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Connecting Global Competence 
Messe München Open Innovation Case 
A pilot for a new service to our customers 
Stefan Rummel, Milan, October 23rd 2014
Connecting Global Competence 
Digital 
Strategy 
2
The rise of digital technology disrupted the ways of 
doing busssiness… 
Connecting Global Competence 
3
The rise of digital technology disrupted the ways of 
doing busssiness – now we have to adapt fast! 
Connecting Global Competence 
Develope 
new services & 
business models for 
our customers 
Redefine our 
marketing & sales 
system 
Redesign our existing 
customer processes 
(From application to 
billing) 
4
The rise of digital technology disrupted the ways of 
doing busssiness – now we have to adapt fast! 
Connecting Global Competence 
Redefine our 
marketing & sales 
system 
Redesign our existing 
customer processes 
(From application to 
billing) 
Develope 
new services & 
business models for 
our customers 
5
Our innovation projects follow a clear customer 
focused process… 
Connecting Global Competence 
Gate 1 
Gate 3 
Gate 2 
Project- Portfolio 
Idea sourcing 
Understand 
Observe 
Define 
Test 
Prototype 
6
Innocentive`s Services seemed to be interesting to our 
customers and the „players“ are familiar… 
Connecting Global Competence 
7
How does it work? 
Seekers 
Companies/ 
Multinationals 
Market Place 
Open Innovation 
Platforms e.g. 
Innocentive 
Solvers 
Engineers, Scientists, 
Industry 
Professionals etc. 
Connecting Global Competence 
? 
www 
8
Innocentive Challenge Center – branded and incognito 
challenges 
Abruf vom 26.4.2013 
Connecting Global Competence 
9
Innocentive Challenge Center – Details 
Connecting Global Competence 
10
The best solution will be awarded! 
The Netflix Challenge “The Netflix Prize” 
 World class companies are offering 
financial awards for solutions to their 
scientific challenges 
 $1M Grand Prize for best collaborative 
filtering algorithm to predict user rating for 
films based on previous ratings 
 Requirement: 10% improvement of 
accuracy of Netflix’ own algorithm 
Connecting Global Competence 11
Open Innovation Market Place: Innocentive 
Market Leader in North America 
Innocentive – The Open Innovation 
Marketplace At a Glance 
 Founded in 2001 
 Concept: expertise knowledge and creativity 
from talented outsources to solve Research 
 Development problems in Engineering, 
Math, Physical Science, Computer Science, 
Business, Chemistry and Life Sciences 
 Online community of 300,000+ total 
registered solvers in more than 200 
countries 
 More than 475.000 posted challenges up to 
today (branded + anonymous) 
 Range of awards: $5,000 to $1+ million 
based on the complexity of the problem and 
nature of the Challenge 
 Premium Challenge Success Rate: 85% 
Innocentive has a proofen business model 
Connecting Global Competence 12
What are some of the key success factors of 
Innocentive´s idea…? 
Key success factors 
 Active and interdisciplinary solver 
community with scientists, engineers, 
industry professionals, lead user etc. 
 Successful community management 
 Neutral platform for all seeker companies, 
even if they are competitors 
 High credibility 
Connecting Global Competence 
13
Exhibitors = Seekers/Solvers 
Connecting Global Competence 14
Visitors = Solvers/Seekers 
Connecting Global Competence 15
…and what does it have to do with us? 
A good match – and a good way to extend our relationship with our customers 
Connecting Global Competence 
…compared with our resources 
 National and International Exhibitors, 
Visitors, University and Institutional 
Research Partner etc. that can be either 
seekers or solvers 
 Interdisciplinary community managed by 
MMG 
 Leading International Trade Fair Brands 
are a neutral Platform for an Industry 
 Challenges could be presented online 
and offline 
16 
Key success factors 
 Active and interdisciplinary solver 
community with scientists, engineers, 
industry professionals, lead user etc. 
 Successful community management 
 Neutral platform for all seeker companies, 
even if they are competitors 
 High credibility
We decided to run the pilot with our ISPO 
Community… 
Connecting Global Competence 
17 
ISPO OPEN INNOVATION  COMMUNITY 
Be part of the movement!
…since their characteristics seemed a perfect match 
for an innovation project 
ISPO is the world`s leading community of sports business professional and they are: 
Connecting Global Competence 
18 
INTERNET SAVVY 
80% use online media once 
a week to get information on 
the latest sports topics 
INNOVATIV 
70% of ISPO´s visitors main 
interests are product 
innovations 
CURIOUS 
63% of ISPO´s visitors want 
to co-develop innovative 
sports products
Three ways of using Open Innovation and the wisdom 
of the crowd 
Examples 
General 
Effects 
19 
Connecting Global Competence 
Co-Creation 
 Development of an 
user friendly Control- 
Display for cockpits of 
construction and 
agricultural machinery 
Products developed 
by customers manage 
to achieve: 
 three times higher 
revenue 
 four times higher 
margins 
Technology 
Scouting 
 Development of a new 
jet-engine bracket with 
major weight reductions 
Open Innovation RD 
projects: 
 Reduce RD Time 
by 42% 
 Reduce RD Costs by 
20% 
Product 
Testing 
 Introduction of a new ski 
collection to trendsetters 
and opinion leaders 
within the blogger scene 
in a test series ahead of 
market rollout! 
With Product Testing to a 
better allocation of 
marketing budgets 
 Reduce Marketing 
Budget through more 
efficient use of budget 
19
ISPO Open Innovation: Co-Creation 
Connecting Global Competence 
Develop products jointly 
with your target group. 
Access to ISPO User Experts – not confined to the 
trade fair, but 365 days per year. 
Setup of a protected space for new ideas, which are 
derived from working with the community. 
Efficient execution through standardized process on 
established web-platform. 
Project examples: 
 Organic sports food – develop a healthy high-class 
nutritional concept of highest biological quality together with 
athletes! 
 Fun  Boulder Collection – a new sportswear collection for 
fans of sport climbing – designed by and created with 
exactly this target group! 
 Skiers create a collection jointly with you to perfectly satisfy 
the needs of “sophisticated free skiing”! 
20
ISPO Open Innovation: Product Testing 
Connecting Global Competence 
Receive feedback ahead 
of your market rollout. 
Access to user or test groups respectively that can 
be structured and segmented. 
Channeling and structuring of customer feedback 
and ideas. 
Simple administration of focus groups in one efficient 
and professional tool. 
Project examples: 
 Introduce your new ski collection to trendsetters and 
opinion leaders within the blogger scene in a test series 
ahead of market rollout! 
 Have the Boulder Softshell Jacket’s outdoor aptitude tested 
in a real-life usage scenario on an actual rock! 
 A team embarking on a trip around the world puts the 
revolutionary functionality of the new outdoor collection to 
the acid test! 
21
ISPO Open Innovation: Technologie Scouting 
Connecting Global Competence 
Find new solutions 
to your technical challenges. 
Access to lead users, scientists, engineers, industry 
professionals as solvers 
Channeling and structuring of ideas from outside the 
company 
Professional assistance for drafting and defining the 
challenges 
Project examples: 
New Materials for Snowboard Bindings with a weight 
reduction 
of 20-30% 
Special glue for glueing crystals to waterproof fabrics 
22
The Open Innovation Business Model of ISPO 
Revenue and Service Streams The Process and Value Chain 
Consulting Service Fee 1 
Services 
2 
Reward for #1 Solutions 
Connecting Global Competence 
Challenge 
Solution 
3 
2 
Company buys one of our 
Open Innovation Packages 
1 
ISPO and it´s Partner consult 
with drafting the challenge and „air“ it 
2 
Solvers hand in their solutions and 
suggestions 
3 
4 
ISPO´s Partner is the 
Moderator along the process 
4 
5 
The best solution is awarded 
(from +150 € up to +50.000 € 
5 
23
Co-Creation: 
The „New Ski Jacket Challenge“ by Lasse Kjus 
Connecting Global Competence 
24
Co-Creation: 
Sport Scheck´s Personal Coach Challenge 
Connecting Global Competence 
25
Key Challenges Solutions 
 Convince people to support an 
innovation and to not be afraid 
of trying new things 
Connecting Global Competence 
 Foster a climate where it is safe to 
innovate and where people are allowed 
to fail 
26 
The Project is a successful pilot – we failed fast and often 
but did learn faster! 
Convince 
people in our 
company to 
try new things 
 Involve the key people in the 
development of the idea from the 
beginning. It has to be their baby! 
 Discuss with them the idea extensively 
 A „not invented here syndrome“ will kill 
the idea 
Get a common 
understanding 
of the idea 
 New innovative ideas often come along 
with a high complexity. To get everyone 
who is necessary “onboard” you have to 
get a common understanding what´s 
the idea all about and where the idea is 
heading to 
26 
 Integrate a radical new service in your 
traditional and existing sales processes 
 Just do it! 
Prepare all selling arguments and 
documents, train the sales people 
intensively, give a proper incentive 
and don´t take „no“ for an answer. 
Integration of 
service into an 
existing Sales 
Process
Next Step: Different industry platforms 
and one interdisciplinary solver community 
Connecting Global Competence 
27 
bauma Plattform IFAT Plattform Laser Plattform ISPO Plattform

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Exhibitionist#08 Stefan Rummel 23 Ottobre 2014

  • 1. Connecting Global Competence Messe München Open Innovation Case A pilot for a new service to our customers Stefan Rummel, Milan, October 23rd 2014
  • 2. Connecting Global Competence Digital Strategy 2
  • 3. The rise of digital technology disrupted the ways of doing busssiness… Connecting Global Competence 3
  • 4. The rise of digital technology disrupted the ways of doing busssiness – now we have to adapt fast! Connecting Global Competence Develope new services & business models for our customers Redefine our marketing & sales system Redesign our existing customer processes (From application to billing) 4
  • 5. The rise of digital technology disrupted the ways of doing busssiness – now we have to adapt fast! Connecting Global Competence Redefine our marketing & sales system Redesign our existing customer processes (From application to billing) Develope new services & business models for our customers 5
  • 6. Our innovation projects follow a clear customer focused process… Connecting Global Competence Gate 1 Gate 3 Gate 2 Project- Portfolio Idea sourcing Understand Observe Define Test Prototype 6
  • 7. Innocentive`s Services seemed to be interesting to our customers and the „players“ are familiar… Connecting Global Competence 7
  • 8. How does it work? Seekers Companies/ Multinationals Market Place Open Innovation Platforms e.g. Innocentive Solvers Engineers, Scientists, Industry Professionals etc. Connecting Global Competence ? www 8
  • 9. Innocentive Challenge Center – branded and incognito challenges Abruf vom 26.4.2013 Connecting Global Competence 9
  • 10. Innocentive Challenge Center – Details Connecting Global Competence 10
  • 11. The best solution will be awarded! The Netflix Challenge “The Netflix Prize” World class companies are offering financial awards for solutions to their scientific challenges $1M Grand Prize for best collaborative filtering algorithm to predict user rating for films based on previous ratings Requirement: 10% improvement of accuracy of Netflix’ own algorithm Connecting Global Competence 11
  • 12. Open Innovation Market Place: Innocentive Market Leader in North America Innocentive – The Open Innovation Marketplace At a Glance Founded in 2001 Concept: expertise knowledge and creativity from talented outsources to solve Research Development problems in Engineering, Math, Physical Science, Computer Science, Business, Chemistry and Life Sciences Online community of 300,000+ total registered solvers in more than 200 countries More than 475.000 posted challenges up to today (branded + anonymous) Range of awards: $5,000 to $1+ million based on the complexity of the problem and nature of the Challenge Premium Challenge Success Rate: 85% Innocentive has a proofen business model Connecting Global Competence 12
  • 13. What are some of the key success factors of Innocentive´s idea…? Key success factors Active and interdisciplinary solver community with scientists, engineers, industry professionals, lead user etc. Successful community management Neutral platform for all seeker companies, even if they are competitors High credibility Connecting Global Competence 13
  • 14. Exhibitors = Seekers/Solvers Connecting Global Competence 14
  • 15. Visitors = Solvers/Seekers Connecting Global Competence 15
  • 16. …and what does it have to do with us? A good match – and a good way to extend our relationship with our customers Connecting Global Competence …compared with our resources National and International Exhibitors, Visitors, University and Institutional Research Partner etc. that can be either seekers or solvers Interdisciplinary community managed by MMG Leading International Trade Fair Brands are a neutral Platform for an Industry Challenges could be presented online and offline 16 Key success factors Active and interdisciplinary solver community with scientists, engineers, industry professionals, lead user etc. Successful community management Neutral platform for all seeker companies, even if they are competitors High credibility
  • 17. We decided to run the pilot with our ISPO Community… Connecting Global Competence 17 ISPO OPEN INNOVATION COMMUNITY Be part of the movement!
  • 18. …since their characteristics seemed a perfect match for an innovation project ISPO is the world`s leading community of sports business professional and they are: Connecting Global Competence 18 INTERNET SAVVY 80% use online media once a week to get information on the latest sports topics INNOVATIV 70% of ISPO´s visitors main interests are product innovations CURIOUS 63% of ISPO´s visitors want to co-develop innovative sports products
  • 19. Three ways of using Open Innovation and the wisdom of the crowd Examples General Effects 19 Connecting Global Competence Co-Creation Development of an user friendly Control- Display for cockpits of construction and agricultural machinery Products developed by customers manage to achieve: three times higher revenue four times higher margins Technology Scouting Development of a new jet-engine bracket with major weight reductions Open Innovation RD projects: Reduce RD Time by 42% Reduce RD Costs by 20% Product Testing Introduction of a new ski collection to trendsetters and opinion leaders within the blogger scene in a test series ahead of market rollout! With Product Testing to a better allocation of marketing budgets Reduce Marketing Budget through more efficient use of budget 19
  • 20. ISPO Open Innovation: Co-Creation Connecting Global Competence Develop products jointly with your target group. Access to ISPO User Experts – not confined to the trade fair, but 365 days per year. Setup of a protected space for new ideas, which are derived from working with the community. Efficient execution through standardized process on established web-platform. Project examples: Organic sports food – develop a healthy high-class nutritional concept of highest biological quality together with athletes! Fun Boulder Collection – a new sportswear collection for fans of sport climbing – designed by and created with exactly this target group! Skiers create a collection jointly with you to perfectly satisfy the needs of “sophisticated free skiing”! 20
  • 21. ISPO Open Innovation: Product Testing Connecting Global Competence Receive feedback ahead of your market rollout. Access to user or test groups respectively that can be structured and segmented. Channeling and structuring of customer feedback and ideas. Simple administration of focus groups in one efficient and professional tool. Project examples: Introduce your new ski collection to trendsetters and opinion leaders within the blogger scene in a test series ahead of market rollout! Have the Boulder Softshell Jacket’s outdoor aptitude tested in a real-life usage scenario on an actual rock! A team embarking on a trip around the world puts the revolutionary functionality of the new outdoor collection to the acid test! 21
  • 22. ISPO Open Innovation: Technologie Scouting Connecting Global Competence Find new solutions to your technical challenges. Access to lead users, scientists, engineers, industry professionals as solvers Channeling and structuring of ideas from outside the company Professional assistance for drafting and defining the challenges Project examples: New Materials for Snowboard Bindings with a weight reduction of 20-30% Special glue for glueing crystals to waterproof fabrics 22
  • 23. The Open Innovation Business Model of ISPO Revenue and Service Streams The Process and Value Chain Consulting Service Fee 1 Services 2 Reward for #1 Solutions Connecting Global Competence Challenge Solution 3 2 Company buys one of our Open Innovation Packages 1 ISPO and it´s Partner consult with drafting the challenge and „air“ it 2 Solvers hand in their solutions and suggestions 3 4 ISPO´s Partner is the Moderator along the process 4 5 The best solution is awarded (from +150 € up to +50.000 € 5 23
  • 24. Co-Creation: The „New Ski Jacket Challenge“ by Lasse Kjus Connecting Global Competence 24
  • 25. Co-Creation: Sport Scheck´s Personal Coach Challenge Connecting Global Competence 25
  • 26. Key Challenges Solutions Convince people to support an innovation and to not be afraid of trying new things Connecting Global Competence Foster a climate where it is safe to innovate and where people are allowed to fail 26 The Project is a successful pilot – we failed fast and often but did learn faster! Convince people in our company to try new things Involve the key people in the development of the idea from the beginning. It has to be their baby! Discuss with them the idea extensively A „not invented here syndrome“ will kill the idea Get a common understanding of the idea New innovative ideas often come along with a high complexity. To get everyone who is necessary “onboard” you have to get a common understanding what´s the idea all about and where the idea is heading to 26 Integrate a radical new service in your traditional and existing sales processes Just do it! Prepare all selling arguments and documents, train the sales people intensively, give a proper incentive and don´t take „no“ for an answer. Integration of service into an existing Sales Process
  • 27. Next Step: Different industry platforms and one interdisciplinary solver community Connecting Global Competence 27 bauma Plattform IFAT Plattform Laser Plattform ISPO Plattform