Frameworks and Practices of Social Innovation - Pietro Butté
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Frameworks and Practices of Social Innovation - Pietro Butté, Speaker at Social Business Forum 2013
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Goldcorp: Search for innovators
• Made available digital maps
• Value of gold found: $6 billion
• 55 sites identified that were previously unknown
• Getting ideas
• Search for innovators (contest)
Why
How
What
Results
Context • Limited success in pinpointing gold’s
underground location at Red Lake Mine
• >80% with significant gold reserves
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Frameworks and Practices of Social Innovation - Pietro Butté
- 1. Frameworks and Practices of Social Innovation Strategic Business Forum presentation June 13, 2013 CONFIDENTIAL AND PROPRIETARY
- 2. [2] Goldcorp: Search for innovators • Made available digital maps • Value of gold found: $6 billion • 55 sites identified that were previously unknown • Getting ideas • Search for innovators (contest) Why How What Results Context • Limited success in pinpointing gold’s underground location at Red Lake Mine • >80% with significant gold reserves 4
- 3. [3] Key messages 6There are at least six ways you can foster (social) innovation in your company Social Innovation is broader than Open Innovation S O C I A L
- 4. [4] . Open Innovation vs. Social Innovation Source: adapted from H.W. Chesbrough, Open Innovation:The New Imperative for Creating and Profiting from Technology, 2003; E. Huinzuig, Open Innovation: State of the art and future perspectives, 2010, OpenKnowledge analysis Closed Open Closed Open Innovation outcome Innovation process Closed innovation Public innovation Private open innovation Open source Open innovation Social innovation
- 5. [5] . Social innovation framework Search Collaborative Closed Open Model Innovation process R&D online innovation Business model innovation Company-wide idea management Call for IP ideas Search for innovators Search for consumer innovators Source: adapted from H.W. Chesbrough, OpenInnovation:The New Imperative for Creating and Profiting from Technology, 2003 J.Philips, Open Innovation Typology (in A Guide to Open Innovation and Crowdsourcing, by Paul Sloane), 2006, OpenKnowledge analysis 2 5 4 6 1 3
- 6. [6] . Social innovation framework Search Collaborative Closed Open Model Innovation process Source: adapted from H.W. Chesbrough, OpenInnovation:The New Imperative for Creating and Profiting from Technology, 2003 J.Philips, Open Innovation Typology (in A Guide to Open Innovation and Crowdsourcing, by Paul Sloane), 2006, OpenKnowledge analysis Big R&D Co. Health Co. Fashion Co. 2 1 3 4 6 5
- 7. [7] P&G: Call for IP ideas • Launched an open innovation program charged with bringing the outside in • Share of outside innovation grew from 15% to 50% in 4 years • 1,000+ external companies and individuals involved • Getting ideas • Finding talent • Call for IP ideas Why How What Results 5
- 8. [8] Lego: Search for consumer innovators … 6 • Contest, community building • Provide product ideas and help evaluate which are best • Getting ideas • Evaluating ideas • Causing conversations • Search for consumer innovators Why How What Results
- 10. [10] . Social innovation framework Search Collaborative Closed Open Model Innovation process R&D online innovation Business model innovation Company-wide idea management Call for IP ideas Search for innovators Search for consumer innovators Source: adapted from H.W. Chesbrough, OpenInnovation:The New Imperative for Creating and Profiting from Technology, 2003 J.Philips, Open Innovation Typology (in A Guide to Open Innovation and Crowdsourcing, by Paul Sloane), 2006, OpenKnowledge analysis 2 5 4 6 1 3
- 11. [11] Why R&D online innovation Between R&D central function and satellites Source: 2012 McKinsey R&D survey with 1,283 executives; Organizing R&D for the Future, by Capozzi, Van Biljon and Williams, Sloan Management Review, 2013 <50% Among R&D satellites Companies where R&D collaborate very effectively <25% The issue … … and a possible solution • “High performers are more likely to […] use social media to collaborate internally, engage external partners and crowdsource ideas” • “Leveraging online collaboration tools in support of knowledge sharing and virtual teaming is essential across a global R&D footprint” 2012 R&D Survey results R&D ONLINE INNOVATION 1
- 12. [12] Who to engage? Organizational Network Analysis (ONA) Benefits • Verify network status (network, relations, nodes) • Selection of key people, like potential key idea generators and evaluators Big R&D Co. 1
- 13. [13] Why business model innovation Source: Alex Osterwalder, Yves Pigneur, Business Model Generation, 2010 BUSINESS MODEL INNOVATION 2 Business model canvas Key partnerships Key activities Key resources Cost structures Customer relationships Channels Revenue streams Value propositions Customer segments
- 14. [14] Why business model innovation Health Co. 2
- 15. [15] 25% 50% 100%=51 Potentially innovative 12% Total Number of ideas, percent Adaptation No value 2% Disruptive 12% Continuous improvement Business Model innovation results Health Co. 2
- 16. [16] Why a company wide idea management • Engage employees on a worldwide basis to work together and generate innovative ideas • Foster a cultural change toward new values or reinforce older values of the company 3
- 17. [17] Innovation idea management: process • Teams of experts evaluate best ideas • Approved ideas and their passionate supporters go on to the next stage of implementation • Identify innovation challenges that face a business issue Key activities Key features • Collaboration • Efficiency • Business focus • Structured review • Teams • Workflow • Generate ideas • Co-create: comment, criticize, vote • Over a set period of time Challenge Explore Evaluate Ideas Health Co. 3
- 18. [18] . Social innovation framework Search Collaborative Closed Open Model Innovation process R&D online innovation Business model innovation Company-wide idea management Call for IP ideas Search for innovators Search for consumer innovators Source: adapted from H.W. Chesbrough, OpenInnovation:The New Imperative for Creating and Profiting from Technology, 2003 J.Philips, Open Innovation Typology (in A Guide to Open Innovation and Crowdsourcing, by Paul Sloane), 2006, OpenKnowledge analysis 2 5 4 6 1 3
- 19. [19] How to choose: start with a clear objective definition Community management Collaborative platform Outcome/ Activity flow KPIs The workflow and procedures through which activities get done Definition of desired outcome Who to engage Source: OpenKnowledge analysis Community Technology Measures Process PeopleObjective