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Evolution from Orthodox Approaches to Open Innovation
Study on Open Innovation Approaches in European Food & Drink Companies
Dr Marian Garcia
Kent Business School, University of Kent
Overview
Background
Reasons for OI
How to execute OI
OI partners
Management challenges
OI Value
Future: OI mainstream approach?
Study Objectives
Study Methodology
1st Stage: Case Studies April – Dec 2010 UK, Spain and Italy (Università Carlo Cattaneo – LIUC/
University of Pisa) In-depth executive interviews with R&D/OI/Technical Team
Purpose – Process – Partners – Performance - People Document an OI project
2nd Stage: Pan-European survey Launch in Jan 2011 Model relationships between OI and contextual & performance
variables
Companies Participating in the Study
UKSPAIN
ITALY
Open Innovation: common sense?
‘Gone are the days when we had all the capabilities needed to innovate in the market’
‘We all need "intellectual partners" to solve our technological problems / to satisfy our technological needs’
‘Culturally our company has been very successful as a closed business. All major innovation developments were developed over 50
years ago with internal skills. However, there is an increasing realisation you do not have to originate knowledge and ideas to
profit from them’
‘We would like to do everything by ourselves, but it is not possible any longer’
Drivers: Molson Coors – The Talking Can
Create brand value Escape commoditisation trap Reinvigorate a declining category
Thermochromic Ink Technology Retailersconstantlywanting cheapdeals
Consumersswitching inand out ofpromotions
Drivers: Milk Link – Grip Strip
Consumer convenience freshness and ease of use for the consumer
Hook and loop technology to food packaging Milk Link's Innovation Centre worked in partnership with APLIX
Drivers: Mars – Colour Development
Drivers: Uren - Juice Creations – from Concept to Launch
Development of new business models
Outsource expertises New markets for juice ingredients -
by turning knowledge and ideas into value
How to execute OI (l)
Organisational Structures Dedicated resource to
manage OI vs. embedded within existing functions
Brands, Marketing and Sales Team
Brands, Marketing and Sales Team
Brand Innovation BriefsBrand Innovation Briefs
Brands InnovationTeam
Commercial Innovation
Team
Supply Chain Technical
Team
Innovation PartnersInnovation Partners
Knowledge GapsTechnology Roadmap
Open InnovationSteering Committee
In-house Technological Knowledge
In-house Technological Knowledge
YESYES
Internal Development
NONO
How to execute OI (II)
Organisational Structures OI implementation team
The Open Innovation Team as a Culture Change Agent
How to execute OI (lll)
Management Mechanisms Need for an efficient process to identify, evaluate, value and
contractual acquire external technology
Companies
Who are companies working with?
Suppliers/Strategic
Partnerships
Suppliers/Strategic
Partnerships
UniversitiesUniversitiesResearch InstitutesResearch Institutes
Trusted
suppliers New suppliers
Competitive Innovation Marketplace
COST
• VALUE CREATION• CO-DEVELOPMENT
Basic Research
Long Term Strategy
Applied Research
Medium Term StrategyScouting NetworksScouting Networks
FIND
Learning NetworksLearning Networks
WANT
NGOsNGOs
WANTConsumersConsumers
CO-CREATIONWANT
Open Innovation Platform
Introduction of mix into different food matrices
Biscuits, ice-creams, confectionery, meat, dairy products, cereal products, chocolates...
Food-mix profiling
Funtionality evaluation in humans
Pre-intervention studyInterventiona study in humans
Mix ProductionRaw materials selection
Raw materials adequacy Storage
Development of funcionality valiation tools (CV + AZ)
in vitrono celularcelular-arraysomics-
in vivo test in animals
Profiling of Raw Materials
Food-mix-matrix profiling
Process effect
Process effect
Reformulation
In silico
MechamimsBiomarkersBioactive principles
In vitro Digestion bioavailability
Methodologies for the design, evaluation and validation of functional products For the prevention of cardiovascular disease and Alzheimer
Management Challenges (I)
Leading cultural change Top management endorsement Key stakeholders support OI effective
implementation- see the world as their technology base
- external innovation are not seen as a threat BUT as a opportunity
Effective internal communication strategy what open innovation means to the company and the impact of such a new direction (focus on results)
Human factors : culture, mindsets (more cooperative and less command and control), motivation, rewards
Management Challenges (II)
Relationship Building Identify proper business reasons for engaging with
open innovation. Relationship building and trust requires time and
commitment Flexibility and openness Working towards creating a true win-win scenario Assigning key contacts to speed up initial
assessment of opportunities Alignment of cultures and expectations
Management Challenges (III)
IP Rights Openness and Flexibility sharing the WANTS with
partners Avoids working from different understandings on the
purpose, terms and priorities
Focus on making money out of partnership rather than ownership
Is Open Innovation delivering to companies?
YES! Metrics Yes, need for metrics but...how to value
trust, relationship development, .....
Future for Open Innovation
Is Open Innovation another fad?‘Wait six months and management will be spewing the next set of
consulting buzz words’
Open Innovation has moved from curiosity and academic discussion to the driving force in R&D/technological development
Open Innovation a potent approach to increase innovation capacity BUT needs own innovation processes under control - Adding a partner will be a disappointment for both parties (need for a framework)
Open Innovation is not restricted to large companies BUT SMEs might find implementation challenging
