Open Innovation: Technology Leadership Through Collaboration

Open Innovation: Technology Leadership

Through Collaboration

February 2008

Dr. Erich Ruetsche

Business Development & Relations

IBM Research

Open Innovation © 2008 IBM

IBM Research Worldwide


Zurich Research Major Accomplishments

Science

Scanning tunneling microscope

Atomic force microscope

High-Tc superconductivity

Trellis-coded modulation

PRML & NPML

Nanoscience / nanoengineering

Cryptographic protocols

Computational biochemistry &

materials science

Business Impact

High-speed modems

IBM Token Ring LAN

PRIZMA switch

Read channels for disk

and tape drives

Chip I/O

JCOP (smart cards)

Tivoli Risk Manager

Secure solutions

Business optimization

NPML detector


What is innovation?

“The effort to create purposeful, focused change in an enterprise’s

economic or social potential…the means by which the entrepreneur either

creates new wealth-producing resources or endows existing resources

with enhanced potential for creating wealth.”

Peter Drucker, professor and author of “Innovation and Entrepreneurship, Management Challenges for the

21st Century,”

“The creation of impact, value and differentiation

in novel and unique ways, utilizing the many

capabilities available to businesses today.

Innovation occurs at the intersection of

invention and insight. It’s about application of

inventions to solve problems.“

Sam Palmisano, IBM Chairman of the Board of Directors and Co-Chair of the National

Innovation Initiative

“Innovation requires not only that we are first to discover new knowledge and invent

new technology, but also that we are first to develop new ideas and ways to put that

knowledge and technology to work to solve problems and create opportunities.”Wayne Clough, President, Georgia Institute of Technology


The World is……..spiky (by Richard Florida)


A Global “Nervous System” as enabling

Infrastructure for Open Systems in an Open World

• Pervasive Network

– More than 1 Billion People online

– By 2011 – 2 Billion

• Convergence progressing

– Networks, Media, Content

– Broadband & Multimedia

• Interactive Capabilities increasing exponentially

– Web 2.0

– Social Networking

– Virtual Worlds


Innovation moving out of the Lab

Centralized

inward

looking

innovation

Closed

Innovation

Ecosystem

centric, cross-

organizational

innovation

Innovation

Networks

Sources: Chesbrough 2003, Forrester 2004, von Hippel 2005

Externally focused, collaborative innovation

Open Innovation


Where are the Sources of Ideas and Innovation ?

Assoc’s, trade groups, conference boards

051015202530354045%

Academia

Competitors

Consultants

Customers

Business partners

R&D (internal)

Employees (general population)

Other

Think tanks

Internet, blogs, bulletin boards

Sales or service units

0 5 10 15 20 25 30 35 40 45%

Source: The IBM Global CEO Study 2006

Sources of Idea Generation

InternalExternal


A Collaborative Innovation Tool:

Developed to accelerate innovation – both idea

discovery and implementation

Structured as a multiple-day, web-based forum

where participants brainstorm and propose ideas

Format:

Participants post ideas regarding specific topics

and collaborate on those contributed by others

Moderators highlight key discussion ideas and

facilitate collaboration

Contribution level at the discretion of each

individual participant

“Jamming” – What is a Jam?

In December 2005, the Canadian government, IBM

and UN-HABITAT hosted a 72-hour ‘Habitat Jam’ to

stimulate ideas in preparation for the World Urban

Forum III conference in Vancouver in June 2006.

http://www.habitatjam.com/content.php?id=10&sid=8&pid=0&language=en


6,046 posts

9,337 posts

32,662 posts

WorldJam2001 ValuesJam WorldJam2004a new collaborative

medium to capture

best practices on 10

urgent IBM issues.

an in-depth

exploration of IBM’s

values and beliefs by

employees

focused on pragmatic

solutions around

growth, innovation and

bringing the company’s

values to life

268,233 views

1,016,763 views

2,378,992 views

3,000,000+ views

46,000 posts

InnovationJam2006IBMers, family, clients and

partners discuss how to

combine new technologies

and real world insights to

create market opportunities

Over 140,000 people have participated in

Innovation Jam activities – with a record 4.2

million page views of Jam related materials.

A record 37,000 ideas – from more than 75

countries and 67 companies – were posted

during the first phase of the Jam


OutcomesReal-time

Translation Services

Simplified Business Engines

Intelligent Utility

Networks3D Internet “Digital Me”

Big Green Innovations

Branchless Banking forthe Masses

Smart Healthcare Payment Systems

Intelligent Transportation

Systems

Electronic Health Record System

IBM 2007 Innovation Investments


An Open Innovation Example:

Searching and Navigating Medical Records

Collaboration in a First of a Kind Project Partners:

Medical Graphics Provider;

Medical Records Specialist

IBM driving core concept

Hospital in Denmark as test user


Open Collaboration and IP policy

1,085

1,2981,383

1,8671,724

2,6582,756

2,886

3,4113,288

3,415

3,248

2,941

3,621

3,125

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

15 Years of IBM Patent Leadership

Free access to Patents

Support of Open Standards and

Open Source

The Eco-Patent Commons - January 14th, 2008

IBM and the World Business Council for Sustainable Development, together with Nokia, Pitney Bowes, and Sony, are

announcing the creation of “The Eco-Patent Commons,” a new collaborative effort focused on shared use of intellectual

property to help the environment.

Together these companies are pledging dozens of patents in what we hope will be an expanding effort. As the industry

moves to have greater openness and collaboration as part of their balanced intellectual property strategy, the Commons

can help companies ensure that “green” is an essential part of that strategy.

http://www.eclipse.org/

http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?MenuID=1


IBM’s Innovation Model A Shared Foundation of Proprietary and Open

Proprietary Innovation

Advantages:

Product / offering uniqueness

Speed-to-Market

OpenInnovation

Advantages:

Cost / value scale

Option value / scope

Differentiation Standardization

IBMLeadership

Collaboration


Documents

Open Innovation: Technology Leadership Through Collaboration