Open Innovatio

n Overview

Product Concept Development, Inc.

What is Open Innovation?

• Combining internal and external ideas and paths to market and advance the development of new technologies

• Make use of external ideas & technologies

• Internal inventions not being used should be taken outside

Not all good ideas are developed within a company, and not all ideas should be further developed within the firm's own boundaries. 

Why now?Causes:• Increasing availability & mobility of skilled workers• Growth of VC market

Effects:• Knowledge no longer proprietary• If a company doesn’t use it, then someone else will• External options for ideas sitting on shelf• Increasing capability of external firms• Reduced internal capabilities for product development

Open Innovation Principles

Closed innovation principles Open innovation principles

The smart people in the field work for us.

Not all the smart people in the field work for us. We need to work with smart people inside and outside the company.

To profit from R&D, we must discover it, develop it, and ship it ourselves.

External R&D can create significant value: Internal R&D is needed to claim some portion of that value.

If we discover it ourselves, we will get it to the market first.

We don't have to originate the research to profit from it.

The company that gets an innovation to the market first will win.

Building a better business model is better than getting to the market first.

If we create the most and the best ideas in the industry, we will win.

If we make the best use of internal and external ideas, we will win.

We should control our IP, so that our competitors don't profit from our ideas.

We should profit from others' use of our IP, and we should buy others' IP whenever it advances our business model.

Benefits of Open Innovation

Closed innovation Open innovation

Limited to IP and expertise that resides within company

Great depth of expertise and IP available

Lack of capability in new areas Specialized firms and teams

Institutionalized thought stifles disruptive innovation

Unbounded ideas from outside-the-box thinkers

Limited resources Outside teams able to quickly and cost effectively produce results

Burdensome internal processes bog down development

Small, lean organizations avoid red tape, bringing results at a fraction of the cost

Is Open Innovation right for me?• Lack of expertise in new technical area• Resource shortage• New product competition• Slow and/or poor results from internal

invention processes• Need for disruptive new technologies• Need to expand into new markets & areas

Hurdles to Open Innovation• “Not Invented Here” syndrome• Poor management endorsement & focus• Lack of process for leveraging outside resources• IP rights concerns• Over-constraining outside resources to stay within

“narrow boxes”• Gaining critical mass & dedicated internal manpower

to manage & implement open innovation• Effort to manage cooperation with external partners

Recommended Steps• Create plan & scope of how to implement

Open Innovation• Gain management endorsement• Assign principal point of contact• Characterize problem or technical area for

Open Innovation• Identify candidate organizations for

partnership• Collaborate to develop relationship & work

plan• Manage through deliverables, schedules, and

stage gates

What to look for in Open Innovation Partner• Capabilities & expertise not possessed in

house• Technical depth in targeted areas• Sound management practices• Lean, agile organization• Efficient• Strong collaboration and communication

abilities• Ability to meet internal quality standards

References• Open Innovation: The New Imperative for Creating and

Profiting from Technology by Henry Chesbrough• http://www.openinnovation.eu/openinnovatie.php• http://

www.innovationtools.com/PDF/open-innovation-nerac.pdf

• http://www.oecd.org/dataoecd/48/35/41721342.pdf

Company Overview

We find and apply technology to create breakthrough new products

• Maximize a new product’s chance of success in the market

• Minimize the cost & time necessary take breakthrough technologies & products to market

• Augment the capabilities & performance of our customer organizations

Mission Statement

Think Tank

Product Commer-cial

-iza-tion

Prototyping

En-gi-neering

R & D

?What is

Track Record• 20+ Patents• 100+ projects • 2 spinoff companies• 4 Partnerships• 3 Technology Innovation

Awards• 150+ years of product

development experience

non re-peat cus-

tomers

repeat customers

0

5

10

15

20

25

30

35

40

Source of projects, 2008-

2010

Product Development

“Menu” of Services

Ideation

Applied Research

Engineering

Prototyping Manufacturing

Testing and Validation

Stage gate development processPhase 0• Preliminary market & technical investigations• Develop problem statement • Develop work plan

- Concrete tasks, deliverables, budget, timeline- Management & reporting procedures

Phase 1• Perform work

- Apply technical & management expertise to quickly and cost effectively reach goals

- Regular progress reports & collaboration• Complete phase

- Final report and/or presentation- Stage gate – go/no-go decision- Phase 2 proposal

Example Projects

Brownline Metalworks, LLC

Digital Torque Wrench

Active Water Sciences, LLC

Commercialization

Satisfied Customers

• Customer had problems with creating effective solution

• Custom electromagnetic system to perform work

• Tight environmental, power, and spatial constraints

• High reliability• Compacted development time• PCD involved from problem statement to

production ramp-up

Case Study: Custom Electromagnetic System

Technology Investigati

on

Solution refinement

Brainstorming

Full scale design and

test

Production ramp-up

Design optimization

Technology Investigation

customer alone

with PCD0

5

10

15

20

25

Technologies Reviewed

Brainstorming

customer alone

with PCD0

50

100

150

200

250

Number of Concepts Gen-

erated

Solution refinement

customer alone

with PCD0

20

40

60

80

Years of expe-rience applied

Prototype Design & Construction

required delivered0

50

100

150

200

250

300

force applied

Return on Investment

pcdcustomer

alone

0

10

20

30

40

50

Development Time (in months)

pcd customer alone

0500

1000150020002500

Cost (in thousands of dol-

lars)

• Proprietary & patented new electromagnetic system• Provides over 250 lbs of force • Minimal size, power consumption, and failure modes

• Cross-industry knowledge base• Significant depth in targeted areas• Network of experts• Value delivered in all stages of

development cycle• Time and cost savings

What our customers like…

“You solve problems that nobody else can”--James Wardlaw

NPD Manager, Ingersoll Rand

Technical Areas of Focus• Electromagnetics

- Custom motor design

• Control systems• Materials

- Nanotechnology- Carbon fiber- Shape memory alloys

• Optics

• Thermodynamics• Design analysis

- FEA- Multiphysics- CFD- Mathematical modeling

• Manufacturing• Fluidics• Microbiology

PCD Labs

Design Lab Instrumentation Lab

Motor Lab

Microbiology LabMechanical LabElectronics Lab

Laser/Optics Lab

THE PCD TEAM Donna Rainone, M. Arch. Architecture

Mike Rainone, M.S., Psychology , M. Arch. Architecture

Tom Crippen, Ph.D, Mechanical Engineer

Bert Sackett, M.S., Electrical Engineer

Joe Comparetto, M.S., Electrical Engineer

Phillip Grisham, M.S., Mechanical Engineer

Kenneth Wilson, Ph.D., Materials Science

Dee German, M.S., Optical Physics

Mike Musial, B.B.A., Business Management

Talbot Presley, B.S., Mathematics

Dave Carton, B.S., Mechanical Engineer, Chemistry

Clint Thompson, Master Prototyper

Alex Walls, B.S. Biology

Louise Rainone, B.A., Media Production

Where in the World is

• 65-acre campus in East Texas pine forest

• Perfect for distraction-free brainstorming

• 20,000 SF of laboratory and office space• Main laboratory• Prototype lab• Brainstorming studio• Main house• Guest house• Workout facility

PCDworks…

Your partner in Open Innovation

Services Detail

Ideation

• Proven process • Cross discipline teams of

client, PCDworks and 3rd party experts

• Generate large number of high quality concepts

• Refine best concepts to workable designs

• Optional: Test designs within same session

Electrical Engineering

• Modeling and analysis• Electronic design and

simulation• Embedded software

development• PCB design and rapid

prototyping• Wireless sensor design, mote

design and programming• Analytical modeling and

software development• Web applications

Mechanical Engineering• Analytical modeling• 3D modeling• FEA and multi-physics analysis• Component sourcing• Design for manufacturing• Simulation and testing• FMEA• Manufacturing oversight

Research and Development

• Optical Circuit design, fabrication and testing

• Medical product development and testing

• Biological cultures and sterilization

• Custom bacteria development• High performance materials

development, construction and testing

Technology Research

• In-house database of useful technologies

• Technology scanning • Targeted research • Analysis and feasibility

studies

LabVIEW data acquisition stations

Mechanical• Force & torque• Velocity & acceleration• Temperature• Flow• Strength of materials

Electrical• Efficiency• Power consumption• Voltage and current

draw

Testing and Validation

Motor Development

• Analytical modeling and custom motor specification

• Magnetic flux analysis and optimization

• Custom manufacturing• Testing and validation• Access to high performance

proprietary BLDC motor design

Prototyping

• CNC mills and routers• Molding, casting and vacuum

forming• Product visualization• Custom test fixtures• Field-ready prototypes