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BOOSTING INNOVATION BY
COLLABORATIVE ONLINE IDEATIONS

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Frank Hatzack

Business Innovation
Novozymes
fhat@novozymes.com
@frankhatzack

Presented at
IATI Biomed
Tel Aviv

June 11th, 2013
ABOUT NOVOZYMES
World leader in
- Industrial enzymes
- Microorganisms
- Biopharmaceutical indgredients
Bio-solutions for
- Detergents
- Biofuels
- Food & feed
- Crops
Employees:
Turnover:
Patents:
Listed:

 6000 worldwide
 $ 2 billion
> 6000
NZYB.
THE STORY IN A NUTSHELL

2011
Need for new growth bets
leads to first COLIN
2012
Fast adoption across the
organisation
2013
COLIN = standard process

Why was COLIN succesful?
Why was adoption fast?
What did we learn here?
RAPID ADOPTION ACROSS THE
ORGANIZATION

438
75%
319

LEGEND
users
%active
ideas

62
76%
38

=PUSH
=PULL

76
70%
48

145
75%
222

112
80%
75

14
83%
29

58
91%
42
59
95%
26

TOTALS
1009 users
75% active users
871 ideas

100% R&D

Q4
2011

Q1

45
84%
39

Q2

Q3
2012

Q4
FACTORS OF SUCCESS
Strategic alignment
Timing
Mobilization
SIMPLICTIY
Robustness
Familiarity

Crowd diversity

Company culture
Capacity to absorb
ESTABLISHED SKILLS
FANCY SOME GAMIFICATION?

Gamification level needs to resonate with culture
INNOVATION PROCESS & SKILLS

SCOPE

MOBILIZE
CROWD

ONLINE
IDEATON
2 weeks

New steps & skills

SCREEN

MATURE

PITCH

ANCHOR

1 month

Existing innovation process & skills

= ABSORPTIVE CAPACITY
DIMENSIONS OF CROWD MOBILIZATION
FACE-TO-FACE

TELEPRESENCE

SOCIAL LAYER
New Teams

Strategic Beacons

New Opportunities

OUTCOMES

Image sources
Beacon:www.konstantinou.nl
Think Big: www.bobbotsford.com
A-team: http://springboard.com
Value of diversity
DIVERSITY
MATTERS!

Optimization

Cost

of diversity

of diversity
DIVERSITY CORRELATED WITH IDEA RANKING

Diversity dimensions: seniority, tenure, rank, site

Statistical method: Fisher’s exact test
EVERY COMPANY HAS A
HIDDEN DREAM TEAM
…a long-tail case story

Frank Hatzack and Maria Carlsen
@frankhatzack, @MaCarlsen
HISTORIC RECORD OF IDEA POSTING IN THE ’ALWAYS OPEN
IDEA BOX’

35 idea web curve

no. of posted ideas

30
25
20
15
10

Long tail group: 23 inventors (I – AE) accounted for 46 (30%) of
the idea-web ideas in question

5
0

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

inventors

R

S

T

U

V

W

X

Y

Z AA AB AC AD AE
ON-LINE CAMPAIGN OBSERVATIONS:
The ‘long tail group’ outperformed the ‘high activity group’ by
producing more top-category ideas
‘THE BANG IS IN THE TAIL!’
35

idea web curve

30

no. of posted ideas

25

x Top category idea (x= no. of top category ideas posted)
Winning idea

1

20
15
2
10

1
1

5

1
1

2

1

1

1

0
A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

1

1

Q

R

1

1

V

W

1
1

1

P

campaign curve

1

inventors

S

T

U

X

Y

1

1
1

Z AA AB AC AD AE
How we rewarded winners in our culture…

THANKS
MOBILIZATION =
INTELLECTUALLY
COMPELLING
+
EMOTIONALLY
ENGAGING
*with reference to
Michael Newman
COST OF ON-LINE DIVERSITY …

…plus

the vendor’s fee!
COMPANY CULTURE

PEOPLE

VALUES

NURSING
CONTINUITY
SENSITIVITY
1ST LESSON : IT IS ABOUT PEOPLE, NOT SOFTWARE
"IF YOU WANT TO BUILD A SHIP,
DON'T DRUM UP PEOPLE TO
COLLECT WOOD AND DON'T
ASSIGN THEM TASKS AND
WORK,
BUT RATHER TEACH THEM TO
LONG FOR THE ENDLESS
IMMENSITY OF THE SEA."
ANTOINE DE SAINT EXUPÉRY
GET REAL ABOUT
YOUR CULTURE!
…intensively discussed at
THE THEORY BEHIND DIVERSITY &
INNOVATION

OPTIMAL
COGNITIVE
DISTANCE
&
ABSORBATIVE
CAPACITY

Nooteboom et al. (2007) in:
Research Policy, vol 30, issue 7,

pp 1016–1034
FAST ADAPTATION – WHY?

1.Successful first movers have many followers
2.A tool & process gap was filled

3.CULTURE
COMPANY CULTURE IS CRITICAL FOR
MOBILIZED DIVERSITY

INNOVATION

CROWD
composition MOBILIZATION
external
culture

extrinsic
COMPANY
motivators CULTURE
OR IN OTHER WORDS…

CULTURE EATS
STRATEGY FOR
BREAKFAST!
Intensively discussed during:
…and a paper accepted in
MOBILIZING THE CROWD
Open Letter from our CSO Per Falholt
COST OF DIVERSITY – CLASSIC IMAGES

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Boosting innovation through collaborative online ideations

  • 1. BOOSTING INNOVATION BY COLLABORATIVE ONLINE IDEATIONS @ # Follow Like Share Comment Frank Hatzack Business Innovation Novozymes fhat@novozymes.com @frankhatzack Presented at IATI Biomed Tel Aviv June 11th, 2013
  • 2. ABOUT NOVOZYMES World leader in - Industrial enzymes - Microorganisms - Biopharmaceutical indgredients Bio-solutions for - Detergents - Biofuels - Food & feed - Crops Employees: Turnover: Patents: Listed:  6000 worldwide  $ 2 billion > 6000 NZYB.
  • 3. THE STORY IN A NUTSHELL 2011 Need for new growth bets leads to first COLIN 2012 Fast adoption across the organisation 2013 COLIN = standard process Why was COLIN succesful? Why was adoption fast? What did we learn here?
  • 4. RAPID ADOPTION ACROSS THE ORGANIZATION 438 75% 319 LEGEND users %active ideas 62 76% 38 =PUSH =PULL 76 70% 48 145 75% 222 112 80% 75 14 83% 29 58 91% 42 59 95% 26 TOTALS 1009 users 75% active users 871 ideas 100% R&D Q4 2011 Q1 45 84% 39 Q2 Q3 2012 Q4
  • 5. FACTORS OF SUCCESS Strategic alignment Timing Mobilization SIMPLICTIY Robustness Familiarity Crowd diversity Company culture Capacity to absorb ESTABLISHED SKILLS
  • 6.
  • 7. FANCY SOME GAMIFICATION? Gamification level needs to resonate with culture
  • 8. INNOVATION PROCESS & SKILLS SCOPE MOBILIZE CROWD ONLINE IDEATON 2 weeks New steps & skills SCREEN MATURE PITCH ANCHOR 1 month Existing innovation process & skills = ABSORPTIVE CAPACITY
  • 9. DIMENSIONS OF CROWD MOBILIZATION FACE-TO-FACE TELEPRESENCE SOCIAL LAYER
  • 10. New Teams Strategic Beacons New Opportunities OUTCOMES Image sources Beacon:www.konstantinou.nl Think Big: www.bobbotsford.com A-team: http://springboard.com
  • 12. DIVERSITY CORRELATED WITH IDEA RANKING Diversity dimensions: seniority, tenure, rank, site Statistical method: Fisher’s exact test
  • 13. EVERY COMPANY HAS A HIDDEN DREAM TEAM …a long-tail case story Frank Hatzack and Maria Carlsen @frankhatzack, @MaCarlsen
  • 14. HISTORIC RECORD OF IDEA POSTING IN THE ’ALWAYS OPEN IDEA BOX’ 35 idea web curve no. of posted ideas 30 25 20 15 10 Long tail group: 23 inventors (I – AE) accounted for 46 (30%) of the idea-web ideas in question 5 0 A B C D E F G H I J K L M N O P Q inventors R S T U V W X Y Z AA AB AC AD AE
  • 15. ON-LINE CAMPAIGN OBSERVATIONS: The ‘long tail group’ outperformed the ‘high activity group’ by producing more top-category ideas ‘THE BANG IS IN THE TAIL!’ 35 idea web curve 30 no. of posted ideas 25 x Top category idea (x= no. of top category ideas posted) Winning idea 1 20 15 2 10 1 1 5 1 1 2 1 1 1 0 A B C D E F G H I J K L M N O 1 1 Q R 1 1 V W 1 1 1 P campaign curve 1 inventors S T U X Y 1 1 1 Z AA AB AC AD AE
  • 16. How we rewarded winners in our culture… THANKS
  • 18. COST OF ON-LINE DIVERSITY … …plus the vendor’s fee!
  • 20. 1ST LESSON : IT IS ABOUT PEOPLE, NOT SOFTWARE "IF YOU WANT TO BUILD A SHIP, DON'T DRUM UP PEOPLE TO COLLECT WOOD AND DON'T ASSIGN THEM TASKS AND WORK, BUT RATHER TEACH THEM TO LONG FOR THE ENDLESS IMMENSITY OF THE SEA." ANTOINE DE SAINT EXUPÉRY
  • 21. GET REAL ABOUT YOUR CULTURE! …intensively discussed at
  • 22. THE THEORY BEHIND DIVERSITY & INNOVATION OPTIMAL COGNITIVE DISTANCE & ABSORBATIVE CAPACITY Nooteboom et al. (2007) in: Research Policy, vol 30, issue 7, pp 1016–1034
  • 23. FAST ADAPTATION – WHY? 1.Successful first movers have many followers 2.A tool & process gap was filled 3.CULTURE
  • 24. COMPANY CULTURE IS CRITICAL FOR MOBILIZED DIVERSITY INNOVATION CROWD composition MOBILIZATION external culture extrinsic COMPANY motivators CULTURE
  • 25. OR IN OTHER WORDS… CULTURE EATS STRATEGY FOR BREAKFAST! Intensively discussed during:
  • 26. …and a paper accepted in
  • 27. MOBILIZING THE CROWD Open Letter from our CSO Per Falholt
  • 28. COST OF DIVERSITY – CLASSIC IMAGES