exhibitionist#08 stefan rummel 23 ottobre 2014

Connecting Global Competence

Messe München Open Innovation Case

A pilot for a new service to our customers

Stefan Rummel, Milan, October 23rd 2014


Digital Strategy

2


The rise of digital technology disrupted the ways ofdoing busssiness…

3


The rise of digital technology disrupted the ways ofdoing busssiness – now we have to adapt fast!

Developenew services &

business models forour customers

Redefine ourmarketing & sales

system

Redesign our existingcustomer processes(From application to

billing)

4


The rise of digital technology disrupted the ways ofdoing busssiness – now we have to adapt fast!

Redefine ourmarketing & sales

system

Redesign our existingcustomer processes(From application to

billing)

Developenew services &

business models forour customers

5


Our innovation projects follow a clear customerfocused process…

Gate

1

Gate

3

Gate

2

Project- Portfolio

Idea sourcing

UnderstandObserveDefine

TestPrototype

6


Innocentive`s Services seemed to be interesting to our customers and the „players“ are familiar…

7


How does it work?

Seekers

Companies/Multinationals

Market Place

Open Innovation Platforms e.g. Innocentive

Solvers

Engineers, Scientists, Industry

Professionals etc.

?

www

8


Innocentive Challenge Center – branded and incognito challenges

Abruf vom 26.4.2013

9


Innocentive Challenge Center – Details

10

Connecting Global Competence 11

The best solution will be awarded!

The Netflix Challenge “The Netflix Prize”

� World class companies are offering financial awards for solutions to their scientific challenges

� $1M Grand Prize for best collaborative filtering algorithm to predict user rating for films based on previous ratings

� Requirement: 10% improvement of accuracy of Netflix’ own algorithm

11


Open Innovation Market Place: InnocentiveMarket Leader in North America

Innocentive – The Open Innovation Marketplace At a Glance

� Founded in 2001

� Concept: expertise knowledge and creativity from talented outsources to solve Research & Development problems in Engineering, Math, Physical Science, Computer Science, Business, Chemistry and Life Sciences

� Online community of 300,000+ total registered solvers in more than 200 countries

� More than 475.000 posted challenges up totoday (branded + anonymous)

� Range of awards: $5,000 to $1+ million based on the complexity of the problem and nature of the Challenge

� Premium Challenge Success Rate: 85%

Innocentive has a proofen business model

12


What are some of the key success factors ofInnocentive´s idea…?

Key success factors

� Active and interdisciplinary solver community with scientists, engineers, industry professionals, lead user etc.

� Successful community management

� Neutral platform for all seeker companies, even if they are competitors

� High credibility

1313


Exhibitors = Seekers/Solvers


Visitors = Solvers/Seekers


…and what does it have to do with us?

A good match – and a good way to extend our relationship with our customers

…compared with our resources

� National and International Exhibitors, Visitors, University and Institutional Research Partner etc. that can be either seekers or solvers

� Interdisciplinary community managed by MMG

� Leading International Trade Fair Brands are a neutral Platform for an Industry

� Challenges could be presented online and offline

16

Key success factors

� Active and interdisciplinary solver community with scientists, engineers, industry professionals, lead user etc.

� Successful community management

� Neutral platform for all seeker companies, even if they are competitors

� High credibility

16


We decided to run the pilot with our ISPO Community…

17

ISPO OPEN INNOVATION & COMMUNITYBe part of the movement!


…since their characteristics seemed a perfect match for an innovation project

18

INTERNET SAVVY

80% use online media once a week to get information on the latest sports topics

INNOVATIV

70% of ISPO´s visitors main interests are product innovations

CURIOUS

63% of ISPO´s visitors want to co-develop innovative sports products

ISPO is the world`s leading community of sports business professional and they are:


Examples

GeneralEffects

19

Three ways of using Open Innovation and the wisdom of the crowd

Co-Creation

Products developed by customers manage to achieve:

� three times higher revenue

� four times higher margins

� Development of an user friendly Control-Display for cockpits of construction and agricultural machinery

TechnologyScouting

Open Innovation R&D projects:

� Reduce R&D Timeby 42%

� Reduce R&D Costs by 20%

� Development of a new jet-engine bracket with major weight reductions

ProductTesting

� Introduction of a new ski collection to trendsetters and opinion leaders within the blogger scene in a test series ahead of market rollout!

With Product Testing to a better allocation of marketing budgets

� Reduce Marketing Budget through more efficient use of budget

19


ISPO Open Innovation: Co-Creation

Access to ISPO User Experts – not confined to the trade fair, but 365 days per year.

Setup of a protected space for new ideas, which are derived from working with the community.

Efficient execution through standardized process on established web-platform.

Project examples:

� Organic sports food – develop a healthy high-class

nutritional concept of highest biological quality together with

athletes!

� Fun & Boulder Collection – a new sportswear collection for

fans of sport climbing – designed by and created with

exactly this target group!

� Skiers create a collection jointly with you to perfectly satisfy

the needs of “sophisticated free skiing”!

Develop products jointly with your target group.

20


ISPO Open Innovation: Product Testing

Access to user or test groups respectively that can be structured and segmented.

Channeling and structuring of customer feedback and ideas.

Simple administration of focus groups in one efficient and professional tool.

Project examples:

� Introduce your new ski collection to trendsetters and

opinion leaders within the blogger scene in a test series

ahead of market rollout!

� Have the Boulder Softshell Jacket’s outdoor aptitude tested

in a real-life usage scenario on an actual rock!

� A team embarking on a trip around the world puts the

revolutionary functionality of the new outdoor collection to

the acid test!

Receive feedback ahead of your market rollout.

21


Access to lead users, scientists, engineers, industry professionals as solvers

Channeling and structuring of ideas from outside the company

Professional assistance for drafting and defining the challenges

Project examples:

�New Materials for Snowboard Bindings with a weight

reduction

of 20-30%

�Special glue for glueing crystals to waterproof fabrics

ISPO Open Innovation: Technologie Scouting

Find new solutions

to your technical challenges.

22


The Open Innovation Business Model of ISPO

Revenue and Service Streams The Process and Value Chain

Challenge

SolutionsReward for #1Solution

1Service FeeConsultingServices

2

3

2

Company buys one of our Open Innovation Packages

1

ISPO and it´s Partner consultwith drafting the challenge and „air“ it

2

Solvers hand in their solutions and suggestions

3

4

ISPO´s Partner is the Moderator along the process

4

5

The best solution is awarded(from +150 € up to +50.000 €

5

23


Co-Creation:The „New Ski Jacket Challenge“ by Lasse Kjus

24


Co-Creation: Sport Scheck´s Personal Coach Challenge

25


� Convince people to support an innovation and to not be afraid of trying new things

� Foster a climate where it is safe to innovate and where people are allowed to fail

26

The Project is a successful pilot – we failed fast and often but did learn faster!

Convince people in our company to

try new things

� Involve the key people in the development of the idea from the beginning. It has to be their baby!

� Discuss with them the idea extensively

� A „not invented here syndrome“ will kill the idea

Get a common understanding

of the idea

� New innovative ideas often come along with a high complexity. To get everyone who is necessary “onboard” you have to get a common understanding what´s the idea all about and where the idea is heading to

Key Challenges Solutions

26

� Integrate a radical new service in your traditional and existing sales processes

� Just do it! Prepare all selling arguments and documents, train the sales people intensively, give a proper incentive and don´t take „no“ for an answer.

Integration of service into an existing Sales

Process


Next Step: Different industry platforms and one interdisciplinary solver community

27

bauma Plattformbauma Plattformbauma Plattform IFAT PlattformIFAT PlattformIFAT Plattform Laser PlattformLaser PlattformLaser Plattform ISPO PlattformISPO PlattformISPO Plattform

exhibitionist#08 stefan rummel 23 ottobre 2014

Internet

global competence9

innovation projectispo

innovation projects

open innovation market

industry challenges

open innovationmarketplace

rise of digital technology

lead user