Open Innovation for the Digital Shift - A collection of case studies in the ICT Industry

Agenda

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Carlos Moedas

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Case Studies on Open Innovation in ICT

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Case Studies on Open Innovation in ICT

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The Open Innovation paradigm

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Open Innovation Strategy

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Open Innovation (OI) Activities

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Open Innovation Activities

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Development of OI paradigm

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Open Business Models

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Open Service Innovation

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Open Innovation 2.0

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Technology drivers: the 4th industrial revolution

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Companies Investigated

[1/2]

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Research Methodology

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The Innovation Strategy Roadmap

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for each company

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Large enterprises

Small and medium enterprises

Managerial implications

Policy implications

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Large enterprises

300 to 120.000 employees

Operating in 5 to 28 Countries

BlaBlaCar (ICT)

OI in 4 Large Enterprises (LEs)

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Philips (ICT/ICT-Enabled)

STM (ICT)

Loccioni (ICT-Enabled)

How is Open Innovation characterized in LEs?3 Features

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Small and medium enterprises

8 to 40 employees

44% R&D intensity8 patents (avg)

Operating in 1 to 4 countries

7 different industries

Opportunities for SMEs implementing Open

Innovation Strategies

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1. Opening up through Business Model Innovation

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2. Engaging in large R&D Networks and/or innovation ecosystems

helps to:

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3. Balancing openness and clear appropriation strategies

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7 Management Findings

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OI Process Management Findings [1/7]

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€ ¥


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Unfocused innovation may cause distraction


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Carlos Moedas

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7 Policy Implications

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Local Ecosystems Built for OI Policy Implications [1/7]

Local Ecosystems Built for OI Policy Implications [1/7]

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Empowering a global ecosystem through open relationships

Policy Implications 2/7

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Empowering a global ecosystem through open relationships


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Intellectual Property helping OIPolicy Implications 3/7

©

Intellectual Property helping OIPolicy Implications 3/7

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©

Facilitating users’ involvement for OI 2.0 Policy Implications [4/7]

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Facilitating users’ involvement for OI 2.0 Policy Implications [4/7]

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Strike balance between encouraging basic, applied research, and innovation models


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Strike balance between encouraging basic, applied research, and innovation modelsPolicy Implications [5/7]

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Remaining open to new forms of OI

and emerging growth models

Policy Implications

[6/7]

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Remaining open to new forms of OI

and emerging growth models

Policy Implications

[6/7]

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Creating the conditions for the growth and diffusion of a strong OI culture


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Creating the conditions for the growth and diffusion of a strong OI culture


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With the best in the worldto learn everyday, to exchange valueto collect the highest challenges

Land.

People.

Customer.

Loccioni 2068.100 years plan

Primo1D - Présentation CEA 01-2013 HT/DV | 1

Case Studies on Open Innovation in ICT : Primo1DDominique VicardCTO

Case Studies on Open Innovation in ICT - PRIMO1D – Contains Primo1D proprietary Information | 2

� Founded August 2013

� Spin-off from CEA-Leti research center (France)

� Exclusive licensee for E-Thread® technology

� Our know-how : embedding electronics in a unique form factor

� A technology breakthrough at the crossroads of proven technologies, with a competitive industrial model

� A strong ecosystem to boost adoption of smart objects

� A strong financial situation with a first VC round of 3M€

� RFID product industrialization in progress for first volumes by second half of 2016.

Company profile


The seasoned founding team


The E-Thread® of Primo1D

A disruptive innovation from the CEA, strongly protected by patents

Electronics embedded into a textile yarn, in a unique form factor

Invisible, inseparable, durable, easy to integrate into textiles and plastics


The RFID E-Thread®

E-Thread®

Traceability

Fast and secure reading

Anti counterfeiting

Anti theft

After sales services

Recycling

Commercial laundriesApparel

A unique, invisible and durable authentification:� « Fitted for life »: from cradle to grave

� Inseparable and imperceptible: integrated into your textile

� « All in One »: traceability, anti-theft et anti-counterfeiting with one device

� Standard: UHF EPC Gen2, compatible with all existing infrastructure


Application Fields � Function is defined by the chip

� RFID Chip (existing):� RFID applications (traceability, inventory, possibly anti-

counterfeit/anti-theft, process automation, web-link)� LED Chip (existing):

� Security, Visibility, Visual signaling, Fashion� ASIC Chip (project):

� Unlimited applications (sensing, actuating, monitoring) under the following constraint :

� 2 wires only for data and power� Specific Chip and/or Cover layout

like : SHM, Sensing Materials, In-Situ process monitoring

� Unique advantages are :� Capacity to be “buried” in materials (instead of being glued)� Material Process Friendly (small modification of tooling only)� Material Structure Friendly (weak interaction with material structure)

� Several Potential Application Fields Identified� Tires, Pipes, Cables, Composites, Geo-textiles, Home textiles


A world of opportunities

TraceabilitySupply Chain optimizationInventory managementAnti-theftAnti-counterfeiting Production controlCustomer shopping experience

Decoration LED’s lighting effects

In Situ MonitoringHealth and Sport monitoringPreventive maintenance

Source: IdTechEx « RFID in Apparel 2012-2020 » and Primo1D

FuturePresent

Hig

hSm

all

Market

Barr

ier f

or a

dopt

ion

Sensors in textiles, plastics, cables, … (sport, health,

automotive, aeronautics,..)

LED’s decoration in high end textiles and plastics

(luxury, automotive)

Applications :

RFID tags for Laundry17M$, 65 Millions tags

Luxury

Fashion

Retail

RFID tags for textile retail 690M$, 12 Billions tags

RFID tags for TextileProduction control

RFID tags in Industry plastics, rubber, tires,…


The E-Thread® technologyA competitive and low capex technology

for high volume manufacturing

Smart packaging

~ 100 000 E-Thread chips per 8 inches wafer

Micromechanics

High throughput assembly line

Textile

Component integration within a textile spool

« Make / license »« Buy »


Industrial Plan

R&D

2014 2015 2016 2017

Financing Round A Financing Round B

Customer Pilot Run(100K- 1M+)

Mar

ket

Pene

trat

ion

Commercial Development

(10M+)

Customer Integration Tests

(1K – 10K+)

License AgreementCEA

Technology Building BlocksDevelopment

Prototyping(100+)

2018

RFID v1 Product Development

Indu

stria

lizat

ion Design Pilot Line

Setup

Mass Production

Pilot Line Production

First Semi-automated Assembly Tooling

RFID V2 Product Development Active Products (Sensors) Development

Advanced Assembly Tooling Prototype(singularized, 4-wires, high-throughput)

Design EquipmentSupply Production

Design EquipmentSupply

Assembly Line V1

Assembly Line V2

Assembly Line V3

Text

ile

Inte

grat

ion

Automated IntegrationManual Integration Semi-Automated Integration


Open Innovation for Primo1D

� “Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology” - Chesbrough, Henry William

� Models of Open Innovation used by CEA / Primo1D� CEA :

� Spin-Off� Licensing� Collaborative product design and development

� Primo1D� Customer immersion� Collaborative product design and development� R&D outsourcing


Ecosystem

Assembly equipment& know-how

R&D Lab,Semi-

Conductor Fab in Leti

End user Know-how,Early Adopters,European Programs.


Push/Pull Process2016

2015

2014

2013

2012

2011

2010

2009

20082007200620052004

Techno Push Business Pull

CEA-Leti enters METIS Association ▪ ▪ METIS Members search « technological differentiators »

Idea and Patent : “Diabolo” micro-packaging technology ▪▪ First Market study : what usage can “Diabolo” serve?

▪ CEA-Leti Spin-Off process - 18 Months - Business plan

secures technological developments ▪ FP7 PASTA Project ▪ identifies a LED usage for decoration

RFID Application Patented «

“Diabolo” Portfolio reaches 20 patents «

Laundry RFID Product Developments «Creation of Primo1D

Round A of Financing

First Production

▪ Teaming with Laundry RFID solution providerPrimo1D enters PASTA ▪

» Industrial Laundry and Textile Distribution sectors identified

»Traceability and Sensing identified

▪ Laundry RFID solution provider cooperation exitPrimo1D buys equipment from PASTA partner ▪

» “Diabolo” becomes E-Thread™

» Cable, Ropes and Composites sectors identified

▪ Business DevelopmentEnd of PASTA

Industrialization ▪

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Thanks for your attention!

Winner 2012 « Emergence »

Winner 2013 « Créa/Dév »Best Business PlanChallenge + 2012-2