This is my presentation from the Conferencia Crowdsouring in Sao Paulo, Brazil where I gave a talk on the 7 Steps for Open Innovation.

1. 7 Steps for Open Innovation
ConferenciaCrowsourcing, Sao Paulo, September 5, 2014
Stefan Lindegaard
www.15inno.com
stefanlindegaard@me.com
@lindegaard

2. Stefan Lindegaard
Author, speaker and strategic
advisor on open innovation,
innovation management /
culture and the people side of
innovation.
Get in touch!
www.15inno.com
stefanlindegaard@me.com
@lindegaard

3. It’s about execution!
People first, processes next,
then ideas…

4. 7 Steps for
Open Innovation
1. Common Language and Understanding, Motivation,
Mandate and Strategic Purpose
2. Assets and Needs
3. Value Pools and Channels
4. Internal Readiness
5. External Readiness
6. New Skills and Mindset
7. Communications Strategy

6. Faster pace, shrinking window of opportunity,
less time for cash cows
Driven by global megatrends: faster, more
open, more transparent and more connected
We need a more holistic approach to innovation!

7. What is open innovation?
“…a philosophy or a mindset that they should
embrace within their organization.
This mindset should enable their organization
to work with external input to the innovation
process just as naturally as it does with internal
input”
Open innovation as a term will disappear in 5-7
years!

8. P&G MEDTECH PHARMA
Cycle time, money, IPR, conservatism,
government regulations and internal readiness

9. Corporate
benefits:
(open innovation/crowdsourcing)
• Speed, diversity, new
knowledge pools
• Experimentation (don’t be
left behind)
• Marketing as well as
innovation vehicle
• More cost-effective than
hiring consultants

10. Change how we innovate
Be competitively unpredictable
Develop the right conditions and framework

11. Design, build and sell awesome products
together.

12. Is the real business model facilitation?
1. Develop a community
2. Make it work in chosen area (vehicles)
3. Move into other industries (complex
mechanical devices)
This can work for startups. What about SME’s
and bigger companies? New business areas?

13. “FirstBuild is global co-creation paired with a
microfactory on site,” said Chip Blankenship,
CEO of GE Appliances. “We will innovate and
bring products to market faster than ever before.”
Image: Colin West McDonald / CNET

14. Samsung Open Innovation Center has 3 of 4
legs focusing on startups

15. Current (open)
innovation trends
• the start-up value pool is sizzling hot
• the big issue is not IPR, but how to scale up
open innovation and how to communicate
• tolerance for failure, experimentation and
“smartfailing” are growing issues
• companies are about to upgrade their
innovation capabilities (some are in for a
surprise)
• Near future: From 1-1 to many-to-many

16. 7 Steps for
Open Innovation
1. Common Language and Understanding, Motivation,
Mandate and Strategic Purpose
2. Assets and Needs
3. Value Pools and Channels
4. Internal Readiness
5. External Readiness
6. New Skills and Mindset
7. Communications Strategy

17. Step 1: Common language and
Understanding, Motivation, Mandate
and Strategic Purpose

18. “You need to speak the same language if you
want to get internal and external stakeholders
onboard.
This starts with a clear agreement on how
innovation – internally as well as externally
focused - fits the specific situation of your
company.”
- Stefan Lindegaard

19. To Clorox, open
innovation means
• More capabilities and expertise: Using
others to deliver meaningful innovation
• More find: Developing external networks to
exponentially increase the source of new ideas
Clorox wants to use open innovation to:
1. Find ideas, technologies and products
2. Outsource entire chunks of product
development
3. License / sell internal ideas and technologies
to others

20. Clorox, don’t get too narrow!
“We will no longer talk about open innovation in
most industries within the next five to seven
years.
It will just be about innovation, but the level of
external input to the innovation process will be
be much higher than what we see today.”
- Stefan Lindegaard

21. Two key
questions:
• What is your motivation
for pursuing open
innovation?
• Why is open innovation
relevant to your company,
its present situation, and its
mission and vision?
Tie this into your strategic
purpose and innovation
mandate!

22. Does Brazil lack
strategies and
mandates?
Don’t get me started on top
executives 

23. A clear innovation
mandate should:
• Lay out the resources and
authority given to the
innovation team
• Clarify how potential
conflicts are to be handled
• Encourage stakeholders to
solve problems on issues
such as resource allocation
and commitment without
involving the executives

24. The TBX model
or why middle
managers stop…

25. ...innovation just
by doing their job!
• T (Top Down): Get executives
onboard, personally committed to
innovation. Without executive
support, no change occurs
• B (Bottom Up): Value creation
begins with people, one by one, team
by team. Nothing happens unless you
get employees engaged
• X (Across): Middle managers get the
job done (for good and bad) – set the
right objectives and incentives!

26. Think / Reflect
• What is the most important question to
have in mind when leading change driven
initiatives such as open innovation?
• It is simple yet a question that everyone
will ask themselves…
What’s in it for me?

27. Step 3: Value Pools and
Channels

28. Employees Managers Suppliers Academics /
institutions
Executives Alumni VCs Startups
Business unit
/ function
Users /
consumers
Government
Competitors Inventors

29. “This is important. Most big companies have 8, 10
or perhaps even 12 different external value pools
that they can look into.
However, even companies that are doing well with
open innovation are generally not capable of
working with more than two to four value pools at
the same time.”
- Stefan Lindegaard

30. InnoCentive Alliances /
joint ventures
Campaigns
(Comm / Public)
Entrepreneur
Day
Consortia
MyStarbucks
Idea.com
Campaigns
(Comm / Public)
Supplier
Summit
CREDIT: OVO Innovation

31. “As with value pools,most companies can only be
successful in managing two to four channels at a
time, especially when you are new to open
innovation.
You need to experiment to determine which
channels work best for you.”
- Stefan Lindegaard

32. Questions?

33. Step 4: Internal readiness

35. Today, innovation is about having groups of
people come together – internally as well as
externally.
This requires a networking culture that is
designed, supported, and modeled by your
company’s leaders.
You simply can’t have a strong innovation culture
without a strong networking culture.
- Stefan Lindegaard

36. What does a good
networking culture
look like?

37. Networking efforts require direction, training and
time. Few executives get this.

38. Embrace experimentation
– and the failures that
come along with it!

39. More than half of the companies do not recognize
failure as an inherent part of an innovation culture!

40. “Two types of failure:
• honorable failure is where an honest attempt at
something new or different has been tried
unsuccessfully and
• incompetent failure where people fail for lack of
effort or competence in standard operations.”
Credit: Paul Sloane

41. Developing a culture that is constructive about
failure requires a new vocabulary.
Smartfailing
When an organization embraces smartfailing, it
de-stigmatizes failure internally and uses failure
as an opportunity to learn and to find a better
course.

42. There are no quick fixes because the top
executives that got us into this mess are not
ready to lead us out of it!

43. Too much focus on products, technology
Unrealistic expectations on time, resources
Lack of resources in budget, people, infrastrucure
Silo rather than collaborative approaches
Poorly defined innovation strategy (if any)

44. If you really want to
change a culture…
Reward behaviors, not just
outcomes!

45. Step 6: New Skills and Mindset

46. A CFO is wary about investing in the training and
education of the employees.
He asks the CEO: ”What happens if we invest in
developing our people and then they leave the
company?”
The CEO is a bright person and replies: ”What
happens if we don’t and they stay?”

49. 1) Holistic point of view (intrapreneurial skills)
2) Ability to constructively handle conflict
3) Optimism, passion and drive
4) Curiosity and belief in change
5) Tolerance for / ability to deal with uncertainty
6) Adaptive fast learner with sense of urgency
7) Talent for networking / strategic influencing
8) Communication skills

50. Horizontal: disposition for
collaboration across disciplines
Vertical:
depth of
skill which
allows to
contribute
Only T-shapes:
“Occasionally, we
have people who
don’t really have a
depth of skills, and
they really struggle.
They don’t get
respect from the
group.”
Credit: Tim Brown / IDEO
Only I-shapes:
“…very hard for them
to collaborate…each
individual discipline
represents its own
point of
view…becomes a
negotiation…you get
gray compromises…
The results are never
spectacular but at
best average.”

51. What skills / key people do you need now, short
and long term? How do you get access to them?

52. Discovery – Incubation – Acceleration: Have the
right people at the right time!

53. Finding and developing
the right people
• Future potential versus past competencies
(HBR, June 2014)
• Adaptability is key – but in what direction?
• Future innovation leaders create communities
(shared sense of purpose, values and rules of
engagement)
• Future innovators are intelligent in many ways
• Build the right conditions and frameworks

54. Thoughts on
training programs
• Begin by training the trainer
• Intrapreneurship-like programs are one of the
best ways of identifying and developing people
who will drive innovation forward
• Bring in real life experiences
• Training program itself must be agile to keep up
with emerging trends in innovation
• Don’t forget the executives

55. Step 7: Communication skills

56. Great innovators are
great communicators!
• View communication in the broad sense –
include networking and stakeholder management
• Have clear messages that resonate with the
audience – go beyond the corporate speak
• Use a range of communication tools – too few
innovators know about social media
• Have a plan in place…

57. It’s about execution!
People first, processes next,
then ideas…

58. Get in touch!
Book signing now!
Corporate innovators
– breakfast tomorrow?
Send me your questions!
Let’s meet next time!
Let’s connect on LinkedIn!
Check my blog on www.15inno.com - share it!
stefanlindegaard@me.com / @lindegaard