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COMMUNITY DRIVEN INNOVATION

Iain Gray
VP, Global Services
Red Hat Inc.
April 20th, 2012
Innovating in Tough Times: Practical
Ways for Innovating when Budgets are
   Tight and Resources are Limited
   Traditional Management
                        New Management
           Challenge       Challenge
                                            Abundant
         Scarce                              Creativity
            $                                  Tools
          Time                              Knowledge
         Talent                          “Connectedness”
                                              Speed
                                               Data
“There are always more smart people outside your
                  company than within”
- Bill Joy, Sun Microsystems.
Community Driven Innovation


                                         What Does
    Community          Who Else is       Community
 Innovation at Red   Leveraging the   Innovation Mean
       Hat            Community?           for My
                                        Organization?
What Does
   Community          Who Else is       Community
Innovation at Red   Leveraging the   Innovation Mean
      Hat            Community?           for My
                                       Organization?
OPEN


                 #1         SOURCE
                            LEADER




                                                   $1 BILLION
                                                   REVENUE




1993   1999   2002   2006     2008   2010   2011     2012
Red Hat built a $1B+ business selling free software
Community-Based Product Development Process


                   100,000+
PARTICIPATE        PROJECTS
                                       We participate in & create upstream
                                       projects.


                                       We build & support open communities
 INTEGRATE                             around integrated projects.


                                       We enable software & hardware
                                       partners to participate at every stage
                                       of development.


 STABILIZE                             We commercialize these
                                       innovations together with a rich
                                       ecosystem of services & certifications
KNOWLEDGEBASE
                                                          SUBSCRIPTION MODEL
                                      CUSTOMER PORTAL
                                      & FORUMS

                                      HARDWARE & SOFTWARE
                                      CERTIFICATION

                                     SOFTWARE ASSURANCE


                            GLOBAL SUPPORT SERVICES

                            UNLIMITED
                            24/7
                            MULTI-LINGUAL                    AWARD-WINNING
                            MISSION-CRITICAL                 SUPPORT
                            MULTI-VENDOR CASE
                             OWNERSHIP


                   STABILITY WITH PRODUCT LIFECYCLE
                   OF UP TO 10 YEARS

           UPDATES, PATCHES & UPGRADES


     SECURITY RESPONSE TEAM


OPTIONAL TRAINING CURRICULA AVAILABLE
Fedora is where our customers see the future
Using traditional model, Fedora development would
have cost about $10.8B




http://www.linuxfoundation.org/sites/main/files/publications/estimatinglinux.html
Many Fedora contributors are software developers

But contributors also work on marketing, design,
documentation, translation, support, testing, website
design, usability, IT, distribution, legal and licensing
issues.
Fedora Technical Support
Community

“Given enough eyeballs, all bugs are
shallow”
- Linus’ Law
US Navy’s Standardization Mission
JP Morgan’s Plumbing Problem
What Does
   Community          Who Else is       Community
Innovation at Red   Leveraging the   Innovation Mean
      Hat            Community?           for My
                                       Organization?
Community Innovation Pyramid
               Innovate
                within a
              Community

                Innovate
               through a
              Community

             Listen to the
             Community


         Listen to the Customer
Community Innovation Pyramid
                       Innovate
Participation           within a          “What’s in it for me”
                      Community

                        Innovate
                       through a
                      Community

                     Listen to the
       Control
                     Community


                 Listen to the Customer
Level 1: Listen To The Customer

        Customers pay for influence
Level 2: Listen To The Community

      Making the Community Work for Me
Level 3: Innovate Through a Community

      Leveraging the Community to Innovate
What’s in it for me?
Level 4: Innovate Within A Community

      Catalyzing a Community. Sharing IP
Listen to the Customer – The Promise
of Big Data Analytics
Agenda


                                         What Does
    Community          Who Else is       Community
 Innovation at Red   Leveraging the   Innovation Mean
       Hat            Community?           for My
                                        Organization?
Listening to the Community
•   Does the community exist?
•   Does the collaboration platform
    exist?
•   Do you have the brand power to
    motivate participants?
•   What’s in it for the participants?
•   What changes are needed to
    ensure your org. is receptive to
    outside ideas?
•   How will you deal with ideas that
    are accepted and rejected?
Leverage the Community
•   Where do the skills and
    experience I need live and how
    do I connect with them?
•   Can I modularize my problem so
    it can be farmed out?
•   How does this limit potential
    solutions to my problem?
•   What changes are needed to my
    IP governance process to deal
    with external IP?
•   How do I avoid N.I.H resistance?
Innovating within the Community
•   What’s my motivation for
    innovating within a community?
•   Does a community exist or do I
    need to create it?
•   What role do I want to play in the
    community?
•   Am I willing and able to ‘give to’
    as well as ‘take from’ the
    community?
•   How does my governance model
    need to change to accept shared
    IP?
•   How does my org. structure need
    to change to accept shared IP?
Conclusion
• Red Hat’s story is an example of how community-driven
  innovation drives not only ‘doing more with less’ but creates
  results that benefit our customers and the community
• The Red Hat model may not be the starting point for
  everyone, but there are many other great examples of
  companies that are bridging the gap between internally and
  externally-driven innovation
• Think about motivations for community-driven innovation:
  what are your motivations, how will your community
  participants be motivated
• Think about how your organization needs to change to accept
  community input.
Thank You!
iain@redhat.com

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Iain Gray Presentation Innovate Carolina 2012

  • 1. COMMUNITY DRIVEN INNOVATION Iain Gray VP, Global Services Red Hat Inc. April 20th, 2012
  • 2. Innovating in Tough Times: Practical Ways for Innovating when Budgets are Tight and Resources are Limited Traditional Management New Management Challenge Challenge Abundant Scarce Creativity $ Tools Time Knowledge Talent “Connectedness” Speed Data
  • 3. “There are always more smart people outside your company than within” - Bill Joy, Sun Microsystems.
  • 4. Community Driven Innovation What Does Community Who Else is Community Innovation at Red Leveraging the Innovation Mean Hat Community? for My Organization?
  • 5. What Does Community Who Else is Community Innovation at Red Leveraging the Innovation Mean Hat Community? for My Organization?
  • 6. OPEN #1 SOURCE LEADER $1 BILLION REVENUE 1993 1999 2002 2006 2008 2010 2011 2012
  • 7. Red Hat built a $1B+ business selling free software
  • 8. Community-Based Product Development Process 100,000+ PARTICIPATE PROJECTS We participate in & create upstream projects. We build & support open communities INTEGRATE around integrated projects. We enable software & hardware partners to participate at every stage of development. STABILIZE We commercialize these innovations together with a rich ecosystem of services & certifications
  • 9. KNOWLEDGEBASE SUBSCRIPTION MODEL CUSTOMER PORTAL & FORUMS HARDWARE & SOFTWARE CERTIFICATION SOFTWARE ASSURANCE GLOBAL SUPPORT SERVICES  UNLIMITED  24/7  MULTI-LINGUAL AWARD-WINNING  MISSION-CRITICAL SUPPORT  MULTI-VENDOR CASE OWNERSHIP STABILITY WITH PRODUCT LIFECYCLE OF UP TO 10 YEARS UPDATES, PATCHES & UPGRADES SECURITY RESPONSE TEAM OPTIONAL TRAINING CURRICULA AVAILABLE
  • 10. Fedora is where our customers see the future
  • 11. Using traditional model, Fedora development would have cost about $10.8B http://www.linuxfoundation.org/sites/main/files/publications/estimatinglinux.html
  • 12. Many Fedora contributors are software developers But contributors also work on marketing, design, documentation, translation, support, testing, website design, usability, IT, distribution, legal and licensing issues.
  • 13. Fedora Technical Support Community “Given enough eyeballs, all bugs are shallow” - Linus’ Law
  • 16.
  • 17. What Does Community Who Else is Community Innovation at Red Leveraging the Innovation Mean Hat Community? for My Organization?
  • 18. Community Innovation Pyramid Innovate within a Community Innovate through a Community Listen to the Community Listen to the Customer
  • 19. Community Innovation Pyramid Innovate Participation within a “What’s in it for me” Community Innovate through a Community Listen to the Control Community Listen to the Customer
  • 20. Level 1: Listen To The Customer Customers pay for influence
  • 21. Level 2: Listen To The Community Making the Community Work for Me
  • 22. Level 3: Innovate Through a Community Leveraging the Community to Innovate
  • 23. What’s in it for me?
  • 24. Level 4: Innovate Within A Community Catalyzing a Community. Sharing IP
  • 25. Listen to the Customer – The Promise of Big Data Analytics
  • 26. Agenda What Does Community Who Else is Community Innovation at Red Leveraging the Innovation Mean Hat Community? for My Organization?
  • 27. Listening to the Community • Does the community exist? • Does the collaboration platform exist? • Do you have the brand power to motivate participants? • What’s in it for the participants? • What changes are needed to ensure your org. is receptive to outside ideas? • How will you deal with ideas that are accepted and rejected?
  • 28. Leverage the Community • Where do the skills and experience I need live and how do I connect with them? • Can I modularize my problem so it can be farmed out? • How does this limit potential solutions to my problem? • What changes are needed to my IP governance process to deal with external IP? • How do I avoid N.I.H resistance?
  • 29. Innovating within the Community • What’s my motivation for innovating within a community? • Does a community exist or do I need to create it? • What role do I want to play in the community? • Am I willing and able to ‘give to’ as well as ‘take from’ the community? • How does my governance model need to change to accept shared IP? • How does my org. structure need to change to accept shared IP?
  • 30. Conclusion • Red Hat’s story is an example of how community-driven innovation drives not only ‘doing more with less’ but creates results that benefit our customers and the community • The Red Hat model may not be the starting point for everyone, but there are many other great examples of companies that are bridging the gap between internally and externally-driven innovation • Think about motivations for community-driven innovation: what are your motivations, how will your community participants be motivated • Think about how your organization needs to change to accept community input.