Open Innovation - Bottom-Up Meets Top-Down: Inventing at the Edge, Scaling at the Core - Geoffrey...
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Open Innovation Bottom-Up Meets Top-Down: Inventing at the Edge, Scaling at the Core Akamai Edge13 Customer Conference October 9, 2013
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In a prior century, high-tech innovation was largely a top-down affair, simply because the price of entry was so high. At the turn of the century, however, the rise of consumer technology, open source technology, and the cloud infrastructure needed to support open development have all reversed this dynamic. Today technology innovation is more likely to come from the edge than from the core, bottoms up rather than top down. Still, to complete the loop, to scale, and to monetize, eventually the top and the bottom must connect. In this talk, Author and Technology Analyst Geoffrey Moore will look at these different models for technology innovation and suggest the emergence of a hybrid model, relying on both top-down and bottom-up development to achieve sustainable growth. See Geoffrey Moore's Edge Presentation: http://www.akamai.com/html/custconf/edgetv.html#geoffrey-moore-open-innovation The Akamai Edge Conference is a gathering of the industry revolutionaries who are committed to creating leading edge experiences, realizing the full potential of what is possible in a Faster Forward World. From customer innovation stories, industry panels, technical labs, partner and government forums to Web security and developers' tracks, there’s something for everyone at Edge 2013. Learn more at http://www.akamai.com/edge
Transcript of Open Innovation - Bottom-Up Meets Top-Down: Inventing at the Edge, Scaling at the Core - Geoffrey...
Open Innovation
Bottom-Up Meets Top-Down:
Inventing at the Edge, Scaling at the Core
Akamai Edge13 Customer Conference
October 9, 2013
Bottom UpInventing at the Edge
2
The Technology
3
Cool
The Problem
4
Interesting
The Cause
5
Inspiring
The Market
6
Big
The Entrepreneurs
7
Bold
An ExampleAkamai
• Cool Technology
• Network algorithms
• Interesting Problem
• QoS on the Worldwide Web
• Inspiring Cause
• Transform the experience
• Big Market
• Everything digital
• Bold Entrepreneurs
• Danny and Tom
8
Top DownScaling at the Core
9
Scaling InnovationThe Return on Innovation Model
Differentiation Neutralization
Productivity
10
Competitor 2*
Competitor 1*
Competitor 3*
YOU
*
Competitive Set
Leverage your unmatchable
capability
to create an unmatchable
offer
DifferentiationInnovating to Create a Unique Position of Power
11
Differentiation
Play for separation
Competitor 2*
Competitor 1*
Competitor 3*
Competitive SetYOU
Neutralize a competitor’s
differentiation
by reaching “good enough”
fast enough
**
NeutralizationInnovating to Meet Market Norms
12
Neutralization
Play for speed
PriceDeflation
Competitor 2*
Competitor 1*
Competitor 3*
Competitive Set
YOU
Optimize behind the scenes
to free up scarce resources
OptimizationInnovating to Drive Greater Efficiencies
*
Optimization
Play for money
14
Three Innovation Playbooks
Separation Time to market Cost
Unmatchable Good enough Best in class
These playbooks have conflicting goalsDo not combine them
How far? How fast? How much?
Core Metric
Standard to Meet
Test Question
Differentiation Neutralization Optimization
FailedAttempts
Waste
• Differentiation projects that don’t go far enough
• Neutralization projects that go too far and/or are too slow
• Optimization projects that don’t confront sacred cows
• Blended projects that never reach a tipping point
Sources of Waste:
No ReturnHow Would-Be Innovators Waste Their R&D
Differentiation Neutralization
Optimization
Recap
16
• Bottom-Up Innovation
• Cool technology
• Interesting problem
• Inspiring cause
• Big market
• Bold entrepreneurs
• Top-Down Innovation
• Differentiation
• Neutralization
• Optimization
• Keep them separate
• Avoid waste
