Open Innovation, Open Source, or IP - where’s the

value?

Bryo Eventdag - 15 February 2014

“Open innovation is 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

the firms look to advance their technology”

Henry Chesbrough

Open Innovation - What?

•“not all the smart people work for us”

• information technology

•complexity, both in organisations and products

•cost

• lack of focus

• internal innovation fails

Open Innovation - Why?

NEW - OPEN

•Ideas meeting Ideas

•On all aspects of the business

•Basic economics

•Network effect

•Complexity

Open Innovation - Why?OLD - CLOSED

•Only harvest in-house

•Only open up “non-essential”

•Keep secrets

•“Control” communication

•Do everything yourself: focus?

Open Innovation - Who?

•externals: everybody!

•Different levels

•Open Source/Creative Commons

•Standards

Open Innovation - How?

Customers/Users

Suppliers

Partners (distributors/agents)

Consultants

Professional Organizations

Standard setting bodies

Universities

Research organisations

Investors

Crowdsourcing

Competitors

•Different approaches to different players

•gamification

•contest

• focused collaboration - complementary skills/knowledge

•crowdsourcing

Open Innovation - How?•Throughout the

organisation

•have internal champions

•actively scan & reach out

•train & coach externals

•structures of review

•Choice of partners - powerplay - trust

•managing vs moderating the process

• internal innovation fails - how will open innovation work?

•corporate antibodies (“not invented here”)

• innovation & implementation : short term v long term

•define criteria for success

• Intellectual Property

Open Innovation - Challenges

Intellectual Property - What?

INNOVATION IDENTITY

™

www.mysite.url

Intellectual Property - Why?

Right to useuseRight to blockblock

Positive Negative

™www.mysite.url

Intellectual Property - Why?

FUNDAMENTAL RIGHTTO COPYCOPY

•Ownership: what does it mean?

•License: transfer/extend the right to use (through covenant not to use the right to block)

•Open Source: guarantee the right to use (“the four freedoms”) down the value chain

•Public Commons v Private Commons

Intellectual Property - How?

Open Source - What?Four Freedoms:

•Freedom to use

•Freedom to understand

•Freedom to change

•Freedom to share/distribute

Open Source - What?Different licenses:

•Artistic

•LGPL - libraries

•GPL - viral

Open Source - What?

Software: Open Source

Content: Creative Commons

Hardware: Open Source hardware

Open Source - Why?3D-IT™

TECHNOLOGY

NOVELTY EFFICIENCY(product) (process)

Relative weight

FUNCTION

SPECIFIC GENERIC(customer) (producer)

CONTENT

QUALITY QUANTITY(knowledge) (data)

Open Source - How?

Business model: move from product to services.

Identifying value.

Commoditisation and Community

Open Innovation:

Open

External

Collaborative

Intellectual Property & Open Innovation

Intellectual Property:

Closed

Internal

Exclusive

Secrecy in an information age

Copycats

Intellectual Property & Secrecy

Adding Value?The network effect

Free Riders & copying

Open systems

Competition

Diverse approach

Add value - for whom?

Open Data

•public

•private

Open HR

Metrics to use:

•Cost

•Quality

•Efficiency

•Value Add

So, where’s the value?