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Evolución de los Modelos de Innovación La Importancia de Open Innovation en la Industria Alimentaria Dr Marian Garcia Kent Business School, University of Kent, UK KNOW IN TARGET – Sevilla, 22 Noviembre 2012

#RIS3 Know in target: Marian García

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Page 1: #RIS3 Know in target: Marian García

Evolución de los Modelos de Innovación

La Importancia de Open Innovation en la Industria Alimentaria

Dr Marian Garcia

Kent Business School, University of Kent, UK

KNOW IN TARGET – Sevilla, 22 Noviembre 2012

Page 2: #RIS3 Know in target: Marian García

Changing the Landscape of Innovation – Closed to Open Model

Closed Model of Innovation For years, the logic of closed

innovation was held to be self-evident, it was the "right way" to bring new ideas to market.

Firms invested heavily in internal R&D, more than their competitors and they hired the best and the brightest, to reap the rewards of the industry's smartest people.

New business development processes and the marketing of new products are isolated and take place within a firm’s boundaries.

Page 3: #RIS3 Know in target: Marian García

Changing the Landscape of Innovation – Close to Open Model

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In 21st century, a number of factors have combined to erode the underpinnings of Closed Innovation…

• Information flows cheaply and instantaneously over the Internet, corporate isolationism and the bunker mentality cuts people off from new ideas, stifling innovation.

• Smart people are widely dispersed but more closely connected than ever before. Ideas bubble up in organizations of all kinds and sizes, not just in large research labs.

Closed Innovation: Breaking Down?

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In the 21st century we are seeing a dramatic rise in the number and mobility of knowledge workers, which makes it increasingly difficult for companies to control their proprietary ideas and expertise.

Knowledge workers are ever more mobile, willing to jump ship and take their ideas and talent to whatever firm will develop them.

Closed Innovation: Breaking Down?

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Open Innovation is a trend that is reshaping how organizations structure innovation processes.

An accelerating shift in managing human capital is underway, from closed innovation, in which R&D is vertically integrated within a single organization…

… to an open model, in which firms learn to use ideas wherever they find them.

A flexible business model is emerging that is open to a broad spectrum of arrangements. Company insiders are contributing to external projects and outside innovators are able to influence internal product development cycles.

The Growth of Open Innovation

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Open Innovation: sentido común?

‘Han pasado los días en los que teníamos todas la capacidades necesarias para innovar en el mercado’

‘Todos necesitamos ‘partners tecnológicos’ que nos ayuden a solucionare nuestros problemas tecnológicos y satisfacer nuestras necesidades

tecnológicas’

‘Culturalmente nuestra empresa ha tenido mucho éxito como sistema cerrado. Todos nuestras mayores innovaciones fueron desarrolladas hace 50 años con

recursos internos. Sin embargo, hay un mayor entendimiento que no es necesario generar el conocimiento y las ideas pare beneficiarse de ellas’

‘Nos gustaría hacer todo nosotros mismos, pero ya no es posible’

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The innovation pyramid

• Incremental & breakthrough innovations go together

• Varying degrees of risk & return

• An innovation pyramid can be open, transparent & dynamic

• Peak of pyramid has ideas with breakthrough potential

• Middle of pyramid is new opportunity incubator

• Base of pyramid ensures operational excellence

Source: Block-by-blockbuster innovation, Kanter, Harvard Business Review, May 2010

CLOSED

OPEN

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closedinnovation

co- innovation

Organisation

Process

Results

open innovation

From traditional, internally driven R&D…

… To new, cross-company business

structures

Relationships

From traditionalphase-gate processes…

…To non-linear frameworks, not

processes

From internal only or ad-hoc alliances…

...To inter-dependent organizations

From struggling to maintain market share…

… To creating markets by scaling ideas from

anywhere

The evolution of innovation

Source: Venture2 Inc., 2011

Page 10: #RIS3 Know in target: Marian García

closedinnovation

co- innovation

open innovation

Relationships

Internal only and limited

Ad hoc I/P sourcing and alliances

Transactional technology scouting, guarded co-development

Relationship-based collaborative networks

Collaborative innovation, inter-dependent organisations

Growing importance of relationships

Source: Venture2 Inc., 2011

Page 11: #RIS3 Know in target: Marian García

Retos en la Gestión de Open Innovation (I)

Liderar el cambio culturalApoyo de la Dirección Implicar a los stakeholders claves implantación efectiva

de OI- Ver el mundo como su base tecnológica- Innovación externa no es vista como una amenaza SINO como una

oportunidad

Estrategia de comunicación interna efectiva que significa OI para la empresa y el impacto de esta nueva estrategia (enfocarse en resultados) Factores humanos: cultura, mindsets (mas cooperativo y menos dictatorial), motivación, incentivos

Page 12: #RIS3 Know in target: Marian García

Crear AlianzasIdentificar las razones comerciales reales para colaborar en

OI Alianzas basadas en la confianza requiere tiempo y

compromiso Flexibilidad y Apertura Trabajar hacia a un verdadero ‘win-win scenario’ Asignar contactos para agilizar la valoracion inicial de

oportunidades Alineamiento de culturas y expectaciones

Retos en la Gestion de Open Innovation (II)

Page 13: #RIS3 Know in target: Marian García

Propiedad IntelectualApertura y Flexibilidad compartir los WANTS con los

partnersEvitar trabajar con entendimientos diferentes respecto a los

objetivos, términos y prioridades

Concentrarse en rentabilizar las alianzas en vez de la propiedad

Retos en la Gestión de Open Innovation (III)

Page 14: #RIS3 Know in target: Marian García

How to decide on internal or external development?

How to find and select the right partners?

How to set up a collaborative agreement?

How to manage a collaborative relationship?

Tools, processes, guidelines and support

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What Open Innovation Delivers to Companies

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Biotechnology

Aircraft engines

Motion pictures

CLOSED INNOVATION

Oil & Gas

Nuclear reactors

Automotive

OPEN INNOVATION

PharmaceuticalsConsumer electronics

Clothing

Food & drink

Communications

Personal computers

Semiconductors

Mainframe computers

Investment banking

Source: Paul Isherwood - GSK

Different industries & adoption of open innovation

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Collaboration is the key ....

Informe PITEC 2008: La innovacion de la empresa espanola (2010)

Acuerdos de cooperacion tecnologica 2006-2008 (% de empresas)

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Collaboration is the key.......

Informe Cotec – 2011Problemas del Sistema Espanol de Innovacion

#3 - Escasa cultura de colaboracion de las empresas entre si y entre estas y los centros de investigacion (77,8%)

#6 - La I+D de las universidades y de los centros publicos de investigacion no estan suficientemente orientadas hacia las necesidades technologicas de las empresas (68,3%)

Page 19: #RIS3 Know in target: Marian García

Universities and research centres

Innovation intermediaries

Government agencies

Customers (i.e. retailers)

Suppliers

Consumers

Competitors

Companies operating in other industries

45.3

46.5

45.7

72.1

73

70.8

51.6

52.7

24.5

24.5

27.3

21.3

18.2

18.9

20

25.2

30.2

29.0

27.0

6.6

8.7

10.4

28.3

22.0

To great extent To some extent Not at all

Open Innovation Ecosystem

The food and drink industry open innovation ecosystem is dominated by contributions from suppliers, customers and consumers

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Taking the consumer as a co-creator

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Crowdsourcing Participants

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Walkers Crisps ‘Do Us a Flavour’• The ‘Do Us a Flavour’ contest launched in July 2008 challenged participants to dream up a unique flavour of crisp.

• Six finalist were selected from 1.2 million entries.

• Each of their ideas was turned into reality by the potato chip manufacturer and sold in supermarkets from January to May 2009.

• During a five month period votes were cast on the Walkers website to decide which flavour would stay permanently on sale.

• The winner received £50,000 and 1% of the retail sales of that flavour

• Year-on-year sales rose by 14% and brand equity by 6%.

Innovative Flavours – Tasty Results

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•“Keep It Coolatta 2: Flavour Boogaloo” asked consumers to recommend favourite songs inspired by the flavours of Coolatta and summer.

• People had to do was go to the Dunkin’ Donuts’ Facebook page and suggest their favourite summer song and which Coolatta drink it reminded them of.

• After a four week submission period that netted 300,000 new Facebook fans Dunkin’ Donuts released the mix as a branded Pandora station.

• Highlight how the brand understands the changing needs of consumers

• Develop a fun brand through creative promotions and ideas that standout to social media fans and followers

Dunkin’ Donuts: Social Media Campaign

Page 24: #RIS3 Know in target: Marian García

Co-creation with Children – Cereal Straws

• The project started in a classroom in Spain where nine and ten year-old children were asked to describe and discuss their difficulties with breakfast cereals and to come up with ideas to resolve these problems.

• What emerged from all these discussions was an entertaining concept of not only drinking milkshakes through straws but eating the straws afterwards – provided they were crunchy and tasted good.

• This concept went through a number of iterations as Kellogg's researchers got to work on it, and the end result was a brand new product - Kellogg’s Cereal Straws.

Page 25: #RIS3 Know in target: Marian García

Futuro de OI en la Industria de Alimentos y Bebidas

Es OI otra moda?‘Wait six months and management will be spewing the next set of

consulting buzz words’

OI ha dejado de ser una curiosidad y objeto de discusión entre académicos para convertirse en el motor del desarrollo tecnológico/I+D

OI tiene el potencial de mejorar la capacidad innovadora de las empresas PERO necesita un proceso de innovación interno controlado

OI no esta restringida a las grandes empresas PERO su implantación en Pymes puede ser un reto importante

Page 26: #RIS3 Know in target: Marian García

Investigating the Dimensions of Openness

What drives food companies to open up their

innovation process?

Marian Garcia1, Mercedes Sanchez2, Raffaella Manzini3 and Valentina Lazzarotti3

1 Kent Business School, University of Kent, UK2 Universidad Pública de Navarrra, Navarra, Spain3 Department of Management Engineering, Carlo Cattaneo University – LIUC, Castellanza, Italy

6th International European Forum (Igls-Forum)System Dynamics and Innovation in Food Networks

February 13-17, 2012 - Innsbruck-Igls, Austria