Open Innovaon Making it work for you
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Open Innova*on Making it work for you Dr Sarah Pearson, CEO ANU Enterprise Collaborate Innovate 2012
Transcript of Open Innovaon Making it work for you
Open Innova*on
Making it work for you
Dr Sarah Pearson, CEO ANU Enterprise
Collaborate Innovate 2012
Your exposure to Open Innova*on
• How many of you have come across the term Open
Innova*on?
• How many of you consider that your organisa*on is
involved in Open Innova*on? In what way?
• How many of you think that Open Innova*on is
important for your organisa*on?
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Who are you and what do you
expect?
• How many of you are from industry?
• How many of you are from a Public Research
Provider?
• How many of you are from government?
• What do you hope to get out of this session?
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Outline
• Open Innova*on from a MNC perspec*ve
• Is it popular, and why?
• Case study – OI @ Cadbury
• How we went about it
• Who we connected with
• Example collabora*ons
• Outcomes
• What it could do for you and how you could start
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What is Open Innova*on?
• Open Innova*on is ‘a paradigm that assumes that
firms can and should use external as well as
internal ideas.....as firms look to advance their
technology’*
• Components have been around for years
• Extended beyond high-‐tech and products
• FMCG companies have been taking it on en-‐masse
• Includes process innova*on etc
* Henry Chesbrough et al, Open Innovation: Researching a New Paradigm, Oxford University Press 2006
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What is Open Innova*on?
* Henry Chesbrough et al, Open Innovation: Researching a New Paradigm, Oxford University Press 2006
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Examples
MNC to SME MNC to MNC
MNC to customers et al MNC to research base
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Examples
MNC to research base
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Examples – not just products
Toyota.com.au
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Is it popular?
NineSigma, Open innovation Practices & Outcomes Benchmark Survey Spring 2009
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2010 GE Global Innova*on Barometer
The way firms
innovate will be
totally different
21st C innova*on is
about partnerships
Australian par*cipants
believe that SMEs and
partnerships will drive
innova*on
86%
Is it popular?
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Why is it so popular?
• Globalisa*on and rapid pace of technological change
• Scien*fic/Technical complexity
• Speed to market and new market opportuni*es
• Access to talent
• Increased growth rate poten*al
• Companies with higher revenue growth report using external sources significantly more than slower growers*
*C.R. Bard, Profit from the Innovation Network: Employee-Entrusted Idea Screens, Research & Technology Executive Council®, 10 February 2009
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1981 2005
National Science Foundation, Expenditures for U.S. Industrial R&D Continue to Increase in 2005; R&D Performance Geographically Concentrated, Sept 2007
US Industrial R&D Spend by Size of Enterprise
Why is it so popular?
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Case study – OI @ Cadbury
• Global sales of AU$8.84 billion
• Operates in over 60 countries,
with over 45,000 colleagues
• Chocolate, Gum, & Candy
• Open Innova*on pilot based in
global long term R&D centre
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OI @ Cadbury -‐ Implementa*on
• Small team set up
– Mandate to source R&D solu*ons and new product ideas
from broad areas outside confec*onery
• Grew to become a globally linked team
• Early goals:
• Develop ‘needs list’ (Want*)
• Build networks (Find)
• Deliver value
• Grow capability
*Gene Slowinski, Reinventing Corporate Growth, Alliance Management Group Inc, 2005
Who did we talk to?
0% 5% 10% 15% 20% 25% 30% 35%
% of total contacts
Open Innovation network
Government Organisation
Research Institute
University
MNC - non compete
MNC - supplier
SME
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Where did we look?
• Our own networks and suppliers
• External networks
– Enterprise Europe Network, C2I, LTN etc
– NineSigma, Innocen*ve, IXC etc
• Trade shows
• University tech transfer groups
• OI networks and OIers in other MNCs
• KTNs and RDAs
• Our website, and trusty Google
• etcetc 17
Where did we look?
• Over *me we developed a more strategic approach
– Which network or combina*on of approaches to use for
specific searches
– Built up strong rela*onships with key collaborators
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Use of social media
!
!
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Example Collabora*ons
• Flavour delivery
– UK based SMEs in neutraceu*cals with novel delivery
technology
• Novel ingredient
– USA SME with novel ingredient used for medical
applica*ons
Both examples led to the SME star*ng to
break into the Food market 20
Trident “Extra Care”
• Recaldent technology (an*-‐caries property of milk)
– Developed at the University of Melbourne
– Cadbury approached the team and suggested its use in
chewing gum
– Conducted tests in clinical trials as joint venture
– Cadbury ini*ally licensed the use of the material, and has
since bought the full license
– Con*nue to work with them to develop next genera*on of
oral care products
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No idea too mad
• Pressure sensors for sails
• Technology from metallurgy and defence
Benefits to Cadbury – a selec*on
• Improved speed to market
– Technical solu*ons in other sectors
• Access to new ideas and exper*se
– New products, ingredients and markets
– Ideas compe*tors wouldn’t dream of
– Specific techniques conducted by external experts
– Long term research leveraged by external funding
• Encouraged consumer design and beker links with
suppliers
• Reduced risk 23
How could it benefit you?
• All sized companies can u*lise it to
– Work with ‘customers’ to drive their strategies
– Access ideas and talent for own business
– Get products to market faster
– Grow Australian skill base (e.v.engineering consor*a)
• Researchers and SMEs can use it to
– Enhance cash flow through contract research
– Grow through access to interna*onal supply chains
– Grow through access to new market sectors
– Raise interna*onal profile
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What does this mean for you?
Break into groups and discuss
• What surprised you?
• What do you think some of the benefits may
be for your organisa*on?
• What challenges would you face if you
started to implement Open Innova*on in
your organisa*on?
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Open Discussion
Surprise; Benefits; Challenges
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Barriers and challenges
• Knowing when and with whom to connect
• ‘Not invented here’ syndrome
• Confiden*ality
• IP ownership
• Selling novel ideas into the business
• The ‘Rules of Compe**on’
• Skill set
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What does this mean for you?
Break into groups and discuss
• How could you overcome the challenges?
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Open Discussion
Overcoming challenges
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Where could you start?
Open Innovation & Global Idea Sourcing
Framework
Uptake of ideas
How will you ensure the ideas, solutions or opportunities found are taken up by your company or group and deliver desired outcomes?
OutcomeWhat do you
want to deliver
or achieve?
ExternalWhat parts of
this would
benefit from
external ideas ,
solutions or
opportunities?
WhereWhere could
you look for
appropriate
external ideas,
solutions or
opportunities?
AccessHow will you
access these
ideas , solutions
or
opportunities?
ManageWhat will you
do once you
have accessed
the ideas,
solutions or
opportunities?
Open
How will you be open to new ideas, solutions or opportunities?
Open Innovation & Global Idea Sourcing
Framework
Uptake of ideas
How will you ensure the ideas, solutions or opportunities found are taken up by your company or group and deliver desired outcomes?
OutcomeWhat do you
want to deliver
or achieve?
ExternalWhat parts of
this would
benefit from
external ideas ,
solutions or
opportunities?
WhereWhere could
you look for
appropriate
external ideas,
solutions or
opportunities?
AccessHow will you
access these
ideas , solutions
or
opportunities?
ManageWhat will you
do once you
have accessed
the ideas,
solutions or
opportunities?
Open Innovation & Global Idea Sourcing
Framework
Open Innovation & Global Idea Sourcing
Framework
Uptake of ideas
How will you ensure the ideas, solutions or opportunities found are taken up by your company or group and deliver desired outcomes?
Uptake of ideas
How will you ensure the ideas, solutions or opportunities found are taken up by your company or group and deliver desired outcomes?
OutcomeWhat do you
want to deliver
or achieve?
OutcomeWhat do you
want to deliver
or achieve?
ExternalWhat parts of
this would
benefit from
external ideas ,
solutions or
opportunities?
ExternalWhat parts of
this would
benefit from
external ideas ,
solutions or
opportunities?
WhereWhere could
you look for
appropriate
external ideas,
solutions or
opportunities?
WhereWhere could
you look for
appropriate
external ideas,
solutions or
opportunities?
AccessHow will you
access these
ideas , solutions
or
opportunities?
AccessHow will you
access these
ideas , solutions
or
opportunities?
ManageWhat will you
do once you
have accessed
the ideas,
solutions or
opportunities?
ManageWhat will you
do once you
have accessed
the ideas,
solutions or
opportunities?
Open
How will you be open to new ideas, solutions or opportunities?
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What next?
Break into groups and discuss
• What do you think some of the next steps
could be for you?
• What one thing will you do immediately?
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Open Discussion
What will you do next?
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Key take-‐aways
• Increasingly necessary for global competition
• Global uptake is high and rising
• MNCs are keen to access expertise and ideas
– don’t miss the opportunity
• Networks are key, as is relationship building
• A wide range of opportunities for Australian
organisations
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