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Open Innovation primer


 An introductory presentation
    to the Open Innovation
      Best Practices panel
at Enterprise 2.0 Summit 2012
       Amaury de Buchet
      Feb. 8th, 2012 - Paris
Contents!


•  Innovation Management!

•  Open Innovation!

•  Case studies!




                                  2!
Why Innovation Management?

•  To improve operating margins
   –  Increasing its innovation capacity is a major driver for growth and
      rentability increases (+ 4 pts operating margin, source Arthur D.Little
     Innovation Excellence Study 2005)


•  Without increasing R&D budgets
   –  There is no correlation between the level of R&D spending and
      innovation performance (source Booz Allen Hamilton Global Innovation
     1000 Study 2005)




               Companies place today on top of priorities!
                                    !
                Innovation performance improvement!
                                  !
           And the development of their innovation capacity!
                                                                         3
1st dimension: context and results

                                                 Value creation!



                                                                       Radical
                               Spontaneous                             innovation!
                                Innovation
Organizational process!




                                                                                     Market delivery!
                                                                       Incremental
                                                                       Innovation!

                               Planned innovation!




                                                                                                        4!
                                                     Risk reduction!
2nd dimension: methods & approaches
                      Strategy!




                    Top-down!


        Internal!                   External!   Idea source!




                    Peer-to-Peer!




                                                               5!
2nd dimension: methods & approaches
                                      Strategic approach:!
                                        - Innovation Platform!
                                        - Experimentations!




                                         Top-down!


Participative approach:! Internal!                         External! Collaborative aproach:!
  - Ideas Management Systems!                                         - Client-centric innovation!
  - Innovative & entrepreneurial culture!                             - Open innovation!
  - Kanban / quality circles / continuous progress!
  - Google / 3M « 70 / 20 / 10 »!


                                        Peer-to-Peer!


                                      Social approach:!
                                        - KM / collaborative work!
                                        - Communities of Practice!
                                        - Enterprise Social Networks!
                                        - Collective intelligence!
                                                                                                 6!
4 axes & 2 dimensions

of Innovation Management !




                             7!
Each organization adapt its process and its approach to
                             its sector and culture
                                  3!        Strategic approach!




1! Participative approach!                                        2! Collaborative approach!




                                       4!    Social approach!                            8
Sommaire!


•  Innovation Management!

•  Open Innovation!

•  Case studies!




                                  9!
OpenClosed innovation
              innovation
                                                                     Other firm´s
                                                                       market

                                                             Licence, spin                    Our new
                                                             out, divest                       market

      Internal
  technology base




                                                                    Internal/external             Our current
                                                                    venture handling                market
                                                     External technology
                                                     insourcing
External technology base

Stolen with pride from Prof Henry Chesbrough UC Berkeley, Open Innovation: Renewing Growth from
Industrial R&D, 10th Annual Innovation Convergence, Minneapolis Sept 27, 2004
Sommaire!


•  Innovation Management!

•  Open Innovation!

•  Case studies!




                                  11!
Case study: SNCF
                                          Strategic approach!

    • « Donner au train des idées                                     • « Atelier des Idées »
     d’avance »                                                       • http://
    • http://www.sncf-                                                 www.atelierdesidees.sncf.com/
     ideesdavance.com/




                                      Campagne         Campagne
                                       salariés      consommateurs


Participative approach!                                                     Collaborative approach!



                                                      Dialogue avec
                                      Processus &       les Parties
                                        Culture
                                                        prenantes

   • « Innovation - Progrès Continu                               • « Opinions et Débats »
    (IPC) »                                                       • http://debats.sncf.com/



                                           Social approach!




                                                                                                       12!
OI marketplaces + ecosystems




                               13
ESCP Europe’s most recent research on OI




The OI practices of 20 companies analysed. Download the research project at   14
       http://institut-innovation-competitivite.eu/en/activite/publications

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120208 e20 s open innovation workshop.ppt

  • 1. Open Innovation primer An introductory presentation to the Open Innovation Best Practices panel at Enterprise 2.0 Summit 2012 Amaury de Buchet Feb. 8th, 2012 - Paris
  • 2. Contents! •  Innovation Management! •  Open Innovation! •  Case studies! 2!
  • 3. Why Innovation Management? •  To improve operating margins –  Increasing its innovation capacity is a major driver for growth and rentability increases (+ 4 pts operating margin, source Arthur D.Little Innovation Excellence Study 2005) •  Without increasing R&D budgets –  There is no correlation between the level of R&D spending and innovation performance (source Booz Allen Hamilton Global Innovation 1000 Study 2005) Companies place today on top of priorities! ! Innovation performance improvement! ! And the development of their innovation capacity! 3
  • 4. 1st dimension: context and results Value creation! Radical Spontaneous innovation! Innovation Organizational process! Market delivery! Incremental Innovation! Planned innovation! 4! Risk reduction!
  • 5. 2nd dimension: methods & approaches Strategy! Top-down! Internal! External! Idea source! Peer-to-Peer! 5!
  • 6. 2nd dimension: methods & approaches Strategic approach:! - Innovation Platform! - Experimentations! Top-down! Participative approach:! Internal! External! Collaborative aproach:! - Ideas Management Systems! - Client-centric innovation! - Innovative & entrepreneurial culture! - Open innovation! - Kanban / quality circles / continuous progress! - Google / 3M « 70 / 20 / 10 »! Peer-to-Peer! Social approach:! - KM / collaborative work! - Communities of Practice! - Enterprise Social Networks! - Collective intelligence! 6!
  • 7. 4 axes & 2 dimensions
 of Innovation Management ! 7!
  • 8. Each organization adapt its process and its approach to its sector and culture 3! Strategic approach! 1! Participative approach! 2! Collaborative approach! 4! Social approach! 8
  • 9. Sommaire! •  Innovation Management! •  Open Innovation! •  Case studies! 9!
  • 10. OpenClosed innovation innovation Other firm´s market Licence, spin Our new out, divest market Internal technology base Internal/external Our current venture handling market External technology insourcing External technology base Stolen with pride from Prof Henry Chesbrough UC Berkeley, Open Innovation: Renewing Growth from Industrial R&D, 10th Annual Innovation Convergence, Minneapolis Sept 27, 2004
  • 11. Sommaire! •  Innovation Management! •  Open Innovation! •  Case studies! 11!
  • 12. Case study: SNCF Strategic approach! • « Donner au train des idées • « Atelier des Idées » d’avance » • http:// • http://www.sncf- www.atelierdesidees.sncf.com/ ideesdavance.com/ Campagne Campagne salariés consommateurs Participative approach! Collaborative approach! Dialogue avec Processus & les Parties Culture prenantes • « Innovation - Progrès Continu • « Opinions et Débats » (IPC) » • http://debats.sncf.com/ Social approach! 12!
  • 13. OI marketplaces + ecosystems 13
  • 14. ESCP Europe’s most recent research on OI The OI practices of 20 companies analysed. Download the research project at 14 http://institut-innovation-competitivite.eu/en/activite/publications