2013’s OPEN INNOVATION reports & MCPC 2014

Following the wake of the previous post, you can find below a selection of 2013’s relevant Open Innovation reports.

1.  Open Innovation Market Study, 2013 Edition

This RWTH-TIM’s open innovation study explores the market of open innovation accelerators (OIA); organizations that help their clients to include external experts in all stages of an innovation project.

Open innovation today has become a core tool in innovation management. But which is the right method for open innovation? Which are the criteria to plan an open innovation project? Which intermediary or service provider has specific knowledge and expertise in, e.g., crowdsourcing, the lead user method, netnography, idea contests, technology scouting, or broadcast search? This totally updated 2013 edition report provides a comprehensive analysis of the providers and platforms for open innovation.

We take a detailed look on the methods, cost, project and community structures, and market size. Our purpose is to support strategic decisions when planning an open innovation venture. Managers will gain an overview of the intermediaries available for open innovation and will get advice how to identify partners for their project.

We invited more than 160 intermediaries to join our survey investigating the OIA’s business model and environment, productivity, services offered, project specifics, and characteristics of their participant pool. In addition, we asked about estimates for the development of the open innovation market. Besides a lot of highly interesting findings about the market for open innovation in general and the intermediary’s role in it, we were also able to compile 188 detailed accelerator profiles.

Futher info about this report can be found at:

• Key Results – Global Market for Open Innovation Support
• Market for Open Innovation Services to Top $6bn in 2014
•  Ideation contests dominate the Market for Open Innovation
• Who purchases Open Innovation services? Non-profits and public agencies are coming up
• Who Participates in Open Innovation: A Solver and Community Perspective on the Market for Open Innovation

 

2. Leading Open innovation >> New edited MIT book on co-creation and open innovation

In today’s competitive globalized market, firms are increasingly reaching beyond conventional internal methods of research and development to use ideas developed through processes of open innovation (OI). Organizations including Siemens, Nokia, Wikipedia, Hyve, and Innosabi may launch elaborate OI initiatives, actively seeking partners to help them innovate in specific areas. Individuals affiliated by common interests rather than institutional ties use OI to develop new products, services, and solutions to meet unmet needs.

Leading Open Innovation describes the ways that OI expands the space for innovation, describing a range of OI practices, participants, and trends. The contributors come from practice and academe, and reflect international, cross-sector, and transdisciplinary perspectives. They report on a variety of OI initiatives, offer theoretical frameworks, and consider new arenas for OI from manufacturing to education.

3. Berkeley-Fraunhofer Study on Open Innovation

Our collegues of Fraunhofer IAO and University of Berkeley (Henry Chesbrough and Sabine Brunswicker) have surveyed large firms in the US and in Europe about whether or not they actually practice open innovation. The results are very interesting. Here are some key findings:

• Among companies with sales larger than $250 million annually, 78% practice open innovation
• Among those companies, 71% report that top management support for these activities are growing
• 82% of firms report that open innovation is more actively practiced now, compared to three years ago
• None of the companies in the survey have abandoned open innovation as of now.

 

As another evidence of the relevance of the Open Innovation concept worldwide, you can just see the last fall issue of the MIT Sloan Management Review >> Special Report  on Leveraging External Innovation.

Finally, all those interested in these topics would really enjoy the meetings we are preparing for our next World Conference on Mass Customization, Personalization, and Co-Creation [MCPC 2014] at Aalborg University. See you there!

Frank Piller (RWTH/MIT)

Recapitulación OpenBasque >> Innovación abierta multi-escenario

Este pasado verano, leyendo el artículo de Jason P. Davis “Capturing the value of synchronized innovation” en la MIT Sloan Management Review (Summer 2013 / Volume 54 / Number 4), me he dado cuenta de que no habíamos dedicado un post de cierre en 2013 al proyecto OpenBasque en el blog.

Y es que es curioso como artículos, con mucha menos enjundia que muchos trabajos que por aquí hacemos, pueden acabar en santuarios como el de la MIT Sloan, mientras que muchos de nuestros desarrollos… se acaban perdiendo en el tiempo… como lágrimas en la lluvia (Roy Batty dixit). Por ello, este post está dedicado a hacer un breve inventario de lo realizado en OpenBasque.

Los objetivos básicos de este proyecto han sido los siguientes:

• Desarrollar un modelo integral de innovación abierta que multiplique las posibilidades de creación de valor desde el punto de vista de la persona, la organización y el territorio y supere la práctica innovadora actual eminentemente endógena.
• Definir escenarios y ámbitos de actuación concretos a través de los cuales se materializa el paradigma de la innovación abierta.
• Desarrollar mecanismos, metodologías y herramientas de transformación que crean entornos que faciliten a las personas, a las empresas / organizaciones y al territorio generar valor a través de la co-creación.
• Realizar experiencias piloto y adaptar la investigación a distintas realidades tanto empresariales como institucionales.

Para ello, partimos en cada escenario de aplicación (intra-organizacional, inter-organizacional, usuario, colectiva, territorio) de unos materiales elaborados como punto de partida (presentaciones), que a través de distintos workshops monográficos con las empresas participantes (CAF, Ederlan, Eroski, Euskaltel, Fagor-Hometek, Grupo Gureak, Obe-Hettich, Orbea, Orona) fuimos contrastando/validando/enriqueciendo.

Como resultado de este proceso elaboramos los siguientes documentos >>

• Estado del arte de la innovación abierta (introductorio) // UPV-EHU
• Escenario de innovación abierta intra-organizacional // MIK
• Escenario de innovación abierta inter-organizacional // IK4-IKERLAN
• Escenario de innovación de usuario // MIK
• Escenario de innovación colectiva // MIK
• Políticas de innovación abierta // TECNALIA

El índice base de dichos documentos-escenario es el siguiente:

1. Introducción
2. Objeto, objetivos y metodología
3. Conceptualización del escenario de innovación abierta correspondiente
4. Elementos clave (recursos e incentivos, tecnologías, modelo de negocio, proceso de innovación, cultura)
5. Casos prácticos
6. Plan de acción (metodología para la constitución de la red de innovación abierta correspondiente)
7. Taller con las empresas (workshop desarrollado y claves extraídas del mismo)

A continuación está incrustado el informe final de innovación abierta inter-organizacional desarrollado desde IK4-IKERLAN por Luis y por mí.

Ver este documento en Scribd

La última etapa del proyecto consistió en el diseño de una metodología ágil de intervención para innovar el modelo de negocio de un área de negocio, producto o servicio, de las empresas participantes en el proyecto, en base a las claves de la innovación abierta. Esta metodología, desarrollada por IK4-IKERLAN & MIK, y denominada business open innovation (BOI), se basa en tres elementos clave:

• El conocido canvas de modelos de negocio definido por Osterwalder y Pigneur como punto de partida de modelado del negocio.
• Epicentos de innovación provenientes de los distintos bloques conceptuales del canvas.
• Catalizadores de innovación abierta de negocio; prácticas de innovación abierta extraídos de casos analizados durante la fase de investigación del proyecto Openbasque.

A continuación mostramos una presentación de la metodología BOI realizada por Luis para ISPIM 2013. Al final de la presentación brevemente  se recogen unas notas respecto a la implementación de la metodología por parte de IK4-IKERLAN en una de las empresas del consorcio OpenBasque >>

Una vez finalizado el proyecto OpenBasque, a mediados de este año 2013, ahora sólo nos queda lo más importante; poner en valor el importante conocimiento desarrollado en clave de transferencia a las empresas del entorno para hacerlas más innovadoras y competitivas en sus correspondientes sectores y mercados. En ello estamos!

Muchas gracias a todos los implicados en esta aventura llena de trabajo, ilusión y colaboración.

Eduardo Castellano y Luis Berasategi

Mass Customization, Customer Co-creation & Open Innovation World’s Leading CEOs and Researchers @ MCPC2011

The full conference program of the MCPC 2011 has been released.

In addition to hundreds of CEOs, Founders, Directors, and Practice Leaders of the companies that apply and support mass customization, customer co-creation and open innovation successfully, many of the world’s leading researchers in these areas will present latest findings in an accessible way. Some of the presenters involved:

• Henry Chesbrough (Professor of UC Berkeley)
• Frank Piller (Professor of RWTH/MIT)
• Kent Larson (MIT Media Lab)
• Joseph Pine (Strategic Horizons)
• Chris Anderson (Wired Magazine)
• Ashish Chatterjee (Director of Connect+Develop at Procter & Gamble)
• Andy Zygna (CEO of Nine Sigma)
• John Jacobsen (Head of Engineering at Quirky)
• Derek Elley (CEO of Ponoko)
• Nik Pinkston (Founder of Cloudfab)
• Mark Hatch (CEO of TechShop)
• Cathy Benko (Vice Chairman and Chief Talent Officer of Deloitte U.S. Firms)
• And many more representants from Threadless, Ford Motor Corp, Reebok…

The interactive conference format of the MCPC 2011, supported by the proximity to the Silicon Valley / Bay Area entrepreneurship and investment community, allows for deep interaction and networking between the participants.

Also, before the main conference (Nov 18-19), a special business seminar will provide executable frameworks for the management of mass customization and open innovation and a focused view on future topics.

You can now join the conference in a lively exchange on best practices, case studies, success factors and open business models that focus on the top management and leadership issues and / or provide deep insights into specific design parameters of the tools and technologies behind open co-creation and mass customization. Some selected topics of presentations and panels at the MCPC include:

• Setting up a mass customization business model
• The market for mass customization
• Defining a customer co-creation initiative that works
• Managing customer-centric supply chains and fulfillment
• Design elements of successful configuration toolkits
• Metrics for open innovation
• Implementing open innovation in an R&D organization
• Learning from failures of the early pioneers
• Getting VC investments for business models for MCP
• Optimal incentives for internal and external participants
• Getting corporate buy-in for customer co-design and OI
• And much more…

By the way, the MCKN platform (see previous post), will be advertised to such auditorium during the event.

Frank Piller (RWTH/MIT)

One hour of Open Innovation and Customer Co-creation experiences with Frank Piller

Hope you enjoy it!

Kind regards,

Frank Piller (RWTH/MIT)

Open Source Hardware (OSHW)

Open Source Hardware (OSHW) finally has an official definition. On Feb. 9, the “Open Source Hardware (OSHW) Statement of Principles and Definition v1.0” was published.

The basic motivation of OSHW is to give people “the freedom to control their technology while sharing knowledge and encouraging commerce through the open exchange of designs.” (Note the explicit relation to “commerce”, as this is as much to act as an economic principle as it is one of knowledge management and enabling innovation).

Last year, I participated at the “Open Hardware Summit” in New York city, a large gathering of people interested in bringing the open source software idea to hardware products.The participants of the Summit were a very interesting and eclectic crowd, starting a really great debate on the opportunities, but also the challenges of OSHW (obviously, the opportunities won).

As a core result of the debate started at the summit, now finally the official version of the “Open Source Hardware (OSHW) Statement of Principles and Definition v1.0” has been published. This release can be seen as profound and game-changing as the original “Open Source Definition,” created by Bruce Perens and the Debian developers as the “Debian Free Software Guidelines” in 1997. In the open hardware definition, OSHW is defined as:

“hardware whose design is made publicly available so that anyone can study, modify, distribute, make, and sell the design or hardware based on that design. The hardware’s source, the design from which it is made, is available in the preferred format for making modifications to it… Ideally, open source hardware uses readily-available components and materials, standard processes, open infrastructure, unrestricted content, and open-source design tools to maximize the ability of individuals to make and use hardware.”

The definition then states 12 criteria that characterize OSHW.

I believe that the publishing of this definition could have an equally, of even wider, impact as the OSS movement. While not all hardware will be open, working on a license that allows hardware products to be designed, produced, and reproduced under these rules may start a new manufacturing movement that may change the way how products are designed and distributed (if only engineering students would have good and up-to-date mandatory classes in law and IP – as this is not the case it are the economists and management professors like me that care about the things while the average engineering student is being educated in a traditional way of IP and patents).

By the way, OSHW is exactly one of the interfaces between customization and open innovation that we want to discuss in larger detail during the MCPC 2011 conference in San Francisco in Nov 2011.

Frank Piller (RWTH/MIT)

A New Approach to Open Innovation: Quebec Problem Conference

A very fresh and innovative approach to open innovation is coming from Quebec, Canada: The Problem Conference (Quebec City, 14^th December 2010).

The core idea:

• Turn a conference upside down. Instead of presenting «solutions» and «best practices» to impress the other participants with your successes, present your hardest challenge. Present what you could not solve, and ask openly for help! The (beginning of the) solution then will be co-created with the participants.

Organized by IDTEQ and the Quebec Innovation Council, the hosts invite you to experience open innovation in a new format. Large companies, SMEs, R&D centers and universities will have an opportunity to familiarize themselves with this principle by sharing their problems – and co-creating an innovative solution. For one day, proponents of complex problems from various industrial sectors will challenge attendees. The goal is to broaden the understanding of the issue and possibly to seek for potential solutions.

The conference shall become a place where concrete problems of small, medium, and large companies will be discussed to deepen the understanding of the issue and to seek potential solutions. At the same time, this will become a laboratory for experimenting with and implementing open innovation (OI). Participants shall be able to use the intelligence of experts in various fields to find solutions to your problems. While most OI initiatives have been organized on online platforms, this conference shall become one of the first large-scale offline events!

Problems can be submitted within one of three different categories:

• Innovation Problems: These problems are usually upstream of innovation, but have a significant impact on an organization’s innovation capacity. Such problems are economic, organizational, social, or political in nature.
• Industrial Problems: Industrial problems with a strong technical component will be submitted by companies facing innovation problems in new technology development or in product design or improvement.
• Large Scale Problems (with multiple components): At least one large scale problem will be the focus of a group intelligence activity that will involve all participants and will have the potential to advance understanding of the problem. This problem will be submitted by an international organization facing a number of complex innovation issues.

I am personally very proud of this initiative, as it has been born during a workshop in spring of this year. During this workshop, I first provided an introduction into open innovation to an audience of about 50 companies and research institutions from the Quebec region. We then continued with some open space discussions on possible applications and ideas for the Quebec region. The Problem Conference was one of the ideas, which then was followed up and refined by a team in Quebec in the last months.

For more information on this event and the tool, go to http://www.quebec-solutions.com. The conference will be organized in cooperation with the 3rd ISPIM Innovation Symposium. I will participate in person in December and am very curious to see how it will work and what will be the results.

Frank Piller (RWTH/MIT)

Un par de eventos próximos: UPDATE 5 y jornada Basque-Enterprise Europe Network

El próximo 29 de junio, en el Parque Tecnológico de Miramon, Alfons Cornellá y Antonella Broglia, de infonomia, presentarán su último Update. Que como ellos describen es una síntesis de los artículos, libros y casos que no has podido leer, y de las conferencias a las que no has podido asistir encapsulado en 10 ideas clave que todo directivo debe conocer para estar al día en negocios. Los puntos centrales del Update 5 serán; new work, e-memory, co-, design thinking, new tech, megaregiones, upturn, futuro social de la salud, next company, y el ADN del innovador. Para aquellos que no puedan asistir, bien por problemas de agenda o de distancia, en el anterior link hay recogidas varias direcciones de interés. Hay que agradecer a Bic Berrilan, como organizadores del evento, que hayan promovido la realización de esta interesante jornada en Donostia. Las inscripciones se pueden hacer a través de Euskadi+innova.

Por otro lado, el 1 de julio, en la Cámara de Comercio de Bilbao, se celebrará la jornada Cooperación e Innovación: Claves para el Éxito en Europa. En este caso la organización del evento corresponde a Basque-Enterprise Europe Network. En la misma, Francesco D. Sandulli, experto en Open Innovation y colaborador de Henry Chesbrough, Visiting Professor de la Haas School of Business (UC Berkeley) y Director de la Cátedra UCM-Orange, planteará nuevas claves sobre la cooperación empresarial fundamentada en la Open Innovation.

Eduardo Castellano

Open Innovation. Success Factors and More…

A major stream of research at RWTH-TIM is on open innovation in the realization stage of an innovation project, i.e. transferring and utilizing technological knowledge from an organization’s periphery to improve the productivity of technical problem solving.  Along this line of research, we work with a number of companies and industry associations on establishing an open innovation framework or utilizing the upcoming platforms and intermediaries for open innovation (see our study The Market for open innovation). Also, open innovation became the largest topic for executive education classes that I am giving this year.

From these projects and executive classes, I realized a number of repeating factors that seem to influence the implementation of open innovation. In a blog posting by Science Business, a UK news service that wants to facilitate the matching of buyers and sellers of emerging technologies, I found a nice article that supports my own observations. The report is about a qualitative interview study on the state of implementation of open innovation in the world’s 30 largest health care and manufacturing companies. The study has been carried out by the UK consultancy group PA Consulting.

In the report, open innovation is defined broadly (in the understanding of Henry Chesbrough) as the practices of a company to work with partners, agencies and other companies outside its organization to foster innovation (note that my own definition of OI is a bit closer and focused on practices that build on rather informal, ad-hoc and large-scale organizational mechanisms to connect seekers and providers of technical knoweldge).

These are my conclusions from the report and my own observations on the state of implementation of open innovation:

• Only few companies have so far adopted a structured or company-wide approach to practice open innovation. At the same time, open innovation and customer co-creation are becoming more and more separated. The term “open innovation” is used for technology or knowledge transfer for a given technological challenge in an innovation project, while the term “(customer) co-creation” is being used to address practice of integrating users and customers in the early stages of the innovation process. Both areas have different methods, different responsibilities, and different people driving them in an organization.
• Respondents in the PA Study felt that it can be difficult to gain buy-in and resources for open innovation projects and those involved in open innovation can feel marginalized and under pressure to show results.
• To be successful in open innovation, the top of the business have to champion the process. Leadership also is critical to building the outward-looking culture that is essential. An engaged, enthusiastic CEO or head of function can do much to engender a similar attitude in employees, and get open innovation accepted.
• Open innovation is seen as a strategic necessity in sustaining innovation leadership. Some also saw it as a possible cost-saving response to the present downturn. This is strongly confirmed by own observations in Germany. Many companies are interested in NineSigma or InnoCentive today as they see it first of all as a means to increase the efficiency of problem solving, i.e. save cost and reduce financial risk.
• Only few companies are yet able to construct and appraise an objective business case for open innovation, or have a reliable measuring system to proof the value it brings to their business. This is one of the largest fields where applied research has to start.
• Open innovation requires dedicated organizational capabilities like relationship building, negotiating and the ability to pioneer novel legal arrangements. Here, we still lack both theoretical and practical knowledge about the exact nature of these capabilities, their success factors, and how to build them best in an organization.
• An important observation was how to get “ready for open innovation”. The only way to learn about open innovation is to pilot it. But in this process, formal training is an important part of its acceptance and its success. Often, one person is heading the OI initiative, but if you want to make it work, you need an entire team of people who all understand different aspects of open innovation across the entire company.

By the way, Pictures of the Future is the corporate magazine of Siemens AG, Germany’s largest technology company. The magazine reports several times a year about technological advancements, publishes trend studies and outlooks, both with regard to Siemens applications and beyond.

The recent issue (Spring 2010) has, among other themes, a very comprehensive special report about open innovation. It follows a broad understanding of the term and provides an excellent overview of this field from the perspective of a large corporation.

Frank Piller (RWTH/MIT)

Open Innovation Conference 2009 @ UK

 

El 21 de Enero, desde el Reino Unido (Norwich Research Park) hay otra oferta de evento sobre innovación abierta: Open Innovation Conference 2009.

 

En este caso las experiencias a presentar vendrán de la mano de Unilever, GSK, Microsoft Research Cambridge, BT Group, Philips, Kodak y Marks & Spencer.

 

 

 

Parece que se nos está llenando de saraus la agenda de Enero…

 

Eduardo Castellano

PDMA Monaco 2009 – Conferencia Front-End of Innovation

 

Seguimos con el festival de eventos de año nuevo. En este caso el Southern Europe Chapter de PDMA organiza, entre los días 26 y 29 de Enero, la Conferencia que lleva por título “Front-End of Innovation”.

 

 

 

Dentro de los topics principales están algunos familiares como; “Co-Creation /User Focused Innovation”, “Nurturing Breakthroughs – Creating The Proper Conditions”, “Business Model Innovation for Growth”.

 

Además, hay un Open Innovation Symposium de 1 día donde participan Johnson & Johnson, Unilever, Schweppes, Earlybird Venture Capital, IDEO, Indie Group, y LEGO entre otros.

 

Como veis no se escapa de nuestra temática base.

 

Luis Berasategi