100%open accelerator slides

© 100%Open 2010

Open Innovation Accelerator March 3rd and 4th 2011

3/7/11 1

© 100%Open 2010 March 7, 2011 3 What you will get out of the Accelerator

1.  Learn tried and tested innovation techniques

2.  Learn ways to maximise collective creativity

3.  Build a buzz around your innovation mission

4.  Find new collaborators

5.  Deliver better innovations cheaper & faster

© 100%Open 2010

Thursday

Collider 1 – Open vs. closed innovation

When closed or open is right Better questions, collaborative answers Open innovation models

Collider 2 – Tools for open innovation

The open innovation blueprint Collaboration profiles Investable propositions Pecha Kucha session

3/7/11 4 Programme

© 100%Open 2010

Friday

Collider 3 – Open innovation Collaboration Culture

The collaboration profile Open innovation models Collective creativity

Collider 4 - Building an innovation culture

7 ways to build an innovation culture Crowdsourcing principles and practice Propositions and concepts dialogue

3/7/11 5 Programme

© 100%Open 2010

100%Open is dedicated to open innovation.

Our know-how helps you innovate

better, cheaper and faster.

3/7/11 6 Why open innovation wins

© 100%Open 2010 © 100%Open 2009

“Only one in 300 ideas we develop ever makes any

serious money.” Head of R&D, Global Telecoms

3/7/11 7 Open innovation needs good techniques

© 100%Open 2010 © 100%Open 2009

“The only thing harder than starting something new,

is stopping something old.” Russell Ackoff

3/7/11 8 Open innovation needs the right culture

© 100%Open 2010 Open Innovation is joining the Dots

3/7/11 9

© 100%Open 2010 3/7/11 10 The dots

100%Open Networks

Universities & Business

Schools (100)

Investors (100)

Innovators &

Developers (5000)

Corporates (300)

Innovation Service

Providers (50)

NGO’s & Charities

(100)

© 100%Open 2010 100%Open clients

3/7/11 11

© 100%Open 2010 We Create

3/7/11 12

© 100%Open 2010 Crowdworks

3/7/11 13

© 100%Open 2010

Closed vs. Open Innovation

3/7/11 14 Collider 1

© 100%Open 2010

Innovation is the successful application of a new idea.

3/7/11 16 What we mean by innovation?

© 100%Open 2010

Innovating with partners by sharing the risks and the

rewards

3/7/11 18 Introducing Open Innovation

© 100%Open 2010

Open innovation gives you solutions that are

creative, faster and cheaper.

3/7/11 19 Why open?

© 100%Open 2010

Types of innovation

3/7/11 20

© 100%Open 2010

Better Questions, Collaborative Answers

3/7/11 21 Collider 1

© 100%Open 2009

Open innovation only works if you ask

Interesting Questions.

3/7/11 22 Module 1

© 100%Open Ask interesting questions

1.  Pick a challenge that matters to you - a need rather than a want.

2.  Choose as wide an audience as possible, beyond the usual suspects.

3.  Research and test the motivations of your chosen audiences.

4.  Write your challenge succinctly and in plain language so it strikes a chord.

5.  Be polite and enthusiastic in tone.

6.  Before publishing try it out on a small sample of your audience.

© 100%Open 2009

Are your questions interesting?

3/7/11 25 Working on you problems

© 100%Open 2010 3/7/11 27 Your Interesting Question Name:

Problem or opportunity Why is it important to you? Important to your organisation?

An issue that is relevant to your role and that will make a difference to your effectiveness

What needs innovating? Why is it hard from a practical or strategic perspective?

A challenge that is relevant to the delivery of one of your organisation’s strategic aims or overall effectiveness.

Can you help me …

© 100%Open 2010 © 100%Open 2010 March 7, 2011 28 Presentations

1.  Brand it

2.  Make it accessible

3.  Be interested

© 100%Open 2010

Vote for the most intersting

3/7/11 29 Are your questions interesting?

© 100%Open 2010

Getting Interesting Answers

3/7/11 30 Starting with who not what

© 100%Open 2010 March 7, 2011 31 Producing ideas together

1.  An idea is nothing more or less than the new combination of old elements.

2.  Gather raw materials, expand your experience

3.  Sub conscious incubation.

4.  Realisation – the Eureka moment.

5.  Shaping and development.


1.  An idea is nothing more or less than the new combination of old elements.

Car ownership

+

DVD rental

=

City Car Club


2.  Gather raw materials, expand your experience

“No browsing, no milk.”

Specific materials: Urban car ownerships trends, costs and behaviours

General materials: DVD rental enables you to have your cake and eat it.


3.  Sub-conscious incubation.

Stop thinking about it and do something else. Talk to someone else.

4.  Realisation – Inspiration will often strike in a ‘Eureka moment.


5.  Shaping and development.

Adapt the best idea to real life.

Always involve others.

‘A good ideas has self-expanding qualities.’

© 100%Open 2010

Work in pairs on your problems.

4 0bservations on cards. 2 general and 2 specific.

Capture all new ideas.

3/7/11 36 Solving your problems

© 100%Open 2010

How many ideas? Any front-runners?

3/7/11 37 Interesting Questions

© 100%Open 2010

What was it like working in partnership?

What did it add?

What personal qualities did you use?

3/7/11 38 Observations on the process

© 100%Open 2011

Open Innovation Models

3/7/11 39

© 100%Open 2011

Innovating with partners by sharing the risks

and the rewards.

3/7/11 40 What we mean by open innovation?

© 100%Open 2010 3/7/11 41 Procter & Gamble

P&G invited the UK’s design community to respond to two briefs on fabric care (narrow) and wellness (broad), to find global new markets worth $100 million.

© 100%Open Local Motors & Threadless

Threadless have sold out of every single new range they have every produced and Local Motor’s customers are significantly less likely to default on their repayments.

3/7/11 43

© 100%Open 2011 Open Innovation Business Models

3/7/11 44

Suggestion schemes

User research

Ideas competition

Crowd sourcing

Royalties

In-licensing

Delivery partnership

Proprietary supplier

Joint venture

Alliances

Open source

Creative commons

Minority stake

Out-licensing

Co-branding Spinout

Majority stake

Acquisition R&D

Customer feedback

© 100%Open 2011 Playing Poker not Chess

3/7/11 45

© 100%Open 2011 3/7/11 46 What are we ‘actually’ going to do?

“The only thing harder than starting something new,

is stopping something old.” Russell Ackoff

© 100%Open 2011 3/7/11 47 Explore > Extract > Exploit

“Open Innovation is a U-Shaped Process.”

Paul Vanags, OXFAM

© 100%Open 2010 3/7/11 48 Explore > Extract > Exploit

•  Find trusted new collaboration partners

•  Uncover unmet needs or spot new opportunities for innovation

•  Co-create compelling new ideas, products or services

•  Filter the ideas and prototype innovations

•  Build and motivate collaborative teams

•  Create investable propositions with evidenced business plans

•  Form new collaborative business arrangements

•  Obtain the resources and commitments necessary

•  Coordinate production, communications and launch

Explore Extract Exploit

© 100%Open 2011 Two Models of Open Innovation Discover and Jam

•  Starts with ‘what’ question: an innovation brief detailing a specific unmet need

•  Is a competitive marketplace amongst customers, suppliers or users

•  The innovation process is mediated by a Trusted Agent

•  Innovations are extracted through a linear process

•  Tend to be internal routes to market (e.g. license deals)

Discover

•  Starts with a ‘who’ question: finding partners to explore a broad opportunity

•  Is a cooperative community & process , with customers, suppliers or users

•  The innovation process is facilitated through a Catalyst

•  Innovations are built using an iterative process

•  Tend to be external routes to market (e.g. joint ventures)

Jam

March 7, 2011 49

© 100%Open 2011

Our Case Studies

3/7/11 50

© 100%Open 2011 Case Studies Landscape

3/7/11 51

Customers Suppliers Partners

© 100%Open 2011

Find your top 1%, and understand what

motivates them.

3/7/11 52 Case Study 1

© 100%Open 2011 Case Study 1 Virgin Atlantic

3/7/11 53

Virgin Atlantic’s return on investment has been 10:1, better value than using a commercial third party for system development, and for more radical ideas.

© 100%Open 2009

Trust the community to do the heavy lifting.


© 100%Open 2011 Case Study 2 E.ON

Power to the People is a customer-led innovation programme from E.ON that launched in October 2011 seeking new £10m ideas, products or ventures.

3/7/11 55

© 100%Open 2009

Ask interesting questions.


© 100%Open 2010 Case Study 3 Orange

3/7/11 57

© 100%Open 2011

Start at the end.


© 100%Open 2010 3/7/11 59 Case Study 4 Cancer Research UK

600 registered users, 160 listed ideas, 23 venture applications, 6 shortlisted candidates and 3 supported projects in CRUK’s flexible approach to venturing.

© 100%Open 2009

“The future reveals itself through the peripheral.”

JG Ballard


© 100%Open 3/7/11 61 Case Study 5 McLaren & NATS

McLaren’s predictive F1 software allows air traffic controllers to predict how aircraft are likely to act at airports, overcoming costly and dangerous uncertainty.

© 100%Open 2009

“All our work is about being social.”

Tormod Askildsen, LEGO


© 100%Open 2010 3/7/11 63 (Reluctant) Pioneers LEGO

Lego Mindstorms is LEGO’s most successful product range ever and has helped shift their strategy from a toy manufacturer to an innovation platform.

Summary & Lessons Learned

• Find your top 1%.

• Trust your community.

• Start at the end.

• Ask interesting questions.

• Develop peripheral vision.

• Be Social.

© 100%Open 2009

“More people pooling more resources in new ways is the

history of civilisation.” Howard Rheingold

3/7/11 65 And Finally…

© 100%Open 2011

Blueprint, Profile & Investable Propositions

3/7/11 66

© 100%Open 2011 100%Plan

March 7, 2011 68

Who? Who are our most promising/likely/complementary partners? (e.g. clients, customers, peers, universities etc.)

What? What are our unmet needs or thematic opportunity areas that are best suited to an open innovation approach?

Why? What is the strategic case for an open innovation approach? (e.g. drive revenues, build brand, solve problems etc)

Where? Where will value be created for us and our partners? (e.g. business units/geographies/routes to market etc.)

How? How will you run your open innovation strategy? Which process/tools/incentives will you use?

© 100%Open 2011 3/7/11 69 Collaborative User Journey


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© 100%Open 2011 100%Plan

March 7, 2011 70

Who? Who are our most promising/likely/complementary partners? (e.g. clients, customers, peers, universities etc.)

Peers forming new partnerships around specific innovation platforms. Technology and service suppliers that need scale. Wider innovation communities e.g. developers, charities, agencies.

What? What are our unmet needs or thematic opportunity areas that are best suited to an open innovation approach?

Leveraging capability and expertise in the collaboration platforms of Digital Identity and Micro-Payments. Burning platforms are impending sale of core business and declining revenues.

Why? What is the strategic case for an open innovation approach? (e.g. drive revenues, build brand, solve problems etc)

Open innovation will provide big wins far quicker and at lower cost than organic growth. A venturing approach will encourage novel products and services as as well as external funding.

Where? Where is will value be created for us and our partners? (e.g. business units/geographies/routes to market etc.)

Profit will come from imaginatively addressing unmet meets or customers and big business. The platforms are all growing and fast-moving markets. Scope could include other partner organisations.

How? How will you run your open innovation strategy? Which process/tools/incentives will you use?

A Jam-based programme with large businesses will form the core of activity. Wider calls for new technologies and emergent services will be used to feed into the Jams as stimulus and intellectual property.

© 100%Open 2011 3/7/11 71 Collaborative User Journey


Review and communicate

capabilities and intentions. Select

and invite collaboration

partners with an engaging challenge.

Co-creation workshops with

multiple partners/online communities for each platform.

Investable propositions that fit

timelines and financial objectives.

Business modelling and IP regime. Contracts and

forecasting.

Find internal or external finance for

new ventures. Production and

distibrution plan.

Create scale through manufacture,

marketing and deployment.

Expressions of interest. Scenario

planning - how could they leverage

capabilities and brand?

Co-creation and the adpatation of

existing products and services.

Service and product prototypes.

Partnership agreements and

development plans

Test and learn. Production

readiness, market testing.

Project delivery and product

development cycles.

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© 100%Open 2011 Collaboration Qualities

March 7, 2011 73

Risk Taking Responsive Connected Reputation Resilience Empathy

Investable propositions are

• New products, services or organisations • More than just concepts • Clear, feasible, time-bound • Ready for investment

Offer

Model

Plan

The core idea

• What’s the idea in a nutshell. Why is it different?

• Is there an underlying consumer insight? • Differentiated. Compelling. Short • E.g. ‘Ethical Banking’

Idea

© 100%Open 2010

Plan

What people will pay for

• The new technology, service or behaviour to be introduced

• E.g. ‘Customer-sourced ethical policy that promises fair banking for all’

New Feature

© 100%Open 2010

Offer

Model

Plan

Model

Sustainable Innovations Need a Strong Business Model

• Salient features of the business model • ‘A cooperative that reinvests surpluses into

new premium products like internet banking’

Model Business Model

What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

For whom are we creating value?Who are our most important customers?

What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?

What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?

What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

Day Month Year

No.

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The fuller picture

© 100%Open 2010

Offer

Model

Plan Plan

Who’s going to do what, when

• Roles, plan of action, potential barriers

Plan

© 100%Open 2010 The Investible Proposition Template

New Feature

Business Model

Plan

Idea

Who will benefit and how? How is it sustainably financed? What might go wrong?

How will we launch this? Which partners will do what, when? What resources are needed now?

Describe the new technology, service or behaviour that you’re introducing.

What’s the idea in a nutshell. Why is it different?

Innovation Brand Name:

Sign Here:

One I prepared earlier

© 100%Open 2010 March 7, 2011 86 Final Presentations

3 minute pitches of your investable propositions

•  Idea

•  New Feature

•  Business Model

•  Plan

© 100%Open 2011 3/7/11 95 The Strength of Weak Ties

“You don’t own your reputation. It lives and breathes in those that

interact with you.” Ron Burt

© 100%Open 2009

“Trust is the glue that holds the network together, which at any point in time is more powerful than transactions

and authority” Karen Stepheson


© 100%Open 2011

Somerset House | South Building | London | WC2R 1LA Phone: +44 (0)20 78133 1006 | +44 (0)7811 761 435 Email: [email protected] | [email protected] Web: www.100Open.com Twitter: @rolandharwood @deeyesbee

Roland Harwood and David Simoes-Brown Co-Founders & Partners

Thank you

3/7/11 100

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