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Open Collaboration: The Power of “We”

Tamra Hall, Ph.D.

Vice President, Executive Partner

Gartner Executive Programs

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We Know Innovation is Important

"The most successful organizations co-create products and services with customers, and integrate customers into core processes." IBM CEO Survey

"We need diversity of thought in the world to face the new challenges," Tim Berners-Lee

"When the rate of change outside an organization is greater than the change inside, the end is near” Jack Welch

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Open Innovation

How do we harness the power of the crowd?

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The Crowd Wants to Contribute

“People are inherently creative and want to engage with organizations; they don’t want to have products and

processes imposed on them.”Venkat Ramaswamy & Fancis Gouillart

HBR, October 2010

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Build an Innovation Network

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Innovation Programs

Etc.

Focus Areas Resources

Business Objectives

Boundary Conditions

Strategic Platforms

Wicked Problems

Employees

Customers

Partners/Supplies

Market/Trend Watchers & Experts

Marketplaces

Tech/Business Media, Analytics

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ManagementOversight & decision making structures & competencies

OperationsNew ways of working

Products & ServicesGreater customer value

The Targets of Innovation Are Expanding ……. and success is dependent on explicit goals

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Open Innovation Focus

Novice Competent Expert

Expertise in Open Innovation

Products,Services,

& Markets

BusinessModel

Innovation

Business Focus

ProcessInnovation

Avoid – will draw little interest or

results

Avoid – will draw little interest or

results

Yes – if potential savings are

high; engage experts and key

partners.

Yes – start with one target.

Yes – include all targets, &

participants. Mine the social

Web.

Yes – include multiple targets.

Avoid – not for novices.

Yes – engage key participants

and mine the social Web.

Avoid – not for the average organization

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Innovation Networks can Contribute to Every Stage of an Enterprise's Innovation Process

Innovation Need Techniques Examples

Phase: Generate Ideas Concepts & ideas

Components

Patterns

Source to communities

Acquire from idea markets

Web-based pattern seeking

Netflix crowdsourcing

yet2.com

Social network analysis

Phase: Evaluate & Select ideas Prototyping

Comment, extend

Rank, vote, select

Acquire prototypes; scale up

Participants review, rank

Use prediction markets

P&G entrepreneur network

Lego User Group

Intrade Prediction Markets

Phase: Develop & Implement Co-develop

Outsource

License IP to others

Partner to develop

Source full development

Source key components

License solution/components

Co-research on Alzheimers

InnoCentive challenges

TopCoder ESPN Challenge

Xerox PARC

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Know the Sources of Innovation

Economist Intelligence Unit and Grant Thornton survey of Business Exec, June 2010

"Innovation: The Key to Future Success?" Global results shown here.

Global

U.S. only

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Engaging Customers

"You can't just ask customers what they want and then try to give that to

them. By the time you get it built, they'll want something new.“

Steve Jobs

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Lead Customers

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Engaging Business Unit Leaders

• Business simulations

• Exercises to envision the "company of the future"

• Focus groups with lead customers

• Expert conferences or networking events focused on future trends

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Building the Co-Creative Enterprise

“Generating new experiences for end customers often requires designing better experiences for internal players”

Venkat Ramaswamy & Fancis GouillartHBR, October 2010

“Stakeholders won’t wholeheartedly participate in co-creation unless it produces value for them”

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Open Innovation Enabled by Social Apps

ContributeIdeas

Evaluate/Select

(comment, rank & vote)

Develop

Internal Experts External

Scope ofParticipation

Participants

Social Applications Idea Generation

Crowdsourcing

Idea Markets

Prediction Markets

Challenge Events

Co-Design

Co-Development

Open Innovation Networks

… more

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In the "Landscape" of Innovation,Governments are not Well-placed

Fertile Fields for

Innovation

Some Flowers Bloom

Many Seedlings

Barren Ground for Innovation

Impetus for

Change

Attitude to Risk

Direct and compelling

Limited or diffused

Risk averse Risk taking

Competitive commercial

organizationsGovernments

Monopoly organizations

IT Leadership challenge:

To initiate and lead innovative change in an unreceptive

environment

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Usual Range for Government IT Organizations

Does your Innovation Approach Matchthe IT Organization's Positioning?

"IT provides support services but is not

strategically important"

The ButlerServe the business

"IT is a vital component of our business model"

The EntrepreneurCo-own the future

"IT is a cost of doing business"

The GrinderDo as the business says

"We depend on IT systems in our

business, so we giveit as much time as

we can afford"

The Team PlayerFormally collaborate

Business: Follower/Risk-Averse/Mature

Expected IT Role: Tactical/Utility

Expected IT Role:

Strategic/Transform

Business: Leader/Risk Taker/Change

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Open Innovation Defined by Cultural Shift

The Blind Spot of Open Innovation …

The Sweet Spot of Open Innovation …

Innovation is being first Innovation is ideas that are new to us

Competitors will discover our ideas

Our competitive advantage is design and execution, not just ideas

We don't know how to manage open innovation

We should start now and experiment to build competence

We know what customers want and need

Our customers (and prospects) have great ideas

If it's "not invented here", it probably won't work for us

We can multiply our innovation capabilities through open innovation

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Ability to Execute is Critical to Maintain Participation

Organizational Integration

Processes

Management • Key Managers capable of

launching new business endeavors

• Strong innovation portfolio governance

Market Awareness• Real-time market awareness

• Active ability to sense, analyze and respond to trends

• Rapid prototyping and experimentation to support fail or succeed fast

• High performing workplace

• High project execution capabilities

• Mass collaboration and social networking literacy

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Ideation: Best Practices and Pitfalls

Leadership creates clear imperatives for the need to change;

Focus on all dimensions of innovation;

Cultivator: Build out/on ideas;

Evaluate both evolution ideas and revolution ideas;

Dot on the horizon: Constantly on the lookout for changes.

Leadership fails to set the stage for the need to change;

Limit efforts to R&D (new Products & Services);

Gunslinger: settle on the first good idea;

Neglect new opportunities by selecting evolution ideas only;

Tunnel vision: Ignore internal or external changes

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Innovation Maturity Curve

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How is NASA Doing? What’s Next?