Jornadas Know in Target, noviembre 2012. #RIS3

1. Evolución de los Modelos de Innovación
La Importancia de Open Innovation en la Industria Alimentaria
Dr Marian Garcia
Kent Business School, University of Kent, UK
KNOW IN TARGET – Sevilla, 22 Noviembre 2012

2. Changing the Landscape of Innovation – Closed to Open Model
 For years, the logic of closed
Closed Model of Innovation innovation was held to be self-
evident, it was the "right way" to
bring new ideas to market.
 Firms invested heavily in
internal R&D, more than their
competitors and they hired the
best and the brightest, to reap
the rewards of the industry's
smartest people.
 New business development
processes and the marketing of
new products are isolated and
take place within a firm‟s
boundaries.

3. Changing the Landscape of Innovation – Close to Open Model

4. Closed Innovation: Breaking Down?
In 21st century, a number of factors have combined to erode the
underpinnings of Closed Innovation…
• Information flows cheaply and instantaneously over the
Internet, corporate isolationism and the bunker mentality cuts people off
from new ideas, stifling innovation.
• Smart people are widely dispersed but more closely connected than
ever before. Ideas bubble up in organizations of all kinds and sizes, not
just in large research labs.

5. Closed Innovation: Breaking Down?
In the 21st century we are seeing a dramatic rise in the number and
mobility of knowledge workers, which makes it increasingly difficult
for companies to control their proprietary ideas and expertise.
Knowledge workers are ever more mobile, willing to jump ship and
take their ideas and talent to whatever firm will develop them.

6. The Growth of Open Innovation
Open Innovation is a trend that is reshaping how organizations structure
innovation processes.
An accelerating shift in managing human capital is underway, from closed
innovation, in which R&D is vertically integrated within a single
organization…
… to an open model, in which firms learn to use ideas wherever they find
them.
A flexible business model is emerging that is open to a broad spectrum of
arrangements. Company insiders are contributing to external projects and
outside innovators are able to influence internal product development
cycles.

7. Open Innovation: sentido común?
‘Han pasado los días en los que teníamos todas la capacidades
necesarias para innovar en el mercado’
‘Todos necesitamos ‘partners tecnológicos’ que nos ayuden a
solucionare nuestros problemas tecnológicos y satisfacer nuestras
necesidades tecnológicas’
‘Culturalmente nuestra empresa ha tenido mucho éxito como sistema cerrado.
Todos nuestras mayores innovaciones fueron desarrolladas hace 50 años con
recursos internos. Sin embargo, hay un mayor entendimiento que no es
necesario generar el conocimiento y las ideas pare beneficiarse de ellas’
‘Nos gustaría hacer todo nosotros mismos, pero ya no es posible’

8. The innovation pyramid
OPEN
• Incremental & breakthrough
innovations go together
• Varying degrees of risk & return
• An innovation pyramid can be
open, transparent & dynamic
• Peak of pyramid has ideas with
breakthrough potential
• Middle of pyramid is new
opportunity incubator
• Base of pyramid ensures
CLOSED
operational excellence
Source: Block-by-blockbuster innovation, Kanter, Harvard Business Review, May 2010

9. The evolution of innovation
closed open co-
innovation innovation innovation
Organisation
From … To new, cross-company
traditional, internally business structures
driven R&D…
Process
From traditional …To non-linear
phase-gate processes… frameworks, not processes
Relationships
From internal only or ...To inter-dependent
ad-hoc alliances… organizations
Results
From struggling to … To creating markets by
maintain market share… scaling ideas from anywhere
Source: Venture2 Inc., 2011

10. Growing importance of relationships
closed open co-
innovation innovation innovation
Relationships
Internal only Ad hoc I/P Transactional Relationship Collaborative
and limited sourcing and technology -based innovation, in
alliances scouting, guar collaborative ter-
ded co- networks dependent
development organisations
Source: Venture2 Inc., 2011

11. Retos en la Gestión de Open Innovation (I)
Liderar el cambio cultural
– Apoyo de la Dirección
– Implicar a los stakeholders claves  implantación efectiva de
OI
- Ver el mundo como su base tecnológica
- Innovación externa no es vista como una amenaza SINO como una
oportunidad
– Estrategia de comunicación interna efectiva  que significa OI
para la empresa y el impacto de esta nueva estrategia (enfocarse en
resultados)
– Factores humanos: cultura, mindsets (mas cooperativo y
menos dictatorial), motivación, incentivos

12. Retos en la Gestion de Open Innovation (II)
Crear Alianzas
– Identificar las razones comerciales reales para colaborar en
OI
– Alianzas basadas en la confianza  requiere tiempo y
compromiso
– Flexibilidad y Apertura
– Trabajar hacia a un verdadero ‘win-win scenario’
– Asignar contactos para agilizar la valoracion inicial de
oportunidades
– Alineamiento de culturas y expectaciones

13. Retos en la Gestión de Open Innovation (III)
Propiedad Intelectual
– Apertura y Flexibilidad  compartir los WANTS con los
partners
• Evitar trabajar con entendimientos diferentes respecto a los
objetivos, términos y prioridades
– Concentrarse en rentabilizar las alianzas en vez de la
propiedad

14. Tools, processes, guidelines and support
How to decide on How to find and select
internal or external the right partners?
development?
How to manage a
collaborative How to set up a
collaborative
relationship? agreement?

15. What Open Innovation Delivers to Companies

16. Different industries & adoption of open innovation
OPEN
INNOVATION
Clothing
Oil & Gas
Motion pictures
Communications
Automotive
Investment banking
Biotechnology Personal computers
Consumer electronics Pharmaceuticals
Food & drink
Semiconductors
Nuclear reactors Aircraft engines
Mainframe computers
CLOSED
INNOVATION Source: Paul Isherwood - GSK

17. Collaboration is the key ....
Acuerdos de cooperacion tecnologica 2006-2008 (% de empresas)
Informe PITEC 2008: La innovacion de la empresa espanola (2010)

18. Collaboration is the key.......
Informe Cotec – 2011
Problemas del Sistema Espanol de Innovacion
#3 - Escasa cultura de colaboracion de las empresas entre si y
entre estas y los centros de investigacion (77,8%)
#6 - La I+D de las universidades y de los centros publicos de
investigacion no estan suficientemente orientadas hacia las
necesidades technologicas de las empresas (68,3%)

19. Open Innovation Ecosystem
The food and drink industry open innovation ecosystem is dominated by
contributions from suppliers, customers and consumers
Companies operating in other industries 52.7 25.2 22.0
Competitors 51.6 20 28.3
Consumers 70.8 18.9 10.4
Suppliers 73.0 18.2 8.7
Customers (i.e. retailers) 72.1 21.3 6.6
Government agencies 45.7 27.3 27.0
Innovation intermediaries 46.5 24.5 29.0
Universities and research centres 45.3 24.5 30.2
To great extent To some extent Not at all

20. Taking the consumer as a co-creator

21. Crowdsourcing Participants

22. Walkers Crisps ‘Do Us a Flavour’
• The „Do Us a Flavour‟ contest launched in
July 2008 challenged participants to dream
Innovative Flavours – Tasty Results up a unique flavour of crisp.
• Six finalist were selected from 1.2 million
entries.
• Each of their ideas was turned into reality
by the potato chip manufacturer and sold in
supermarkets from January to May 2009.
• During a five month period votes were
cast on the Walkers website to decide
which flavour would stay permanently on
sale.
• The winner received £50,000 and 1% of
the retail sales of that flavour
• Year-on-year sales rose by 14% and
brand equity by 6%.

23. Dunkin’ Donuts: Social Media Campaign
•“Keep It Coolatta 2: Flavour Boogaloo” asked
consumers to recommend favourite songs
inspired by the flavours of Coolatta and summer.
• People had to do was go to the Dunkin‟ Donuts‟
Facebook page and suggest their favourite
summer song and which Coolatta drink it
reminded them of.
• After a four week submission period that netted
300,000 new Facebook fans Dunkin‟ Donuts
released the mix as a branded Pandora station.
• Highlight how the brand understands the
changing needs of consumers
• Develop a fun brand through creative
promotions and ideas that stand
out to social media fans and followers

24. Co-creation with Children – Cereal Straws
• The project started in a classroom in
Spain where nine and ten year-old children
were asked to describe and discuss their
difficulties with breakfast cereals and to
come up with ideas to resolve these
problems.
• What emerged from all these discussions
was an entertaining concept of not only
drinking milkshakes through straws but
eating the straws afterwards – provided
they were crunchy and tasted good.
• This concept went through a number of
iterations as Kellogg's researchers got to
work on it, and the end result was a brand
new product - Kellogg‟s Cereal Straws.

25. Futuro de OI en la Industria de Alimentos y Bebidas
• Es OI otra moda?
‘Wait six months and management will be spewing the next set of consulting
buzz words’
• OI ha dejado de ser una curiosidad y objeto de discusión entre
académicos para convertirse en el motor del desarrollo
tecnológico/I+D
• OI tiene el potencial de mejorar la capacidad innovadora de las
empresas PERO necesita un proceso de innovación interno
controlado
• OI no esta restringida a las grandes empresas PERO su
implantación en Pymes puede ser un reto importante

26. 6th International European Forum (Igls-Forum)
System Dynamics and Innovation in Food Networks
February 13-17, 2012 - Innsbruck-Igls, Austria
Investigating the Dimensions of Openness
What drives food companies to open up their innovation
process?
Marian Garcia1, Mercedes Sanchez2, Raffaella Manzini3 and Valentina
Lazzarotti3
1 KentBusiness School, University of Kent, UK
2 Universidad Pública de Navarrra, Navarra, Spain
3 Department of Management Engineering, Carlo Cattaneo University – LIUC, Castellanza,
Italy

27. Gracias
Dr Marian Garcia
m.garcia@kent.ac.uk