Why open innovation offers opportunities for startups

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Big corporations have no choices : they must open up their innovation process to startups. Startups can count on new opportunities. If a risk exists to be stolen one's ideas, some careful practices help to reduce it as much as possible.

Business Technologie

Jean-Yves Huwart
Global Enterprise

Key success factors for
better technology transfer
Marseille, April 2nd 2012

Table of contents

1. Open innnovation is not new
2. Why open innovation with
startups is becoming critical for
bigger companies
3. Sharing without the stress to be
stolen

Decades long, innovation
was a locked in process

Source : Wikimedia

Openness in the innovation system
appeared with the trading of patents/IP

The Patents Office in Washington DC

Later, companies and universities joined
forces to conduct research programs

Science Parks and clusters then surfaced

Nowadays, innovation is shifting
outwards, especially to Tier 1 suppliers

Amazon, Nintendo or Apple, a.o., are major customers
of the Taïwanese group Foxconn (Original design manufacturers)

Industrial companies outsource
innovation to sub-system manufacturers
Spirit is a Tier 1 supplier of Boeing, which develops and delivers the
forward fuselage of the B 787

Innovation migrates to business
partnerships with smaller players

Example : Procter & Gamble

Enterprise 2.0 widens open innovation
dynamics to new contributors

2. Why open innovation with
startups is becoming critical for
bigger companies

No clear correlation between level of R&D
spendings and innovation impact

Free global information and
communication tools

A much higher unpredictability which
increases organisation’s fragility

So, bigger companies need more
agility through partnering with startups

3. Sharing innovation without
the stress to be stolen

Pick up what’s critical
and open for the rest

Define the sharing menu and conditions
before filling in the plates

“Born big” or build your global innovation
footprint from scratch

Put innovation closer to
customers and markets

Flickr : Village at Sandhill

Protection comes from speed

Flickr Aden29

Build platfom approaches

Jim Whitehurst, CEO Red Hat

Thank You !
Intrapreneurship
Open Innovation
Coworking
Ecosystem Strategy
Jean-Yves Huwart
Global Enterprise
Twitter : @JeanYves
www.global-enterprise.biz
http://www.slideshare.net/Jeanyveshuw
art

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