Open innovation masterclass

Philip Colligan and Sascha Haselmayer

This slide deck was used in a series of workshops with cities that were finalists for the Bloomberg Philanthropies European Mayors Challenge 2014.

• Welcome

• Introduction to open innovation

• Three key issues

• Practical work

What does open

innovation mean to

you personally? Write down one example of open innovation that inspires you.

• Welcome

• Introduction to open innovation

• Three key issues

• Practical work

“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”

Henry Chesbrough, 2003

“Open innovation methods increase our productive resources because they turn users into producers and consumers into designers”

Charles Leadbeater, 2005

Open innovation is increasingly used by businesses to access a wider pool of talent and creativity.

It’s not just about big businesses accessing the creativity of smaller businesses.

Open innovation is also about users, consumers and citizens.

Challenge prizes have been used for centuries to incentivise innovation and are now being used address major social challenges.

Challenge prizes have been used for centuries to incentivise innovation and are now being used address major social challenges.

The internet has made open innovation much more accessible.

Local and national governments are now starting to use open innovation to engage citizens, communities and businesses in setting priorities and solving challenges.

• Welcome

• Introduction to open innovation

• Three key issues

• Practical work

• Problem definition

• Process design

• True partnership

Three key issues

“If I had one hour to save the world, I would spend 55 minutes defining the problem and only 5 minutes finding the solution”

Albert Einstein

A good problem statement…

establishes the scale of the challenge

addresses time-factors

defines desired impacts

does not suggest possible

solutions

shows what success would

look like

indicates available resources

Market intelligence makes all the difference in solution design.Both St Paul’s and Stockholm invested EUR 3,5 million to help the blind in 2011.

St Paul’s: Speaking traffic lights

Stockholm: Personal navigation system

Let’s assume that we don’t know it all and that we do not want to re-invent the wheel.

Through process design, you can ensure that the market can inspire your solution and co-creation process.?

?

Let’s assume that we don’t know it all and that we do not want to re-invent the wheel.

Process design can help ensure that the market can respond to your problem, inspire and co-create your solution.

• Socializing problem statements

• Challenges• Open market

intelligence

In a ‘true’ partnership, all stakeholders share the same objective and desired outcome.It is not the same as KPIs in a service contract.

Most open innovation projects fail when stakeholders’ intentions are tested and turn out not to be truly aligned.

Symptoms: They stop investing, ask for money, allocate less senior resources.

Source: “Connected Cities: Your 256 Billion Euro Dividend – A Handbook” (2010), Haselmayer, Rasmussen, Esteban

What motivates different participants?

Taken from Nesta’s Practice Guide for Challenge Prizes

• Welcome

• Introduction to open innovation

• Three key issues

• Practical work

Who do you need

to involve in your

solution?What is in it for them and will keep them invested?

Thank you

@philipcolligan@nesta_uk

@LLGAcities@citymartteam

www.nesta.org.uk

www.citymart.com