Open / Collaborative Innovation Networks

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1. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited Innovation networks Key paradigm of and Future Key Success Factor in Open / Collaborative Innovation
2. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited Innovation networks are a Key Factor For Success in the third generation of innovation management • Firms are spending 2 – 20% of their sales revenue on one of their core processes: Innovation • Figure depends on industry, innovation strategy, firm-specific factors • The way firms are managing this core process is changing • This change is profound and for good: A third generation of innovation management has begun • This third generation is highly social – The network is the paradigm • Innovation networks are increasingly becoming an arena of competition / a Key Success Factor - 2 -
3. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited % of the global innovation managers believe that innovation in the 21st century will be fundamentally different The hard facts of innovation are changing … 75 % % believe: Innovation in the 21st century is a cross-company discipline 86 % % see SMEs and consortia driving innovation – Not the MNCs (Exception: China, Saudi-Arabia / UAE) 67 % Source: GE Innovation Barometer 2011 / StrategyOne / innovation-3 - 3 -
4. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited … and so are the “soft facts” … • Work environments are getting more complex • Work environments are getting more collaborative • More interactions with persons that are not personally known matrixed acquisitions globally-dispersed remote telecommuting mergers joint-ventures specialization on-demand who-are-you collaborate teamwork Forrester: Today, more than 85 percent of a typical S&P 500 firm’s market value is the result of intangible assets. For many firms the bulk of these intangible assets is in its brands and its people, its human capital. It is no longer what you own that counts but what you know.
5. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited … and so are the “soft facts” Generation 60+ Generation 50+ Generation 40-50 Generation Facebook Training The hard way Too much and I’ll leave Required to keep me Continuous and expected Learning style Classroom Facilitated Independent Collaborative and networked Communication style Top down Guarded Hub and spoke Collaborative Problem-solving Hierarchical Horizontal Independent Collaborative Decision-making All good comes from above Team informed Team includes Team decides Leadership style Command and control Get out of the way Coach Partner Technology use Uncomfortable Unsure Unable to work without it Indispensable Job changing Unwise Sets me back Necessary Part of the plan Source: Adapted from Lancaster, L.C. and Stillman, D.: “When Generations Collide”;
6. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited The third generation of innovation management has begun Outside-in + Inside-out Open Innovation Web 2.0 tools for ideation, expert search and collaboration Management of innovation networks becomes Critical Success Factor Innovation management: Execution  Transformation 3 2 1985 1990 1995 2000 2005 2010 1 2 - 6 - Andrew McAfee, 2006 “Enterprise 2.0” Henry Chesbrough, 2003 “Open Innovation”
7. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited „The network is the innovation“ - 7 -
8. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited Open Innovation and Enterprise 2.0 merge into „Open / Collaborative Innovation“ - 8 -
9. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited Success in innovation networks: Just a matter of gravity? - 9 - R&D as share of Revenue Total R&D in MEUR 0% 2% 4% 6% 8% 10% 12% 14% 16% 2.000 500 1.500 1.000 DSM Akzo Bayer MS Evonik F = G M1*M2 R² THE BIGGER THE MASS THE MORE YOU ATTRACT BASF Dow Du Pont BI
10. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited No. Success in innovation networks is not just a matter of gravity. Success lies in defining and managing the right type of innovation networks • Collaborative / Open Innovation inside the firm and across the firm‘s boundaries • Platforms, processes, organizational framework, governance, IP provisions for • Winning new innovation partners / managing the innovation partners • Collaborative / Open Innovation with the partners • Integration with formal innovation management • There are three dimensions for characterizing innovation networks Physical Virtual / Web based Inside the firm Cross BU Open to the world Co-creative Collaborative Competitive - 10 -
11. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited Example for (semi-open, Web-based, competitive) Open / Collaborative Innovation networks: Beiersdorf Pearlfinder, Bayer Grants4Targets - • Beiersdorf Pearlfinder • Requests-For-Expertise in confidential, semi-open environment • Initial focus: Supplier • Hub-and-spoke • Bayer Grants4Targets • Requests-For-Proposal in confidential, semi-open environment • Focus: Research institutes • Hub-and-spoke - 11 - Web-based Physical
12. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited Example for (open, Web-based, collaborative / competitive) Open / Collaborative Innovation networks: Deutsche Telekom Developer Garden • Hub for • APIs to Telekom services • Components for mobile app developers • Strategic partnership between DTAG (+Microsoft + Intel) and operator of component marketplace • Hybrid model: Hub-and-spoke plus Spiderweb - 12 - Web-based Physical
13. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited Example for (semi-open, physical, competitive) Open / Collaborative Innovation networks: Volkswagen Forum Innovation • Sequence of topic-focused physical OI networks • 8-4 years ahead of SOP • 6 months, competitive set-ting (Joint kick- off, then hub-and-spoke) • 2007-2011: 14 forums, 120 suppliers • VW panel: Procurement, R&D, Marketing, Quality • Benefits to suppliers • Benchmark • Business opportunity (also in new business fields) - 13 - Web-based Physical
14. SLIDE SET NETWORKS.PPTX © innovation-3; Any unauthorized copying, reproduction or distribution is strictly prohibited Two pathways to get to Open / Collaborative Innovation networks • The Before-Facebook-Generation needs to learn how to manage and how to work in a 2.0 world • In order to find the specific way (personally and corporate), decision makers need to make personal experiences • Good: Learn on-the-job in a specific task • Better: Pick up managers and staff in their day-to-day business • Philosophical considerations will not work • Demonstrate benefits / elimination of pain points • 2.0 qualification is necessary - 14 - Work in networks and communities Open / Collaborative Networks Work 1.0 Excellence in Social Technology Collaboration Use of Social Technology Low High Low High