Open Innovation: What's behind the buzzword?

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Open Innovation
What’s behind the
buzzword?

© 2012 Ariba, Inc. All Rights Reserved.
© 2012 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture

The Report in Figure

• 84 Pages
• 20 Companies
• 11 Case Studies
• 15 Quotes
• 19 Illustrations

2 © 2012 Ariba, Inc. All Rights Reserved.
© 2012 Accenture All Rights Reserved.

Open Innovation: Address the
Innovation Imperative

At Philips we have adopted Open Innovation as our method of working. We team up
What CEOs say with academic and industrial partners who have competencies solution?
A growing pressure A new and interest
complementary to our own, join forces with industry peers on standardisation and
62% say their create momentum in the future directions of technology Open Innovation
• Innovate more we jointly aspire to, and are
active in establishing strong local networks of leading industries and research
business strategy institutes that help top technology regions to grow. Leverage collaborations
is « largely » or • Innovate faster with external partners to
« totally » get new ideas and develop
dependent on • Innovate cheaper new products and services
Our innovation strategy is an approach we call Connect + Develop through which
Innovation Procter & Gamble is seeking to build a global innovation network. While we invent
most of our products in our own labs, we want half of the new ideas to come from
outside… Connect + Develop is our way to encourage more Open Innovation. It is a
way of leveraging internally and externally developed innovation assets. We are
developing mutually beneficial relationships with the talents and technologies of
today’s most inspired minds and capabilities.


Key Questions

1. « Old wine in a new bottle »?

2. What does it take to be a best performer in Open Innovation?

3. What is the real impact of Open Innovation on the overall
innovation performance?


20 Companies Actively Leveraging
Open Innovation

Jean-Luc Beylat
President of Alcatel Lucent Bell Labs

Dario Liguti
Strategic Marketing Director of France, GE Global
Growth & Operations

Dr. Graham Cross
Director of Supplier Innovation and Innovation
Acceleration


10 Key Take-aways

10 Key take aways…


10 Take aways on Open Innovation
Take away
1.
• A structured and systematic approach for bringing outside inside


Take away
2.
• A fast pace of adoption: only 10 years from first movers to large
adoption

Open Innovation
adoption timeline


Take away
3.
• Tapping into an almost unlimited number of external sources

General Mills vision of
Open Innovation


Take away • Positioning the open innovation strategy on the
4. right openness scale

Open Innovation
“Opennessmatrix”


Take away
5.
• Defining the right balance between depth and breadth of
relationship with partners

Open Innovation
the breadth / depth
trade-off


Take away
6.
• Excelling at the partner management process

Company
PULL PUSH
Collaborative Scouting department
platforms,
Open days…
Partner
A real shift
from rather
random/experimental Case-by-case Semi-standard End-to-end
approaches Collaborations OI process OI process
to a manageable
end-to-end process


Take away
7.
• There is no Open Innovation “free lunch”

Open Innovation is not
free and requires
investments in
capabilities

• Top management sponsorship
• Corporate culture: from “not invented here” to “proudly found elsewhere”
• Absorptive capacity
• Resources, time, budget, IT
• Success stories to communicate


Take away
8.
• It is not only about appointing a “Chief Open Innovation Officer”

• Objective: Make Open
Innovation a routine
• The key impact of a cross-
functional approach
♦ With the lead of R&D
& marketing (53%)
♦ New types of recruits:
people who know little
about many topics


Take away
9.
• Open Innovation has not resolved the innovation’s
Bermuda triangle
Input KPIs Process KPIs Output KPIs

• Analyze how OI impacts Investment in OI (% of Number of Open Innovation
Number of external ideas
Innovation KPIs turnover) projects
Number of OI dedicated Number of projects
Number of new partners
staff achieved through OI

• Introduce OI KPIs Specific recruitments to
implement Open Innovation
Diversity of partners (type,
Number of new products/
services launched with
localization…)
approach partners
Number of involved Number of active
Time-to-market
departments in OI projects partnerships
Number of registered Number of patens through
Frequency of meetings with
innovations in the OI projects (or other IP
partners
collaborative platform rights)
Quality of Employees’
Time to respond to new Revenue generated by OI
Involvement (number of
ideas/ solutions projects
ideas, contributions…)
% of staff’s objectives on Number of new products/
Number of OI success
the achievement of OI services developed with
stories
planned results partners
Amount of OI rewards for % of implemented ideas Number of sustainability
employees from new partners related projects

Take away
10.
• Open Innovation works!

Shorter time to market
Not cheaper

Better IP protection

More sustainable Higher company’s
innovativeness


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