Open Collaborative Innovation Management

OCS Open Collaborative SystemsNew Excellence in the Fuzzy Frontend Innovation Management

April 2012

Dr. Joachim von HeimburgInnovation Architect and Executive Advisor. [email protected]

Telefon: 0049 172 6976534, 00966 5692 13145. www.jvhinnovation.de

Clemens Frowein

HLP entwicklungspartner GbR . Voltastraße 31 . D-60486 Frankfurt . [email protected]

Telefon: 0049(69)43 00 820-00 . Telefax: 0049(69)43 00 820-10 . www.hlp-entwicklungspartner.de

Open Collaborative SystemsExcellence in Fuzzy Frontend Innovation

Background – time for paradigm change in early stage innovation

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Strategic agenda for most cooperation's

� Relevant innovations are essential for the further future business growth and expansion

� Incremental innovations just not enough to stay in game

� Lack of more transformational and disruptive innovations for growth

..and the Top Management experience with front end innovation process

� Attempts in designing more performing early stage process far behind the expectations

� Result: No innovative top sellers in the past years - nor in the pipeline

The root causes to be reflected

� Clear innovation strategy and orientation missing

� Discovery activities limited to invention / R&D

� Weak in the culture of innovation

It’s time for change: leaders have to innovate the innovation


Fuzzy Front End: Challenge and Benchmarking

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Early stage insights from innovation champions

� Strategy driven early stage management

� Radical change in paradigm:

� Open Innovation: Leading companies are opening up

� Idea Sourcing: New ways / Platforms for generating ideas

� Innovation Eco Systems: Network management becomes competitive advantage

� Collaboration as a core competence

� Managing the fringes becomes key capability (trends, unconventional insights, non-

obvious competitors,….)

� Differentiation between horizons: Breakthrough vs. transformational vs. incremental

� Broader view: From product innovation to business model innovation


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Champions in search for collaboration and openess

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Redesign Fuzzy Front End: Trend to Open Collaborative Systems



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“Invention comes in many forms and at many scales. The most radical and transformative of inventions are often those that empower others to unleash their creativity – to pursue their dreams. We are creating powerful self-service platforms that allow thousands of people to boldly experiment and accomplish things that would otherwise be impossible or impractical”

Amazon.com CEO & Founder Jeff Bezos.

Excellence in Fuzzy Frontend Innovation

Building the Open Collaborative System (OCS)

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• OCS is a change in paradigm:

� People driven – not process based

� Open: Use the outside potentials and power

� Innovation Eco System: Competitive advantage in the network

� Beyond products: More innovation in design, communication, business models

Mission of the OCS: Identify and

incubate powerful innovative ideas and

concepts (manage the fuzzy front-end)

Two elements:

“Collaborative Ideation Space (CIS)”Vessel for ideation: interdisciplinary

teams are creating ideas

“Open Innovation Ecosystem “Infusion of knowledge, insight and

support to the CIS teams

OCS Open Collaborative System


Redesign Fuzzy Front End: Logic of the OCS

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Set focus and install CIS

Generate powerful ideas and solutions within a dedicated CIS team

Empower the idea generation by infusing knowledge

Discuss and decide on ideas to move further

Create concept for transfer to the development/innovation process


Redesign Fuzzy Front End: What boosts innovativeness in OCS?

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CIS = team, room, platform, rules,

tools, space, etc.

Dedicated team for each CIS:

� Strong leader with power and end to

end responsibility

� Experts / champions in relevant

disciplines (formula, design etc.)

� Mix: Internal / external, young /

experienced, locals / hubs etc.

� Team members (max 7-8) with (min.)

25% time,

� No processes - CIS teams will organize on their own

� Setup: Meet often (weekly) / full days; dedicated CIS “war-room”, Greenhouse or Hub

� Knowledge platform for support and collaboration platform

� “Soft” success factors are: great people, diversity, excellent collaboration skills, attitude


Redesign Fuzzy Front End: Design of the OCS Innovation Ecosystem

The Mission: Empower

CIS teams in their ability

to create and innovate

The Ecosystem provides

“FUEL” for CIS teams Data, information,

knowledge, ideas,

consumer insights,

technology etc.

Managed by a champion

and / or a team

� Every discipline is “OPEN”: Inside AND outside knowledge is available

� Challenge: Build a powerful network to the outside and learn

� Push / Pull interaction with CIS teams



Redesign Fuzzy Front End: High Flexibility with the OCS

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Use Setup Outcome

CIS for Business Units

Initiatives

Every business unit can have one or

more CIS where they generate ideas.

Based on innovation strategy, within

the budget allocated to unit

More incremental approaches,

more focus on innovation of

products and communication

CIS for Cross Unit

(Focus Topic)

Initiatives

Focus Topics are defined as strategic

initiatives for growth. Mostly cross

unit innovations and funded by

central budget

Incremental to

transformational innovations,

focus on new platforms, new

business / customer groups

CIS for Greenhouse

initiatives

Broad and disruptive initiatives to

develop new rudiments for future

growth. An outside “Greenhouse”

or Hub approach can be useful.

Could be funded e.g. with corporate

venture

Transformational to disruptive

innovations; focus on

fundamentally new

opportunities, can also be used

for strategic initiatives



Redesign Fuzzy Front End: Connecting OCS to the implementation process

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Rapid Concept Design

evaluate first concept prepare gate 1

Evaluate Idea:

Business potential

Develop or source

Product challenges

Fit to regions

From Idea to Concept Design:

Design Thinking, value max.

First Product / Pack Design

Communication basics (selling

idea etc.)

Business Model Design (Supply,

Price, Markets etc.)

Evaluate Concept:

Customer Test

Pre Check Region

Prepare Gate 1

max. 3 months - responsible: CIS team

Idea Gate: Global

Innovation Board

decision (go, hold,

kill) – based on

innovation strategy

Deliverables: Idea

Sketch, rough

business scenario,

view idea portfolio

IdeaGate

Gate 1


Change & Innovation Culture: Towards a New OCS Culture

What should top management do to foster an innovation culture?

� Become open to change -> learning culture which encourages challenging the status quo

� Any change carries risk. Accept it and reward managing risk - not avoiding risk

� Accept failure as part of learning

� Fail early and cheaply - not in a full scale plant. Vital sign: People share their failures

� Keep R&D focused on creating inventions but make innovation everybody’s job

� Do not worry about activities – only results count

To make the point:

� People are creative and many are ready to innovate – organization is often the limitation

� Top Management - and only the Top Management - sets the culture

� It needs to motivate managers / staff to integrate innovation into their daily operations

� All this requires personal, long term commitment, leading by example

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Average Performance Excellence / High Performance

BUSINESS RESULTS

Business growth driven mainly by

invention (invention turns money into

knowledge → commercial success is

uncertain)

Business growth powered by innovation

(Innovation turns knowledge into money

→ commercial success is more likely)

ENGAGEMENT

Innovation and change driven by a few

(mainly R&D)

Innovation and change driven by many /

all (cross-functional involvement and

excellent collaboration)

PACE OF CHANGE

Moving slowly and minimize risk (never

fail, never learn)

Moving fast and manage risk (fail

cheaply and learn from failures)

INTEGRATION OF IDEATION - EXECUTION

Ideas needs to be sponsored by top to

make it to execution (cross “valley of

death” between idea and project)

Seamless integration of ideation with

execution process (idea funnel feeding

the stage gate process)

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The Benefits of Excellence in Early Stage Innovation with OCS


OCS created by..

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Dr. Joachim von HeimburgInnovating to create business value is

the theme of my professional life. I

design and implement innovation

processes and structures and make

them operational driving the business.

As an independent Executive Advisor

and Innovation Architect I help

companies to deliver better business

results by growing the innovation

capabilities of their organizations and

people. I enable higher levels of

innovation by introducing and

operating new innovation processes,

e.g. Open

Innovation, and new organizational structures, e.g. Corporate

Venturing. I build diverse collaborative relationships across

organizational and functional boundaries via networking and

partnering enabling the whole organisation to contribute to

innovation.

Strong technical background (Ph.D. in physics) and commercial

sense (member of European Business Leadership Teams, studies

in economics). Multi-cultural experience through working in 7

countries. Over 30 years of diverse work experience in Brand,

Product and Technology Development.

Clemens FroweinStudium des Wirtschaftingenieur-

wesens und der Betriebswirtschaft an

den Universitäten TH Darmstadt und

JWG Frankfurt / Main. Assistent des

Vorstands bei einem führenden

Systemhaus.

Von 2004 bis 2011 war er

Gesellschafter bei HLP Hirzel Leder &

Partner, seit Oktober 2010 Partner bei

HLP entwicklungspartner GbR.

Clemens Frowein berät mit den Schwerpunkten Unternehmens-

und Geschäftsfeldstrategie, Innovationsmanagement,

Projektmanagement und Organisationsentwicklung. Nach

Branchen liegen die Erfahrungen in der Konsumgüterbranche,

Chemische Industrie, Dienstleistungsbereich, bei IT Diensten und

auch im landwirtschaftlichen Bereich. Er unterstützt

Unternehmen in der Orientierung und der Geschäftsentwicklung

insbesondere mit dem Konzept „Strategie Coaching“, wobei in

besonderer Weise „harte“ Faktoren (Geschäftslogik) kombiniert

mit „weichen“ Faktoren (Dynamik der Organisation) in den Blick

genommen werden. Veröffentlichung zahlreicher Artikeln und

Beiträgen sowie Vorträge zu den Themen Strategie und

Innovation.


Process Consulting for OCS

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Consulting based on outstanding senior team of experts with a good mix of skills,

knowledge and experience. We believe in process consulting: creating skills, build

capacities, enabling the people and the organization

Therefore we…

1. offer new, state-of-the-art approaches and perspectives

2. propose option of models and concepts for the solution

3. help to tailor strong concepts – we do not believe in pre-fabricated approaches from

consultants

4. connect the competences and ideas in the organization – and we organize involvement

5. facilitate collaboration and cooperation. This ensures energy for successful change

6. coach top management, leaders and teams for orientation and change

We ensure best results / impact by building and supporting a strong internal project team

and powerful governance. Step by step we will involve more people in the process.