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Open Source Innovation Factory
 Paolo Ceravolo, Università degli Studi di Milano
     in cooperation with Engineering Group

   [Our Framework equipped with Innovation Metrics can
     dramatically reduce the time required to transfer an
     innovative project to a real environment]




           OW2Con 2011, November 23 -24, Orange Labs, Paris
                             www.ow2.org
Outlook

Open Issues in Open Innovation
Our Proposal
Our Framework
Future work




          OW2Con 2011, November 23 -24, Orange Labs, Paris
                            www.ow2.org
Innovation
72% of company executives rank innovation in their
top 3 priorities (Boston Consulting Group, 2006)
80% of new product results will tend to come from only
20% R&D projects (Eduardo, 2003)
successful companies cancelled as many innovation
projects as non-successful companies. However,
successful companies were able to cancel unattractive
projects much earlier in the process (Ogawa & Ketner,
1997)



           OW2Con 2011, November 23 -24, Orange Labs, Paris
                             www.ow2.org
Open Innovation

The central idea behind open innovation is that in a
world of widely distributed knowledge, companies
cannot afford to rely entirely on their own research, but
should instead buy or license processes or inventions
(i.e. patents) from other companies. In addition,
internal inventions not being used in a firm's business
should be taken outside the company (Chesbrough,
2003).



            OW2Con 2011, November 23 -24, Orange Labs, Paris
                              www.ow2.org
Open Innovation




OW2Con 2011, November 23 -24, Orange Labs, Paris
                  www.ow2.org
Open Issues in Open Innovation
Reduce time to identify unproductive projects
Understand the synergy that are potentially
relating different projects


Represent Innovation Activity
Measure Innovation Activity
Report on Innovation Activity


          OW2Con 2011, November 23 -24, Orange Labs, Paris
                            www.ow2.org
Open Source Innovation Factory

Mixes three complementary approaches:
1. Innovation Factory Metamodel (IFM), proposed in
   the ARISTOTELE project (www.aristotele-ip.eu)
2. Open source platform SpagoBI
   (www.spagobi.org), OLAP and Reporting
3. Knowbots, advanced tools for the acquisition of
   concepts from internal and external knowledge
   sources


          OW2Con 2011, November 23 -24, Orange Labs, Paris
                            www.ow2.org
Open Source Innovation Factory




      OW2Con 2011, November 23 -24, Orange Labs, Paris
                        www.ow2.org
Innovation Factory Metamodel




     OW2Con 2011, November 23 -24, Orange Labs, Paris
                       www.ow2.org
Innovation Metrics
    Goal 1: Innovation Level Improvement
o   Q1.1: Which is the level of innovative knowledge exploited in the Organization?
o   Q1.2: How much are innovative the new products?
    Goal 2: Quality of Innovation Sources
o   Q2.1: Which is the quality of sources of innovation process?
    Goal 3: Open Innovation Permeability
o   Q3.1: To what extend the customer contribution is exploited?
o   Q3.2: To what extend the concepts coming from competitors' sites are exploited?
o   Q3.3: Evaluate the level of technologies that are transferred by the analysis of
    competitors
o   Q3.4: How much internal proposals influence innovative products?
    Goal 4: Return of Innovation Investment
o   Q4.1: How much innovation process produces profits?
o   Q4.2: How much innovation process costs?
o   Q4.3: Indirect Advantages




                       OW2Con 2011, November 23 -24, Orange Labs, Paris
                                         www.ow2.org
Innovation Metrics
Goal 1: Innovation Level Improvement
    Q1.1: Which is the level of innovative knowledge exploited in the Organization?
             M1.1.1: no. accesses to blog/forum marked as innovation sources
             M1.1.2: no. concepts transferred from innovation sources to produced
             documents (e.g. cut&paste)
    Q1.2: How much are innovative the new products?
         M1.2.1: no. tags describing new functionalities / no. concepts in innovative
         sources tag cloud
         M1.2.2: no. requirements covered by new products




                                            .
                         OW2Con 2011, November 23 -24, Orange Labs, Paris
                                       www.ow2.org.
                                           www.ow2.org
Innovation Metrics
Goal 2: Quality of Innovation Sources
    Q2.1: Which is the quality of sources of innovation process?
         M2.1.1: % of external requirements, coming from outside the organization (e.g.
         analyzing innovative sources)
         M2.1.2: % of internal requirements, coming from inside the organization (e.g. from
         internal meetings)
         M2.1.3: % of customer requirements, coming directly from the customer
         M2.1.4: % of new products implementing external requirements
         M2.1.5: % of new products implementing internal requirements
         M2.1.6: % of new products implementing customer requirements
         M2.1.7: % of human resources that contribute to the innovation process




                        OW2Con 2011, November 23 -24, Orange Labs, Paris
                                          www.ow2.org
Innovation Metrics
Goal 4: Return of Innovation Investment
    Q4.1: How much innovation process produces profits?
         M4.1.1: no. new products sold per month
         M4.1.2: no. new products sold per week
         M4.1.3: no. new customers
         M4.1.4: % revenue from new products
         M4.1.5: % new product within deadline
    Q4.2: How much innovation process costs?
         M4.2.1: time-to-market of new products
         M4.2.2: time-to-market of changes to existing products
         M4.2.3: budget spent on human resources training
         M4.2.4: no. competences involved in innovation process
         M4.2.5: no. human resources involved in innovation process
         M4.2.6: no. man-months spent to realize new product
         M4.2.7: no. man-months spent to realize changes to existing products
         M4.2.8: average number of training hours per human resource
    Q4.3: Indirect Advantages
         M4.3.1: % customer satisfaction with new products
         M4.3.2: % of human resources reaching desired competence level after training
         M4.3.3: % difference in productivity before and after training

                        OW2Con 2011, November 23 -24, Orange Labs, Paris
                                          www.ow2.org
SpagoBI




OW2Con 2011, November 23 -24, Orange Labs, Paris
                  www.ow2.org
SpagoBI




OW2Con 2011, November 23 -24, Orange Labs, Paris
                  www.ow2.org
SpagoBI




OW2Con 2011, November 23 -24, Orange Labs, Paris
                  www.ow2.org
KnowBots
• KB consists of two distinct modules which interact
  with each other
• One module is running locally in the workspace of
  the worker
• A second module is a remote server module that
  interrogates various database services across the
  network and provides the results to a user agent
  running in the local workspace
• This way we can track the information that are
  provided by the Knowbots and are used in the
  workspace

           OW2Con 2011, November 23 -24, Orange Labs, Paris
                             www.ow2.org
Scenario: AVIO
• AVIO traditionally run two separate business:
  • Plant in Torino selling engines
  • Plant in Brindisi providing overhaul services
• AVIO has no foresight on the mid-term arrivals of
  engines and is unable to optimize plans and
  procurement processes.
• FLEET MANAGEMENT
• centralizing engine monitoring and scheduling their
  overhaul process
• optimizing the flow of engines in arrival and
  reducing congestion or underutilization
           OW2Con 2011, November 23 -24, Orange Labs, Paris
                             www.ow2.org
Lesson Learned
• Access to data
  • process (competences, requirements)
  • products (requirements, ROI)
• Define Innovation Profile based on successful story
  to support comparability among past and running
  processes




           OW2Con 2011, November 23 -24, Orange Labs, Paris
                             www.ow2.org
This work is co-funded by the European Commission
        as part of the ARISTOTELE project
             (FP7-ICT-2009-5 –257886)


           OW2Con 2011, November 23 -24, Orange Labs, Paris
                             www.ow2.org

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OW2Con 2011: Open Source Innovation Factory

  • 1. Open Source Innovation Factory Paolo Ceravolo, Università degli Studi di Milano in cooperation with Engineering Group [Our Framework equipped with Innovation Metrics can dramatically reduce the time required to transfer an innovative project to a real environment] OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 2. Outlook Open Issues in Open Innovation Our Proposal Our Framework Future work OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 3. Innovation 72% of company executives rank innovation in their top 3 priorities (Boston Consulting Group, 2006) 80% of new product results will tend to come from only 20% R&D projects (Eduardo, 2003) successful companies cancelled as many innovation projects as non-successful companies. However, successful companies were able to cancel unattractive projects much earlier in the process (Ogawa & Ketner, 1997) OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 4. Open Innovation The central idea behind open innovation is that in a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, but should instead buy or license processes or inventions (i.e. patents) from other companies. In addition, internal inventions not being used in a firm's business should be taken outside the company (Chesbrough, 2003). OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 5. Open Innovation OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 6. Open Issues in Open Innovation Reduce time to identify unproductive projects Understand the synergy that are potentially relating different projects Represent Innovation Activity Measure Innovation Activity Report on Innovation Activity OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 7. Open Source Innovation Factory Mixes three complementary approaches: 1. Innovation Factory Metamodel (IFM), proposed in the ARISTOTELE project (www.aristotele-ip.eu) 2. Open source platform SpagoBI (www.spagobi.org), OLAP and Reporting 3. Knowbots, advanced tools for the acquisition of concepts from internal and external knowledge sources OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 8. Open Source Innovation Factory OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 9. Innovation Factory Metamodel OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 10. Innovation Metrics Goal 1: Innovation Level Improvement o Q1.1: Which is the level of innovative knowledge exploited in the Organization? o Q1.2: How much are innovative the new products? Goal 2: Quality of Innovation Sources o Q2.1: Which is the quality of sources of innovation process? Goal 3: Open Innovation Permeability o Q3.1: To what extend the customer contribution is exploited? o Q3.2: To what extend the concepts coming from competitors' sites are exploited? o Q3.3: Evaluate the level of technologies that are transferred by the analysis of competitors o Q3.4: How much internal proposals influence innovative products? Goal 4: Return of Innovation Investment o Q4.1: How much innovation process produces profits? o Q4.2: How much innovation process costs? o Q4.3: Indirect Advantages OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 11. Innovation Metrics Goal 1: Innovation Level Improvement Q1.1: Which is the level of innovative knowledge exploited in the Organization? M1.1.1: no. accesses to blog/forum marked as innovation sources M1.1.2: no. concepts transferred from innovation sources to produced documents (e.g. cut&paste) Q1.2: How much are innovative the new products? M1.2.1: no. tags describing new functionalities / no. concepts in innovative sources tag cloud M1.2.2: no. requirements covered by new products . OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org. www.ow2.org
  • 12. Innovation Metrics Goal 2: Quality of Innovation Sources Q2.1: Which is the quality of sources of innovation process? M2.1.1: % of external requirements, coming from outside the organization (e.g. analyzing innovative sources) M2.1.2: % of internal requirements, coming from inside the organization (e.g. from internal meetings) M2.1.3: % of customer requirements, coming directly from the customer M2.1.4: % of new products implementing external requirements M2.1.5: % of new products implementing internal requirements M2.1.6: % of new products implementing customer requirements M2.1.7: % of human resources that contribute to the innovation process OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 13. Innovation Metrics Goal 4: Return of Innovation Investment Q4.1: How much innovation process produces profits? M4.1.1: no. new products sold per month M4.1.2: no. new products sold per week M4.1.3: no. new customers M4.1.4: % revenue from new products M4.1.5: % new product within deadline Q4.2: How much innovation process costs? M4.2.1: time-to-market of new products M4.2.2: time-to-market of changes to existing products M4.2.3: budget spent on human resources training M4.2.4: no. competences involved in innovation process M4.2.5: no. human resources involved in innovation process M4.2.6: no. man-months spent to realize new product M4.2.7: no. man-months spent to realize changes to existing products M4.2.8: average number of training hours per human resource Q4.3: Indirect Advantages M4.3.1: % customer satisfaction with new products M4.3.2: % of human resources reaching desired competence level after training M4.3.3: % difference in productivity before and after training OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 14. SpagoBI OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 15. SpagoBI OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 16. SpagoBI OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 17. KnowBots • KB consists of two distinct modules which interact with each other • One module is running locally in the workspace of the worker • A second module is a remote server module that interrogates various database services across the network and provides the results to a user agent running in the local workspace • This way we can track the information that are provided by the Knowbots and are used in the workspace OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 18. Scenario: AVIO • AVIO traditionally run two separate business: • Plant in Torino selling engines • Plant in Brindisi providing overhaul services • AVIO has no foresight on the mid-term arrivals of engines and is unable to optimize plans and procurement processes. • FLEET MANAGEMENT • centralizing engine monitoring and scheduling their overhaul process • optimizing the flow of engines in arrival and reducing congestion or underutilization OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 19. Lesson Learned • Access to data • process (competences, requirements) • products (requirements, ROI) • Define Innovation Profile based on successful story to support comparability among past and running processes OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org
  • 20. This work is co-funded by the European Commission as part of the ARISTOTELE project (FP7-ICT-2009-5 –257886) OW2Con 2011, November 23 -24, Orange Labs, Paris www.ow2.org