+ The Old The New

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What is Innovation?

To challenge the status quo, and to combine…

…to create new value

+ 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

organizations

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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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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

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S TA G E 2

Forming

S TA G E 1

Experimental

OI Development: A Corporate Maturity Model

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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

of the two

Thank You!

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