LivingLabs & Open Innovation

Technology is anything that was invented after you were born”

Alan Key

Innovation

Esteve Almirallesteve.almirall@esade.edu

almirall@lsi.upc.edu

DisruptiveClosedIntegratedRadicalOpenIncrementalStrategicSystemic. . .

Innovation isn't what innovators do....it's what customers and clients adopt.

Michael Schrage – M.I.T.

3 + 1 + R

0)

?

1)

Early in the morning

on February 14, 1876

filled a caveat for a patent

describing a telephone that used a liquid microphone

and remained in the basket ...

…. . .shortly before noon

Bell's lawyer filled a patent and requested that the filing fee be entered immediately

Late that afternoon, the fee for Gray's caveat was entered on the cash blotter however, the caveat was not taken to the examiner until the following day.

Gray abandoned his caveat and that opened the door to Bell being granted U.S. Patent 174,465 for the telephone on 7 March 1876

2)

in the 1990´s

started a company called Fuse to develop the "Dell of the Consumer Electronics." One of the devices he had in mind was a small hard disk-based music player …. . .

Fuse failed

Fadell offered the idea to Philips

Fadell offered the idea to Real Networks

in 2001

hires Fadell

Apple assembles a 35 person team lead by Tony Fadell

PhilipsIDEOGeneral MagicAppleConnectixWeb TV

6 months later

The 30GB, 5th Generation Video iPod of 2005

has around 400 inputs

with an average value of $0.05

3)

The previous state of the art in aviation manufacturing was to have global partners work from a common blueprint to produce parts.—Actually, whole sections of the airplane—that were physically shipped to a Boeing assembly plant near Seattle to see if they fit together.

There, successive iterations of the planes were built and refined with onsite teams from around the world.

Instead, on the 787 parts are designed concurrently by partners, andvirtually "assembled" in a computer model maintained by Boeing outside its corporate firewall.

Ultimately, completed sections of the plane will be picked up by three specially fitted 747s and carried to a Boeing facility in Everett, Wash.

Thanks to the online modeling, Boeing cannow trust its global partners with the process of creating entire sections of the plane,

from concept to production.

50 partners130 locations>4 years

Customers, including pilots and flight attendants, were asked to provide input before the design was handed off to design partners.

Scott Griffin – Vice-president and CIO - Boeing

+1)

Innovation

Before AfterInvention Commercialization

Product Business, incl. business model

Technology driven Business / valuedriven

Internally generated

Internal integration of internal and external stuff

Engineering’s job Everyone’s job

Closed innovation Open Innovation

The smart people in the field work for us. Not all the smart people in the field work for us. We need to work with smart people inside and outside the company.

To profit from R&D, we must discover it, develop it, and ship it ourselves.

External R&D can create significant value: internal R&D is needed to claim some portion of that value.

If we discover it ourselves, we will get it to the market first.

We don't have to originate the research to profit from it.

The company that gets an innovation to the market first will win.

Building a better business model is better than getting to the market first.

If we create the most and the best ideas in the industry, we will win.

If we make the best use of internal and external ideas, we will win.

We should control our IP, so that our competitors don't profit from our ideas.

We should profit from others' use of our IP, and we should buy others' IP whenever it advances our business model.

from http://www.openinnovation.eu

Finding Ideas/Partners/Technologiesa massive filtering problem

The Unwashed

The Suspects

The prospects

The finalists

The Partner

(s)

Innovation Intermediaries(inbound – outbound)

Knowledge brokers.

Connectors (Nine Sigma & Yet2.com)

Marketplaces (Innocentive).

Scouting.

…...

who invented the mountain bike

Living Labs aim to provide structure and governance to the user involvement in innovation

+R)

inventor > networks >– crowds

What hard problem is being solved here?

Institutions are structures and mechanisms of social

order and cooperation governing the behavior of a set of individuals.

Institutions are identified with a social purpose and

permanence, transcending individual human lives and intentions, and with the making and enforcing of rules governing cooperative human behavior.

The term, institution, is commonly applied to customs and behavior patterns important to a society, as well as to particular formal organizations of governmentand public service. As structures and mechanisms of social order among humans, institutions are one of the principal objects of study in the social sciences, including sociology, political science and economics. Institutions are a central concern for law, the formal regime for political rule-making and enforcement. The creation and evolution of institutions is a primary topic for history.

Traditional answer:1) Create an institution

Traditional answer:1) Create an institution2) Use the institution.

we used to live in a world of products made in companies

is this the only possible way?

Where is the coordination?

Where is the coordination?

vs.

Where is the coordination?

1) When you form an institution you take a management problem.

1) When you form an institution you take a management problem.

2) An institution needs structure.

1) When you form an institution you take a management problem.

2) An institution needs structure.

3) Institution have boundaries that are inherently exclusionary.

1) When you form an institution you take a management problem.

2) An institution needs structure.

3) Institution have boundaries that are inherently exclusionary.

4) Institutions creates a professional class.

Is there any other way?

The face of innovation is changing,

are we?

?

esteve almirallesteve.almirall@esade.edu

almirall@lsi.upc.edu