sa innovation summit 2013: open innovation - new opportunities, new challenges

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15inno by Stefan Lindegaard at LinkedIn Groups

stefanlindegaard@me.com

Twitter: @lindegaard

Open Innovation: New Opportunities, New Challenges

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Faster pace, shrinking window of opportunity, less time for cash cows

Open innovation and biz model innovation is key for becoming competitively unpredictable!

We need a more holistic approach to innovation!

What is open innovation?

“…a philosophy or a mindset that they should embrace within their organization.

This mindset should enable their organization to work with external input to the innovation

process just as naturally as it does with internal input”

Open innovation as a term will disappear in 5-7 years!

Employees SuppliersManagers Academics / institutions

Executives VCsAlumni Startups

Business unit / function

Users / consumers

Government

Competitors InventorsEducate internally and externally – there’s no point being alone on the playground!

NineSigma Alliances /joint ventures

Campaigns(Comm / Public)

EntrepreneurDay

Consortia

MyStarbucksIdea.com

Campaigns(Comm / Public)

SupplierSummit

CREDIT: OVO Innovation

P&G PHARMAMEDTECH

Cycle time, money, IPR, conservatism and internal readiness

Go beyond the obvious areas!

Participation is the new brand

We have no choice!

Current pilot projects:• "People are much more likely to act their way into a new way of

thinking, than think their way into a new way of acting."• Richard Pascale

• Therefore we run pilot projects• - in our production area (solving hard, “unsolvable” problems)• - on improving the core LEGO experience through crowdsourcing• - on how to improve core HR processes• - on an Open Innovation platform

Develop the right conditions and framework

Be competitively unpredictable

Change how we innovate

110 sites identified, 50% unknown, 80% produced

Australian groups developed 3-D map of the mine

Goldcorp shared all their data in March 2000

1,000+ people joined; many from outside industry

Inditex / H&M: Value chain innovation on steroids

Microsoft Kinect: New technology, new markets

Better Place: Establishing new ecosystem

Premium Ingredients: Mini-factories and communities

AppleP&GGE

NaturaGrundfos

Rolls-Royce

You can download my workbook on 15inno.com

Better internal collaboration, less silo mentality = internal open innovation?

Don’t invite guests if you house is not in order!

What is open innovation? Where do we start?

Are small companies afraid of us? Who is in the driver’s seat and who is in the back?

Upgrade your innovation mindset and toolbox!

Identify the types of external input / value pools that fit your situation!

Start innovating on how you innovate (experimentation, small bets, quick wins)

Work the internal and external stakeholders! Become better communicators!

Let’s talk about an (open) innovation culture!

No networking culture? No innovation culture!- future winners get communities to work!

Organizations must embrace experimentation – and the failures that come along with it!

Only a truly burning platform or fully aligned executives can change an innovation culture!

Grass-root: Big potential if supported properly!

Open up: Difficult, but the only way forward!

20% free time: You can’t copy this!

Top-down: Go from event to capability to culture!

Intrapreneurship is an overlooked tool:

“Intrapreneur: a person within a large corporation who takes direct responsibility for

turning an idea into a profitable finished product through assertive risk-taking and

innovation.”

American Heritage Dictionary, 1992

The Danfoss Group (Case Study)

• A leader in development and production of mechanical and electronic products and controls

• 26,000 people and 3,7 billion EUR in revenues

• 3 main divisions

“I believe we possess all the resources and talents necessary. But the facts of the matter are that we have never made the national decisions or marshaled the

national resources required for such leadership. We have never specified long-range goals on an urgent time schedule, or managed our resources and our time

so as to insure their fulfillment.”

The Man on The Moon competition

• To identify and develop new ventures that creates significant growth and/or strategic advantages

• To spot and develop talent

• To change the culture and establish ”intrapreneurship” as a fourth career path

Discovery – Incubation – Acceleration: Have the right people at the right time!

“…an intrapreneur must have the ability to see and pursue possibilities by piecing together innovations across three or more business functions simultaneously.”

Paul Campbell, former VP, HP

A career path for trouble-makers?

“When someone tries to innovate within a traditional organization, few will understand what he/she is doing, but everybody will understand who is a trouble-maker.

 After the innovation has been embraced by the organization, few will remember who started it,

but everybody will remember who was a trouble-maker. 

This is the dilemma encountered by many intrapreneurs - they risk punishment for success.”

 David Nordfos, Stanford

You need a common language / under-standing to frame and work with the issues!

Every corporate culture is innovative! Find the pockets, build the foundation and perception

No networking culture? No innovation culture!- future winners get communities to work!

Only network if you have a purpose!

Know your needs – different types / efforts!

Committed executives and high-level managers!

Social media is a key networking tool today!

Direction, training, time – and courage to leave comfort zone, experiment, be visionary!

Organizations must embrace experimentation – and the failures that come along with it!

Small failures are accepted, but not big ones: 47 %

Failure is not accepted here: 7 %

More than half of the companies do not recognize failure as an inherent part of an

innovation culture!

“Two types of failure:

- honorable failure is where an honest attempt at something new or different has been tried

unsuccessfully and

- incompetent failure where people fail for lack of effort or competence in standard operations.”

Credit: Paul Sloane

There are no quick fixes because the top executives that got us into this mess are not

ready to lead us out of it!

Too much focus on products, technology

Silo rather than collaborative approaches

Poorly defined innovation strategy (if any)

Lack of resources (budget, people, infrastructure)

Unrealistic expectations on time, resources

Organizations must identify skills and mindset needed for a stronger innovation culture

Most corporate innovation teams play catch-up!

Where is the vision and drive?

They lack communication skills and efforts!

They lack the courage to speak up!

They do not innovate on the innovation process!

They do not develop their mindset and toolbox!

1) Intrapreneurial skills

2) Networking talent

3) Communication skills

4) Strategic influencing

5) Adaptive fast learner

6) Balanced optimism

7) Tolerance for uncertainty

8) Passion

It must be a key objective for corporate innovation teams to educate – up as well as down!

If you want to change a culture, you should reward behaviors as well as results!

TBX(O) – Sometimes middle-managers hinder innovation just by doing their job!

People first, processes next, then ideas!

Get in touch!

www.15inno.com

15inno by Stefan Lindegaard at LinkedIn Groups

stefanlindegaard@me.com

Twitter: @lindegaard

Hey! Free books on 15inno.com!