An Open Innovation Machine Through Rapid Technology ... · ¾Open Innovation depends on effectively exploiting external research knowledge ¾Treat text like Data – Mine it for patterns!

2008 SCIP – Annual Conference – San Diego, California www.theVantagePoint.com

An Open Innovation MachineThrough Rapid Technology

Intelligence Processes

Paul FreyPresident

Nils NewmanDirector, New Business Development


Open Innovation• “Most

innovations fail.”

• “And companies that don’t innovate die.”

Chesbrough, H. W. (2003). Open Innovation – The New Imperative for Creating and Profiting from Technology, Harvard Business School Press, Boston, MA.


Goal: Improve R&D Efficiency

• Internal Research and Development• Mergers, Acquisitions, Divestitures• License Intellectual Property (in/out)• Leverage “Knowledge Economy”

$$$$$$$$$$

Get profitable innovations into the market at lowest cost


Example: Connect and Develop• Procter & Gamble’s New Model

for Innovation• “… produces more than 35% of

company’s innovation and billions of dollars in revenue”

• “R&D productivity has increased by nearly 60 percent”

• “R&D investment as a percentage of sales is down from 4.8 percent in 2000 to 3.4 percent today”

"Connect and Develop: Inside Procter & Gamble's New Model for Innovation," Harvard Business Review, Vol. 84, No. 3, March 2006, http://hbswk.hbs.edu/archive/5258.html

“External collaboration plays a key role in nearly 50 percent of P&G's products. We've collaborated with outside partners for generations but the importance of these alliances has never been greater.

“Our vision is simple. We want P&G to be known as the company that collaborates — inside and out —better than any other company in the world.”

A.G. LafleyChairman of the Board andChief Executive Officer

www.pgconnectdevelop.com, April 2008

http://www.pgconnectdevelop.com/


Networks/BrokersA quick search yields:• http://www.ninesigma.com/• http://www.yet2.com/• http://www.innocentive.com/• http://www.tekscout.com/• … and there are many others

http://www.ninesigma.com/http://www.yet2.com/http://www.innocentive.com/http://www.tekscout.com/


A Network/Broker Example

Yet2.com – Apr 16, 2008


The Process of using the brokers• Bi-directional

marketplace• “Sellers” post ideas

and capabilities• “Buyers” post needs

and requirements• Yields people that

want to be found


The Challenge• Qualify the people

(and ideas) that “want to be found”

• Find the people (and ideas) that have not yet entered the “knowledge economy” marketplace


The Decision Process Reality

Expert Opinion

Information

Expert OpinionDrives

TechnologyDecisions


The Balanced Decision ProcessGood Decisions

demand both Information and

Expert Interpretation

Expert Opinion

Information


Six information typesTechnical Information• ST&I (Science,

Technology & Innovation) Databases(e.g., Web of Science,INSPEC, Micropatents)

• Internet Sources(e.g., Googling)

• Technical Expertise

Contextual Information• Business, competition,

customer, popular, policy content Databases (e.g., Lexus-Nexus, Factiva)

• Internet Sources (e.g., blogs, website profiling)

• Business Expertise


How to use these information sources effectively?

• Model of Innovation• Framework of

Influences• Process to analyze

and integrate information


Basic to Applied ResearchDevelopment; Patenting

Time

Functionality

A “Linear” view of Innovation Processes

Licensing, Collaborative Innovation

Commercial IntroductionNew Product Development

Adoption

Incremental InnovationMaturation


Research Arena

Internal R&D A1

A2

Existing PSPS*

New PSPS

Really NewPSPS

Incrementalinnovation

ResearchKnowledge

Flow

Business, Competitors, Markets, Customers, Regulatory

Knowledge Flow

External R&DA3A4

A5

B5

C5

Contextual Arena

Radical innovation

*PSPS = Products, Services, Processes &/or Systems

design

design


Technology Delivery System (TDS) Push vs. Pull

Scientific Push Societal Pull

Pressure ofScientific Discovery

Suction ofSocietal Need

VCR Example


TDS: Mapping External Influences

Management/Organization

Resources needed:Capital Skills Materials Software Products

Impact Assessment

Impacts

Public Interests

Customers

Stakeholders

GovernmentBodies

Competitors


Sample TDS

Federal R&Dfunds for solar

energy

R & D Performersfor solar energy

Equipment Manufacturers

LendingInstitutions

Local Gov’tCodes and Regulations

Lending Institutions

Private HousingMarket

Home Builders& Developers

Architect/EngineeringCompanies

LendingInstitutions

R & D Results

Approvals

Approvals

$$

Equip. Homes

Tech. needs

Tech. needs

Tech. Info

Tech. Info

R&D Results& Manpower

R&D Results& Manpower


How do you answer critical technology management

questions?

Tech MiningAlan L. Porter and Scott W. CunninghamJohn Wiley & Sons Inc., 2005


•Issues•Questions•Indicators

Tech Mining Questions and

Indicators

Tech Mining


How to get Management to “hear” information-based knowledge products

• Define the Management of Technology (MOT) Issues• Break out particular MOT Questions• Identify candidate empirical Indicators

• Identify appropriate Analytical Tool(s)

• Identify appropriate Data Source(s)

• Design Effective composite Representations that can be rapidly built …“one-pagers in one day.”


MOT Issues, Questions, and Indicators

13 MOT Issues

• R&D Portfolio Mgt

• R&D Project Initiation

• Engr Project Initiation

• New Product Development

• Strategic Planning

• Track/forecast emerging or breakthrough technologies

• etc.

~200 Innovation Indicators

• Mapping of topic clusters within the technology

• 3-D trend charts for topic clusters

• Ratio of conference to journal papers (benchmarked)

• Scorecard rate-of-change metrics for topic clusters

• Time slices to show evolution of topical emphases

• Topic growth modeling (S-curve) fit & extrapolation

• Profile table of main players• Pie chart: Company vs.

Academic vs. Government publishing

• Spreading (or constricting) # of players by topic

39 MOT Questions

What?• What’s hot?• Fit into tech landscape?• New frontiers at fringe?• Drivers?• Competing technologies?• Likely development paths?Who?• Who are available experts?• Which universities or labs

lead?


First Cut IndicatorsTop

Researchers Top Organizations Time

Trends


Knowledge Networks

• Authors by index term

• Inventors by IPC

• Co-authors and co-inventors


Profiles


Integrated indicators

Categorization

Concept Migration

Clusters

Year 1998 1999 2000 2001Records 94 101 101 78New Terms 50 53 59 54New Terms (normalized) 50 49.32673267 54.91089109 65.07692308

Acoustic devices [3 of 3] Wavelet transforms [2 of 2] Unmanned vehicles [3 of 11] Remotely operated vehicles [12 of 13]Pattern matching [2 of 8] World Wide Web [2 of 2] Motion estimation [3 of 4] Bombs (ordnance [3 of 3]Martian surface analysis [2 of 2] Web browsers [2 of 2] Uncertain systems [3 of 5] Radar antennas [1 of 1]Personal computers [2 of 5] Arid regions [2 of 2] Internet [3 of 3] Radio systems [1 of 1]Backpropagation [2 of 3] Visualization [2 of 2] Ordinary differential equations [2 of 2] Safety devices [1 of 1]Electrostatics [2 of 3] Tracking radar [2 of 2] Multiplexing [2 of 2] Monolithic microwave integrated circuits [1 of 1]Jamming [1 of 2] Graphical user interfaces [2 of 6] Handicapped persons [2 of 2] Semantics [1 of 1]Mine trucks [1 of 3] Radar target recognition [2 of 2] Theorem proving [1 of 1] Receiving antennas [1 of 1]Ordnance [1 of 1] Information retrieval [2 of 3] Traffic surveys [1 of 2] Redundant manipulators [1 of 1]Optical beam splitters [1 of 1] Nonlinear filtering [1 of 1] Autonomous agents [1 of 4] Railroad tracks [1 of 1]Ballast tanks [1 of 1] Antenna arrays [1 of 2] Maximum likelihood estimation [1 of 1] Vector quantization [1 of 1]


Polymer Biomaterials : fibrous structural proteins : skin1991-1997 (68 patents)


Polymer Biomaterials : fibrous structural proteins : skin1991-2005 (470 patents)

GLOBAL MAP OF SCIENCE

Neurosciences

Computer Sciences

GeoscienceAgriculture

Ecology

Biological Sciences

Chemistry

Physics

Engineering

Environ. Sci.

Materials Sci

Infectious diseases

Clinical medicine

General medicine

Leydesdorff&Rafols (2007, submitted)


Quantum Dot1995

Map of Science


Quantum Dot2005

Map of Science


Ceramic Engine Example• Overcoming

Management Resistance

• Mechanical vs. Electrical

• Discovering “new technology”

• Building the prototype


The Timeliness of Information

InformationProfessional

TechnologyAnalysts

Researchers&

TechnologyManagers

DecisionMaker


Automation• Aim first for automation of cleanup,

normalization, integration, and creation of individual indicators– Manageable and maintainable– Fosters incremental and evolutionary

development– Usable in a variety of ways

• Seek opportunities for sequencing these components into analytical “machines”


The Tech Mining Process (recap)1. Understand & scope the questions, set in an

Innovation Process context2. Identify suitable databases

(especially R&D publication or patent abstracts)3. Search & download topical records (iteration likely)4. Import into software tools5. Clean the data6. Analyze & interpret (integrate) 7. Represent the information effectively – to

communicate well8. Standardize and semi-automate where possible


The Balanced Decision Process

Data Software KP’s

Analysis & representation

Patent, R&D Publication &

other Databases

Expert Opinion

Knowledge Products

Good Decisions demand both timelyKnowledge Products

and Expert

Interpretation


SummaryOpen Innovation depends on effectively exploiting external research knowledgeTreat text like Data – Mine it for patterns!Patterns speak to innovation prospects: maturation, contextual forces, market prospectsAnswer “who, what, where & when” Innovation Management questions for business decision processes


The Payoff• Better informed

technology management

• Faster decisions and better results

• Competitive Advantage

Documents

An Open Innovation Machine Through Rapid Technology ... · ¾Open Innovation depends on effectively exploiting external research knowledge ¾Treat text like Data – Mine it for patterns!