15/08/16

1

OpenInnova*oninSMEs

LearningPointsforManagersandAcademics

ProfdrWimVanhaverbekeHasseltUniversity,ESADEBusinessSchoolNa?onalUniversityofSingaporeJuly1,2016

15/08/16

2

Whatarethetopics?

1.  Collabora?onbetweenhigh-techSMEsandlargecompanies

2.  OIinlowandmediumtechSMEs3.  Useofspecificintermediariesbyinnova?ng

SMEs.

4

NoporOoliothinking•  Thereareonlysingleprojects•  No(open)innova?onfunnel•  NoVPOIorOI-team•  UnlearnOI

Embeddedinstrategy•  Onlymakessensewithinafirm’sstrategy/BMI

•  OIisadirectconsequenceofstrategicchange/BMI

Openinnova?on•  Necessarystep/partinaccessingandassimila?ngexternalcapabili?es

•  Howtosetupandmanageaninnova?onnetwork

Entrepreneur’srole•  Developingnewbusinessopportuni?es• Managinganexternalnetworkofinnova?onpartners

OImanagementasaprocess•  OImanagementcanbelearned/developed–OImaturity

•  CreatesdynamicswaybeyondOI–businesstransforma?on

15/08/16

3

UnlearnOItogetitrightinSMEs

10

15/08/16

4

Howdidwedefineopeninnova?onoriginally?

“Openinnova?onistheuseofpurposiveinflowsandouOlowsofknowledgetoaccelerateinternalinnova?on,andexpandthemarketsforexternaluseofinnova?on,respec?vely.”

Chesbrough,Vanhaverbeke,WestOpenInnovaAon:ResearchingaNewParadigm

(OUP,2006)

OpenInnova*on:Viewin2003

Our current market

Our new market

Other firm´s market

External technology insourcing

Internal technology base

External technology base

Internal/external venture handling

License, spin out, divest

15/08/16

5

CanwecopyOImanagementfromlargefirmstosmallfirms?

1.  NoporOolioofinnova?onprojects(nofunnelconcept)2.  SMEsarenotbusywithOI.Thywanttocreatenew

businessopportuni?esandbecomemoreprofitable(BMinnova?on)–OIisaconsequence

3.  OIinSMEsismanagedbytheentrepreneurorfounder,notbytheVPOpenInnova?onorOI-team

4.  OIbetweensmallcompaniestakestheshapeofnetworkswhicharegovernedininformalwayswithanentrepreneuraslinkingpin

21

44

Integra*ngOIintostrategyandentrepreneurship

15/08/16

6

Strategicinnova-on/redirec-on

•  Whatisthevalueproposi/on?

•  Howtocapturevalue?

Envisioningandar-cula-onofthebusinessmodel

Needforexternalkeyresourcesandskills

Reitera/on

Entrepreneur’scentralroleinthenetworkofinnova-onpartners

•  Orchestratorrole•  Conflictmanagement Developingand

managing(anetworkof)innova-onpartners

50

TwocasestounderstandtheroleofOIinSMEs?

Curana&QOD

15/08/16

7

51

Curana

52

JAGA

15/08/16

8

DNAINTERACTIFFASHION

62

DevanChemicals

Bringingtex*lestolifebycrea?nginnova?veproper?esandfunc?onalitytakingintoconsidera?onsustainability(e.g.AdvancedAnAmicrobialTechnologyagainstbacteria,yeastandfungus)

15/08/16

9

QuiltsofDenmark:quilts&duvetswithac?vetemperatureandhumiditycontrol

++Pa*entRoomoftheFuture++++PersonalizedResidenceoftheFuture++++Private-careRoomoftheFuture++++PrivateRecoveryRoomoftheFuture++

Aconsor?umofarchitects,manufacturers,usergroups,professionalorganiza?ons,andeduca?onalknowledgeins?tutes

15/08/16

10

DingensInnovacelliBarometers

68

Curana

15/08/16

11

Curana:combininginnova*onandindustrialdesign

•  Theoldsitua*on: –  Steelmudguardsandfenders–  Belgiumasmarket(10millioninhabitants)–  Familyownedbusiness

•  Challenge:–  Growingeconomiesofscaleandglobaliza?onoftheindustry–  Strategicchange:

•  pricecompe??onwithlow-costimportfromAsiainthewakeofthemountainbike

危机

•  Challenge:Seethebusinessopportuni?esinacrisis•  Plas?c•  Bicyclingaslifestyletrend

Curana:B"Lite:MudguardofCurana

15/08/16 WimVanhaverbeke 70

15/08/16

12

Curana:innova*oncombinedwithindustrialdesigninlow-techmarkets

•  Advantages: –  Lightermudguard(25%lessweightthanplas?cmudguards).–  Produc?oncostarelowenoughtobecompe??vewithstandardmudguards–  Installa?onofthemudguardiseasier–  Nicedesign–  Aluminumseparatedbyplas?ccanbeusedasaconductorforelectricity(no

morewiresrequiredforlights)

•  ThestartoftheOIprocess:–  combina?onofinternalandexternalknowledge(externaldesign

companyandpolymerextrusionmanufacturer)–  Lead-users(bicyclemanufacturers)promisedtobuyB”Liteviaan

exclusivedealwhichislimitedin?me(BatavusandSparta)

Curana:Spectacularresults

15/08/16 WimVanhaverbeke 72

15/08/16

13

Curana:Asmallcompanyintransforma*on

15/08/16 WimVanhaverbeke 74

OriginalDesignManufacturer

• priceselng• designdriven• addedvalue

OEM ODM OSM OBM

OriginalEquipmentManufacturer

• pricepressure• technologydriven• noaddedvalue

OriginalStrategicManagement

• visiondriven• proac?vedesignsolu?ons• Innova?ve

OriginalBrandManagement

• Imagedriven• Reliability&authen?city• Marketpullfromcustomers

> > >

Curana’sinnova?onecosystem

CuranaSteelandmarket

knowledge

Polymerextruder

Bicyclemanufac-turers

Designoffices

Materialsuppliers,moldma-kers,etc

Technicalcenters

OpeninnovaAon?Innova?oncapabilityisinthenetwork.

Managingthenetworkforinnova?on

Designbecomesacrucialcapability

Needforintegra?on

15/08/16

14

HowCuranaismanagingitsinnova*onecosystem

•  Connec?ngpartners(SMEsandotherknowledgepartners)isbasedonstrongpersonalAesbetweenthemainpartners

•  Trust+transparencyabouttheobjec?vesofthepartners•  Timeandmoneyhavetobeinvested

•  Doeseverybodywanttotakerisk?•  Importantthatthedifferentfirmsarepreparedto

growtogether•  Over?meassimilatetheknowledgeofdifferent

partners.Becomesmarterbyknowingmorepartners(knowingwho)andknowingmorethanyourpartners

•  …81

HowCuranaismanagingitsinnova*onecosystem

•  Projectmanagement(centralpartner)withpartnersisquitedifferentfrominternalprojectmanagement

–  Eachoneisbusywithapartoftheproject:costseasilyraiseexcessively

•  Tensionswillpopupaqerawhile–  Goodrela?onshipmaybecomeunderpressure–  Openinnova?on?Opencommunica?on!–  Organize(mutual)evalua?onsessionwithpartner(s)–  Openbookkeepingwithmainpartners(theirproblems

willbeyours)–  Setoutrulesfordisloyalbehavior

82

15/08/16

15

MagIQ 02/11/12 16:05Curana magIQ - Fidlock GmbH

Page 1 of 2http://www.fidlock.com/en/applications/curana-magiq.html

Fastener: SNAPApplication: Bike luggage systemManufacturer: CuranaProduct name: magIQ

With the magIQ system, Curana hasdeveloped a solution for attaching items ofluggage and accessories to bicycles at theplace they are actually needed. Theinnovative bike luggage system thereby offerscyclists completely new possibilities for easyattachment and detachment of panniers,lights, air pumps, locks and flasks.

Secure attachment with a simple "snap"

The magIQ system from Curana allows you to secureluggage and biking accessories to the bicycle with a quick"snap" – and to detach them again with ease. The clever"luggage concept" is based on the Fidlock SNAP male fixand SNAP male retractable fastener as well as the FidlockSNAP female pull and SNAP female push, which are highlysecure and easy to use. Thanks to the proven FidlockPrinciple that combines a magnetic fastener with amechanical snap fastener, items of luggage practically

Application areas

Fitting

Material/colour

Other features

Innovation based on Fidlock technology

With product characteristics such as fast, secure attachmentand detachment in addition to simple one-hand operation,the Fidlock SNAP fastener forms the core of the magIQsystem. It has allowed Curana to develop a completely newand highly flexible "luggage concept" for bicycles that makesfor an improved biking experience – in keeping with Fidlock's"Fun + Function" Principle.

Find more information at: www.curana.com

Products

Stadthelm / ABUS

Curana magIQ

Sammies by Samsonite

Salomon SAS

Porsche Design Sport /Bag

Porsche Design Sport /Boot

HOME NEWS PRODUCTS APPLICATIONS COMPANY CONTACT

Deutsch

Applica*on:bags

15/08/16

16

AframeworkforOI-MANAGEMENTinSMEs

113

114

Embeddedinstrategy•  Onlymakessensewithinafirm’sstrategy/BMI

• OIisadirectconsequenceofstrategicchange/BMI

Openinnova?on• Necessarystep/partinaccessingandassimila?ngexternalcapabili?es

• Howtosetupandmanageaninnova?onnetwork

Entrepreneur’srole• Developingnewbusinessopportuni?es

• Managinganexternalnetworkofinnova?onpartners

15/08/16

17

THESTRATEGICDIMENSION

Strategy/Businessmodelasstar*ngpoint

BMasstar*ngpointforSMEsanalysis

•  Studyingopeninnova?oninSMEsmakesonlysensewithinthebroaderframeworkofabusinessmodel(innova?on)

•  HowtoanalyzeaBMs?•  Renewedasen?onamongmanagementscholars

forBMsandBM-innova?on

•  Cri*calremark:BM(I)forinterdependentBMs–notenoughaaen*ontonetworkpartners/OI…

116

15/08/16

18

BMasstar*ngpointforyouranalysis(acerJohnson.2010)

118

THEENTREPRENEURIALDIMENSION

Thestart:visionoftheentrepreneur

119

15/08/16

19

Howvaluecrea*onstarts?•  Vision/basicinsightoftheentrepreneur:

•  Diverse:Fromtheobvioustohardtoar?culate:•  Curana:developingbikeaccessorieswithsleekmoderndesign•  QOD:Aproviderofahealthysleep•  Istyling:virtualshoppingforfashiongoods

•  BMconcep?on:fromdaystoyears•  QOD:

•  Whocandefine“whatisahealthysleep?”•  Howtotranslatetheseinsightsintotechnicalspecsfora

func?onalquilt?•  Istyling:piecewisedevelopmentoftheBM(bodyscanner)

•  Ar*cula*ngaBMmaytake*me:AprocessviewonBMforma*on

•  Thereisnogranddesign–discoverydrivengrowthstrategy+experimenta*on(RitaMcGrath)

120

Theroleoftheentrepreneur?•  Vision/basicinsightoftheentrepreneurindrivingthebusinesschange

•  Developingandmanagingthenetworkofpartners–  onorhandsoffapproach?

•  TheOI-networkhingesontheentrepreneur–  IfheleavesthentheOI-strategyandnetworkimplode.(Devan)

121

15/08/16

20

THERELATIONALDIMENSION

Crea*ngandsharingvaluewithpartners:Howopeninnova*onfitsintothepicture?

134

Openinnova*onessen*als•  Combina?onofinternalandexternalknowledge(external

designcompanyandpolymerextrusionmanufacturer)KEYRESOURCES/COMPETENCIES

•  Progressivelyincreasingthenetworkofpartners:–  Locusofinnova?onisinthenetwork–  Externalnetworkmanagementbycentralfirm–  Growtheconomicstrength≠growthfirmsize

•  Innova?onasatooltoshapeyourcompany’sdes?nyandthatoftheindustry(morecontrolpointsandhigherprofitability)

•  Dynamicsinnetworks:crucialassetswillbeintegratedintomaincompany(designinCurana;R&DinQOD)–tensions!

•  Networks:–  deliverasustainablecompe??veadavntage–  barriersinchangingstrategy(lock-ininecosystems)

15/08/16

21

KEYPROCESS

Managingyourexternalnetwork(partners)asa

136

Managingyourinnova*onnetwork(keyprocess)

•  IP?•  Makeproperarrangementswithyourpartners•  Whoistheowner?•  Howpartnerscanmakeuseofthetechnology?•  Whoisgoingtocourt(andwhopays)incaseofpatentinfringement?

•  Makesurethatallpartnersarebeseroffthanwhentheywouldnotjoin/stayinthenetwork

•  Openinnova?onincludes(hidden)costs:benefitsshouldbeamul7plecomparedtowhencompaniesworkontheirown.

139

15/08/16

22

140

OIasaprocess&businesstransforma*on?

Theneedofaprocessview

•  OImanagementgraduallydevelopsasthenetworkdevelops–  Significantchangesinmanagingthenetwork

•  differentobjec?vesinPROF

•  OIleadstobusinesstransforma?ons–  QOD:becomesatechnologyproviderthankstoOIbut–  Dingensbarometershasbeendecimated

•  ExcellentOIproject•  Notunderstandingthetrend

•  OIhastransforma?vepowerforSMEs(QOD,Curana)butisnosilverbulletforsuccess(Dingens,Jaga,Curana)–  NeedtoobserveOIinSMEsoveralong?mehorizon

141

15/08/16

23

142

SpeedingupthelearningofgoodOI-prac*cesinlow-techand

medium-techSMEs?

HowdoSMEslearn?Whatdoesnotwork?•  Explana?onsofacademiaandconsultants•  Manygovernmentledini?a?vestos?mulate

entrepreneurship–  tooslowandtoobureaucra?cformostSMEs

Whatdoeswork?•  Storiesofentrepreneursthathavebeensuccessful•  Talkingtowithotherentrepreneurswithsimilarambi?ons

–  Shareexperiencesandlearnfromthem

•  Innova?onnetworkswithmanagersinthelead–  Localinnova?onnetworksreachtheSMEentrepreneurs

143

15/08/16

24

Problemsandfindingawayout

•  Localinnova?onnetworkini?a?ves•  60-100kmac?onradius•  Semiprofessionalcoaches/mediumqualitycourses•  Fewgoodlocalcases,fewmanagersasspeakers(?meconsuming)•  Reinven?ngthewheelproblem!•  Highsetupcosts!

•  Howtodras?callyimprovethesitua?on?•  TherearemanyexcellentcasesinEurope•  MakeaYouTubelikemovies(10-15min)aboutthesecompanieswithsub?tles

inEnglish•  Putthesemoviesonthewebtogetherwithasyllabusandsome(open)

innova?onmanagementtools–feedbackWeb2.0!•  EMPOWERLOCALSMEINNOVATIONCOACHES!StrongimpactonthenumberofcompaniesthatlearnOIprac*cesandaquantum-leapimprovementinthequalityoflearning

144

145

Someconclusions

15/08/16

25

Someconclusions1.  Openinnova?ononlymakessensewhenintegratedin

broaderstrategicobjec?vesofsmallfirms2.  Therefore,startwiththebusinessmodelsandbusiness

modelinnova?on3.  BM:CustomerValueProposi?oniscrucialandcomes

first4.  Valueiscreatedindifferentways:noonefitsall“open

innova?onstrategy”(valudrivers)5.  Valuecapturingbycrea?ngauniquestrategicposi?on

throughOI(uniquedifferen?a?on;blueoceanstrategy;offeringvaluable/authen?cexperiences;uniqueposi?oning)

6.  OIbasedstrategyinSMEs:itisnottheresultofalongtermgrandvision–discoverydrivenstrategy(

146

Someconclusions7.  Openinnova?onentersintothepicturethrough“keyresources”

thatafirmneedstocreatevalue.8.  OIrequiresnetworkmanagementbyacentralorganiza?on–

thenetworkitselfissourceofcompe??veadvantage(rela?onalview)

9.  NetworkmanagementinSMEsiss?llembryonic.MostSMEmanagersfailinmanagingtheirpartners–OImanagementcoaching!

10.OImanagementisdifferentforSMEs(don’tcopysolu?onsforlargefims)

11.Academicobjec?ve:NeedtointegrateSMEstrategy–entrepreneurship-OI

147

15/08/16

26

2003

2006

2006 2016

20142011

Open innovation in SMEs

ExnovateasanetworkofexcellenceforOI-prac**onersandscholars?

•  www.exnovate.org–  Aninterna?onalnetworkforexcellenceinmanagingOpenand

Collabora?veInnova?on

•  Projects–  CEandOIMasterclass(12?mesPhilips/ESADE)–May2016,

Barcelona–  PhDcourseopeninnova?onatESADE(8th?meinDecember

2016)–13-14December–  Openinnova?onmetrics

•  WOIC2016–Barcelona,15-16December2016•  OpenInnova?onCommunityonFacebookandLinkedin

•  MOOI-project

15/08/16

27

hsp://www.innova?onmanagement.se/welcome-to-the-the-mooi-project/

www.exnovate.org

wim.vanhaverbeke@uhasselt.be