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PRO-VE Conference
Collaborative Networks


Innovation and Knowledge Management
for Collaborative Networks.

José Cláudio Terra
Fundação Instituto de Administração
São Paulo, August 18th, 2011
How companies are organizing their innovation and
knowledge management for collaborative networks?
Two Complimentary approaches



1. Company-led formal innovation networks

2. Innovation 2.0 – Internet markets
Two Complimentary approaches



1. Company-led formal innovation networks

2. Innovation 2.0 – Internet markets
Source: Época Magazine
Benchmark Study: “Best Practices in Open Innovation
Systems”: Participating Companies

 Brazil




 Global




                                                 © TerraForum
Best Practices in Open Innovation Systems (OIS)




        “ Philips established partnerships all over the innovation
          stages, from basic research to commercialization.
          Besides, developed a technology park in Eindhoven that
          became worldwide renowned that was capable to attract
          the strategic competencies to the company.
          Philips High Tech Campus offers infrastructure for their
          partners, e.g.: suppliers, consultants, patents office, venture
          capitalists, governmental research organizations, research
          specialists.

          It also offers paid services, such: offices for rental,
          incubation and laboratories.



                                                                            © TerraForum
High Tech Campus, a new concept on Open
Innovation System




                       •   Modern technology park
                       •   More than €500M in investments;
                       •   Technology-based startups incubation
                       •   The design stimulates and forces collaboration
                           between partners
                       •   Close to universities
                       •   “Research Hotel” concept




                                                                  © TerraForum
Best Practices in Open Innovation Systems (OIS)
Philips High Tech Campus (Eindhoven)




                                                  © TerraForum
Companies are creating their own Open Innovation
Systems, that are composed by...




          Processes                   Partners´ Network
       and Governance                    relationship


                            Open
                         Innovation
                           System




                                       Organizational
        Infrastructure                   structure

                                                          © TerraForum
“Best Practices in Open Innovation Systems”: Context

 •       TerraForum led a national and international research about tecnological innovation systems, with
         the purpose of evaluating how companies structure their open innovation activities.

 •       For this purpose, it was used the Four Dimensions Model, developed by TerraForum, which
         includes the four pillars for management of technological innovation systems .



     •   Open Innovation Objectives                                         •   Infrastructure
     •   Open Innovation focus and                        Support and       •   Business and Services Support
         strategy                      Strategy                             •   Partners and Network Management
     •
                                                            Services
         System’s Location                                                  •   Encouragement to Collaboration

     •   Partner Network composition                                        • Governance and Organizational
     •   Partner role                                                         Structure
     •   Partner Relationship          Relational        Organizational     • System’s Marketing
     •   Intelectual Property                                               • Open Innovation Processes




                                                                                                  © TerraForum
The Maturity Model

 •   The repport result showed different practices adopted concerning open innovation around the
     world.
 •   Based on these results, TerraForum developed an Open Innovation Maturity Model, which is
     composed by four distinct levels:




                                                                                      World Class



                                                                                      Advanced


                                                                                      Explorers

                                                                                      Beginners

                                                                                       © TerraForum
Strategic Dimension


  Dimension      Beginners              Explorers               Advanced                  World Class

              • Innovation is      • Innovation is part   • Growth strategy       • Aspire to be world leader in
                not seen as          of the strategic       based on innovation     innovation
                strategic            direction
                                                          • Participate in the    • System’s exclusive strategy
              • Partnerships for   • Some radical           entire innovation
                incremental          innovations            value chain.          • Partnerships in the entire
                innovations                                                         R&D&I process ;
                                   • Focus in Research    • Close to the world
              • Historical           and Development        centers of            • Open innovation system
  Strategic     location.                                   technological           with specific locus.
                                   • Close to               knowledge.
                                     Universities




                                                                                                     © TerraForum
Relational Dimension


  Dimension       Beginners              Explorers              Advanced                   World Class

               • Few partners       • Larger number of    • Global partnership     • Partnerships for network
                                      partners and          networks                 support
               • Partners for the     bigger diversity.
                 development                              • Relationships          • Leadership in programs for
                 phases             • Partners for          beyond mere              national and international
                                      research,             contracts.               research
               • No formal            development and
                 policies on          testing.            • Partners part of all
                 Intelectual                                R&D&I and              • Strategic partnerships
  Relational     Property           • Creation of basic     commercialization        globally
                                      intelectual           phases.
                                      properties                                   • Intelectual Property as a
                                      policies.           • Comprehensive IP         source of value creation.
                                                            Policies




                                                                                                     © TerraForum
Support and Services Dimension


  Dimension        Beginners              Explorers               Advanced                       World Class

               • Few services or     • Infrastructure and   • Support to innovation     • Seeks to create local
                 support infra-        equipments sharing     management services         innovation systems, with
                 structure to the                                                         exclusive infrastructure,
                 partner             • Collaboration not    • Invest on the partner,,     Research support services,
                                       specifically           acquire companies and       general services management
               • No specific           stimulated.            technologies, perform
                 partner training.                            spin-offs, joint-         • Exclusive management with
                                     • Some mecanisms         ventures and other          the purpose of constantly
               • No formal             focused on partner     strategic alliances.        increase the system strength.
 Support and     mecanisms             attraction,                                        Manage individual
                 focused on            development or       • Support for                 relationships and the partner
   Services
                 partner               evaluation.            collaboration among         network.
                 attraction,                                  partners.
                 development or                                                         • Seeks to attract a variety of
                 evaluation.                                                              partnerships and invests in the
                                                                                          development of the partners
               • No support for
                 collaboration                                                          • Support for collaboration
                                                                                          among partners.




                                                                                                            © TerraForum
Organizational Dimension

 Dimension          Beginners                Explorers                Advanced                    World Class

                 • The R&D&I is        • Funcional areas        • Physical structures    • Physical structures appear as
                   part of the           with dedicated           exclusive for P&D&I      systems of Technological
                   organization and      teams to R&D&I.          separated from the       Innovation, separated from
                   is scattered                                   leader company.          the company’s business as
                   among               • Governance: middle                                usual.
                   functional areas.     management and         • Formal areas
                                         regular committees.      dedicated to           • Outsourcing of the physical
                 • No exclusive                                   innovation with high     structure management
                   functional          • Management with          degree of autonomy
                   structures            low degree of            in the decision-       • Governance with
Organizational     focused on open       autonomy                 making.                  participation of parners and
                   innovation                                                              external entities
                                       • Actions in the early   • Brand strengthening
                 • No marketing          stages focused on                               • Dedicated structures to the
                   iniciatives           brand                                             system’s institutional
                                         strengthening                                     relationship.

                                                                                         • Specific formal processes and
                                                                                           tools

                                                                                         • Branding


                                                                                                             © TerraForum
Two Complimentary approaches


 1. Company-led formal innovation networks

 2. Innovation 2.0 – Internet markets
Innovation 2.0 Value Chain

      Competitive           Ideas                                   Tests and         Commercialization
                                              R&D&E
      Intelligence       and Insights                              Prototypes          and Scaling Up




  •    Prediction    •   Ideas        •   Investment           •    Lead-users    •    Technology
  •    Opinions      •   Contests     •   Co-development            opinion            Commercialization
  •    Trends        •   Technologies •   Specific Solutions   •    Pilot Plans   •    Viral marketing
                                      •   Technology transfers •    Mass Feedback

                                                Web 2.0




                             Clients, Universities, Research Centers,
                              Suppliers, Partners and Competitors

                                                                                                 © TerraForum
Innovation 2.0 Value Chain

   Competitive       Ideas                Tests and   Commercialization
                                 R&D&E
   Intelligence   and Insights           Prototypes    and Scaling Up




                                                                 © TerraForum
Innovation 2.0 Formats
                      Market
Format / Leadership

                      Companies




                                  © TerraForum
Innovation 2.0 Formats
                                                Collaboration / Thematic Drive
                                  Without Collaboration                 With Collaboration
                      Market
Format / Leadership

                      Companies




                                                                                             © TerraForum
Innovation 2.0 Formats
                                                    Collaboration / Thematic Drive
                                      Without Collaboration                 With Collaboration
                                  Any Theme        Specific Themes    Any Theme         Specific Themes
                      Market
Format / Leadership

                      Companies




                                                                                                 © TerraForum
Innovation 2.0 Formats
                                                    Collaboration / Thematic Drive
                                      Without Collaboration                 With Collaboration
                                  Any Theme        Specific Themes    Any Theme         Specific Themes
                      Market
Format / Leadership

                      Companies




                                                                                                 © TerraForum
Final Considerations
Key Factors for Innovation and Knowledge
Management Collaborative Networks

                                                       Clearly Defined
                                        Support and       IP policies    Organizational
                                        Services for                     Structure and
                                          Partners                        Governance

                      Strong Relation                                                     Infrastructure
                         Network                                                           and location



           Adequate
           Partners                                                                                   Funding




   Collaborative                                                                                           Stakeholders
      Culture                                                                                                Support



                                                           Open                                             Processes and
   Strategic                                            Innovation                                             KPIs for
  Alignment                                                                                                  Innovation
                                                         System                                                 Mgmt



                                                                                                            © TerraForum
Key Factors for Innovation and Knowledge
Management Collaborative Networks

                                                       Clearly Defined
                                        Support and       IP policies    Organizational
                                        Services for                     Structure and
                                          Partners                        Governance

                      Strong Relation                                                     Infrastructure
                         Network                                                           and location



           Adequate
           Partners                                                                                   Funding

                                           Worldview
   Collaborative                                                                                           Stakeholders
      Culture                                                                                                Support



                                                           Open                                             Processes and
   Strategic                                            Innovation                                             KPIs for
  Alignment                                                                                                  Innovation
                                                         System                                                 Mgmt



                                                                                                            © TerraForum
Key Factors for Innovation and Knowledge
Management Collaborative Networks

                                                       Clearly Defined
                                        Support and       IP policies    Organizational
                                        Services for                     Structure and
                                          Partners                        Governance

                      Strong Relation                                                     Infrastructure
                         Network                                                           and location



           Adequate
                               Worldview
           Partners
                                   +                                                                  Funding




   Collaborative
      Culture             Active Management                                                                Stakeholders
                                                                                                             Support



                                                           Open                                             Processes and
   Strategic                                            Innovation                                             KPIs for
  Alignment                                                                                                  Innovation
                                                         System                                                 Mgmt



                                                                                                            © TerraForum
Thank you!
 José Cláudio Terra
    Twitter: @claudioterra
 www.slideshare.net/jcterra




                                                  SÃO PAULO – Rua Francisco Leitão, 469 – cj. 1704
                         Jd. América – São Paulo-SP – CEP 05414-020 – Tel/Fax: +55 (11) 3088-6021

                                                     CURITIBA – Praça General Osório, 45 – cj. 305
                                   Centro – Curitiba-PR – CEP 80020-010 – Tel. +55 (41) 3233-8891

                                               RIO DE JANEIRO – Praia de Botafogo, 300 – sala 521
                           Botafogo – Rio de Janeiro-RJ – CEP 22250-040 – Tel. +55 (21)2158-1086

                                                     BELO HORIZONTE – Rua Sergipe, 925 – cj. 601
                                                         Savassi – 30130-171 Belo Horizonte - MG

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PRO VE international conference - Innovation and Knowledge Networks

  • 1. PRO-VE Conference Collaborative Networks Innovation and Knowledge Management for Collaborative Networks. José Cláudio Terra Fundação Instituto de Administração São Paulo, August 18th, 2011
  • 2. How companies are organizing their innovation and knowledge management for collaborative networks?
  • 3. Two Complimentary approaches 1. Company-led formal innovation networks 2. Innovation 2.0 – Internet markets
  • 4. Two Complimentary approaches 1. Company-led formal innovation networks 2. Innovation 2.0 – Internet markets
  • 6. Benchmark Study: “Best Practices in Open Innovation Systems”: Participating Companies Brazil Global © TerraForum
  • 7. Best Practices in Open Innovation Systems (OIS) “ Philips established partnerships all over the innovation stages, from basic research to commercialization. Besides, developed a technology park in Eindhoven that became worldwide renowned that was capable to attract the strategic competencies to the company. Philips High Tech Campus offers infrastructure for their partners, e.g.: suppliers, consultants, patents office, venture capitalists, governmental research organizations, research specialists. It also offers paid services, such: offices for rental, incubation and laboratories. © TerraForum
  • 8. High Tech Campus, a new concept on Open Innovation System • Modern technology park • More than €500M in investments; • Technology-based startups incubation • The design stimulates and forces collaboration between partners • Close to universities • “Research Hotel” concept © TerraForum
  • 9. Best Practices in Open Innovation Systems (OIS) Philips High Tech Campus (Eindhoven) © TerraForum
  • 10. Companies are creating their own Open Innovation Systems, that are composed by... Processes Partners´ Network and Governance relationship Open Innovation System Organizational Infrastructure structure © TerraForum
  • 11. “Best Practices in Open Innovation Systems”: Context • TerraForum led a national and international research about tecnological innovation systems, with the purpose of evaluating how companies structure their open innovation activities. • For this purpose, it was used the Four Dimensions Model, developed by TerraForum, which includes the four pillars for management of technological innovation systems . • Open Innovation Objectives • Infrastructure • Open Innovation focus and Support and • Business and Services Support strategy Strategy • Partners and Network Management • Services System’s Location • Encouragement to Collaboration • Partner Network composition • Governance and Organizational • Partner role Structure • Partner Relationship Relational Organizational • System’s Marketing • Intelectual Property • Open Innovation Processes © TerraForum
  • 12. The Maturity Model • The repport result showed different practices adopted concerning open innovation around the world. • Based on these results, TerraForum developed an Open Innovation Maturity Model, which is composed by four distinct levels: World Class Advanced Explorers Beginners © TerraForum
  • 13. Strategic Dimension Dimension Beginners Explorers Advanced World Class • Innovation is • Innovation is part • Growth strategy • Aspire to be world leader in not seen as of the strategic based on innovation innovation strategic direction • Participate in the • System’s exclusive strategy • Partnerships for • Some radical entire innovation incremental innovations value chain. • Partnerships in the entire innovations R&D&I process ; • Focus in Research • Close to the world • Historical and Development centers of • Open innovation system Strategic location. technological with specific locus. • Close to knowledge. Universities © TerraForum
  • 14. Relational Dimension Dimension Beginners Explorers Advanced World Class • Few partners • Larger number of • Global partnership • Partnerships for network partners and networks support • Partners for the bigger diversity. development • Relationships • Leadership in programs for phases • Partners for beyond mere national and international research, contracts. research • No formal development and policies on testing. • Partners part of all Intelectual R&D&I and • Strategic partnerships Relational Property • Creation of basic commercialization globally intelectual phases. properties • Intelectual Property as a policies. • Comprehensive IP source of value creation. Policies © TerraForum
  • 15. Support and Services Dimension Dimension Beginners Explorers Advanced World Class • Few services or • Infrastructure and • Support to innovation • Seeks to create local support infra- equipments sharing management services innovation systems, with structure to the exclusive infrastructure, partner • Collaboration not • Invest on the partner,, Research support services, specifically acquire companies and general services management • No specific stimulated. technologies, perform partner training. spin-offs, joint- • Exclusive management with • Some mecanisms ventures and other the purpose of constantly • No formal focused on partner strategic alliances. increase the system strength. Support and mecanisms attraction, Manage individual focused on development or • Support for relationships and the partner Services partner evaluation. collaboration among network. attraction, partners. development or • Seeks to attract a variety of evaluation. partnerships and invests in the development of the partners • No support for collaboration • Support for collaboration among partners. © TerraForum
  • 16. Organizational Dimension Dimension Beginners Explorers Advanced World Class • The R&D&I is • Funcional areas • Physical structures • Physical structures appear as part of the with dedicated exclusive for P&D&I systems of Technological organization and teams to R&D&I. separated from the Innovation, separated from is scattered leader company. the company’s business as among • Governance: middle usual. functional areas. management and • Formal areas regular committees. dedicated to • Outsourcing of the physical • No exclusive innovation with high structure management functional • Management with degree of autonomy structures low degree of in the decision- • Governance with Organizational focused on open autonomy making. participation of parners and innovation external entities • Actions in the early • Brand strengthening • No marketing stages focused on • Dedicated structures to the iniciatives brand system’s institutional strengthening relationship. • Specific formal processes and tools • Branding © TerraForum
  • 17. Two Complimentary approaches 1. Company-led formal innovation networks 2. Innovation 2.0 – Internet markets
  • 18. Innovation 2.0 Value Chain Competitive Ideas Tests and Commercialization R&D&E Intelligence and Insights Prototypes and Scaling Up • Prediction • Ideas • Investment • Lead-users • Technology • Opinions • Contests • Co-development opinion Commercialization • Trends • Technologies • Specific Solutions • Pilot Plans • Viral marketing • Technology transfers • Mass Feedback Web 2.0 Clients, Universities, Research Centers, Suppliers, Partners and Competitors © TerraForum
  • 19. Innovation 2.0 Value Chain Competitive Ideas Tests and Commercialization R&D&E Intelligence and Insights Prototypes and Scaling Up © TerraForum
  • 20. Innovation 2.0 Formats Market Format / Leadership Companies © TerraForum
  • 21. Innovation 2.0 Formats Collaboration / Thematic Drive Without Collaboration With Collaboration Market Format / Leadership Companies © TerraForum
  • 22. Innovation 2.0 Formats Collaboration / Thematic Drive Without Collaboration With Collaboration Any Theme Specific Themes Any Theme Specific Themes Market Format / Leadership Companies © TerraForum
  • 23. Innovation 2.0 Formats Collaboration / Thematic Drive Without Collaboration With Collaboration Any Theme Specific Themes Any Theme Specific Themes Market Format / Leadership Companies © TerraForum
  • 25. Key Factors for Innovation and Knowledge Management Collaborative Networks Clearly Defined Support and IP policies Organizational Services for Structure and Partners Governance Strong Relation Infrastructure Network and location Adequate Partners Funding Collaborative Stakeholders Culture Support Open Processes and Strategic Innovation KPIs for Alignment Innovation System Mgmt © TerraForum
  • 26. Key Factors for Innovation and Knowledge Management Collaborative Networks Clearly Defined Support and IP policies Organizational Services for Structure and Partners Governance Strong Relation Infrastructure Network and location Adequate Partners Funding Worldview Collaborative Stakeholders Culture Support Open Processes and Strategic Innovation KPIs for Alignment Innovation System Mgmt © TerraForum
  • 27. Key Factors for Innovation and Knowledge Management Collaborative Networks Clearly Defined Support and IP policies Organizational Services for Structure and Partners Governance Strong Relation Infrastructure Network and location Adequate Worldview Partners + Funding Collaborative Culture Active Management Stakeholders Support Open Processes and Strategic Innovation KPIs for Alignment Innovation System Mgmt © TerraForum
  • 28. Thank you! José Cláudio Terra Twitter: @claudioterra www.slideshare.net/jcterra SÃO PAULO – Rua Francisco Leitão, 469 – cj. 1704 Jd. América – São Paulo-SP – CEP 05414-020 – Tel/Fax: +55 (11) 3088-6021 CURITIBA – Praça General Osório, 45 – cj. 305 Centro – Curitiba-PR – CEP 80020-010 – Tel. +55 (41) 3233-8891 RIO DE JANEIRO – Praia de Botafogo, 300 – sala 521 Botafogo – Rio de Janeiro-RJ – CEP 22250-040 – Tel. +55 (21)2158-1086 BELO HORIZONTE – Rua Sergipe, 925 – cj. 601 Savassi – 30130-171 Belo Horizonte - MG