Hacking Open InnovationAzim Pawanchik

Hacking Open InnovationAzim Pawanchik

The Need:

Create growth opportunities among small IT companies/start-ups (MSC Companies) in Malaysia through innovation.

IT• Limited resources• Limited track record• Lack innovation opportunity

The Scenario

In Malaysia, many corporate doors remain closed to start-ups/SMEsChallenge #1:

Source: Malaysia’s National Innovation Strategy Study (2011) and Malaysian Innovation Climate Survey (2010)

Innovation Readiness of large organization.Challenge #2:

Large Organization • Innovation Readiness• Low risk taker • Conservative resource

allocation • Rigid procurement

process• Low tolerance for

failure

Source: Malaysia’s National Innovation Strategy Study (2011) and Malaysian Innovation Climate Survey (2010)

TIME TO HACK OPEN INNOVATION

Our Hack: The InnovAsian Catalyst CampBlend of Capability Building, Open Innovation & Social Innovation

• Able to obtain fresh solutions • Play role in expediting

development of SMEs

• Uplift knowledge base and approach towards innovation for host and MSC-Companies

• Have filtering mechanism (SCORE+)

• Trusted source• Has resource to support

development of MSC-companies

• Develops capabilities of MSC-Companies

• Understand customers better• ‘Practice’ of interacting and

designing for real clients• Able to secure contracts

INTERMEDIARY (Alpha Catalyst)

MSC-COMPANIESHOST

MDEC (Government Agency)

ICC

The Process

Provide a framework for idea generation, evaluation and analysis of ideas. The model used:

Our Role

MSC-Companies reluctant to share truly innovative ideas out of fear of it being hijacked

Pre-qualify host and manage expectation of MSC-Companies

Challenges & Resolution

MSC-Companies’ solutions are not up to expectation of hosts

Simultaneous skill development programs are identified and initiated for the MSC-Companies. MSC-Companies are more open to attend these sessions.

Many host companies are ‘closed’ & unwilling to share challenges

Explore more ‘neutral’ areas which may still generate significant value for the host organization.

Occasionally the MSC-Companies show a low commitment and send inappropriate representatives

Need to ‘qualify’ not just the company but also the representatives from the company

Impact of ICCHost

• Obtain fresh solutions and FAST• Exposure to new technology in

market • Received potentially high value,

low risk project with minimal investment

• Recognition for helping develop the ‘ecosystem’*

• Realization: GLCs need to re-examine procurement process

• Opened up minds of hosts: willing to attempt more sessions

MSC-Company

• Garner contracts and $ • Companies build relationship with

host• Gain confidence in providing

valuable solution • Understand ‘customers’ better-

able to design more market –driven solutions & approach other similar host companies

• Gather insight and in-depth knowledge of host sector/industry

• Acquire knowledge on how to approach innovation more systematically

• Get direct feedback from customers

*Telco host company won a 2012 Collaborative Supply Chain award from an international institute

Value generated MDeC

• Increased trust and confidence in local solutions

• Gaps & needs of MSC-Companies were more systematically addressed

• Higher quality of local solutions generated to match demand and expectations.

• Boost MDeC’s brand as a 1st mover among different government agencies in spurring open innovation

Alpha Catalyst

• Wider collaborative network with government agencies and MSC-Companies

• Stronger relationship built with large organizations/GLCs

• Opportunity to deepen knowledge in various industries

• Allowed to experiment new approaches in open innovation

• Boost brand in the market

Conclusion

• Open innovation is still in its infancy stage for both host companies and solution provider. More effort needs to be invested into resolving IP challenges in addition to building the right culture, capability and mindset for collaboration

• Need to allow for experimentation and even failure to develop an approach that is suitable for the local environment

• Host and MSC-Companies need to be willing to share their success and pitfalls to encourage more participation of the project

• Government agencies can play a leading role to accelerate collaboration between large companies & start-ups

• New polices and incentives are needed to spur open innovation further