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Os Novos Paradigmas da
Inovação Aberta e o caso
    do Battle of Concepts


  Câmara de Comércio Suíço-Brasileira

                   20/maio/2010




                                   1
TerraForum Consulting
Our Mission




              “        Help our clients
              to learn, collaborate and innovate
                   in more effective ways




                                                   2
Our main areas of expertise

             Consulting                            IT

                              • Web Portals
• Knowledge Management        • Business Intelligence
• Innovation Management       • Portfolio Management
• Corporate Learning          • Project Management
• Public Education            • Training
• Sustainability
• Internal Communication                         Design

• Social Media Strategies
                              • Digital Design
                              • Videos


                                                          33
More than 300 projects with leading companies within the last 7 years




                                                                        44
Livros publicados por consultores TerraForum




                                               5
TerraForum Consulting
Innovation Center Portal




                           6
What is Open Innovation?




“   Innovation
    distinguishes a leader
    from his followers.
                  Steve Jobs




                               7
“   Open innovation is the use of purposive inflows
    and outflows of knowledge to accelerate internal
    innovation, and expand the markets for external
            use of innovation, respectively."


Henry Chesbrough, 2003




                                                   8
Open Innovation Model – The Innovation Funnel
  On open innovation model, the company keeps strong relationships with external
  partners within different stages of the innovation development process

                   Research                    Development                   Comercialization

                   Joint Venuture

                                     Licencing
                                              External Technology
                                                   Insourcing
                                                                Spin-in
                                                                          Merge and Aquisitions




INTERNAL                                                                                          MARKET
   R&D

                                                                           Divest
                                                             Spin-off
                                       Licencing
                      R&D Services



                                                                                                           9
For most companies innovation is a proprietary activity but for
others...

            Closed Innovation                                       Open Innovation
                                                       Not all of the smart people work for us so we must
    The smart people in our field work for us           find and tap into the knowledge and expertise of
                                                             bright individuals outside our company


 To profit form R&D, we must discover, develop         External R&D can create significant value; internal
               and ship it ourselves                   R&D is needed to claim some portion of that value


                                                       We don´t have to originate the research in order to
   If we discover it, we will get it to market first                     profit from it


                                                         Building a better business model is better than
 If we are the first to commercialize we will win                     getting to market first


 If we create the most and the best ideas in the        Is we make the best use of internal and external
              industries, we will win                                  ideas we will win

                                                        We should profit from others´ use of our IP, and
We should control our intellectual property (IP) so     we should buy others´ IP whenever it advances
 that our competitors don´t profit from our ideas                  our own business model             10
Open Innovation creates new revenues opportunities



             Closed Model    Open Model         Open Model
                 Past         Present             Future
  Revenues
                                               New Businesses

                                                 Spin-Offs        New
                                                                Revenues
                                                 Royalties

                 Revenue
                               Revenue            Revenue



                 Internal                         Internal
               Development                      Development
                   Cost         Internal            Cost
                              Development
                                  Cost




   Costs


                                                                       11
Companies are creating their own Open Innovation Systems,
that are composed by...




         Processes                               Partners´
       and Governance                             Network
                                                relationship


                               Open
                            Innovation
                              System




                                               Organizational
        Infrastructure                           structure


                                                                12
Key Factors for Open Innovation Success



                                               Clearly Defined
                                Support and      IP policies     Organizational
                                Services for                     Structure and
                                 Partners                         Governance

                      Strong
                     Relation                                                     Infrastructure
                     Network                                                       and location



          Adequate
          Partners                                                                           Funding




   Collaborative                                                                                   Stakeholders
     Culture                                                                                         Support



                                                   Open                                               Processes
   Strategic                                    Innovation                                           and KPIs for
   Alignment                                                                                          Innovation
                                                  System                                                Mgmt




                                                                                                                  13
What facilitates this NEW approach to innovation is the rise of
Web 2.0 – as a participatory platform...




                                                                  14
Using web2.0 tools to improve open
innovation in organizations




                                “    The best manner to predict
                                     the future is inventing it.




                                                                   15
Battle of Concepts
Challenges to undergraduate students




                                       16
Generating results with
  Open Innovation
    TerraForum & Battle of Concepts
Battle of Concepts
Our inspiration



  “Every company has its issues
         and challenges.
  Students have time, drive and
      innovative solutions.”
Our concept


    “Promoting innovation through
    open concept battles, in which
     companies offer challenges
  (Battles) and college students and
  young professionals offer solutions
            (the Concepts).”
Dutch fever spreading…




 Dutch princess, Máxima, and the minister of Ecomomic Affairs, Van der Hoeven, in
 conversation with the winner of one of the Dutch battles.
Swiss chamber   open innovation & battle of conceptsSwiss Chamber - Open Innovation & battle of concepts
History



                                • Since 2006, already                                    • In six months distributed




                                                             Battle of Concepts Brazil
   Battle of Concepts Holland



                                  distributed 500                                          46 thousand reais (US$
                                  thousand euros to                                        25 K) and will distribute
                                  participants                                             another 74 thousand
                                                                                           reais (US$ 40 k) to the
                                • More than 5 thousand                                     participants
                                  students registered
                                                                                         • More than 3 thousand
                                • More than 100 battles                                    students registered
                                  concluded
                                                                                         • 30 students received
                                • Received more than 3                                     prices
                                  thousand concepts
                                                                                         • Participation of
                                • Participation of various                                 Government
                                  public entities
Some participating companies
Integrated Benefits

                        Companies         Students
                Reduced Investiment in    Market display
                  ideation process and
                  recruiting of talent     Payment
              External collaboration       Experience with real
                with talent                  challenges
           Emotional relationship with
            young professionals and           Relationship with
            possible clients                   companies
         Relationship with                        Employability
          academic world


        Universities                                Country
            Prestige and positive                 More innovative
             display of brand                       companies
                                               Engagement of young and
             More interested and                innovative people
              engaged students               Feeling of co-creation and
                                              search for solutions
                  Real world cases to
                                              together
                   use in class room
                                           More interaction
                                            between companies
                                            and universities
Working process
                    Challenge
                    definition



                    Publish the
                    challenge



                  Development of
                     concept



                   Evaluation of
                     concept



                  Finalization and
                   publish results
Working process
           1. Definition of challenge




     Definition and
                                     Boc and company                      Approval of
     formatting of
                                       define price                        challenge
       challenge



 Responsabilities BoC: present examples of battles; help with definition and formatting of
 battle.

 Responsabilities of company: select, write and approve battle; determine value of prices.
Working process
          2. Publishing of challenge




    Boc launches the
                                                                    Students and young
  battle on its site and            Boc publishes battle
                                                                     talents register for
  other communication                 at universities
                                                                       free at the site
        channels


 Responsibilities BoC: publish the battle on its site and other communication channels
 (Newsletter, blog, twitter and social networks); maintain active student base.

 Responsibilities company: publish battle using its communication channels
Working process
          3. Development of concept




 Students and young                                              Students and young
                                 Students and young
   talent download                                                  talents upload
                                 talents study battle
        battle                                                     concepts to site



 Responsibilities BoC: Generate and present monthly report containing number of
 downloads, concepts received and new registrations.

 Responsibility company: to check summary of concepts received on site to start
 evaluation process.
Working process
            4. Evaluation of concepts




                                                                           Boc and
 BoC receives and          Company
                                                Company selects            company
  sends concepts           evaluates
                                                 best concepts          consolidate final
    to company             concepts
                                                                            results




 Responsibilities BOC: Pass received concepts to company and give advise during
 evaluation process. Generate final report (in DVD) with concepts and student base.

 Responsibilities companies: Select best concepts.
Working process
             5. Finalization and results publishing




                           Boc rewards the
    Boc discloses            winners, who             The company
                                                                            The company
  the classification        receive a letter          becomes the
                                                                           implements the
   of concepts on          and conducts an            owner of the
                                                                              concept
     the website           interview via the            concept
                             blog or video



 Responsibilities BOC: announce the classification of concepts and the names of
 winners.

 Responsibilities companies: Implement concept; pass (if possible) status of
 implementation and results achieved.
Results
Whirlpool case
Challenge

“How to innovate in brand
    communication at sales point?”



Results
                                                           .

   2.550 visits to challenge
   880 downloads of challenge
   40 concepts received
   Average of 5h of work by each participant
   Total of 2 hours of intensive thinking for Whirlpool
Philips case
Challenge

“Develop in a simple manner an
interactive and intuitive way to configure
the manuals of our products”

Results
                                                             .
   2.300 visits to challenge
   814 downloads of challenge
   34 concepts received
   Average of 5h of work by each participant
   Total of 1.700 hours of intensive thinking for Philips
Testimony

 "Battle Of Concepts is a simple and innovative way to find
 solutions for challenges and opportunities for our organization.
 Moreover it promotes the company and creates stronger links
 with young talents, that can present solutions and see them
 being brought into practice"

                                   Mônica Reiter Bissi, HR Manager Vopak
Exemplo Battle– Eneco Holanda
 Challenge      Find new ideas for the re-use of oil or gas platforms in the sea


                What can we do with oil or gas platforms?
                They are not only ugly, but they can be a threat to the environment.
                Some important factors:
                Technical execution
                Security and well being
                Environment
Specification   Cost
                Reputation and influence on public opinion
                The permanent question is: How to re-use obsolete installations?
                Do they necessarily need to become old iron or can they be re-used?
                Research in the last ten years have shown that there have been some re-use of
                platforms such as the Spar, that was transformed in a pier and other ideas such as
                prisons etc.
Example Battle– Rijkswaterstaat Holanda
                How can the minister of transport and water reduce the consumption of energy and
                water and CO2 emission in its infrastructure? With the slogan “Good ideas have no
 Challenge
                value when not implemented” Rijkswaterstaat invite the participants with the three
                best ideas to present their ideas and show how they work in practice.



                Scope restrictions: Rijkswaterstaat will not implement wind mills or biodiesel energy –
Specification   “Windmills will encounter resistance from the populations and biodiesel is not
                sustainable and need to be bought”.




                                                Prices:
                                                1º 1.500 euros
                                                2º 750 euros
                                                3º 350 euros
                                                4º a 10º 200 euros
                                                11º a 20º 100 euros
Government Battles

  The Government of Minas Gerais,
through the Department of Science,
 Technology and Education, signed
   an agreement with the company
   Battle of Concepts to develop a
 relationship program to encourage
      students to solve business
  challenges. The partnership is an
 innovative initiative and will be part
  of the conference Inovatec 2010,
     which will occur in October.
Government Battles


    The Government of the
  Netherlands embraced the
    initiative of the Battle of
 Concepts. In all, Government
has released nearly 20 battles,
including battles signed by the
     ministers themselves.
Other examples of Battles
Work and security at work
“How can companies benefit from the productive creativity of 2.0
 workers?”
“What can companies do to diminish unemployment?”

“How can we become the preferred organziation for young people to
 work for?”
“How to guarantee a secure working place for people that work for our
 railroad company?”

“Create a new method to avoid collision between trucks and people”


“Develop a technology to bring150kg up the stairs.”

“How to avoid dangerous contact and accidents with mechanical machines?”

“Create a new concept to improve the conditions of workers that act in the extreme
 offshore conditions of the Antartic.“
Other examples of Battles
Education
“How to avoid dropout in higher education?"
"How will be the classroom in the future?"
"Tell the Minister of Education how to show excellence in higher education"
“Develop a new concept or a new campaign to encourage diverse
 audiences to be high school teachers."

Sustentability
"How can we show that we do sustainable procurement?"
“New and innovative ideas to teach our clients to be more
 environmentally conscious"

"How can we reduce 5000 cars on the A2 highway using only
 communication?"
“How can the Ministry of Transport and Water reduce energy
 consumption and CO2 emission in its infrastructure? "
Other examples of Battles
Entrepreneurship and Innovation
"How to stimulate entrepreneurship in children up to 16 years?"

“How can 'social media„ help young entrepreneurs in their businesses?"


"How to tell the top companies and educational institutes about 'Innovation
 in services?"

Health Care
"Develop a new campaign aimed at young people to promote and
 improve knowledge of asthma in children."

“Develop a simple interactive, rational and emotional way to touch the hearts
 of people between 40-65 years to encourage them to donate blood"
Other examples of Battles
Transport
"How will the system of high-speed transport be in 2040?"

"Give a solution to reduce train noise”


"How to avoid fatal accidents at railroad crossing with roads?"

“How to prevent collisions of trains on the date of launching a new
 security system?"

"How to reduce the disturbance between trains and boats at roads and
 river intersections?"

“How to improve competition between public transport and the use of
 private cars?"


“Create a bonus system to encourage car users to use more public
 transportation."
“The best way to have a good
 idea is to have many ideas”

           Thanks!
       http://www.battleofconcepts.com.br/

         http://www.battleofconcepts.nl

          http://www.terraforum.com.br

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Swiss chamber open innovation & battle of conceptsSwiss Chamber - Open Innovation & battle of concepts

  • 1. Os Novos Paradigmas da Inovação Aberta e o caso do Battle of Concepts Câmara de Comércio Suíço-Brasileira 20/maio/2010 1
  • 2. TerraForum Consulting Our Mission “ Help our clients to learn, collaborate and innovate in more effective ways 2
  • 3. Our main areas of expertise Consulting IT • Web Portals • Knowledge Management • Business Intelligence • Innovation Management • Portfolio Management • Corporate Learning • Project Management • Public Education • Training • Sustainability • Internal Communication Design • Social Media Strategies • Digital Design • Videos 33
  • 4. More than 300 projects with leading companies within the last 7 years 44
  • 5. Livros publicados por consultores TerraForum 5
  • 7. What is Open Innovation? “ Innovation distinguishes a leader from his followers. Steve Jobs 7
  • 8. Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively." Henry Chesbrough, 2003 8
  • 9. Open Innovation Model – The Innovation Funnel On open innovation model, the company keeps strong relationships with external partners within different stages of the innovation development process Research Development Comercialization Joint Venuture Licencing External Technology Insourcing Spin-in Merge and Aquisitions INTERNAL MARKET R&D Divest Spin-off Licencing R&D Services 9
  • 10. For most companies innovation is a proprietary activity but for others... Closed Innovation Open Innovation Not all of the smart people work for us so we must The smart people in our field work for us find and tap into the knowledge and expertise of bright individuals outside our company To profit form R&D, we must discover, develop External R&D can create significant value; internal and ship it ourselves R&D is needed to claim some portion of that value We don´t have to originate the research in order to If we discover it, we will get it to market first profit from it Building a better business model is better than If we are the first to commercialize we will win getting to market first If we create the most and the best ideas in the Is we make the best use of internal and external industries, we will win ideas we will win We should profit from others´ use of our IP, and We should control our intellectual property (IP) so we should buy others´ IP whenever it advances that our competitors don´t profit from our ideas our own business model 10
  • 11. Open Innovation creates new revenues opportunities Closed Model Open Model Open Model Past Present Future Revenues New Businesses Spin-Offs New Revenues Royalties Revenue Revenue Revenue Internal Internal Development Development Cost Internal Cost Development Cost Costs 11
  • 12. Companies are creating their own Open Innovation Systems, that are composed by... Processes Partners´ and Governance Network relationship Open Innovation System Organizational Infrastructure structure 12
  • 13. Key Factors for Open Innovation Success Clearly Defined Support and IP policies Organizational Services for Structure and Partners Governance Strong Relation Infrastructure Network and location Adequate Partners Funding Collaborative Stakeholders Culture Support Open Processes Strategic Innovation and KPIs for Alignment Innovation System Mgmt 13
  • 14. What facilitates this NEW approach to innovation is the rise of Web 2.0 – as a participatory platform... 14
  • 15. Using web2.0 tools to improve open innovation in organizations “ The best manner to predict the future is inventing it. 15
  • 16. Battle of Concepts Challenges to undergraduate students 16
  • 17. Generating results with Open Innovation TerraForum & Battle of Concepts
  • 19. Our inspiration “Every company has its issues and challenges. Students have time, drive and innovative solutions.”
  • 20. Our concept “Promoting innovation through open concept battles, in which companies offer challenges (Battles) and college students and young professionals offer solutions (the Concepts).”
  • 21. Dutch fever spreading… Dutch princess, Máxima, and the minister of Ecomomic Affairs, Van der Hoeven, in conversation with the winner of one of the Dutch battles.
  • 23. History • Since 2006, already • In six months distributed Battle of Concepts Brazil Battle of Concepts Holland distributed 500 46 thousand reais (US$ thousand euros to 25 K) and will distribute participants another 74 thousand reais (US$ 40 k) to the • More than 5 thousand participants students registered • More than 3 thousand • More than 100 battles students registered concluded • 30 students received • Received more than 3 prices thousand concepts • Participation of • Participation of various Government public entities
  • 25. Integrated Benefits Companies Students  Reduced Investiment in  Market display ideation process and recruiting of talent  Payment  External collaboration  Experience with real with talent challenges  Emotional relationship with young professionals and  Relationship with possible clients companies  Relationship with  Employability academic world Universities Country  Prestige and positive  More innovative display of brand companies  Engagement of young and  More interested and innovative people engaged students  Feeling of co-creation and search for solutions  Real world cases to together use in class room  More interaction between companies and universities
  • 26. Working process Challenge definition Publish the challenge Development of concept Evaluation of concept Finalization and publish results
  • 27. Working process 1. Definition of challenge Definition and Boc and company Approval of formatting of define price challenge challenge Responsabilities BoC: present examples of battles; help with definition and formatting of battle. Responsabilities of company: select, write and approve battle; determine value of prices.
  • 28. Working process 2. Publishing of challenge Boc launches the Students and young battle on its site and Boc publishes battle talents register for other communication at universities free at the site channels Responsibilities BoC: publish the battle on its site and other communication channels (Newsletter, blog, twitter and social networks); maintain active student base. Responsibilities company: publish battle using its communication channels
  • 29. Working process 3. Development of concept Students and young Students and young Students and young talent download talents upload talents study battle battle concepts to site Responsibilities BoC: Generate and present monthly report containing number of downloads, concepts received and new registrations. Responsibility company: to check summary of concepts received on site to start evaluation process.
  • 30. Working process 4. Evaluation of concepts Boc and BoC receives and Company Company selects company sends concepts evaluates best concepts consolidate final to company concepts results Responsibilities BOC: Pass received concepts to company and give advise during evaluation process. Generate final report (in DVD) with concepts and student base. Responsibilities companies: Select best concepts.
  • 31. Working process 5. Finalization and results publishing Boc rewards the Boc discloses winners, who The company The company the classification receive a letter becomes the implements the of concepts on and conducts an owner of the concept the website interview via the concept blog or video Responsibilities BOC: announce the classification of concepts and the names of winners. Responsibilities companies: Implement concept; pass (if possible) status of implementation and results achieved.
  • 33. Whirlpool case Challenge “How to innovate in brand communication at sales point?” Results .  2.550 visits to challenge  880 downloads of challenge  40 concepts received  Average of 5h of work by each participant  Total of 2 hours of intensive thinking for Whirlpool
  • 34. Philips case Challenge “Develop in a simple manner an interactive and intuitive way to configure the manuals of our products” Results .  2.300 visits to challenge  814 downloads of challenge  34 concepts received  Average of 5h of work by each participant  Total of 1.700 hours of intensive thinking for Philips
  • 35. Testimony "Battle Of Concepts is a simple and innovative way to find solutions for challenges and opportunities for our organization. Moreover it promotes the company and creates stronger links with young talents, that can present solutions and see them being brought into practice" Mônica Reiter Bissi, HR Manager Vopak
  • 36. Exemplo Battle– Eneco Holanda Challenge Find new ideas for the re-use of oil or gas platforms in the sea What can we do with oil or gas platforms? They are not only ugly, but they can be a threat to the environment. Some important factors: Technical execution Security and well being Environment Specification Cost Reputation and influence on public opinion The permanent question is: How to re-use obsolete installations? Do they necessarily need to become old iron or can they be re-used? Research in the last ten years have shown that there have been some re-use of platforms such as the Spar, that was transformed in a pier and other ideas such as prisons etc.
  • 37. Example Battle– Rijkswaterstaat Holanda How can the minister of transport and water reduce the consumption of energy and water and CO2 emission in its infrastructure? With the slogan “Good ideas have no Challenge value when not implemented” Rijkswaterstaat invite the participants with the three best ideas to present their ideas and show how they work in practice. Scope restrictions: Rijkswaterstaat will not implement wind mills or biodiesel energy – Specification “Windmills will encounter resistance from the populations and biodiesel is not sustainable and need to be bought”. Prices: 1º 1.500 euros 2º 750 euros 3º 350 euros 4º a 10º 200 euros 11º a 20º 100 euros
  • 38. Government Battles The Government of Minas Gerais, through the Department of Science, Technology and Education, signed an agreement with the company Battle of Concepts to develop a relationship program to encourage students to solve business challenges. The partnership is an innovative initiative and will be part of the conference Inovatec 2010, which will occur in October.
  • 39. Government Battles The Government of the Netherlands embraced the initiative of the Battle of Concepts. In all, Government has released nearly 20 battles, including battles signed by the ministers themselves.
  • 40. Other examples of Battles Work and security at work “How can companies benefit from the productive creativity of 2.0 workers?” “What can companies do to diminish unemployment?” “How can we become the preferred organziation for young people to work for?” “How to guarantee a secure working place for people that work for our railroad company?” “Create a new method to avoid collision between trucks and people” “Develop a technology to bring150kg up the stairs.” “How to avoid dangerous contact and accidents with mechanical machines?” “Create a new concept to improve the conditions of workers that act in the extreme offshore conditions of the Antartic.“
  • 41. Other examples of Battles Education “How to avoid dropout in higher education?" "How will be the classroom in the future?" "Tell the Minister of Education how to show excellence in higher education" “Develop a new concept or a new campaign to encourage diverse audiences to be high school teachers." Sustentability "How can we show that we do sustainable procurement?" “New and innovative ideas to teach our clients to be more environmentally conscious" "How can we reduce 5000 cars on the A2 highway using only communication?" “How can the Ministry of Transport and Water reduce energy consumption and CO2 emission in its infrastructure? "
  • 42. Other examples of Battles Entrepreneurship and Innovation "How to stimulate entrepreneurship in children up to 16 years?" “How can 'social media„ help young entrepreneurs in their businesses?" "How to tell the top companies and educational institutes about 'Innovation in services?" Health Care "Develop a new campaign aimed at young people to promote and improve knowledge of asthma in children." “Develop a simple interactive, rational and emotional way to touch the hearts of people between 40-65 years to encourage them to donate blood"
  • 43. Other examples of Battles Transport "How will the system of high-speed transport be in 2040?" "Give a solution to reduce train noise” "How to avoid fatal accidents at railroad crossing with roads?" “How to prevent collisions of trains on the date of launching a new security system?" "How to reduce the disturbance between trains and boats at roads and river intersections?" “How to improve competition between public transport and the use of private cars?" “Create a bonus system to encourage car users to use more public transportation."
  • 44. “The best way to have a good idea is to have many ideas” Thanks! http://www.battleofconcepts.com.br/ http://www.battleofconcepts.nl http://www.terraforum.com.br