2012.05.03 organising for open innovation
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Organizing for Open Innovation
Professor Charles Snow, Penn State University &
Fulbright-Hall Chair in Entrepreneurship
National University of Ireland, Galway May 4, 2012
When The Innovation Process Is “Closed”
Hold Creativity/Innovation Workshops Organize Innovation Tournaments Expand and/or Focus R&D Create Internal Venture Capital Committees Appoint and Empower Business Development Teams Acquire Other Firms
If You Have a Problem, Ask Everyone!
-- Title of a New York Times article (Dean, 2008)
InnoCentive
l Spun out of Eli Lilly in 2001 l First online marketplace for corporate R&D l Seekers, Challenges, and Solvers l Process: Seekers formulate and post challenges. Registered
solvers work on the challenges. Winning solvers get predetermined financial awards ($5,000 to $1 mil.)
l InnoCentive has various programs that can be used for innovation, and it has mechanisms for protecting intellectual property rights.
P&G’s Connect and Develop Program
l From R&D to C&D (from closed to open) l 7,500 internal R&D staff could be “connected” with 1.5 million
people of similar or greater talent l Goal of 50% of innovations coming from outside the company l Technology briefs are provided to networks of: government and
private labs, academic and other research institutions, suppliers, retailers, competitors, development and trade partners, VC firms, and individual entrepreneurs
l 70 P&G “technology entrepreneurs” who work out of six C&D hubs in China, India, Japan, Western Europe, Latin America, and the U.S.
User-Driven Innovation
l Identify “lead users” (customers who are at the front of market trends and who expect benefits from new products)
l Use lead users to help develop new products and as beta sites
l Establish programs that enable lead users to become entrepreneurs (e.g., LEGO’s Ambassador Program, LEGO Architecture, LEGO Factory)
OpWin Global Network: Organized for Continuous Innovation
l Three founding firms l Principal Office l Innovation Catalogue (Idea Bank) l 60 member firms collaborate with whomever
they want
Blade.org: A Collaborative Community of Firms
l Launched by IBM and seven other Founding Firms in 2006
l Capitalized on IBM’s reputation forged in the open source software ‘movement’
l Grew to more than 200 member firms (mostly U.S. firms but some international)
l Blade.org has a significant share of the blade server market
l Blade.org ceased operations in June 2011
Blade.org: Purpose and Strategy
l Purpose is to find applications for IBM’s bladecenter technology (a computer server technology)
l Strategy is to invent new solutions via collaborative innovation projects and networks
l Member firms are free to self-organize l Website, IdeaBank, and nine technical committees
constitute the “commons” l Principal Office serves as the Shared Services Provider
Collaborative Processes at Blade.org
Within 18 months, Blade.org firms developed more than 60 solutions through:
l Bilateral Collaboration (with customers) l Direct Collaboration (among two or more Blade.org
member firms) l Pooled Collaboration (IdeaBank) l External Collaboration (with outside firms)
Actor-Oriented Architectural Scheme
Actors who have the values and capabilities to self-organize Commons where resources are accumulated and shared Protocols, Processes, and Infrastructures that enable the actors to connect and collaborate
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