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Cesar Castro Open Innovation Presentation
1.
Open Innovation and
the Future of Organizations Cesar Castro cesar@discoverycast.com Founder and CEO DiscoveryCast, Inc. © Copyright 2010 DiscoveryCast, Inc. all rights reserved
2.
1 ‐ Open Innova,on
Strategies Topics Topics 2 ‐ Preparing for The 8 ‐ Brainstorming / New Innova,on Idea,on Paradigm 3 ‐ Innova,on in an 6 ‐ Examples / Case Increasingly Studies Collabora,ve Environment 5 ‐ GeIng Started: 4 ‐ Managing Developing An Confiden,ality / IP Innova,on Strategy © Copyright 2010 DiscoveryCast, Inc. all rights reserved 2
3.
My Background 1980’s 1990’s 2000’s Today
© Copyright 2010 DiscoveryCast, Inc. all rights reserved
4.
Innovation is……. (to be
filled in later) © Copyright 2010 DiscoveryCast, Inc. all rights reserved 4
5.
Open Innovation is……
(to be filled in later) © Copyright 2010 DiscoveryCast, Inc. all rights reserved 5
6.
What Has Changed
In The Innovation Landscape? IBM CEO Survey - March 2006 © Copyright 2010 DiscoveryCast, Inc. all rights reserved 6
7.
Innovation Is Everywhere
Seeing the unseen or, Op,mizing the value crea,on “…the eureka moment…” opportunity Scien,fic Discovery Technological Innova,on New Market Insight Market / Retail Innova,on New Produc,on / Process Insight Supply Chain Innova,on New Business / Financial Insight Business Model Innova,on New HR Policies Human Capital Management Innova,on New Social / Ecological Insight Social Innova,on Regulatory / Legisla,ve Change Business / Marke,ng Innova,on © Copyright 2010 DiscoveryCast, Inc. all rights reserved
8.
What is Open
Innovation? (traditional definition) Closed Innovation Model Market Revenue Open Market Innovation Revenue Model plus New Revenue © Copyright 2010 DiscoveryCast, Inc. all rights reserved 8
9.
New Explanation of
Open Innovation suppliers re6rees Large firms/ social networks individual firm Academia/ SME’s innova6on group Individuals/ consultants customers compe6tors INTERNAL INNOVATION © Copyright 2010 DiscoveryCast, Inc. all rights reserved 9
10.
New Explanation of
Open Innovation Open Innova*on Begins Internally, Then Goes External suppliers re6rees Large firms/ social networks individual firm Academia/ SME’s innova6on group Individuals/ consultants customers compe6tors INTERNAL INNOVATION AND EXTERNAL INNOVATION © Copyright 2010 DiscoveryCast, Inc. all rights reserved 10
11.
Why Is Open
Innovation Important? Companies have….. lowered their cost of innovaAon brought new ideas to old problems generated new revenue streams accelerated the rate of innovaAon © Copyright 2010 DiscoveryCast, Inc. all rights reserved 11
12.
Open Innovation Strategies
© Copyright 2010 DiscoveryCast, Inc. all rights reserved
13.
Open Innovation Requires
A Portfolio Approach Internal External Indirect Direct Social © Copyright 2010 DiscoveryCast, Inc. all rights reserved 13
14.
Characteristics of An
Open Innovation Approach Rapid Prototyping of Ideas Distributed Diversity Shared Anyone Can Financial Contribute Risk Share and Co- create IP © Copyright 2010 DiscoveryCast, Inc. all rights reserved 14
15.
15
16.
16
17.
17
18.
18
19.
19
20.
20
21.
How To Prepare
For The New Innovation Paradigm © Copyright 2010 DiscoveryCast, Inc. all rights reserved
22.
Principles Of The
New Innovation Model Develop More Transparency Engage with networks Embrace community Competitors can be collaborators Discourage the “Not Invented Here” syndrome Engage with failure Maintain a “memory” bank of successes/failures © Copyright 2010 DiscoveryCast, Inc. all rights reserved 22
23.
FailCon © Copyright 2010 DiscoveryCast, Inc. all rights reserved
24.
Key Skills For
Individuals Learn to frame the question properly Think of yourself as a solution finder Learn to collaborate and share Stay informed with filtered information © Copyright 2010 DiscoveryCast, Inc. all rights reserved 24
25.
Key Skills For
Companies Prioritize and incentivize innovation Move to a higher risk profile Adapt the company structure Reinvent company culture Promote experimentation and weather change 25
26.
Innovation in an
Increasingly Collaborative Environment © Copyright 2010 DiscoveryCast, Inc. all rights reserved
27.
Engagement in social
networks The Engagement Ladder Source: Forrester Research © Copyright 2010 DiscoveryCast, Inc. all rights reserved 27
28.
Managing Confidentiality /
Intellectual Property © Copyright 2010 DiscoveryCast, Inc. all rights reserved
29.
Confidentiality/Intellectual Property
RULE #1 Not every challenge / technology need is suitable for external innovaAon © Copyright 2010 DiscoveryCast, Inc. all rights reserved 29
30.
Confidentiality/Intellectual Property Look for opportuniAes to share non‐confidenAal informaAon first
Framing the quesAon can also help manage confidenAality Risk‐taking needs to be higher 80 /20 rule (80% of of corporate IP is not uAlized) IP ownership is shiWing; small businesses are accounAng for more and more of the innovaAon pie (patents, technology, etc) © Copyright 2010 DiscoveryCast, Inc. all rights reserved 30
31.
Getting Started © Copyright 2010 DiscoveryCast, Inc. all rights reserved
32.
Getting Started The innovation
dial 32
33.
4 Strategies to
Leverage External Networks Creative Bazaar Jam Session emergent INNOVATION TYPE Orchestra MOD Station defined central diffuse NETWORK LEADER Source: The Global Brain, 2008 © Copyright 2010 DiscoveryCast, Inc. all rights reserved 33
34.
✖
MIT Open CourseWare
35.
✖
Nokia
36.
✖
Kraft Innovation Portal
37.
✖
My Starbucks Idea
38.
✖
Clorox
39.
✖
Intuit
40.
✖
Dell Ideastorm
41.
✖
Unilever
42.
✖
Android OS
43.
Conclusion © Copyright 2010 DiscoveryCast, Inc. all rights reserved
44.
Innovation is…….
A process by which new ideas fuel developments in products or services that capture value in the marketplace. © Copyright 2010 DiscoveryCast, Inc. all rights reserved 44
45.
Open Innovation is……. A
mindset, not a type or category of innovation A means of production for innovation © Copyright 2010 DiscoveryCast, Inc. all rights reserved 45
46.
Key Takeaways Open InnovaAon is all about culture change
PorZolio approach is important Social networks are part of innovaAon Framing the quesAon is a criAcal skill ConfidenAality / Intellectual Property CAN be managed Diversity of the network is important © Copyright 2010 DiscoveryCast, Inc. all rights reserved 46
47.
Bibliography The Open Innova6on Revolu6on, Stefan Lindegaard, Wiley ,
2010. The Global Brain, SaAsh Nambisan and Mohanbir Sawhney, Wharton School Publishing, 2008. Open Business Models, Henry Chesbrough, Harvard Bus. School Press, 2006. Crowdsourcing, Jeff Howe, Random House, 2008. Open Innova6on: The New Impera6ve for Crea6ng and Profi6ng from Technology, Henry Chesbrough, HBS Press, 2003. © Copyright 2010 DiscoveryCast, Inc. all rights reserved 47
48.
Open Innovation and
the Future of Organizations Cesar Castro cesar@discoverycast.com Founder and CEO DiscoveryCast, Inc. © Copyright 2010 DiscoveryCast, Inc. all rights reserved
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