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CloudOps Summit 2013, Frankfurt, 25.09.2013 Lightning Talk by Prof. Sabine Brunswicker, Purdue University, Research Center for Open Digital Innovation
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INNOVATION IS NOT EVERYTHING, IT IS THE ONLY THING AND IT IS AN OPEN AND DIGITAL THING
LIGHTENING TALKS CLOUDOPS SUMMIT 2013
Prof. Sabine Brunswicker Purdue University, Fraunhofer Society
INNOVATION IS ALMOST EVERYTHING INNOVATION IS NOT JUST ABOUT A NEW TECHNOLOGY, IT IS A LOT MORE
www
ANY IDEA OR CHANGE TO A SYSTEM
Business Model
New Product
New Service
New Process
Cloud On-Demand Service
…CAPTURING VALUE FROM IT
INNOVATION IS ABOUT CREATING VALUE
INNOVATION IS THE ONLY THING
Innovation is often thought of as being about R&D, special people, control, and lots of time….
INNOVATION IS THE ONLY THING
THE INNOVATION GAME HAS CHANGED¹
Source: 1) Chesbrough (2003)
INNOVATION HAS CHANGED
Success Stories Trend towards Open Innovation
SINCE 2003, FIRMS ENGAGE IN SO CALLED “OPEN INNOVATION PRACTICES”
Google Search Open Innovation : 10/2011 > 8 Mio Hits 05/2013 > 700 Mio Hits
INNOVATION IS AN OPEN THING OPEN INNOVATION DESCRIBES A COGNITIVE FRAMEWORK FOR A FIRM’S STRATEGY TO PROFIT FROM INNOVATION
Open Model
existing market
new market
other firm’s market
idea sourcing
running/successful innovation projects discarded innovation projects
Closed Model
market +
+
+
new product/ service
internal innovation resources
internal innovation resources
external innovation resources
technology sourcing
co-development partnerships
spin-out
Source: Brunswicker (2011); see also Chesbrough (2003, 2006)
OPENNESS COMES IN DIFFERENT FORMS LARGE FIRMS LIKE GE EXPERIMENT WITH START-UP COMPETITIONS AND IDEA CONTESTS TO IMPLEMENT INBOUND OPEN INNOVATION AND CREATE NEW INNOVATION ECOSYSTEMS
Challenge Powering the
Grid
Powering your Home
B2B Entrants
Opportunity to develop commercial relationship with GE
GE investment Nearly 4000 ideas 75,013
entrepreneurs 23 partnerships ($
200 USD investment)
Source: www.ge.com, Chesbrough (2012) California Management Review
Co- investment & venture partners Emerald Capital Foundation Capital ….
OPENNESS IS NOT A FAD IN OUR NEW EXECUTIVE SURVEY WE FOUND THAT OPEN INNOVATION IS ON THE RISE; IT RECEIVES INCREASING MANAGEMENT SUPPORT AT THE TOP EXECUTIVE LEVEL Executive study
UC Berkeley and Fraunhofer
Study among the largest firms in Europe and US Firm criteria: >1000
employees and >250 million USD in sales
Key informants: CEO, COO, or CTO at headquarter
Data collection October– December 2012 125 datasets
Adoption of open innovation
Abandonment
Open innovation experience
Management support
Intensity
78% practice open innovation today
No firm has abandoned open innovation
Median of 5 years
71 % have increased management support
82 % have increased open innovation activity
.---BUT IT IS HARD THE CHANGE FROM CLOSED TO OPEN IS HARD; IT REQUIRES NEW CAPABILITIES, NEW ROLES AND CULTURAL VALUES
3.69
4.55
4.53
4.53
4.89
5.26
3.61
4.28
4.49
4.6
4.97
5.6
1 2 3 4 5 6 7
Avoidance of external or already existing knowledge
Effectiveness of intellectual property protection
Identifying new innovation sources
Protecting internal critical know-how
Management of external relationship with innovationsources
Managing the organizational change internally
Challenges of engaging in open innovation (mean values, 1=not important to 7= highly important)
when firm's startedtoday
Not important Highly
important
Source: Open Innovation Executive Survey Fraunhofer & UC Berkeley; n = 91
THE SHIFT CONTINUES FINAL SLIDE WITH “WEB” AND NEW MODELS OF INNOVATION
The GRAVITY IS SHIFTING EVEN MORE…
..people-centric & decentralized innovation ecosystems
WE SHIFT TOWARDS ECOSYSTEMS THE SHIFT TOWARDS OPENNESS IS CONTINUING; IT REQUIRES MORE EXPERIMENTATION
Shift
towa
rds o
penn
ess
Phase 1 Phase 2 Phase 3 Phase 4
Source: CAS 2010; Ehrenmann & Brunswicker (2012)
Closed System
Firm-centric innovation networks
New infrastructures
New decentralized innovation ecosystems
InterneTechnologie-
Basis
AktuellerMarkt
AktuellerMarkt
Gescheiterte Ideen/ abgebrochene Projekte
Erfolgreiche Ideen/ erfolgreiche Projekte
InterneTechnologie-
Basis
AktuellerMarkt
AktuellerMarkt
Gescheiterte Ideen/ abgebrochene Projekte
Erfolgreiche Ideen/ erfolgreiche Projekte
Gescheiterte Ideen/ abgebrochene Projekte
Erfolgreiche Ideen/ erfolgreiche Projekte
TODAY INNOVATION REMAINS THE ONLY THING BUT WE HAVE TO LEARN MORE
New facilitation skills and leadership capabilities
New infrastructures for innovation
Experimentation (rather than control)
Lifecycle-oriented innovation ecosystems
INNOVATION IS AN OPEN AND DIGITAL THING
„If you’re not failing every now and again, it’s a sign you’re not doing anything very innovative.“ Woody Allen
Contact: Prof. Sabine Brunswicker, [email protected]
