making open innovation work, singapore, jan 20
TRANSCRIPT
Making Open Innovation Work
“…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”
- Making Open Innovation Work, 2011
Credit: OVO Innovation
Directive, invitational Directive, participative
Suggestive, invitational Suggestive, participative
Instructions
Invitations
Directed
None
Relatively few “Everyone”
• Alliances, consortia, JVs (All)
• Facilitated Networks (Many)
• Town Hall Meetings (General Mills)
• Supplier Summits (Intuit)
• Entrepreneur Days (Intuit)
• Selected Partnerships (All)
It’s just innovation!
FMCG
ThomsonReuters
PHARMA
Suntory
3M MasterCard
Cycle time, money, IPR and conservatism
Questions and reflections
Big versus small – the differences
#3 Speed of decision-making
#2 Allocation of resources
#1 Culture of innovation
Why big companies need small companies
Big companies bring scale and access to markets!
#3 They are closer to markets!
#2 They break the rules and take more risks!
#1 They live on the cutting edge!
Why things go wrong
#3 More focus on own gains rather than win-win!
#2 They don’t do the homework!
#1 Trust is not established!
Create simple letter of understanding that outlines working principles for partnership
Set expectations upfront to avoid the “false positives” mode
Questions and reflections
Interaction and involvement are key elements for open innovation as well as social media.
Companies need to build strong capabilities on this intersection if they want to out-innovate their competitors.
Seed now to reap future benefits!
Social Graph
Relationships between individuals online
Interest Graph
Expansion and contraction of social networks around interests and events
25
What are the barriers for adoption?
#1 What’s in it for me?
#2 Purpose is not defined!
#3 Too many digital visitors; few residents!
#4 More questions than answers!
Discovery: HIGH
Incubation: LOW / HIGH
Acceleration: HIGH
Internally: HIGH
Questions and reflections
Executives are not the key issue (TBX)
People first, processes next then ideas
T (Top Down): Get the executives onboard and make them personally committed to the innovation activities. Without executive support, no change occurs.
B (Bottom Up): Value creation begins with people, one by one, team by team. Nothing happens unless you get the employees engaged and involved.
X (Across): The biggest challenges will come from middle managers placed across the organization due to narrow focus on own P&L.
(O) for Outsiders: Include external sources as you move towards open innovation.
Organizing for open innovation?
Executives are not the key issue (TBX)
People first, processes next then ideas
Direction, training and time
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