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Presentation about open innovation trends and key examples
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Global trends in
OPEN INNOVATION
José Cláudio C. Terra
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Battle of ConceptsChallenges to undergraduate students
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Help our clients
to learn, collaborate and innovate
in more effective ways
“
TerraForum ConsultingOur Mission
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More than 300 projects with leading companies within the last 7 years
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Publishing Portfolio – TerraForum Consulting
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TerraForum ConsultingInnovation Center Portal
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What is Open Innovation?
Innovation
distinguishes a leader
from his followers.
Steve Jobs
“
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Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external
use of innovation, respectively."
Henry Chesbrough, 2003
“
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Open Innovation Model – The Innovation Funnel
Through the open innovation model organizations keep strong relationships with
external parties at different stages of the innovation development process
INTERNAL
R&DMARKET
Joint Venuture
Licensing
External Technology
Insourcing
Spin-inMerge and Aquisitions
Divest
Spin-off
Licencing
R&D Services
Research Development Comercialization
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Through Open Innovation businesses are increasingly open to insights,
ideas and collaboration from multiple sources...
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For most companies innovation is a proprietary activity but for
others...
Closed Innovation
Most of the smart people in our field work for us
To profit from R&D, we must discover, develop
and ship ourselves
If we discover it, we will get it to market first
If we are the first to commercialize we will win
If we create the most and the best ideas in the
industry, we will win
We should control our intellectual property (IP) so
that our competitors don´t profit from our ideas
Open Innovation
Not all of the smart people work for us, so we must
find and tap into the knowledge and expertise of
bright individuals outside our company
External R&D can create significant value; internal
R&D is needed to claim some portion of that value
We don´t have to originate the research in order to
profit from it
Building a better business model is better than
getting to market first
If we make the best use of internal and external
ideas we will win
We should profit from others´ use of our IP, and
we should buy others´ IP whenever it advances
our own business model
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Open Innovation creates new revenues opportunities
Revenue
Internal
Development
Cost
Costs
Revenues
Closed Model
Past
Revenue Revenue
Royalties
Spin-Offs
New Businesses
New
Revenues
Closed Model
Present
Internal
Development
Cost
Internal
Development
Cost
Open Model
Future
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How companies will organize themselves to support open innovation approaches?
The best manner to predict
the future is inventing it.“
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Companies are creating their own Open Innovation Systems,
that are composed by...
Infrastructure
Processes
and Governance
Partners´
Network
relationship
Open
Innovation
System
Organizational
structure
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Key Factors for Open Innovation Success
Open Innovation
System
Strategic Alignment
Collaborative Culture
Adequate Partners
Strong Relation Network
Support and Services for
Partners
Clearly Defined IP policies Organizational
Structure and Governance
Infrastructure and location
Funding
Stakeholders Support
Processes and KPIs for Innovation
Mgmt
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Benchmark Study: “Best Practices in Open Innovation Systems”
Participating Companies
Brazil
Global
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Best Practices in Open Innovation Systems (OIS)
Philips established partnerships all over the
innovation stages, from basic research to
commercialization.
Besides, developed a technology park in Eindhoven
that became worldwide renowned that was capable to
attract the strategic competencies to the company.
Philips High Tech Campus offers infrastructure for
their partners, e.g.: suppliers, consultants, patents
office, venture capitalists, governmental research
organizations, research specialists.
It also offers paid services, such: offices for rental,
incubation and laboratories.
“
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High Tech Campus, a new concept on Open Innovation
System
Modern technology park
More than €500M in investments;
Technology-based startups incubation
The design stimulates and forces collaborationbetween partners
Close to universities
“Research Hotel” concept
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Best Practices in Open Innovation Systems (OIS)Philips High Tech Campus (Eindhoven)
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Best Practices in Open Innovation Systems (OIS)
Telefónica has established a network that
involves more than 1,000 partners. The
company structured 7 research centers, most in
Spain and close to technology parks.
“
Nokia promotes “Day Dreams” with
their partners, where they discuss
about the technology and products
trends and forecast.
“
Syngenta keeps a full time
partnership manager to manage
collaboration and the network
relationship, stimulating new
business and solving conflicts.
“
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Using web2.0 tools to improve open innovation in organizations
The best manner to predict
the future is inventing it.“
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What facilitates this NEW approach to innovation is the rise of
Web 2.0 – as an open and participatory platform...
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Procter & Gamble Tremor
Competitive Intelligence
• Capture impressions and trends
from teenagers
• Establish relationships and
understand specific publics
• Benefits:
• Improve the relationship of P&G
products with strategic customers.
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Dell IdeaStorm
Ideas and Insights
Users can:
• Submit ideas;
• Comment ideas posted;
• Vote on ideas
• More than 12.000 ideas
• 84 comments and votes
• 347 ideas implemented
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Innocentive
R&D
Companies propose challenges to
researchers and universities and
give prizes up to US$1M.
Benefits:
• Increase the network
• Improve the quality and speed on
development of new solutions
• Reduce the R&D investments
More than 70.000 researchers
50 universities
Companies such Basf, Syngenta e
DuPont participate.
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Kraft First Taste
Testing
Community to discuss new
products where users can:
• Provide feedback to new
products
• Share opinions
• The most participative users
have a “first taste” new
products first than others
Benefit:
Kraft improves products by using
costumers experiences.
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Yet2.com
Commercialization and Scaling up
Companies buy and sell licenses
for the usage of technologies and
patents.
Benefits:
• Profits from non-strategic and
not used technologies
• Companies can innovate
without internal R&D
Partnerships with DuPont, P&G
and Honeywell.
Participation of 90% of Fortune
500.
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Any company can use the ideas (more than 10.000) submitted by users
Fiat Mio:
Open source design
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Peugeot Design Contest
Open Design
• More than 4 million
page views
• 5 demonstration
models exhibited at
automotive
marketing events
• Designers of around
100 nationalities
• € 10.000 prizes
• 5th year of the
contest
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Threadless
Co-creation made by users
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Accelerating product innovation and turning Lego MindStorms into a
highly profitable product for Lego
Lego
Open source community
