“Beyond Open Innovation: Leveraging Social Capital”
Transforming Lives & Services -Challenges of Living in a Digital World
Mark Dames - BT DesignDavid Robson - Scottish EnterpriseMadeline Smith - Scottish EnterpriseTom Tumilty - Scottish Government
Contents
• Open innovation • The role of technology in enabling open
innovation• Organising models for open innovation• Policy implications for government, business &
society• Conclusions
“. . . innovation is no longer individuals toiling in a laboratory, coming up with some great invention.
It’s not an individual …
Sam Palmisano, Chairman and CEO, IBM
… It’s individuals
... It’s multidisciplinary
… It’s global
… It’s collaborative.”
Collaborate to Innovate
Technology Tools
Social bookmarks combine individual bookmarks, making it possible to identify common interests that drive recommendations or relevancy. Examples: Yahoo/del.icio.us, digg, connotea.org, BlinkList, Outfoxed.
Social tagging (folksonomies) lets users add metadata or labels to create more useful and natural classification schemes.
Examples: Flickr, LibraryThing, del.icio.us, Last.fm.
Content rating and reputation management lets participants rate other participants or content.Examples: Amazon, eBay, Epinions, Slashdot.
Likes/dislikes (taste sharing) aggregate opinions that can also drive recommendations, relevancy and quality.
Examples: StumbleUpon and Last.fm.
Prediction markets reward individuals who bet correctly on future outcomes.
Examples: consensuspoint, longbets.
Conversational interactions using blogs and wikis to encourage contribution, unplanned contact, feedback and continuous refinement.
“Citadels”
UncertaintyComplexity
Relative CertaintyPredictability
Command & ControlHierarchy
EmpoweredNetworks
Reference: Global Business NetworkReference: Global Business Network
Familiar and comfortable Experts, right answers, closure Clarity of structures/roles Advocacy; directives; power;
control Value chains; asset-oriented
Less familiar, less comfortable Strategic conversation, self-
organising Knowledge-creation, dilemmas,
openness Organic, fluid systems, porous
boundaries Value webs, relationship
oriented
“Webs”
Evolving Organisations – Building Capacity
Citadels Webs
Expertise triumphs Diversity trumps expertise
What you know matters Who you know matters
Take no risks - copyright, patent & protect
Judge the risk of releasing information against the return of gaining understanding
The goal is to agree The goal is to tap into those who agree and disagree
Improve ideas by applying more resources
Improve ideas by sharing them
Judge ideas by how they fit Judge ideas by how they differ
Relationship hierarchies Relationship networks
Innovation management Innovation cultivation
Expertise
Knowledge
Intellectual Property
Collaboration vs. competition
Development
Assessment
Relationships
Organising
Barriers are Cognitive rather than Intellectual
OpenInnov’n
Web 2.0
‘Long-tail’
Non R&D Innov’n
Wiki-nomics
You–tube
Usercontent
Leadusers
Un-usedTalents
WebCom’ities
Emerging technical and social trends
Effective support to ‘new’ innovation communities e.g.
‘excluded’ groups
‘Lead users’
Patients groups
Peer 2 Peer groups
‘Eco-concerned’
Social entrep’eurs
HiddenInnov’n
Democ-ratisation
Crowd-sourcing
Del.icio.us
Folk-sonomies
SemanticWeb
• What are effective business models?
• How to interface with networks and communities?
• How to monetise open relationships?
• How to harvest commercial value?
• How to harvest social value?• What new skills are needed?
Innovation
Innovation
Innovation
Innovation
Innovation
Innovation
Realising new value to customers and citizens – e.g.
. . . more opportunities
. . . better products
. . . better heath
. . . better information
. . . better communities
. . . better future
Policy ‘Gap’
Peer 2Peer
The Policy Challenge
Technical skills are a given. The challenge is to nurture behaviours and
business models that enable collective innovation.
- focus on cognitive barriers not just intellectual.
Innovation and growth require an ability to collaborate that must be deeply
embedded in the mindset, skillset and toolset of every organisation.
- firms that rise to the challenge will thrive. Those that ignore it, or fail to grasp its
implications, risk marginalisation and eventual extinction.
Accelerated by globalisation, innovation is increasingly an open,
collaborative process involving users, suppliers & organisations of all size.
- business and government need to develop new open innovation business models that
leverage emerging social and technological trends to harvest the resources of
competitors, suppliers, lead users, customers and citizens.
Conclusions