This document provides an overview of an Open Innovation Accelerator event taking place on March 3rd and 4th, 2011. The event will help participants learn open innovation techniques to develop better innovations faster and cheaper. The program includes sessions on open versus closed innovation, tools for open innovation, building an open innovation culture, and collaborative creativity. Case studies will also be presented on how open innovation has helped organizations like Virgin Atlantic, E.ON, Orange, and Lego innovate more effectively. The document encourages participants to form new collaborative partnerships and business models through the open innovation process of exploring ideas together, extracting the best ones, and exploiting them.

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Open Innovation Accelerator
March 3rd and 4th 2011

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Welcome
Innovation Accelerator

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What you will get out of the Accelerator
1. Learn tried and tested innovation
techniques
2. Learn ways to maximise collective
creativity
3. Build a buzz around your innovation
mission
4. Find new collaborators
5. Deliver better innovations cheaper &
faster

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Programme
Thursday
Collider 1 – Open vs. closed innovation
When closed or open is right
Better questions, collaborative answers
Open innovation models
Collider 2 – Tools for open innovation
The open innovation blueprint
Collaboration profiles
Investable propositions
Pecha Kucha session

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Programme
Friday
Collider 3 – Open innovation Collaboration Culture
The collaboration profile
Open innovation models
Collective creativity
Collider 4 - Building an innovation culture
7 ways to build an innovation culture
Crowdsourcing principles and practice
Propositions and concepts dialogue

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Why open innovation wins
100%Open is dedicated
to open innovation.
Our know-how
helps you innovate
better, cheaper and faster.

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2009 7
Open innovation needs good techniques
“Only one in 300 ideas we
develop ever makes any
serious money.”
Head of R&D, Global Telecoms

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2009 8
Open innovation needs the right culture
“The only thing harder
than starting something new,
is stopping something old.”
Russell Ackoff

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Open Innovation is joining the Dots

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The dots
Universities
& Business
Schools
(100)
NGO’s &
Charities Investors
(100)
(100)
100%Open
Networks
Innovation Innovators
Service &
Providers Developers
(50) (5000)
Corporates
(300)

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100%Open clients

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We Create

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Crowdworks

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Collider 1
Closed vs. Open Innovation

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What do you mean by innovation?

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What we mean by innovation?
Innovation is the successful
application of a new idea.

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What do you mean by open innovation?

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Introducing Open Innovation
Innovating with partners by
sharing the risks and the
rewards

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Why open?
Open innovation gives you
solutions that are
creative, faster and cheaper.

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Types of innovation

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Collider 1
Better Questions,
Collaborative Answers

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Module 1
Open innovation only works
if you ask
Interesting Questions.

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Ask interesting questions

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Ask interesting questions
1. Pick a challenge that matters to you -
a need rather than a want.
2. Choose as wide an audience as
possible, beyond the usual suspects.
3. Research and test the motivations of
your chosen audiences.
4. Write your challenge succinctly and in
plain language so it strikes a chord.
5. Be polite and enthusiastic in tone.
6. Before publishing try it out on a small
sample of your audience.

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Working on you problems
Are your questions
interesting?

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Your burning platform

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Your Interesting Question
Name:
Can you help me …
Problem or opportunity Why is it important to you? Important to your organisation?
What needs innovating? Why is it An issue that is relevant to your role A challenge that is relevant to the
hard from a practical or strategic and that will make a difference to delivery of one of your organisation’s
perspective? your effectiveness strategic aims or overall effectiveness.

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© 100%Open 2010 28
Presentations
1. Brand it
2. Make it accessible
3. Be interested

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Are your questions interesting?
Vote for the most intersting

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Starting with who not what
Getting Interesting Answers

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Producing ideas together
1. An idea is nothing more or less than
the new combination of old
elements.
2. Gather raw materials, expand your
experience
3. Sub conscious incubation.
4. Realisation – the Eureka moment.
5. Shaping and development.

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Producing ideas together
1. An idea is nothing more or less than
the new combination of old
elements.
Car ownership
+
DVD rental
=
City Car Club

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Producing ideas together
2. Gather raw materials, expand your
experience
“No browsing, no milk.”
Specific materials: Urban car
ownerships trends, costs and
behaviours
General materials: DVD rental
enables you to have your cake and
eat it.

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Producing ideas together
3. Sub-conscious incubation.
Stop thinking about it and do
something else. Talk to someone
else.
4. Realisation – Inspiration will often
strike in a ‘Eureka moment.

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Producing ideas together
5. Shaping and development.
Adapt the best idea to real life.
Always involve others.
‘A good ideas has self-expanding
qualities.’

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Solving your problems
Work in pairs on your
problems.
4 0bservations on cards.
2 general and 2 specific.
Capture all new ideas.

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Interesting Questions
How many ideas?
Any front-runners?

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Observations on the process
What was it like working in
partnership?
What did it add?
What personal qualities did
you use?

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Open Innovation Models

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What we mean by open innovation?
Innovating with partners
by sharing the risks
and the rewards.

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Procter & Gamble
P&G invited the UK’s design community to respond to two briefs on fabric care
(narrow) and wellness (broad), to find global new markets worth $100 million.

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Local Motors & Threadless
Threadless have sold out of every single new range they have every produced and
Local Motor’s customers are significantly less likely to default on their repayments.

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Open Innovation Business Models
Co-branding Spinout
Alliances
Delivery partnership
Proprietary supplier Minority stake
Out-licensing Joint venture
In-licensing
Majority stake
R&D
Royalties
User Acquisition
research
Crowd sourcing Suggestion
schemes Creative commons
Ideas Customer
competition feedback
Open source

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Playing Poker not Chess

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What are we ‘actually’ going to do?
“The only thing harder
than starting something new,
is stopping something old.”
Russell Ackoff

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Explore > Extract > Exploit
“Open Innovation is a
U-Shaped Process.”
Paul Vanags, OXFAM

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Explore > Extract > Exploit
Explore Extract Exploit
• Find trusted new collaboration • Filter the ideas and prototype • Form new collaborative business
partners innovations arrangements
• Uncover unmet needs or spot • Build and motivate collaborative • Obtain the resources and
new opportunities for innovation teams commitments necessary
• Co-create compelling new ideas, • Create investable propositions • Coordinate production,
products or services with evidenced business plans communications and launch

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Two Models of Open Innovation
Discover and Jam
Discover Jam
• Starts with ‘what’ question: an innovation • Starts with a ‘who’ question: finding
brief detailing a specific unmet need partners to explore a broad opportunity
• Is a competitive marketplace amongst • Is a cooperative community &
customers, suppliers or users process , with customers, suppliers or
users
• The innovation process is mediated by a
Trusted Agent • The innovation process is facilitated
through a Catalyst
• Innovations are extracted through a
linear process • Innovations are built using an iterative
process
• Tend to be internal routes to market (e.g.
license deals) • Tend to be external routes to market
(e.g. joint ventures)

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Our Case Studies

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Case Studies Landscape
Customers Suppliers Partners

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Case Study 1
Find your top 1%,
and understand what
motivates them.

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Case Study 1
Virgin Atlantic
Virgin Atlantic’s return on investment has been 10:1, better value than using a
commercial third party for system development, and for more radical ideas.

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Case Study 2
Trust the community to
do the heavy lifting.

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Case Study 2
E.ON
Power to the People is a customer-led innovation programme from E.ON that
launched in October 2011 seeking new £10m ideas, products or ventures.

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Case Study 3
Ask interesting questions.

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Case Study 3
Orange

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Case Study 4
Start at the end.

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Case Study 4
Cancer Research UK
600 registered users, 160 listed ideas, 23 venture applications, 6 shortlisted
candidates and 3 supported projects in CRUK’s flexible approach to venturing.

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Case Study 5
“The future reveals itself
through the peripheral.”
JG Ballard

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Case Study 5
McLaren & NATS
McLaren’s predictive F1 software allows air traffic controllers to predict how aircraft
are likely to act at airports, overcoming costly and dangerous uncertainty.

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Case Study 6
“All our work is about
being social.”
Tormod Askildsen, LEGO

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(Reluctant) Pioneers
LEGO
Lego Mindstorms is LEGO’s most successful product range ever and has helped shift
their strategy from a toy manufacturer to an innovation platform.

64. Summary & Lessons Learned
• Find your top 1%. • Ask interesting questions.
• Trust your community. • Develop peripheral vision.
• Start at the end. • Be Social.

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And Finally…
“More people pooling more
resources in new ways is the
history of civilisation.”
Howard Rheingold

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Blueprint, Profile & Investable Propositions

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Constellations

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100%Plan
Why?
What is the strategic case for an open innovation approach? (e.g. drive revenues, build brand, solve problems etc)
What?
What are our unmet needs or thematic opportunity areas that are best suited to an open innovation approach?
Who?
Who are our most promising/likely/complementary partners? (e.g. clients, customers, peers, universities etc.)
Where?
Where will value be created for us and our partners? (e.g. business units/geographies/routes to market etc.)
How?
How will you run your open innovation strategy? Which process/tools/incentives will you use?

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Collaborative User Journey
Explore Extract Exploit
Your perspective
Partner perspective

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100%Plan
Why?
What is the strategic case for an open innovation approach? (e.g. drive revenues, build brand, solve problems etc)
Open innovation will provide big wins far quicker and at lower cost than organic growth. A venturing approach will
encourage novel products and services as as well as external funding.
What?
What are our unmet needs or thematic opportunity areas that are best suited to an open innovation approach?
Leveraging capability and expertise in the collaboration platforms of Digital Identity and Micro-Payments. Burning
platforms are impending sale of core business and declining revenues.
Who?
Who are our most promising/likely/complementary partners? (e.g. clients, customers, peers, universities etc.)
Peers forming new partnerships around specific innovation platforms. Technology and service suppliers that need
scale. Wider innovation communities e.g. developers, charities, agencies.
Where?
Where is will value be created for us and our partners? (e.g. business units/geographies/routes to market etc.)
Profit will come from imaginatively addressing unmet meets or customers and big business. The platforms are all
growing and fast-moving markets. Scope could include other partner organisations.
How?
How will you run your open innovation strategy? Which process/tools/incentives will you use?
A Jam-based programme with large businesses will form the core of activity. Wider calls for new technologies and
emergent services will be used to feed into the Jams as stimulus and intellectual property.

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Collaborative User Journey
Explore Extract Exploit
Review and
Your perspective
communicate
Co-creation Find internal or
capabilities and Investable Business modelling Create scale through
workshops with external finance for
intentions. Select propositions that fit and IP regime. manufacture,
multiple partners/ new ventures.
and invite timelines and Contracts and marketing and
online communities Production and
collaboration financial objectives. forecasting. deployment.
for each platform. distibrution plan.
partners with an
engaging challenge.
Partner perspective
Expressions of
interest. Scenario Co-creation and the Test and learn.
Partnership Project delivery
planning - how adpatation of Service and product Production
agreements and and product
could they leverage existing products prototypes. readiness, market
development plans development cycles.
capabilities and and services. testing.
brand?

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Recall
The Collaboration Profile

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Collaboration Qualities
Risk Taking Responsive Connected Reputation Resilience Empathy

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Your solutions
Investable propsitions

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Investable Propositions
A proposition someone
will want to invest in.

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Investable Propositions
Why do most ideas fall by
the wayside?

77. Investable propositions are
• New products, services or organisations
• More than just concepts
• Clear, feasible, time-bound
• Ready for investment

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Knowing Your Onions
Plan
Business model
New feature
Idea

79. The core idea
Plan
Model
Offer
Idea
• What’s the idea in a nutshell. Why is it
different?
• Is there an underlying consumer insight?
• Differentiated. Compelling. Short
• E.g. ‘Ethical Banking’

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What people will pay for
Plan
New Feature
• The new technology, service or behaviour
to be introduced
• E.g. ‘Customer-sourced ethical policy that
promises fair banking for all’

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Sustainable Innovations Need a Strong
Business Model
Plan
Model
Model
Business Model
Offer
• Salient features of the business model
• ‘A cooperative that reinvests surpluses into
new premium products like internet banking’

82. The fuller picture
Day Month Year
No.
Who are our Key Partners? What Key Activities do our Value Propositions require? What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value?
Who are our key suppliers? Our Distribution Channels? Which one of our customer’s problems are we helping to solve? Segments expect us to establish and maintain with them? Who are our most important customers?
Which Key Resources are we acquiring from partners? Customer Relationships? What bundles of products and services are we offering to each Customer Segment? Which ones have we established?
Which Key Activities do partners perform? Revenue streams? Which customer needs are we satisfying? How are they integrated with the rest of our business model?
How costly are they?
What Key Resources do our Value Propositions require? Through which Channels do our Customer Segments
Our Distribution Channels? Customer Relationships? want to be reached?
Revenue Streams? How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
What are the most important costs inherent in our business model? For what value are our customers really willing to pay?
Which Key Resources are most expensive? For what do they currently pay?
Which Key Activities are most expensive? How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
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Who’s going to do what, when
Plan
Plan
Model
Offer
• Roles, plan of action, potential barriers

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The Investible Proposition Template Plan How will we
launch this?
Which partners
Innovation Brand Name: will do what,
when? What
resources are
needed now?
Sign Here:
Business Model Who will
benefit and
how? How is it
sustainably
financed?
What might go
wrong?
New Feature Describe the
new technology,
service or
behaviour that
you’re
introducing.
What’s the idea
Idea in a nutshell.
Why is it
different?

85. One I prepared earlier

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Final Presentations
3 minute pitches of your
investable propositions
• Idea
• New Feature
• Business Model
• Plan

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Pitch back
Your Investable Propositions

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Open Innovation Accelerator
Pecha Kucha pitches

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Networks and Networking

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Be Social
“All our work is about
being social.”
Tormod Askildsen, LEGO

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What you know or who you know?
Networking ≠ Not Working

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Dunbar Number

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Structural Holes
“Closure in networks produce
echo not bandwidth”
Ron Burt

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Structural Holes

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The Strength of Weak Ties
“You don’t own your
reputation. It lives and
breathes in those that
interact with you.”
Ron Burt

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Connecting the dots
Conversations first,
then relationships,
and finally transactions.

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47 dots

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Case Study 2
“Trust is the glue that holds
the network together, which
at any point in time is more
powerful than transactions
and authority”
Karen Stepheson

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Different types of networks

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Thank you
Roland Harwood and David Simoes-Brown
Co-Founders & Partners
Somerset House | South Building | London | WC2R 1LA
Phone: +44 (0)20 78133 1006 | +44 (0)7811 761 435
Email: roland@100Open.com | david@100open.com
Web: www.100Open.com
Twitter: @rolandharwood @deeyesbee