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Open Source and Open Innovation
Dr. Sabine Brunswicker
From Open Source Towards Open Innovation: Fostering Corporate Innovation with Open
Source Software (OSS) Communities
June 30th, 2016
About us
About the Director:
▪ Innovation scholar with a background in engineering and management
▪ Associate Professor for Innovation at Purdue
▪ Founder and Director of the Research Center for Open Digital Innovation
▪ Visiting Professor at ESADE Business School
▪ Adjunct Professor for Digital Economics, QUT, Australia
▪ Until 2013: Head of Open Innovation at Fraunhofer Institute for Industrial
Engineering, Stuttgart; before that, positions in Industry
Research Interests:
▪ Understanding emerging open models of innovation and value creation in
today’s global and digital economy
▪ Inspired by real world phenomena and inform both academics as well as
practitioners.
Thought Leadership:
Policy Advisor European Commission (DG Enterprise, Markets, Research),
Speaker at World Economic Forum, Speaker at European Parliament
I am into innovation: open and digital innovation…..
About Us
Purdue is a top public research institution located in West Lafayette, Indiana
Committed to student success, Purdue is changing the student experience with greater focus
on faculty-student interaction and creative use of technology
Committed to pursuing scientific discoveries and engineered solutions, Purdue has
streamlined pathways for faculty and student innovators who have a vision for moving the
world forward.
Purdue University is a major research institution known for discoveries in science,
technology, engineering, math and beyond.
Photos: Andrew Hancock/Purdue University
Agenda
• The Role of Open Source in Open Innovation
• The Industrial Model of Open Source Software
• Driving Innovation through Collaboration in the OSS Community
• How to Facilitate Participation in Communities
• About us – Our Research and Educational Programs
This session will focus on …
About the Research Center for Open Digital Innovation
THE INNOVATION GAME HAS
CHANGED¹
THE INNOVATION GAME HAS
CHANGED¹
ource: 1) Chesbrough (2003)
What is an innovation? In the end it is about solving a problem (technical or business) in a
novel way!
Innovation is often associated with special people...
The Role of Open Source in Open Innovation
But what is an innovation?
?
A New Product
A New ServiceA New Process
Innovation is about
finding a novel
solution for a
problem that is
useful for the user
CC Credit https://flic.kr/p/jFHBdv
The Role of Open Source in Open Innovation
The changing innovation landscape is reflected by the increased interest and adoption of
open innovation
Google Search Open Innovation:
10/2011 > 8 Mio Hits
05/2013 > 700 Mio Hits
The Role of Open Source in Open Innovation
The original model of open innovation takes a firm-level perspective; open innovation
represents a managerial framework for innovation
en Innovation: A New Innovation Paradigm
Open Model
existing marke
new market
other firms
market
idea sourcing
running/successful innovation projectsdiscarded innovation projects
Closed Model
market
+
+
+
new
product/
service
internal
innovation
resources
internal
innovation
resources
external
innovation
resources
technology
sourcing
co-development
partnerships
Free revealing
urce: Brunswicker (2011); see also Chesbrough (2003, 2006)
In our 2015 Global Open Innovation Executive Study we learned more about the adoption of
open innovation
Study among the largest firms in
Europe and US
Firm criteria: >1000
employees and >250 million
USD in sales
Organizational & Project
level analysis
Data collection: January 2015 to
August 2015
Current responses: 121 firm-
level data, additional project
level data
Executive Study 2015 Purdue &
Berkeley
Adoption of
open innovation
Abandoning
open innovation
Financial
support
Expenditures
Human
resources
The Role of Open Source in Open Innovation
~78% of firms (94 firms) practice open
innovation today (n=121)
~ 2.5% of firms adopting open innovation
have abandoned it
~61 % have increased the financial
investment
~22 % have increased the financial
investment by more than 50%
~48% invest more than 10% of the total
expenditures for innovation in open
innovation
~53% allocate more than 5 full-time
employees to open innovation
Median = 5%
Free knowledge sharing with external partners
Free access to external knowledge
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
percentile: 0% 75 percentile: 20%
5 percentile: 5% 75 percentile: 50%
Share of projects completed within the last 2
years with free inflows/ free outflows
The Role of Open Source in Open Innovation
Firms are net takers; ‘free revealing’ to open source communities (or other forms of
communities that follow the OSS principles) is ‘hard’
“I think one of the challenges in
Open Innovation right now in our
organization or any other high tech
organization is to figure out how
they can communicate [and work]
with open source communities”.
(Senior VP at Leading High-tech
Company)
Median = 20%
SAMSUNG “ It is actually Open Source Software that
is ‘eating’ the world…”
(VentureBeat, Dec 7, 2015)
Image Credit: Maksym Darakchi / Shutterstock.com
The Role of Open Source in Open Innovation
There are an increasing number of examples where firms move to ‘open source’ and reveal
their technology without constraints
The Role of Open Source in Open Innovation
Ford creates a diverse open source community of makers, coders and urban planners to
develop and disseminate smart mobility solutions
Context of the project:
• Electronics and software as a strategic innovation
area
• Open innovation is strategy to implement this
project
Problem:
Mobility as an ill-structured problem (not just
technical but also social factors play an important
role)
Sources of know-how not known to sources
Open Innovation Mode: Community
Open data movement: Release of machine
readable data (19 vehicle data streams)
Establishment of own community with open
source and open hardware license and creative
commons scheme
The Role of Open Source in Open Innovation
Shifting towards an open innovation strategy and waiving intellectual property rights has
numerous advantages
Drive the adoption of a new platform
Network effects and market share
Resource efficiency for development and
maintenance activities (bug fixing)
Driving innovation that solves problems of
value to the customer??
…..
Reduced risk associated with a new technology
Why go
open?
The Role of Open Source in Open Innovation
Open source is not just about hackers and techies anymore
Is an OSS community able to do that?
Focus on customer value?
The Industrial Model of Open Source Software
18
So
doing innovation the open source
way sounds just right,
right?
The Industrial Model of Open Source Software
Open Source Software projects have matured; a new industrial mode of OSS projects involves
multiple vendors and also customers/ firms
Unique communities motivated one
of my research fellows to study this
new model in more detail
Crowdsourced Discussions Open Source Software
The Industrial Model of Open Source Software
Computational Social-Technical Scientist
Albert Armisen is a Research Fellow focused on Open Stack
PhD CandidateProduct & Project ManagerTelecommunication Engineer
We focus on OpenStack; the leading OSS community in cloud computing
The Industrial Model of Open Source Software
In the industrial model we have three types of actors
Vendors
(Hann et al. 2013)
End Users
(Fayard and Metiu 2014)
Customers
(Fitzgerald 2006)
The Industrial Model of Open Source Software
The Industrial Model of Open Source Software
These actors represent the business ecosystems
Vendors Customers
CustomersEnd UsersVendors
• Participates in open
collaboration to
make use of the
outcome
• Aim to create
commercial benefits
from services or
products related to
the outcomes of the
community
• Participate in OSS to
create independent
user benefits by
using the software
developed in the
open collaboration
Business
Ecosystem
layer
OSS
community
layer
Driving Innovation through Collaboration in the
OSS Community
Driving Innovation through Collaboration in the OSS Community
The question: Who is proposing which innovation problems should be solved? And how are
they implemented?
Driving Innovation through Collaboration in the OSS Community
The problems to be solved vary in terms of the degree of novelty
“Live migration fails when the
instance has a
config_drive_format=iso9660”
Improvement
(bug)
“Store consoleauth tokens to
the database”
New feature
(blueprint feature)
Driving Innovation through Collaboration in the OSS Community
Blueprint feature are important to make sure that openstack offerings remain competitive;
however, bug fixing is just as important to ensure customer satisfaction
• Bug
• Seek to achieve
incremental innovation
• Mundane tasks (Lakhani
and von Hippel 2003)
• Highly dependent on
existing features or
characteristics
• Blueprint feature
• Moving beyond what is
known; Not dependent
upon prior knowledge
(Garud et al. 2010)
• Require new knowledge
to be created
Driving Innovation through Collaboration in the OSS Community
So what are some new features that are currently hot in Open Stack? The Community
developed roadmap provides an indication
Driving Innovation through Collaboration in the OSS Community
For example, on-demand and technology-agnostic network abstraction is the topic of 22
blueprints
Driving Innovation through Collaboration in the OSS Community
To provide insights into the question of who solves whose problem, we ‘pulled’ data from
OpenStack
Data from one of the oldest repositories: Nova (network)
Scraped data using GIT and Se
7.470
proposed
features
2-year
dataset of
Nova 5.018
proposed
features
Removed
collaboration
not following
community
guidelines
Driving Innovation through Collaboration in the OSS Community
Customers increasingly engage not just in identifying bugs but also in proposing new
blueprint features
Contribution of bugs & blueprints per actor (total numbers)
Vendors Customers
End users
Working the open source way, allows very individual and independent work
Working the open source way allows very individual
and independent work
• Task modularity
• Independent and individual work
CC credit https://flic.kr/p/xLe1C
Driving Innovation through Collaboration in the OSS Community
So why and how should the different actors collaborate?
How are the participants collaborating?
Driving Innovation through Collaboration in the OSS Community
Is there actually collaboration happening? Can customers expect support for their proposed
features that focus on innovation in OpenStack?
Problem
Solution Solution Solution Solution
Problem Problem Problem
Driving Innovation through Collaboration in the OSS Community
Is there actually collaboration happening? Can customers expect support for their proposed
features that focus on innovation in OpenStack?
Problem
Solution Solution Solution Solution
Problem Problem Problem
The distributors take different strategies; we find different patterns of contribution
Total number of features proposed by distributors
Number of blueprints proposed by distributors
Number of bugs proposed by distributors
Driving Innovation through Collaboration in the OSS Community
Is there any kind of collaboration among the distributors?
tributors‘ collaboration with the Community (overall)
istributors‘ collaboration with other Distributors
Driving Innovation through Collaboration in the OSS Community
Driving Innovation through Collaboration in the OSS Community
Indeed, we find that actors focus their attention on their own novel problems; however, there
is collaboration with other community problems
Problem revealed by
Solution
revealed by
Vendors Customers End User
Vendors Low collaboration Blueprints Blueprints
Customers Low collaboration Blueprints Blueprints
End User Low collaboration Blueprints & Bugs Low collaboration
Driving Innovation through Collaboration in the OSS Community
40
Since the industrial model becomes mainstream, collaboration is essential
How to Facilitate Participation in Communities
Fostering Effective and Efficient
Participation
Access to Tools (API,
DevOps, etc)
Participation Metrics
(Leaderboards)
OSS metrics help contributors to show their contribution efforts; and they should be
recognized inside the organization
How to Facilitate Participation in Communities
In our research, we learn that sharing information about the top performers (leaders) is not
necessarily helpful; focusing on amount of contribution is not enough
Increased design complexityIncreased design complexity
Source : Brunswicker, Almirall, Majchrzak (2016)
API
Toolkits
Best
practices
DevOps
….but what for?
Continuous
integration
systems
How to Facilitate Participation in Communities
How can participants collaborate efficiently in the OSS community?
How to Facilitate Participation in Communities
Communication is a key element in collaboration, yet it is given in many forms!
Image credit from http://www.wsj.com/articles/SB10001424052702303725404579461351615271292
Image credit from http://www.qu.tu-
berlin.de/menue/forschung/laufende_projekte/joyofuse/joy_of_use/joy_of_use/measurement_methods/sam/
Verification of Solution Likability of the communication
Amount of General FeedbackAmount of Specific Feedback
How to Facilitate Participation in Communities
Continuous integration system helps to do this process more efficiently
How to Facilitate Participation in Communities
However, what happens to the collaboration when it detects a failure?
How to Facilitate Participation in Communities
Developers may get stressed out…at least a little
How to Facilitate Participation in Communities
How does it change under anxious situation
Image credit from http://www.wsj.com/articles/SB10001424052702303725404579461351615271292
Image credit from http://www.qu.tu-
berlin.de/menue/forschung/laufende_projekte/joyofuse/joy_of_use/joy_of_use/measurement_methods/sam/
Verification of Solution Likability of the communication
Amount of General FeedbackAmount of Specific Feedback
Open innovation requires a
new way of innovating…
..through participating and
collaborating in communities
About us – Our Research and Educational
Programs
About us – Our Research and Educational Programs
To shape the emerging landscape of innovation, we launched RCODI in 2014 as a university-
wide center
Connected
everything
About us – Our Research and Educational Programs
Our work is motivated by two emerging phenomena: open and digital innovation
Analytics/
Big Data
Cloud
Convergence
• New value propositions
• Platforms and new
business models
• New forms of organizing
innovation
Innovation
Simplification
DiversificationImmersion
Social
media
Mobile
Open innovationOpen innovation Digital innovationDigital innovation
About us – Our Research and Educational Programs
Advisory Board
Center Director
Core Faculty
Affiliated Faculty Purdue
Affiliated Faculty in the
US, Europe, and Asia
Members (donations and
data transfer)
Academic, research
members
Performance metrics
• Intellectual contributions in
terms of high-impact
publications in ISI or financial
times ranked journals in
different disciplines
• Students in the area of open
digital innovation
• Research grant applications
and research expenditures
• International relationships
with academia and industry
• Endowments
• Real world impact and
advocacy
The center works in a global context; our performance metrics aim to generate new
knowledge
Information Systems
Electrical Engineering
Computer Science/Data
Science
Communications & Liberal
Arts
Research Center
for Open Digital
Innovation
(RCODI)
Sociology
Information Science
Management & Strategy
Economics
About us – Our Research and Educational Programs
The research center brings together a range of disciplines
About us – Our Research and Educational Programs
The power of openness: our research portfolio tackles power of openness in various aspects
Open data & open government & open
standardization
Open science and scientific communities
Open platforms and platform-based ecosystems
Open innovation (firm-level strategy)
Open source software, open source hardware
Open collaboration and extra-organizational
communities (technology, user)
The
Phenomenon
of Open
innovation
and value
creation
NanoHub Research
Ecosystem
Students
Tool
developers
Educators
Digital platforms
Publication
network
More than 400,000 users
About us – Our Research and Educational Programs
NanoHub represents a novel form of virtual collective science production; our models predict
that code contributions have a positive scientific impact in terms of citations
Open Science
About us – Our Research and Educational Programs
Source: Baldwin (2011)
How to sustain a high performing crowd of third-party developers?
A problem of openness: Accessibility and transparency
Transparency design: An important but often undervalued design choice when designing a
digital platform
Open platforms
About us – Our Research and Educational Programs
The program integrates three capability areas: Innovation, Information Technology, and Data
Science
Information
Technology &
Software Eng
(Foundations)
Open and
Digital
Innovation
Innovation
(Foundations)
Data Science
& Analytics
(Foundations)
About us – Our Research and Educational Programs
The program has been approved and we are accepting students starting this fall 2016
Information
Technology &
Software Eng
(Foundations)
Open and
Digital
Innovation
Innovation
(Foundations)
Research
Methods &
Data Science
(Foundations)
Coursework (27 credits) Course work to pursue M.Sc. In Innovation with Concentration in Open and Digital
Innovation
TLI Core (3 Courses, 9 Credits) • Measurement and Evaluation in Industry and Technology (IT 507, 3)
• Analysis of Research in Industry & Technology (TECH 646,3 )
• Quality and Productivity in Industry and Technology (IT 508, 3)
Concentration Core (3 required Courses,
9 Credits)
• Foundations of Innovation Studies (TLI520, 3)
• Digital Innovation & Transformation (TLI526, 3)
• Research in Open Innovation I (TLI620, 3)
Concentration Selective 1 (Cognate or
Core) (select 2, 3 Credits)
• Technological Innovation (Purdue Polytechnic, 3, TECH 621)
• Technology Entrepreneurship & Lean Startups (Krannert, 4, MGMT 590)
• Data warehousing (CNIT 559, 3)
• Information Technology Economics (CNIT 55100, 3)
• Information Technology Project Management (CNIT 55200, 3)
• Online Communities, Special Topics in Communications (Communications, COM
49700, 3)
• Open Source Software Development (CNIT 581, 3)
• Open data hacking (TECH590)
Concentration Selective 2 (Selective –
Methodology Area, select 1, 3 Credits)
• Business Analytics (3 Credits)
• Statistical Methods (Statistics, STAT511, 3)
• Design of Experiments (Statistics, STAT 514, 3)
• Applied Multivariate Analysis (Statistics, STAT 524, 3)
• Large Scale Data Analysis (Statistics, STAT 695O, 3
Thesis (6 credit) Thesis to be performed with the Research Center for Open Digital Innovation
About us – Our Research and Educational Programs
Objective: Developer future leaders, system
designers, and scientists that shape innovation in
open digital innovation environments
Basic principles:
• Interdisciplinary education (beyond
entrepreneurship and strategy)
• Foundational understanding of digital drivers
(and not just single tools)
• Being equipped for the big data age and the
role of digital technologies for decisions and
actions in innovation
• Understanding of open source and open
innovation models
The objective of the Master’s degree is to develop future leaders, system
designers and scientists in the open and digital innovation age
Master of Science in Technology Leadership & Innovation
Concentration in Open Digital Innovation
About us – Our Research and Educational Programs
We also just launched a dual degree program with China’s Tsinghua University
Bridging Program
Purdue M.S. with a focus on
Global Digital Innovation
Tsinghua Master of
Engineering
Management
• Multiple
locations in
China
• 6 months full time
• Learn
foundations for
both programs
6 months 12 to 18 months 12 to 15 months
• Study at Purdue
University
• Apply new skills and
knowledge in hands-on
projects with companies
• Work with leading
companies to solve
business challenges
• Study at Tsinghua
University
• Learn unique applications
of digital technologies
and new innovation
methods
• Gain skills to help
revolutionize the global
economy
INNOVATE WITH OPEN DATA: Create a
solve their problem
INNOVATE WITH OPEN DATA: Create a
novel, cool, and performative mash-up
embedded in a website that helps users to
solve their problem
OUTPERFORM OTHERS AND LEARN
learn from others’ work
OUTPERFORM OTHERS AND LEARN
FROM OTHERS: IronHacks is about
competition but you also get feedback and
learn from others’ work
HACK VIRTUALLY BUT ALSO MEET
about the programming tools.
HACK VIRTUALLY BUT ALSO MEET
PHYSICALLY: We offer a training on open
data, using the required API, and learning
about the programming tools.
GAIN FAME IN MULTIPLE WAYS: Improve
prize
GAIN FAME IN MULTIPLE WAYS: Improve
your score on the way, gain reputation,
learn (GitHub, JSSFIDDLE, etc.) and win a
prize
The Ironhack operates in 4 cycles for hackers: hack, breathe, learn, and iterate
About us – Our Research and Educational Programs
Training
session &
Survey
Hacking
phase 1
Evaluation
phase 1
Hacking
phase 2
Evaluation
phase 2
Hacking
phase 3
Evaluation
phase 3
21 days
March
10
Mar 28-30 ,
done by 8 pm
Mar 24(9am) –
submission by Mar
27 at Midnight
Mar 31 (9am) –Apr 3
Submission by Apr 3 at
Midnight
Apr 3-6, done by
8pm
Apr 7- 10, final
submission by Apr
10. Midnight
Apr 11-14 done by
8pm
Work hard,
be creative
Work hard, be
creative
Work hard, be
creative,
compete
Check out
scores
Check out
scores
Wait…
Final
winner
Dev-
eloper
Expert/custo
mer panel
The
IRONHACK
PHASES
Milestones/m
etrics
April 19 in
class
Completing the
post survey for
credit (April 19)
The Ironhack in class is structured in three stages: it supports experimentation and
facilitates the developer to turn data into useful applications
About us – Our Research and Educational Programs
Traditional ‘Hackathons’ The Purdue IronHacks
36 hrs of high energy; less creativity 3 weeks high-energy hacking/3 iterations; time
for creativity
Code: proprietary, no sharing of code with others Code: open access, shared with others, can build
on others’ code.
Mentorship during the 36 hrs and feedback on
final solution.
3 iterations of feedback; hackers get valuable
user, technical, market, and expert feedback for
constant guidance.
Constant physical presence and interaction Virtual presence and communication; hackers can
work on problems when they wish
Goal: Facilitating Entrepreneurial Individuals to Turn Open Data into Digital
Innovations (Mash-Ups) that Create Value for the User!
What are the IronHacks? Not your ordinary Hackathon!
About us – Our Research and Educational Programs
About us – Our Research and Educational Programs
Best Solution ($500 Amazon Gift Card):
The best solution was evaluated based on the submission submitted in the
final round. 4 equally weighted criteria (Technology, User Requirements,
Usability, and Novelty) applied The highest aggregate score won.
Greatest Improvement ($250 Amazon Gift Card):
changes (changes related to all categories).
Greatest Improvement ($250 Amazon Gift Card):
Those who were among the top 20 percent in each of the three hacking
phases qualified for this award: Among those who met these criterion we
ranked them in terms of number of GitHub submissions with significant
changes (changes related to all categories).
Greatest Community Spirit ($150 Amazon Gift Card):
Those who made the most valuable contributions to the discussion qualified
for this award (number of posts, number of other people that found that
comment useful, and expert judgment).
oto Credit: Anthony/inspiredimages (2010)
There are three winning categories
About us – Our Research and Educational Programs
“Find a safe place to rent”
Which neighborhoods are considered ‘safe’ and ‘green’? Incoming residents, especially students, have little
knowledge about the communities and neighborhoods in a new town. Many students only look at campus
apartments because it can be difficult to find out information about safety and they are unsure of where to
live.
Imagine you were moving to West Lafayette/Lafayette as a new resident and had no idea where to move
but knew that you wanted a safe or green area to live in
TASK:
• Develop a website with a mashup that uses local climate and societal data to visualize where it would be
best to move in Lafayette/West Lafayette based on how ‘green’ or ‘safe’ an area is.
• The website should optimize the value for the consumer in saving money by giving more alternatives
• Examples of features: parks and recreation, how many services, schools, alternative modes of
transportation if you do not have a car, street lighting, closeness to highway, crime rates and types of
crime, closeness to police/fire stations and education, real estate prices, criminal/offender registry,
scales that have the user describe preferences in terms of importance, and addresses etc.
The last hack in October was focused on the following problem; it followed the typical
hacking process
About us – Our Research and Educational Programs
About us – Our Research and Educational Programs
Winning App: Wei Qing
Used and recombined
over 7 open data sets
(!!!)
These included: local
apartment websites to
determine rental prices
And flooding data
This generated novel
visualization features
such as crime
locations, PD & FD
locations, restaurants,
etc.
Insights from our last hacking activities
Questions & Answers
Contact Information
Sabine Brunswicker
Associate Professor for Innovation
Research Center for Open Digital Innovation
Purdue University, Indiana
sbrunswi@purdue.edu
www.purdue.edu/opendigital
www.twitter.com/SabineBrunswick
If you have ay further questions, please contact us…
Research from Project #3
How can participants make sure that OpenStack remains competitive? What is the
technologies are emerging and strategically relevant?

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Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016

  • 1. Open Source and Open Innovation Dr. Sabine Brunswicker From Open Source Towards Open Innovation: Fostering Corporate Innovation with Open Source Software (OSS) Communities June 30th, 2016
  • 2. About us About the Director: ▪ Innovation scholar with a background in engineering and management ▪ Associate Professor for Innovation at Purdue ▪ Founder and Director of the Research Center for Open Digital Innovation ▪ Visiting Professor at ESADE Business School ▪ Adjunct Professor for Digital Economics, QUT, Australia ▪ Until 2013: Head of Open Innovation at Fraunhofer Institute for Industrial Engineering, Stuttgart; before that, positions in Industry Research Interests: ▪ Understanding emerging open models of innovation and value creation in today’s global and digital economy ▪ Inspired by real world phenomena and inform both academics as well as practitioners. Thought Leadership: Policy Advisor European Commission (DG Enterprise, Markets, Research), Speaker at World Economic Forum, Speaker at European Parliament I am into innovation: open and digital innovation…..
  • 3. About Us Purdue is a top public research institution located in West Lafayette, Indiana Committed to student success, Purdue is changing the student experience with greater focus on faculty-student interaction and creative use of technology Committed to pursuing scientific discoveries and engineered solutions, Purdue has streamlined pathways for faculty and student innovators who have a vision for moving the world forward. Purdue University is a major research institution known for discoveries in science, technology, engineering, math and beyond. Photos: Andrew Hancock/Purdue University
  • 4. Agenda • The Role of Open Source in Open Innovation • The Industrial Model of Open Source Software • Driving Innovation through Collaboration in the OSS Community • How to Facilitate Participation in Communities • About us – Our Research and Educational Programs This session will focus on …
  • 5. About the Research Center for Open Digital Innovation THE INNOVATION GAME HAS CHANGED¹ THE INNOVATION GAME HAS CHANGED¹ ource: 1) Chesbrough (2003)
  • 6. What is an innovation? In the end it is about solving a problem (technical or business) in a novel way! Innovation is often associated with special people...
  • 7. The Role of Open Source in Open Innovation But what is an innovation? ? A New Product A New ServiceA New Process
  • 8. Innovation is about finding a novel solution for a problem that is useful for the user CC Credit https://flic.kr/p/jFHBdv
  • 9. The Role of Open Source in Open Innovation The changing innovation landscape is reflected by the increased interest and adoption of open innovation Google Search Open Innovation: 10/2011 > 8 Mio Hits 05/2013 > 700 Mio Hits
  • 10. The Role of Open Source in Open Innovation The original model of open innovation takes a firm-level perspective; open innovation represents a managerial framework for innovation en Innovation: A New Innovation Paradigm Open Model existing marke new market other firms market idea sourcing running/successful innovation projectsdiscarded innovation projects Closed Model market + + + new product/ service internal innovation resources internal innovation resources external innovation resources technology sourcing co-development partnerships Free revealing urce: Brunswicker (2011); see also Chesbrough (2003, 2006)
  • 11. In our 2015 Global Open Innovation Executive Study we learned more about the adoption of open innovation Study among the largest firms in Europe and US Firm criteria: >1000 employees and >250 million USD in sales Organizational & Project level analysis Data collection: January 2015 to August 2015 Current responses: 121 firm- level data, additional project level data Executive Study 2015 Purdue & Berkeley Adoption of open innovation Abandoning open innovation Financial support Expenditures Human resources The Role of Open Source in Open Innovation ~78% of firms (94 firms) practice open innovation today (n=121) ~ 2.5% of firms adopting open innovation have abandoned it ~61 % have increased the financial investment ~22 % have increased the financial investment by more than 50% ~48% invest more than 10% of the total expenditures for innovation in open innovation ~53% allocate more than 5 full-time employees to open innovation
  • 12. Median = 5% Free knowledge sharing with external partners Free access to external knowledge 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% percentile: 0% 75 percentile: 20% 5 percentile: 5% 75 percentile: 50% Share of projects completed within the last 2 years with free inflows/ free outflows The Role of Open Source in Open Innovation Firms are net takers; ‘free revealing’ to open source communities (or other forms of communities that follow the OSS principles) is ‘hard’ “I think one of the challenges in Open Innovation right now in our organization or any other high tech organization is to figure out how they can communicate [and work] with open source communities”. (Senior VP at Leading High-tech Company) Median = 20%
  • 13. SAMSUNG “ It is actually Open Source Software that is ‘eating’ the world…” (VentureBeat, Dec 7, 2015) Image Credit: Maksym Darakchi / Shutterstock.com
  • 14. The Role of Open Source in Open Innovation There are an increasing number of examples where firms move to ‘open source’ and reveal their technology without constraints
  • 15. The Role of Open Source in Open Innovation Ford creates a diverse open source community of makers, coders and urban planners to develop and disseminate smart mobility solutions Context of the project: • Electronics and software as a strategic innovation area • Open innovation is strategy to implement this project Problem: Mobility as an ill-structured problem (not just technical but also social factors play an important role) Sources of know-how not known to sources Open Innovation Mode: Community Open data movement: Release of machine readable data (19 vehicle data streams) Establishment of own community with open source and open hardware license and creative commons scheme
  • 16. The Role of Open Source in Open Innovation Shifting towards an open innovation strategy and waiving intellectual property rights has numerous advantages Drive the adoption of a new platform Network effects and market share Resource efficiency for development and maintenance activities (bug fixing) Driving innovation that solves problems of value to the customer?? ….. Reduced risk associated with a new technology Why go open?
  • 17. The Role of Open Source in Open Innovation Open source is not just about hackers and techies anymore Is an OSS community able to do that? Focus on customer value?
  • 18. The Industrial Model of Open Source Software 18
  • 19. So doing innovation the open source way sounds just right, right?
  • 20. The Industrial Model of Open Source Software Open Source Software projects have matured; a new industrial mode of OSS projects involves multiple vendors and also customers/ firms Unique communities motivated one of my research fellows to study this new model in more detail
  • 21. Crowdsourced Discussions Open Source Software The Industrial Model of Open Source Software Computational Social-Technical Scientist Albert Armisen is a Research Fellow focused on Open Stack PhD CandidateProduct & Project ManagerTelecommunication Engineer
  • 22. We focus on OpenStack; the leading OSS community in cloud computing The Industrial Model of Open Source Software
  • 23. In the industrial model we have three types of actors Vendors (Hann et al. 2013) End Users (Fayard and Metiu 2014) Customers (Fitzgerald 2006) The Industrial Model of Open Source Software
  • 24. The Industrial Model of Open Source Software These actors represent the business ecosystems Vendors Customers CustomersEnd UsersVendors • Participates in open collaboration to make use of the outcome • Aim to create commercial benefits from services or products related to the outcomes of the community • Participate in OSS to create independent user benefits by using the software developed in the open collaboration Business Ecosystem layer OSS community layer
  • 25. Driving Innovation through Collaboration in the OSS Community
  • 26. Driving Innovation through Collaboration in the OSS Community The question: Who is proposing which innovation problems should be solved? And how are they implemented?
  • 27. Driving Innovation through Collaboration in the OSS Community The problems to be solved vary in terms of the degree of novelty “Live migration fails when the instance has a config_drive_format=iso9660” Improvement (bug) “Store consoleauth tokens to the database” New feature (blueprint feature)
  • 28. Driving Innovation through Collaboration in the OSS Community Blueprint feature are important to make sure that openstack offerings remain competitive; however, bug fixing is just as important to ensure customer satisfaction • Bug • Seek to achieve incremental innovation • Mundane tasks (Lakhani and von Hippel 2003) • Highly dependent on existing features or characteristics • Blueprint feature • Moving beyond what is known; Not dependent upon prior knowledge (Garud et al. 2010) • Require new knowledge to be created
  • 29. Driving Innovation through Collaboration in the OSS Community So what are some new features that are currently hot in Open Stack? The Community developed roadmap provides an indication
  • 30. Driving Innovation through Collaboration in the OSS Community For example, on-demand and technology-agnostic network abstraction is the topic of 22 blueprints
  • 31. Driving Innovation through Collaboration in the OSS Community To provide insights into the question of who solves whose problem, we ‘pulled’ data from OpenStack Data from one of the oldest repositories: Nova (network) Scraped data using GIT and Se 7.470 proposed features 2-year dataset of Nova 5.018 proposed features Removed collaboration not following community guidelines
  • 32. Driving Innovation through Collaboration in the OSS Community Customers increasingly engage not just in identifying bugs but also in proposing new blueprint features Contribution of bugs & blueprints per actor (total numbers) Vendors Customers End users
  • 33. Working the open source way, allows very individual and independent work Working the open source way allows very individual and independent work • Task modularity • Independent and individual work CC credit https://flic.kr/p/xLe1C
  • 34. Driving Innovation through Collaboration in the OSS Community So why and how should the different actors collaborate? How are the participants collaborating?
  • 35. Driving Innovation through Collaboration in the OSS Community Is there actually collaboration happening? Can customers expect support for their proposed features that focus on innovation in OpenStack? Problem Solution Solution Solution Solution Problem Problem Problem
  • 36. Driving Innovation through Collaboration in the OSS Community Is there actually collaboration happening? Can customers expect support for their proposed features that focus on innovation in OpenStack? Problem Solution Solution Solution Solution Problem Problem Problem
  • 37. The distributors take different strategies; we find different patterns of contribution Total number of features proposed by distributors Number of blueprints proposed by distributors Number of bugs proposed by distributors Driving Innovation through Collaboration in the OSS Community
  • 38. Is there any kind of collaboration among the distributors? tributors‘ collaboration with the Community (overall) istributors‘ collaboration with other Distributors Driving Innovation through Collaboration in the OSS Community
  • 39. Driving Innovation through Collaboration in the OSS Community Indeed, we find that actors focus their attention on their own novel problems; however, there is collaboration with other community problems Problem revealed by Solution revealed by Vendors Customers End User Vendors Low collaboration Blueprints Blueprints Customers Low collaboration Blueprints Blueprints End User Low collaboration Blueprints & Bugs Low collaboration
  • 40. Driving Innovation through Collaboration in the OSS Community 40 Since the industrial model becomes mainstream, collaboration is essential
  • 41. How to Facilitate Participation in Communities
  • 42. Fostering Effective and Efficient Participation Access to Tools (API, DevOps, etc) Participation Metrics (Leaderboards)
  • 43.
  • 44. OSS metrics help contributors to show their contribution efforts; and they should be recognized inside the organization
  • 45. How to Facilitate Participation in Communities In our research, we learn that sharing information about the top performers (leaders) is not necessarily helpful; focusing on amount of contribution is not enough Increased design complexityIncreased design complexity Source : Brunswicker, Almirall, Majchrzak (2016)
  • 47. How to Facilitate Participation in Communities How can participants collaborate efficiently in the OSS community?
  • 48. How to Facilitate Participation in Communities Communication is a key element in collaboration, yet it is given in many forms! Image credit from http://www.wsj.com/articles/SB10001424052702303725404579461351615271292 Image credit from http://www.qu.tu- berlin.de/menue/forschung/laufende_projekte/joyofuse/joy_of_use/joy_of_use/measurement_methods/sam/ Verification of Solution Likability of the communication Amount of General FeedbackAmount of Specific Feedback
  • 49. How to Facilitate Participation in Communities Continuous integration system helps to do this process more efficiently
  • 50. How to Facilitate Participation in Communities However, what happens to the collaboration when it detects a failure?
  • 51. How to Facilitate Participation in Communities Developers may get stressed out…at least a little
  • 52. How to Facilitate Participation in Communities How does it change under anxious situation Image credit from http://www.wsj.com/articles/SB10001424052702303725404579461351615271292 Image credit from http://www.qu.tu- berlin.de/menue/forschung/laufende_projekte/joyofuse/joy_of_use/joy_of_use/measurement_methods/sam/ Verification of Solution Likability of the communication Amount of General FeedbackAmount of Specific Feedback
  • 53. Open innovation requires a new way of innovating… ..through participating and collaborating in communities
  • 54. About us – Our Research and Educational Programs
  • 55. About us – Our Research and Educational Programs To shape the emerging landscape of innovation, we launched RCODI in 2014 as a university- wide center
  • 56. Connected everything About us – Our Research and Educational Programs Our work is motivated by two emerging phenomena: open and digital innovation Analytics/ Big Data Cloud Convergence • New value propositions • Platforms and new business models • New forms of organizing innovation Innovation Simplification DiversificationImmersion Social media Mobile Open innovationOpen innovation Digital innovationDigital innovation
  • 57. About us – Our Research and Educational Programs Advisory Board Center Director Core Faculty Affiliated Faculty Purdue Affiliated Faculty in the US, Europe, and Asia Members (donations and data transfer) Academic, research members Performance metrics • Intellectual contributions in terms of high-impact publications in ISI or financial times ranked journals in different disciplines • Students in the area of open digital innovation • Research grant applications and research expenditures • International relationships with academia and industry • Endowments • Real world impact and advocacy The center works in a global context; our performance metrics aim to generate new knowledge
  • 58. Information Systems Electrical Engineering Computer Science/Data Science Communications & Liberal Arts Research Center for Open Digital Innovation (RCODI) Sociology Information Science Management & Strategy Economics About us – Our Research and Educational Programs The research center brings together a range of disciplines
  • 59. About us – Our Research and Educational Programs The power of openness: our research portfolio tackles power of openness in various aspects Open data & open government & open standardization Open science and scientific communities Open platforms and platform-based ecosystems Open innovation (firm-level strategy) Open source software, open source hardware Open collaboration and extra-organizational communities (technology, user) The Phenomenon of Open innovation and value creation
  • 60. NanoHub Research Ecosystem Students Tool developers Educators Digital platforms Publication network More than 400,000 users About us – Our Research and Educational Programs NanoHub represents a novel form of virtual collective science production; our models predict that code contributions have a positive scientific impact in terms of citations Open Science
  • 61. About us – Our Research and Educational Programs Source: Baldwin (2011) How to sustain a high performing crowd of third-party developers? A problem of openness: Accessibility and transparency Transparency design: An important but often undervalued design choice when designing a digital platform Open platforms
  • 62. About us – Our Research and Educational Programs The program integrates three capability areas: Innovation, Information Technology, and Data Science Information Technology & Software Eng (Foundations) Open and Digital Innovation Innovation (Foundations) Data Science & Analytics (Foundations)
  • 63. About us – Our Research and Educational Programs The program has been approved and we are accepting students starting this fall 2016 Information Technology & Software Eng (Foundations) Open and Digital Innovation Innovation (Foundations) Research Methods & Data Science (Foundations) Coursework (27 credits) Course work to pursue M.Sc. In Innovation with Concentration in Open and Digital Innovation TLI Core (3 Courses, 9 Credits) • Measurement and Evaluation in Industry and Technology (IT 507, 3) • Analysis of Research in Industry & Technology (TECH 646,3 ) • Quality and Productivity in Industry and Technology (IT 508, 3) Concentration Core (3 required Courses, 9 Credits) • Foundations of Innovation Studies (TLI520, 3) • Digital Innovation & Transformation (TLI526, 3) • Research in Open Innovation I (TLI620, 3) Concentration Selective 1 (Cognate or Core) (select 2, 3 Credits) • Technological Innovation (Purdue Polytechnic, 3, TECH 621) • Technology Entrepreneurship & Lean Startups (Krannert, 4, MGMT 590) • Data warehousing (CNIT 559, 3) • Information Technology Economics (CNIT 55100, 3) • Information Technology Project Management (CNIT 55200, 3) • Online Communities, Special Topics in Communications (Communications, COM 49700, 3) • Open Source Software Development (CNIT 581, 3) • Open data hacking (TECH590) Concentration Selective 2 (Selective – Methodology Area, select 1, 3 Credits) • Business Analytics (3 Credits) • Statistical Methods (Statistics, STAT511, 3) • Design of Experiments (Statistics, STAT 514, 3) • Applied Multivariate Analysis (Statistics, STAT 524, 3) • Large Scale Data Analysis (Statistics, STAT 695O, 3 Thesis (6 credit) Thesis to be performed with the Research Center for Open Digital Innovation
  • 64. About us – Our Research and Educational Programs Objective: Developer future leaders, system designers, and scientists that shape innovation in open digital innovation environments Basic principles: • Interdisciplinary education (beyond entrepreneurship and strategy) • Foundational understanding of digital drivers (and not just single tools) • Being equipped for the big data age and the role of digital technologies for decisions and actions in innovation • Understanding of open source and open innovation models The objective of the Master’s degree is to develop future leaders, system designers and scientists in the open and digital innovation age Master of Science in Technology Leadership & Innovation Concentration in Open Digital Innovation
  • 65. About us – Our Research and Educational Programs We also just launched a dual degree program with China’s Tsinghua University Bridging Program Purdue M.S. with a focus on Global Digital Innovation Tsinghua Master of Engineering Management • Multiple locations in China • 6 months full time • Learn foundations for both programs 6 months 12 to 18 months 12 to 15 months • Study at Purdue University • Apply new skills and knowledge in hands-on projects with companies • Work with leading companies to solve business challenges • Study at Tsinghua University • Learn unique applications of digital technologies and new innovation methods • Gain skills to help revolutionize the global economy
  • 66. INNOVATE WITH OPEN DATA: Create a solve their problem INNOVATE WITH OPEN DATA: Create a novel, cool, and performative mash-up embedded in a website that helps users to solve their problem OUTPERFORM OTHERS AND LEARN learn from others’ work OUTPERFORM OTHERS AND LEARN FROM OTHERS: IronHacks is about competition but you also get feedback and learn from others’ work HACK VIRTUALLY BUT ALSO MEET about the programming tools. HACK VIRTUALLY BUT ALSO MEET PHYSICALLY: We offer a training on open data, using the required API, and learning about the programming tools. GAIN FAME IN MULTIPLE WAYS: Improve prize GAIN FAME IN MULTIPLE WAYS: Improve your score on the way, gain reputation, learn (GitHub, JSSFIDDLE, etc.) and win a prize The Ironhack operates in 4 cycles for hackers: hack, breathe, learn, and iterate About us – Our Research and Educational Programs
  • 67. Training session & Survey Hacking phase 1 Evaluation phase 1 Hacking phase 2 Evaluation phase 2 Hacking phase 3 Evaluation phase 3 21 days March 10 Mar 28-30 , done by 8 pm Mar 24(9am) – submission by Mar 27 at Midnight Mar 31 (9am) –Apr 3 Submission by Apr 3 at Midnight Apr 3-6, done by 8pm Apr 7- 10, final submission by Apr 10. Midnight Apr 11-14 done by 8pm Work hard, be creative Work hard, be creative Work hard, be creative, compete Check out scores Check out scores Wait… Final winner Dev- eloper Expert/custo mer panel The IRONHACK PHASES Milestones/m etrics April 19 in class Completing the post survey for credit (April 19) The Ironhack in class is structured in three stages: it supports experimentation and facilitates the developer to turn data into useful applications About us – Our Research and Educational Programs
  • 68. Traditional ‘Hackathons’ The Purdue IronHacks 36 hrs of high energy; less creativity 3 weeks high-energy hacking/3 iterations; time for creativity Code: proprietary, no sharing of code with others Code: open access, shared with others, can build on others’ code. Mentorship during the 36 hrs and feedback on final solution. 3 iterations of feedback; hackers get valuable user, technical, market, and expert feedback for constant guidance. Constant physical presence and interaction Virtual presence and communication; hackers can work on problems when they wish Goal: Facilitating Entrepreneurial Individuals to Turn Open Data into Digital Innovations (Mash-Ups) that Create Value for the User! What are the IronHacks? Not your ordinary Hackathon! About us – Our Research and Educational Programs
  • 69. About us – Our Research and Educational Programs Best Solution ($500 Amazon Gift Card): The best solution was evaluated based on the submission submitted in the final round. 4 equally weighted criteria (Technology, User Requirements, Usability, and Novelty) applied The highest aggregate score won. Greatest Improvement ($250 Amazon Gift Card): changes (changes related to all categories). Greatest Improvement ($250 Amazon Gift Card): Those who were among the top 20 percent in each of the three hacking phases qualified for this award: Among those who met these criterion we ranked them in terms of number of GitHub submissions with significant changes (changes related to all categories). Greatest Community Spirit ($150 Amazon Gift Card): Those who made the most valuable contributions to the discussion qualified for this award (number of posts, number of other people that found that comment useful, and expert judgment). oto Credit: Anthony/inspiredimages (2010) There are three winning categories
  • 70. About us – Our Research and Educational Programs “Find a safe place to rent” Which neighborhoods are considered ‘safe’ and ‘green’? Incoming residents, especially students, have little knowledge about the communities and neighborhoods in a new town. Many students only look at campus apartments because it can be difficult to find out information about safety and they are unsure of where to live. Imagine you were moving to West Lafayette/Lafayette as a new resident and had no idea where to move but knew that you wanted a safe or green area to live in TASK: • Develop a website with a mashup that uses local climate and societal data to visualize where it would be best to move in Lafayette/West Lafayette based on how ‘green’ or ‘safe’ an area is. • The website should optimize the value for the consumer in saving money by giving more alternatives • Examples of features: parks and recreation, how many services, schools, alternative modes of transportation if you do not have a car, street lighting, closeness to highway, crime rates and types of crime, closeness to police/fire stations and education, real estate prices, criminal/offender registry, scales that have the user describe preferences in terms of importance, and addresses etc. The last hack in October was focused on the following problem; it followed the typical hacking process
  • 71. About us – Our Research and Educational Programs
  • 72. About us – Our Research and Educational Programs Winning App: Wei Qing Used and recombined over 7 open data sets (!!!) These included: local apartment websites to determine rental prices And flooding data This generated novel visualization features such as crime locations, PD & FD locations, restaurants, etc. Insights from our last hacking activities
  • 74. Contact Information Sabine Brunswicker Associate Professor for Innovation Research Center for Open Digital Innovation Purdue University, Indiana sbrunswi@purdue.edu www.purdue.edu/opendigital www.twitter.com/SabineBrunswick If you have ay further questions, please contact us…
  • 75. Research from Project #3 How can participants make sure that OpenStack remains competitive? What is the technologies are emerging and strategically relevant?