open innovation: technology leadership through collaboration
TRANSCRIPT
Open Innovation: Technology Leadership
Through Collaboration
February 2008
Dr. Erich Ruetsche
Business Development & Relations
IBM Research
Open Innovation © 2008 IBM
Zurich Research Major Accomplishments
Science
Scanning tunneling microscope
Atomic force microscope
High-Tc superconductivity
Trellis-coded modulation
PRML & NPML
Nanoscience / nanoengineering
Cryptographic protocols
Computational biochemistry &
materials science
Business Impact
High-speed modems
IBM Token Ring LAN
PRIZMA switch
Read channels for disk
and tape drives
Chip I/O
JCOP (smart cards)
Tivoli Risk Manager
Secure solutions
Business optimization
NPML detector
Open Innovation © 2008 IBM
What is innovation?
“The effort to create purposeful, focused change in an enterprise’s
economic or social potential…the means by which the entrepreneur either
creates new wealth-producing resources or endows existing resources
with enhanced potential for creating wealth.”
Peter Drucker, professor and author of “Innovation and Entrepreneurship, Management Challenges for the
21st Century,”
“The creation of impact, value and differentiation
in novel and unique ways, utilizing the many
capabilities available to businesses today.
Innovation occurs at the intersection of
invention and insight. It’s about application of
inventions to solve problems.“
Sam Palmisano, IBM Chairman of the Board of Directors and Co-Chair of the National
Innovation Initiative
“Innovation requires not only that we are first to discover new knowledge and invent
new technology, but also that we are first to develop new ideas and ways to put that
knowledge and technology to work to solve problems and create opportunities.”Wayne Clough, President, Georgia Institute of Technology
Open Innovation © 2008 IBM
A Global “Nervous System” as enabling
Infrastructure for Open Systems in an Open World
• Pervasive Network
– More than 1 Billion People online
– By 2011 – 2 Billion
• Convergence progressing
– Networks, Media, Content
– Broadband & Multimedia
• Interactive Capabilities increasing exponentially
– Web 2.0
– Social Networking
– Virtual Worlds
Open Innovation © 2008 IBM
Innovation moving out of the Lab
Centralized
inward
looking
innovation
Closed
Innovation
Ecosystem
centric, cross-
organizational
innovation
Innovation
Networks
Sources: Chesbrough 2003, Forrester 2004, von Hippel 2005
Externally focused, collaborative innovation
Open Innovation
Open Innovation © 2008 IBM
Where are the Sources of Ideas and Innovation ?
Assoc’s, trade groups, conference boards
051015202530354045%
Academia
Competitors
Consultants
Customers
Business partners
R&D (internal)
Employees (general population)
Other
Think tanks
Internet, blogs, bulletin boards
Sales or service units
0 5 10 15 20 25 30 35 40 45%
Source: The IBM Global CEO Study 2006
Sources of Idea Generation
InternalExternal
Open Innovation © 2008 IBM
A Collaborative Innovation Tool:
Developed to accelerate innovation – both idea
discovery and implementation
Structured as a multiple-day, web-based forum
where participants brainstorm and propose ideas
Format:
Participants post ideas regarding specific topics
and collaborate on those contributed by others
Moderators highlight key discussion ideas and
facilitate collaboration
Contribution level at the discretion of each
individual participant
“Jamming” – What is a Jam?
In December 2005, the Canadian government, IBM
and UN-HABITAT hosted a 72-hour ‘Habitat Jam’ to
stimulate ideas in preparation for the World Urban
Forum III conference in Vancouver in June 2006.
Open Innovation © 2008 IBM
6,046 posts
9,337 posts
32,662 posts
WorldJam2001 ValuesJam WorldJam2004a new collaborative
medium to capture
best practices on 10
urgent IBM issues.
an in-depth
exploration of IBM’s
values and beliefs by
employees
focused on pragmatic
solutions around
growth, innovation and
bringing the company’s
values to life
268,233 views
1,016,763 views
2,378,992 views
3,000,000+ views
46,000 posts
InnovationJam2006IBMers, family, clients and
partners discuss how to
combine new technologies
and real world insights to
create market opportunities
Over 140,000 people have participated in
Innovation Jam activities – with a record 4.2
million page views of Jam related materials.
A record 37,000 ideas – from more than 75
countries and 67 companies – were posted
during the first phase of the Jam
Open Innovation © 2008 IBM
OutcomesReal-time
Translation Services
Simplified Business Engines
Intelligent Utility
Networks3D Internet “Digital Me”
Big Green Innovations
Branchless Banking forthe Masses
Smart Healthcare Payment Systems
Intelligent Transportation
Systems
Electronic Health Record System
IBM 2007 Innovation Investments
Open Innovation © 2008 IBM
An Open Innovation Example:
Searching and Navigating Medical Records
Collaboration in a First of a Kind Project Partners:
Medical Graphics Provider;
Medical Records Specialist
IBM driving core concept
Hospital in Denmark as test user
Open Innovation © 2008 IBM
Open Collaboration and IP policy
1,085
1,2981,383
1,8671,724
2,6582,756
2,886
3,4113,288
3,415
3,248
2,941
3,621
3,125
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
15 Years of IBM Patent Leadership
Free access to Patents
Support of Open Standards and
Open Source
The Eco-Patent Commons - January 14th, 2008
IBM and the World Business Council for Sustainable Development, together with Nokia, Pitney Bowes, and Sony, are
announcing the creation of “The Eco-Patent Commons,” a new collaborative effort focused on shared use of intellectual
property to help the environment.
Together these companies are pledging dozens of patents in what we hope will be an expanding effort. As the industry
moves to have greater openness and collaboration as part of their balanced intellectual property strategy, the Commons
can help companies ensure that “green” is an essential part of that strategy.
Open Innovation © 2008 IBM
IBM’s Innovation Model A Shared Foundation of Proprietary and Open
Proprietary Innovation
Advantages:
Product / offering uniqueness
Speed-to-Market
OpenInnovation
Advantages:
Cost / value scale
Option value / scope
Differentiation Standardization
IBMLeadership
Collaboration