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Open Innovation - India Stanford US-ATMC 1

Open Innovation in Asia The Changing Role of India

Dr. Sridhar JagannathanDirector –

Global Engineering Strategy, Intuit, Inc.

Dr. Avinash AgrawalFounder, Jupiter2xLearning.com

October 30, 2008

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Agenda

•

Open Innovation –

why?•

Mechanics and Marketplaces

•

SaaS

and Open Innovation•

The Indian Context

•

Indian Applications•

Conclusions

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Open Innovation•

Open Innovation means that valuable ideas can come from inside or outside the company and can go to market from inside or outside the company as well. This approach places external ideas and external paths to market on the same level of importance as that reserved for internal ideas and paths to market during the closed innovation era.–

Henry Chesbrough

-

‘Open Innovation:The New

Imperative for Creating and Profiting from Technology’ (Harvard business school press, 2003) ‏

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Open Innovation = R&D Without Borders

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What Fosters Open Innovation•

Constraints on ideas–

“The smartest people work for someone else”

–

Bill Joy, co-founder, Sun Microsystems–

Underutilized research portfolios –

including patents

•

Decreasing Government support for research

•

Globalization–

The whole world does not look the same–

Great ideas can come from other parts of the world too

•

Increasing pace of interworking–

Mergers and acquisitions–

Technology licencing

•

Mobility of workforce

•

Technology

•

Cloud Computing / SaaS

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http://bluerockinnovation.com/images/ywz3.jp

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Customer Feedback vs. Open Innovation

Dilbert.com

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Government

Unorganized SectorIndustry

Innovation In The Indian Context

Universities

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80% of the economyMostly tacticalSolves immediate problemsTotally open

−

http://www.conceptcaching.com/ccache_img/0412521_0412521-R1-E025.

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Universities – Only in public universities- Now beginning to open up- Industry setting up collaborations

- Some research, not a lot- Source of students- Prestige

−

http://www.rajgovt.org/India4world/India-Government/images/app%5B1%5D.j

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Government- Research labs

- Large initiatives – Space, Nuclear, Defense- Public good – Food technology, Leather technology, ...

- Public Sector Undertakings- Those run as industrial units - SAIL- Those supported by the government - Amul

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Old IndustryVery ClosedNot much research

- Why reinvent the wheelMore lucrative to do genericsAnd, work for hire

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New IndustryIndians returning – at least in spiritEmployees finishing outsourcing assgts.Acquisitions – both waysWestern culture at companies in India

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Areas of Open Innovation

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High TechOther Industry

On an Openness Scale

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India In the Open Innovation Ecosystem

•

Enabler vs. inhibitor

•

Leader vs. follower

•

Provider of innovations vs. consumer

•

Individual vs. institutional

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Enabler vs. Inhibitor•

Much of outsourcing is Open Innovation•

Cost -

a significant driving force behind open source software –

a component of open innovation

•

Ideological–

Already some parts are declaring themselves proprietary-s/w-free–

China example•

Flatter world–

Availability of ideas–

Technology–

Organizational porosity–

Access to markets

•

Mass collaboration WILL happen

•

Organizational Porosity–

Employee mobility–

Outsourcing–

Offshoring

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Leader vs. Follower•

Indian technology grew up on following–

Why reinvent the wheel–

Generic pharmaceuticals–

Outsourcing

•

Services culture–

Do what the customer asks you to do–

More innovation in services than in products

•

Supply constrained economy mindset

•

Less risk-taking

•

Only 53 of thousands of projects on Sourceforge

•

Mistrust of authority

•

Changing

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Provider vs. Consumer

•

In spite of exceptions, Primarily a consumer

•

Technology gap

•

Outsourcing–

More efficient to do projects by using OSS than creating it

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Employee Mobility

FOSS Community

Micro Outsourcing

Open Innovation: Individual

Innovation brokers

Individual Efforts

Changing Attitudes

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Local Industry

External industry

Universities

Government

Open Innovation: Institutional

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•

Cannot replace people with technology–

PCs are not the answer

•

Set up human infrastructure first–

Finding NGOs–

Working with field staff–

Finding clientele–

Filtering clientele–

Organizing skills classrooms–

Finding Mediators–

Organizing mediators in a “school”

schedule–

Connecting apprentices to mentors–

Working with donors and banks

•

High-Tech “Cloud”–

Technical users –

computers, broadband, digitizing equipment, database management

•

Low-Tech Fringe–

Illiterate users–

DVDs, TVs, camcorders, microphones

Web 2.0 for the Poor

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Why this matters to MS•

Social Networking in India–

Everything operates with a local social network–

Learn how to build and document social networks in India

•

Revenue models through online sites

•

Web 2.0 for the developing world

Lessons•

“Systems approach”

to technology projects for development

•

Human infrastructure comes first

•

Its not about replacing people with technology, its about facilitating relationships and information

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Social Enterprises• Low-skilled job instruction and finances to poor job-seeking youth

and adults • How-To Video Database:

– Distributed skill knowledge base + Mediation Based Workshops• Online Donation System:

– Connecting donors to donor-seeking clients • Facebook

for the Poor – Document

and prior experiences, relationships, successes, and failures.

?

Homeless & Jobless Self Employed

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•

NGO staff mediate chai-shop video sequence to new clients•

Clients get financed to start their own chai

shops

Democratizing Training and Mentoring: Facebook

+ YouTube

+ Kiva

Facebook for the Poor

NGO A

Tea-shop Owner Mentor

NGO B

Mediator

Skills Workshop

Tea-Shop

Donor

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Services players moving up the value chain−

Have the infrastructure for open innovation

SaaS and Cloud computing - location agnostic

Technology gap no longer as wide− Tata Nano− Chandrayaan I

Start-up culture spreading−

Many vc's

have set up offices in India

$

Confidence

Access to markets

Deeper understanding of similar markets

Tomorrow's India In the Innovation Ecosystem

http://riotofreasons.blogspot.com/2008/01/tata-nano-air.html

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Conclusions•

We are becoming one connected world

•

Connectivity changes everything•

Value can be created anywhere in the world

•

Time to market is more important than ownership of intellectual property

•

“Brains on tap”

will be the one of the most sought after global resource (after oil and water)

•

R&D is “democratized”

and available to all players•

India (and China) are very advantaged due to their ability to create the “knowledge worker”

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Thank You

Contact DetailsSridhar Jagannathan,

sri

jagannathan@gmail.comAvinash Agrawal, avinash@Jupiter2xLearning.com

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Other Images Obtained From•

Brick labor: http://indiausaworld.org/travel/india/images/Punjab/DSC00416.JPG•

Tirmurti: http://www.icac.org.hk/newsl/issue3/pic/India-CVC%20Logo..gif•

Software Park: http://cache.daylife.com/imageserve/05252myc5Q7oT/610x.jpg•

Handshake: http://middlezonemusings.com/wp-content/uploads/2007/11/handshake.jpg•

Presentation: http://dreamajax.com/images/img_0455.jpg•

Biotechnology:http://www.stern.de/_content/50/44/504448/dna_500.jpg•

Drug discovery: http://erstories.net/wp-content/uploads/2008/06/pills-red-and-blue.jpg•

Linux: http://www.mobilecomputermag.co.uk/images/stories/news/2007/10/linux-penguin.jpg•

Books: http://www.thedailyplanner.com/images/CavalliniModernoJournals.jpg•

School bus: http://satnexschool.isti.cnr.it/images/School%20Bus%20-%20Cartoon%207.jpg•

Business models: http://www.thedf.co.in/images/flexi-business.gif•

University: http://www.apparelworld.org/upload%5CPersonality%5CCi94.jpg•

University: http://newdelhi.usembassy.gov/uploads/images/piVBLVnCdgkFWg8wjxoqWg/bushsingh0302

06_10.jpg

•

Satellite: http://www.sstd.rl.ac.uk/C1xs/Images/Chandrayaan-1_spacecraft_v2%20copy.jpg•

Others