The document proposes an open innovation framework for established companies. It discusses roles, processes, and policies needed to implement open innovation. The key roles include external brokers, internal brokers, champions, and scouts. The main processes are the outside-in process of acquiring external ideas and assets, the inside-out process of commercializing unused internal assets, and trend scouting. Policies around intellectual property, knowledge management, collaboration, and communication are also important. The goal is to design a tailored open innovation model that leverages a company's existing competencies and culture to create sustainable innovation.
3. Innovation: the real world in established companies
A tough resistance to change, evolving towards a
sustainable, repeatable model
• Traditionally, the focus of established companies has been on Research and Development
• New product development generally requires long lead-time before proof of market
and monolithic investments.
• The necessary investments will be beared only by the company taking on the
innovation process.
• The potential benefits of successful innovation will be exclusively owned by the
company. There will be no sharing of intellectual property.
• The established internal structures are usually strongly focused on the mainstream
business and have no (or very little) room for cross-functionally support concrete
innovation
• The established flows make very difficult to create new and temporary end-to-end
internal flow effectively and efficiently dedicated to the development of innovation
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4. Open Innovation: just a common sense approach
Changing approach towards innovation
• when a company is ready to accept that part of the potential value coming out of
successful innovation can be shared with external third party actors, the burden
(investment in time, people, money, resources) of sustaining the innovation process
becomes more sustainable
• If the competence related to concretely developing innovation is shared among a few
different industrial actors, the related lead time turns shorter and more, parallel
innovation projects can be performed contemporarely
• The time-to-marker becomes shorter and more economically sustainable. The entire
process becomes more agile and effecgive.
Open Innovation is about making companies porous
• Inside-out: when there already is some valuable competence inside of the company but
the needed investment cannot be independently beared, giving such property
(intellectual, machineries and tools, …) can be shared with external developers, to create
value instead of keeping it unvalued.
• Outside-in: it is crucial to internally develop the capability to rapidly create end-to-end
development processes able to concretely develop any external new ideas and transform
them into new products and services for the company’s final customers.
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5. Innovation asa strategic lever
innovation
market
growth
incremental sustaining radical
minor
adjacent
disruptive
Managing an Open Innovation Portfolio
A portfolio of opportunities.
Low risk/modest payoff ↔ incremental product
inprovements
Higher risk/payoff
Very high risk/ tremendous value if they hit the target
A variety of options across your company’s portfolio, not just
the ones more likely to succeed.
Process
innovation
E.g.: Intel’s
move to
multi-core
processors
E.g.:
Apple’s
iTunes
business
model
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6. Transformation towards a shared, external innovation model: where is
your company?
Basic Innovation
management
Open Innovation and
IP in place
Open Innovation
integral part of
Business Model
Competition based on indefferiented Business
Model (neither overall innovation, nor IP
management process).
Innovation is a planned activity.
An IP portfolio is built up.
The business model incorporates a strategically
focused innovation process.
Innovation focused on current business/market.
Started to support incorporation of external
ideas/technologies.
Open Innovation embedded into Business Model,
having integrated internal and external innovation
processes seamlessly.
Open Innovation opportunities managed as a
strategic portfolio. IP managed as a financial asset.
Express an adapvive model driving customers and
partners to partecipate in your company’s
innovation efforts.
Jump
Jump
time
open
closed
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7. Roles to integrate Open Innovation with your company’s overall
business model
EXTERNAL BROKERS - Mediators between your company and the outside world. Able to value
both, technical and business competencies.
INTERNAL BROKERS - Operate as mediators across functions and business units within your
company.
CHAMPIONS – Executives who own an overall portfolio of innovation initiatives. They determine
the right mix of projects to be undertaken and are responsible for executing collaboration with
external resources.
SCOUTS – Managers and senior technical experts. They assume a strategy-focused or consulting
position within the company to identify global trends and technology shifts.
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8. Outside-In Process
co-innovation lab
Inside-Out Process
value unused or underutilized
resources
Trend Scouting
Borders of the
company
External
Sources of
ideas
External
Sources of
‘productization’
Open Innovation Process
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external
assets
internal
assets
9. The Outside-In Process
Outside-In Process
Borders of the
company
External
Sources of
ideas
Mining opportunities through
acquiring and managing external assets
in order to accelerate internal
innovation processes.
A co-innovation lab, resulting from
direct collaboration with several
partners.
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GET
Select resources
and negotiate
collaboration
WANT
What’s your
company’s growth
strategy? What
assets do we
require to achieve
it?
I
FIND
What external
internal/sources
of knowledge and
assets?
E
What
innovations are
needed
How to set the
scope for
external
sources
List of potential
internal/extern
al sources of
required assets
I E
MANAGE
Execution
IE
Sources for the
required
external assets
10. Inside-Out Process
Borders of the
company
External
Sources of
‘productization’
Identify and develop opportunities for
unused and underutilized internal
assets.
Define processes for external
‘productization’ and customer
development (Proof of Market tests)
to get awareness on potential traction.
Technology/Product Development
should occur in parallel to the
Collaborative Customer Development
process.
customer
discovery
The Inside-Out Process
customer
validation
customer
creation
market
building
Collaborative Customer DevelopmentTechnology/Product Development
Assay Source Manage
ASSAY - Scan existing internal assets, estimate
their potential value, prioritize their use.
SOURCE - Identify potential external sources for
outplacement. Create open communities.
MANAGE – monitor and manage portfolio of
assets and opportunities. 10
11. Trend Scouting
A formal Scout network must be enables, to effectively identify future and emerging
assets from the market place (such as technologies, processes, etc).
This network must collaborate broadly in order to consistently ensure the ability of the
enterprise to address the complete value-chain of assets required by our customers
and potential customers.
Capitalize the spread knowledge coming out of not shared experiences in innovation
fairs and institutional contests.
Trend Scouting
External
Sources of
ideas
Borders of the
company
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12. Outside-In Process Inside-Out Process
Trend Scouting
Borders of the
company
External
Sources of
ideas
External
Sources of
‘productization’
Open Innovation Process & Role Relationships
E I E
Want/Find Get/Manage
E
I
E
Tech Prod Dev Coll Cust Dev
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13. IP IP RIGHTS POLICIES – These address creation, ownership and licensing of IP, which govern any
Open Innovation-related activities. These include: Entity and Individual Responsibilities,
Applicable Processes and Terms of Art, Timeline.
KNOWLEDGE MANAGEMENT POLICIES – These address knowledge management, resulting from
internal and external innovation-related activities. IP considerations should be addressed in
combination with IP Rights policies. These include: Scope of K.M., Stakeholders & responsibilities,
Timeline, Processes and Tools.
COMMUNICATION POLICIES – These address communications internally as well as with third
parties, resulting from innovation-related activities. These include: Scope of Communication,
Stakeholders & Responsibilities, timeline, Communication Channels.
Open Innovation Policies
COLLABORATION POLICIES – These address interactions internally as well as with third parties,
which govern any multi-party, innovation-related activities. These incluse: Scope of Activity
(WHAT & HOW), Stakeholders & Responsibilities, Timeline, location, Legal considerations.
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14. Conclusion
There is not any innovation model that fits every possible company.
Every company needs their model to be tailor-made designed to be
compatible with and take the most advantage from its existing
competences, history and culture.
Desiging a model for your company would mean to understand how
roles, flows, responsibilities and resources can be allocated inside of
the existing company, to create an agile and sustainable innovation
process.
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16. Open Innovation Roles
EXTERNAL BROKERS - They act as mediators between your company and the outside world.
Competences: vision, passion, talent for networking, decision making, communication skills,
persistence, broadly interested and engaged in diverse business areas.
They facilitate Open Innovation driving cultural change within your company and developing
cross-functional relationships, particularly between technical and business-focused teams.
INTERNAL BROKERS - They are communicative people who have a vast reach across different
areas of the company. They facilitate the exchange of information and assets across the company.
They operate as mediators across functions and business units within your company.
CHAMPIONS - They are senior leaders, usually executives, who own an overall portfolio of
innovation initiatives. They determine the right mix of projects to be undertaken and are
responsible for executing collaboration with external resources once their needed assets have
been identified and evaluated within the company.
SCOUTS - They are managers and senior technical experts and work from inside of the company to
identify future trends, needs and technologies outside of the company. They globally collaborate
with internal/external networks of peers. Scouts are less involved in operational business
decisions. They assume a strategy-focused or consulting position within the company to identify
global trends and technology shifts.
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17. The Outside-In Process
Outside-In Process
Borders of the
company
External
Sources of
ideas
Mining opportunities through
acquiring and managing external assets
in order to accelerate internal
innovation processes.
A co-innovation lab, resulting from
direct collaboration with several
partners.
Manage
Get
Find
Want
WANT - What’s your company’s growth strategy? What
assets do we require to achieve it?
FIND – What external internal/sources of knowledge and
assets?
GET – Select superior resources and negotiate
collaboration agreement (IP, NDA, …).
MANAGE – Oversee physical acquisition and transfer of
assets. Execution.
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