Introduction to OPEN INNOVATION
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This document provides an introduction to open innovation with examples. It discusses why innovation is important for companies in terms of economic growth and survival. Open innovation is defined as using external and internal ideas and paths to market to advance technology. Examples discussed include Goldcorp's challenge to find gold deposits, Netflix's prizes for improving their algorithm, and user innovation. Challenges with open innovation include the degree of openness, how to evaluate value and metrics. The document concludes by thanking the audience.
Introduction to OPEN INNOVATION
- 1. Introduction to OPEN INNOVATION with Examples Serdar Temiz www.serdartemiz.com @serdar_temiz presentation for CORPORATE ENTREPRENEURSHIP course at Uppsala University 15 mar -17 www.serdartemiz.com
- 2. Why Innovation is Important for Corporates? 15 mar -17 www.serdartemiz.com
- 3. Why Innovation is Important Improve the world Dominate / security Economic growth Improvement of public sector organizations Improve everyday life Survival of organisations 15 mar -17 www.serdartemiz.com
- 4. Turnover Rate in Fortune 500 • Dane Stangler and Sam Arbesman WHAT DOES FORTUNE 500 TURNOVER MEAN www.serdartemiz.com “Two thirds of the original 1955 list was gone within three decades” William Shanklin* The rate at which large American companies left the Fortune 500 increased four times between 1970 and 1990 a change of almost 50% from the 1999 Fortune 500 to the 2009 Fortune 500 John Micklethwait & Adrian Wooldridge,* 15 mar -17
- 5. What is best Innovation of Apple? 15 mar -17 www.serdartemiz.com
- 6. What are these different things? Hamel and Prahalad (1989):” in order to pursuit strategic intent, company's core competence should be defined. In short run companies competitiveness can be associated to price/ performance attributes of current products in the market, but in long run, all products are becoming standardized in terms of product quality and cost, so outspending rivals over R&D is not a core competence anymore, companies should find different things as core competence” (Prahalad & Hamel, 1989). 15 mar -17 www.serdartemiz.com
- 7. Chesbrough (2003):“A paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as firms look to advance their technology” Silicon Valley’s Orthodox Approach Recall: Hamel and Prahalad (1989) ”harmonizing streams of technology; organization of the work and delivery value; communication, involvement and deep commitment to working across organizational boundaries”. 15 mar -17 www.serdartemiz.com
- 8. Silicon Valley’s Orthodox Approach “Use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively” (Chesbrough et al., 2006). 15 mar -17 www.serdartemiz.com
- 9. In Summary: Use of external • Knowledge • People • Technology • Resources to foster innovation inside the organisation and…. Outflow of innovation • Knowledge • People • Technology • Resources to foster innovative ecosystem which in te return 15 mar -17 www.serdartemiz.com
- 10. Is Open Innovation something new? Sourced by collective invention Competitive innovation Licensing Crowdsourcing / crowdfunding Community-based competition User-based/developed innovation Open Source Open data And more.. 15 mar -17 www.serdartemiz.com
- 11. Examples 15 mar -17 www.serdartemiz.com
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- 13. Problem Gold Corp 15 mar -17 www.serdartemiz.com
- 14. Call: Goldcorp Challenge Call: CEO Rob McEwen Decided to run a contest Input: Provide access to the geological data of the company's Red Lake Mine in Northern Ontario Request: Solvers to have a crack at finding its richest gold deposits 15 mar -17 www.serdartemiz.com
- 15. Result 1) 110 sites identified by the solvers, of which 50% were new, 80% of which produced gold. 2) 8 million ounces of gold found. 3) Company value up from $100 million to $9 billion. (Pre contest and post contest) 15 mar -17 www.serdartemiz.com
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- 20. KMZ/KML feed from http://flightwise.com/ for LAX airport that were intended to display the aircraft on Google Earth 15 mar -17 www.serdartemiz.com
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- 22. Open Innovation in Goverment 15 mar -17 www.serdartemiz.com
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- 26. Lead Users invent the techniques 1980 2000 www.serdartemiz.com
- 29. www.serdartemiz.com thefirstbuild Shell GameChanger OrangeStartUp Quirky -a community-led invention platform
- 30. Back to our first question 15 mar -17 www.serdartemiz.com
- 31. The Next Big Thing is… 15 mar -17 www.serdartemiz.com
- 32. Challenges with Open Innovation • It is not easy as it seems. • Degree of Opennes • How to bring value to company? • What to adopt/what to not adopt? • Metrics to evaluate? • Absorptive capacity? • And video…? 15 mar -17 www.serdartemiz.com
- 33. Serdar Temiz THANK YOU! https://www.slideshare.net https://www.slideshare.net/SerdarTemi/introduction- to-open-innovation www.serdartemiz.com temiz@kth.se @serdar_temiz 15 mar -17 www.serdartemiz.com
Editor's Notes
- #17: Talk About Storm Sessions How idea storm ideas are implemented Statistics