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Copyright 2013, NineSigma 1
AN OPEN INNOVATION TOOLSET TO
BOOST INNOVATION EFFECTIVENESS
11.05.2013
QUEBEC SEEKS SOLUTIONS
Andy Zynga, CEO, NineSigma
Copyright 2013, NineSigma 2
NINESIGMA OVERVIEW
OUR CLIENTS ON NINESIGMA:
THE BEST IN THE WORLD AT UNCOVERING
TECHNOLOGIES TO SOLVE INNOVATION NEEDS.
OFFICES IN USA, EUROPE, JAPAN,
AUSTRALIA, KOREA AND CANADA 37,000 + PROPOSALS
RECEIVED FROM 116 COUNTRIES
2,500 + OPEN INNOVATION
PROJECTS COMPLETED
DIVERSE CLIENTS
MULTINATIONALS, MIDDLE MARKET,
NON-PROFIT, GOVERNMENT
2 MILLION + SOLUTION
PROVIDERS CONTACTED
PROGRAM MANAGER
EXPERIENCE: 28 YEARS AVERAGE
INDUSTRY EXPERTISE, 150
PROJECTS MANAGED
Copyright 2013, NineSigma 3
A SAMPLE OF OUR GLOBAL CLIENTS
PROGRAM DELIVERY IN:
North America Brazil South Africa Europe Japan Korea Australia
MITSUBISHI MATERIALS NEC
suntory
TOSHIBA ISUZU MOTORS
KOMATSU
HITACHI CONSTRUCTION
SUMITOMO
OSAKA GAS
ASAHI BREWERIES
The Coca-Cola Company DENSO
OMRON
SHISEIDO
TEIJIN
SHOWA DENKO
SUMCO KIRIN HOLDINGS
OLYMPUS IDEMITSU
DENKA
Copyright 2013, NineSigma 4
HOW DOES THE TECHNOLOGY SEARCH
PROCESS WORK?
TYPICALLY 6-8 WEEKS
Copyright 2013, NineSigma 5
NON-CONFIDENTIAL NEEDS BRIEF A PROBLEM WELL STATED IS A PROBLEM HALF SOLVED
CLEAR Is written so that researchers in other
industries can understand what is needed
CONCISE Provides the critical information for
potential Solution Providers to
understand what is needed for the
technology to be evaluated and acquired
COMPELLING Has a financial reward that is
commensurate with the proposed project
Copyright 2013, NineSigma 6
PACKAGE LEAK DETECTION
DISPENSER TECHNOLOGY
MICROWAVE EVEN HEATING
SENSORS
WHERE COULD UNEXPECTED CONNECTIONS TAKE YOU?
EXPANDING YOUR REACH THROUGH UNEXPECTED CONNECTIONS
Copyright 2013, NineSigma 7
SUMMARY OF KEY STEPS FOR
TECHNOLOGY SEARCH
Universities
Industry
Labs
NINESIGMA PH.D. TEAM 2. SOLUTION PROVIDERS
1. CLIENT
NineSigma Proprietary Search Methodology & Database
BROADCAST SEARCH
5.
2.
4.
“Technology Brief”
summarizing the
need (RFP)
Proposed
IP Solution
Proposed
IP Solution
Proposed
IP Solution
NON-CONFIDENTIAL
NON-CONFIDENTIAL
NON-CONFIDENTIAL
NON-CONFIDENTIAL
Copyright 2013, NineSigma 8
Return on open innovation
Data from VDMA project in textile machinery industry
Direct cost of OI project
€ 18 000 ,- + approx. 2 person months
Estimated value of realized solution
€ 375 000,-
ROI : approx. 2000%
Quality of solution:
Average of 89% immediate “fit for purpose”
Copyright 2013, NineSigma 9
THE STATE OF OHIO CREATED AN
“OPEN INNOVATION INCENTIVE”
AS A MEANS OF ECONOMIC
DEVELOPMENT FOR THE REGION.
Copyright 2013, NineSigma 10
Tech Search XYZ
INVOICE
• SALES
• MARKETING
• EDUCATION
HOW THE PROGRAM WORKS
OHIO DEVELOPMENT
SERVICES AGENCY
(ODSA)
• Provides funding to
NineSigma for
educating, selling,
marketing
• Approves Company
eligibility
• Matches Company fee
of $12.5K per
technology search
NINESIGMA
• Finds and educates
potential Clients
• Validates economic
impact (jobs created
etc.) with Company
• Performs technology
searches
• Reports results to
ODSA
OHIO BASED MID-
MARKET COMPANY
• Gets access to world’s
best technology
solutions to accelerate
innovation, get to
market faster
• Pays fee of $12,500
for technology
searches
$12,500 $12,500
Support Services
INVOICE
Tech Search XYZ
INVOICE
Copyright 2013, NineSigma 11
SINCE JANUARY 2013, CONTRACTS FOR 24
TECHNOLOGY SEARCHES HAVE BEEN AWARDED
SELECTION OF COMPANIES:
Copyright 2013, NineSigma 12
THE OPEN INNOVATION INCENTIVE EXCEEDS
THE STATE’S EXPECTATIONS
This program is the least expensive
way to create jobs. We are very
pleased with the progress! - Ohio Third Frontier Commission
June, 2013
“
”
Copyright 2013, NineSigma 13
Copyright 2013, NineSigma 14
SELECTED CLIENTS IN CANADA
CLIENT SECTOR
Cenovus Energy/Oil/Gas
CCEMC Funding Agency for technology projects that reduce
greenhouse gas emissions.
Devon Energy/Oil/Gas
Enbridge Energy/Oil/Gas
FPAC Forestry
Nexen Energy/Oil/Gas
OSLI Energy/Oil/Gas
PTAC Funding agency for technology projects that promote
advancement of hydrocarbon energy technology
Royal Construction/Building materials
Copyright 2013, NineSigma 15
CASE STUDY
• A Manufacturing Process and Automation company was searching for
commercially viable inspection technologies for surface and sub-surface
defect recognition in animal hide and other flexible material goods.
• The company was looking to develop an automated inspection system to
increase efficiency and accuracy of the inspection process.
• Numerous proposals were received that identified various methods and
techniques to examine flaws in flexible materials.
• The proposals represented approximately seven technology areas including
ultrasonic, X-ray, computer visual identification, all of which would remove
the subjectivity from the inspection process.
• The Client selected eight respondents for further discussion based on the
potential of their proposed solutions.
FLAW DETECTION IN FLEXIBLE MATERIAL GOODS
RESULTS
OVERVIEW & CHALLENGES
KEY TAKEAWAYS
• Of the eight proposals short listed by the Client, two were
ultimately selected for contract.
• One was from a technology company and the other was from a
university professor.
Copyright 2013, NineSigma 16
CASE STUDY
• In down hole drilling, extreme pressure, temperature, and distance
make use of existing electronics components near impossible.
• Client wanted to improve the use of two way communication and
sought NineSigma's help in identifying partners with innovative and
robust wireless communications systems.
• NineSigma broke the project into two sections - one to focus on
data transmission technology and the other to focus on powering
these devices "down hole" with newer, breakthrough techniques.
• Nearly 50 responses were received by NineSigma, and a variety of
approaches were identified through a facilitated evaluation,
including approaches from outside oil and gas applications.
NOVEL WIRELESS COMMUNICATION SYSTEMS FOR DOWN HOLE APPLICATIONS
RESULTS
OVERVIEW & CHALLENGES
KEY TAKEAWAYS
• By breaking the problem down into two separate but
linked projects, a wider array of interesting technologies
was proposed.
• The client was able to tailor a complete solution by
finding a good match between new methods for wireless
data transmission and ways to power them.
Copyright 2013, NineSigma 17
CASE STUDY
MAMMAL TRACKING TECHNOLOGIES
• OSLI partnered with NineSigma to identify new technologies for tracking
hoofed mammals like moose, caribou, deer, and wood bison, as well as
large predators like wolves.
• The goal was to implement a world-class approach to assuring
environmental sustainability, social well-being and economic viability in
Alberta’s Boreal Forest, while still providing the world with oil for energy.
• To find better solutions, OSLI engaged with NineSigma to put out a
Request with selection criteria that included strong scientific and
technical merit, economic potential, little to no stress on animals, and
cost effectiveness.
• Solutions were welcomed from diverse types of organizations – small to
large companies, NGOs or governments, academic researchers,
consultants, venture capitalists, entrepreneurs, and inventors.
APPROACH
OVERVIEW & CHALLENGES
KEY TAKEAWAYS
• NineSigma vetted entries together with OSLI, and the top four
technologies were funded for testing.
• These winning solutions from the U.S. and Europe include
improvements of current forward-looking Infrared technology,
military technology, multi-spectral imaging, and unmanned
aerial vehicles and drones. These four technologies do not
involve methods currently used in the oil sands region.
“We are making great progress in our goals to improve accuracy, timeliness, and economic factors in mammal tracking by seeing these top technologies in action. These technologies could advance the management of industrial impacts on wildlife while enabling safer extraction and provisioning of oil as a viable global energy resource.”
— WILL HUGHESMAN, NEXEN, LAND STWEARDSHIP WORKING GROUP CHAIR FOR OSLI
Copyright 2013, NineSigma 18
SUCCESS STORY
• Manufacturer of solutions that protect people, products and property was
looking for applications that would enable camera-equipped mobile devices
to measure and identify the surface features of small appliances.
• This was a short-range technology need with a very quick turnaround.
• Xerox responded to the RFP with a proposal for an optical approach to
align electronic inputs on a backplane. The technology was not being
actively used by the company.
• Client is licensing the technology and testing it in production.
OPTICAL OBJECT RECOGNITION AND FEATURE MAPPING FROM MOBILE DEVICES
RESULTS
OVERVIEW & CHALLENGES
KEY TAKEAWAYS
• Client wasn’t sure of the proposed solution at first, but after
some deeper discovery, they learned that the solution was
going to fit their needs.
• Open Innovation can bring ready-to-implement technologies
from other peer companies for rapid deployment.
Copyright 2013, NineSigma 19
CASE STUDY: GRAND CHALLENGE
HEAD HEALTH CHALLENGE I
• The GE NFL Head Health Grand Challenge is a $60 million program that
includes research and challenges to develop new solutions to help
advance understanding of mild traumatic brain injury.
• The first $10 million Challenge invites proposals for scanning
technologies and biomarkers.
• A second $10 million Challenge with Under Armour launches Fall 2013 to
find, fund, and develop new solutions to diagnose and protect against
traumatic brain injury.
• Because GE and the NFL bring distinct resources to their partnership,
NineSigma worked closely with GE and the NFL to align their goals and
design a challenge program that would achieve each of their objectives.
• With two challenge topics, and a diverse judging panel, the prize
strategy was a critical component that had to be defined and clearly
communicated to a broad technical and consumer audience.
APPROACH
OVERVIEW & CHALLENGES
KEY TAKEAWAYS
• Translating each Sponsor’s objective into an integrated topic
and prize strategy is a critical first step which determines the
success of the program.
• Even a large scale, multi-year Challenge such as this can be
defined, scoped and launched in a short period of time when
there is executive buy-in and support .
Copyright 2013, NineSigma 20
“Innovation and technical excellence are
critical to Air Products’ continued success in
the market. We believe that working with
NineSigma will amplify our internal R&D
efforts and will expand our ability to access
external resources and capabilities globally”
Miles Drake, Vice President and Chief
Technology Officer, Air Products
Source: Authorized attributable comments.
“Innovation is the lifeblood of our company. If
we don’t innovate, we won’t grow, or even
survive, in today’s fast moving world and highly
competitive business environment. We have
chosen to partner with NineSigma to establish
our Networked Innovation Program because
they have an impressive track record of
making open innovation work for companies
like ours,” Graeme Armstrong, Corporate
Director of Research, Development and
Innovation at AkzoNobel.
“We use NineSigma when we are looking
for alternative approaches to solve problems
or where a solution from a different industry
may help.” Todd Abraham, VP of Global
Research and Technology Strategy, Kraft
“We found the NineSigma Intelligence
program particularly helpful in getting us
quickly up to speed on our internal
knowledge on geothermal energy. We have
some strategic decisions ahead of us, but
the NineSigma program helped get us to
the point where we can make the best
decisions possible.” Rod Nelson, Vice
President, Schlumberger
OUR EFFECTIVENESS IS CONFIRMED BY
FEEDBACK FROM OUR CLIENTS
“The NineSigma Intelligence Program has
proven to be an outstanding tool for us in
our exploration of emerging technology.
The quality, organization, and delivery of
information, especially NineSigma’s
assessment and recommendations, will help
us make strategic decisions. “ Kent Young,
Director of Technology, Sherwin-Williams
“We are extremely pleased with the results from NineSigma. The companies and individuals NineSigma connected us to provided us with ready solutions to a materials need that we have been unable to address with our internal expertise. NineSigma delivered fast and significant value to our program.” Robert Finocchiaro, Ph.D., Technical Director, 3M
“We’ve distributed technology briefs to more
than 700,000 people through NineSigma
and have as a result completed over 100
projects, with 45% of them leading to
agreements for further collaboration.” Larry
Huston, Nabil Sakkab, Procter & Gamble in
Harvard Business Review, March 2006
Copyright 2013, NineSigma 21
Thank You
STAY CONNECTED
www.NineSigma.com
www.ninesigma.com/blog
PRESENTER EMAIL
PHONE
@NineSigma
@NineSights
Andy Zynga zynga@ninesigma.com
(216) 295-7876
Copyright 2013, NineSigma 22
APPENDIX
http://blogs.hbr.org/cs/2013/04/the_innovator_who_knew_too_muc.html
HBR Blog Post: The Innovator who Knew Too Much
By Andy Zynga | April 29, 2013
http://blogs.hbr.org/cs/2013/06/the_cognitive_bias_keeping_us_from.html#disqus_thread
HBR Blog Post: The Cognitive Bias Keeping Us from Innovating
By Andy Zynga | June 13, 2013
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