Sao paulo 12112012.pptx - Open Innovation Seminar

12/11/12
Open innova-on:
The past, the present and the future
1. Do you have to be involved in
NPD / NBD?
Prof. Dr. Wim Vanhaverbeke
Hasselt University
ESADE Business School
Na-onal University of Singapore
Open Innova*on Seminar
Sao Paulo – November 12, 2012
Should we refocus OI
to make it more relevant?
• Tradi-onally:
– Technology driven, and applicable to large
advanced MNEs (Xerox)
– Focus on the innova-on funnel:
• Focus on new product development
• How external partners help improve our internal NPD?
• How our technology can be mone-zed by licensing out
or spinning off our technology?
Open Innova-on: View in 2003
Internal
technology base
External technology base
Other firm´s
market
License, spin
out, divest
Internal/external
venture handling
External technology
insourcing
Our new
market
Our current
market
Source: Bengt Järrehult based on Chesbrough
Should we refocus OI
to make it more relevant?
• Tradi-onally:
– Technology driven, and applicable in large advanced
MNEs (Xerox)
– Focus on the innova-on funnel:
• Focus on new product development
• How external partners help improve our internal NPD?
• How our technology can be mone-zed by licensing out or
spinning off our technology?
• How relevant is that for your company ?
• Do you have a staged gated, open innova@on
NPD process?
Broadening the scope
• OI when it is not related to your NPD:
– You are a service company with no technical
exper-se
– SME with insufficient technological exper-se
– Government agency:
• Nasa: new technologies may help you a lot in your
mission as space agency
• Insourcing knowledge of others in an indirect
way through an open business model (OBM)
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• KLM Royal Dutch Airlines, the North Sea Group and Spring
Associates joined forces and founded SkyNRG in Nov 2009.
• Goal: to help create and accelerate the development of a
market for sustainable jet fuel (safe, sustainable and
affordable) & avoid large price swings in petro-­‐based
kerosene
• Crea-ng a viable market for sustainable jet fuels for avia-on
can only be achieved by combining exper*se and experience
in the fields of air transport, product knowledge, R & D,
regula*on and effec*ve sustainability criteria
• SkyNRG is the hub firm in the ecosystem
Only for large companies?
Biofuel
value
chain
Financial
world
(VCs…)
SkyNRG
Airline
industry
• Is innova-on ecosystem building only for large
companies such as KLM?
• No, Curana is highly successful and has only
25 employees
Open innova*on:
SkyNRG sets up the
avia-on biofuel value
chain and drives the
accelera-on of joint
technological innova-ons
between partners
Govern-­mental
agencies
KLM’s value driver?
KLM profits as a
customer of a
steady supply of
sustainable and
affordable biofuel
Curana
Curana: combining innovaEon and
industrial design
• The old situaEon:
– Steel mudguards and fenders
– Belgium as market (10 million inhabitants)
– Family owned business
• Challenge:
– Growing economies of scale and globaliza-on of the industry
– Strategic change:
• differen-a-on through innova-on
• or price compe--on with low-­‐cost import
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Curana:
B"Lite : Mudguard of Curana
Curana: innovaEon combined with
industrial design in low-­‐tech markets
• Open innovaEon:
– combina-on of internal and external knowledge
• external design company
• polymer extrusion manufacturer
• Mold makers
• Material suppliers
• …
– Lead-­‐users (bicycle manufacturers) promised to buy
B”Lite via an exclusive deal which is limited in -me
(Batavus and Sparta)
12/11/12 Wim Vanhaverbeke 13
Curana: Spectacular results
Curana:
a small company in transformaEon
OEM > ODM > OSM > OBM
Original
Equipment
Manufacturer
Original
Design
Manufacturer
Original Original
Strategic Brand
Management Management
• price pressure • price sejng
• technology driven • design driven
• no added value • added value
• vision driven • Image driven
• proac-ve design • Reliability &
solu-ons authen-city
• Innova-ve • Market pull from
customers
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How innovaEon is processed at Curana?
Design
Curana’s innova-on ecosystem
Polymer
extruder
ExploraEon
RealizaEon
PromoEon
Technical
centers
Open innova*on?
Innova-on capability
is in the network.
Managing the network
for innova-on
Material
suppliers,
moldma-­kers,
etc
Curana
Steel and
market
knowledge
Design
offices
Bicycle
manufac-­turers
Exclusive deal with
a customer for a
par-cular accessory
Does this always
work?
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12/11/12
MagIQ
Curana magIQ - Fidlock GmbH
Deutsch
A new standard to fix what you need where
HOME NEWS PRODUCTS APPLICATIONS COMPANY CONTACT
you need it on your bike
MagIQ
02/11/12 16:05
ApplicaEon: bags
Stadthelm / ABUS
Curana magIQ
Sammies by Samsonite
Salomon SAS
Porsche Design Sport /
Bag
Porsche Design Sport /
Boot
Fastener: SNAP
Application: Bike luggage system
Manufacturer: Curana
Product name: magIQ
With the magIQ system, Curana has
developed a solution for attaching items of
luggage and accessories to bicycles at the
place they are actually needed. The
innovative bike luggage system thereby offers
cyclists completely new possibilities for easy
attachment and detachment of panniers,
lights, air pumps, locks and flasks.
Innovation based on Fidlock technology
With product characteristics such as fast, secure attachment
and detachment in addition to simple one-hand operation,
the Fidlock SNAP fastener forms the core of the magIQ
system. It has allowed Curana to develop a completely new
and highly flexible "luggage concept" for bicycles that makes
for an improved biking experience – in keeping with Fidlock's
"Fun + Function" Principle.
Find more information at: www.curana.com
Secure attachment with a simple "snap"
OI is relevant
Application areas
http://www.fidlock.com/en/applications/curana-magiq.html
• Petrobras pumps crude oil from wells and produces
Fitting
The magIQ system from Curana allows you to secure
luggage and biking accessories to the bicycle with a quick Material/colour
"snap" – and to detach them again with ease. The clever
"luggage concept" is based on the Fidlock SNAP male fix Other features
and SNAP male retractable fastener as well as the Fidlock
SNAP female pull and SNAP female push, which are highly
secure and easy to use. Thanks to the proven Fidlock
when your products Principle that combines are a magnetic fastener commodi-es with a
Products
mechanical snap fastener, items of luggage practically
petro products (commodi-es)
• Product innova-on is not a value driver
• Effec-veness in oil well explora-on and extrac-on is
a major value driver
• Set up a collabora-ve innova-on ini-a-ve
(ecosystem) with Schlumberger and others to
advance their technology in order to find the best
wells earlier than compe*tors and to extract those
wells in ways not known today.
Page 1 of 2
Broadening open innovaEon
• Past
– NDP / NBD as applica-on of OI
– The firm is an innova-ng
company (only hi-­‐tech)
– One on one (inside out and
outside in)
– OI is not related to a business
model
– Manage individual rela-ons
• Future
– All value drivers can be a
reason to develop OI
– The firm should not be an
innovator, any company can be
an ins-gator of OI
– Involve a network of partners
in an ecosystem
– OI comes in indirectly through
OBM
– New role of ecosystem
orchestrator
– Need new management
processes to make a ecosystem
successful (N & S, 2010)
– Co-­‐innovator risk & technology
adop-on risk ( Adner, 2012)
3 examples
2. Embed OI always in a firm’s
strategy!
• Printed Pringles at P&G
• P&G wrote a public brief describing the technical problem to be solved
and sent it out worldwide. A professor in Bologna had inherited a bakery.
He had dabbled with the equipment and created an edible food dye that
could be printed on cakes and cookies. P&G licensed the IP from him and
launched Pringles Prints in eight months (compared to spending one year
just discussing IP with the large company). Within one year, the new
product grew P&G’s revenues 14%. (Larry Huston -­‐ P&G)
• Pringles’ sales total about $1.5 billion annually.
• 14% = $ 210 million
• P&Gs revenues 2011: $ 82.6 billion
• Pringles sold to Kellogg in 2012
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3 examples
• Swiffer duster
• UniCharm (Japan) had the technology and product but not
the distribu-on power to sell the product worldwide
• P&G had the distribu-on ower
• Licensing deal to sell the Swiffer duster outside Japan
3 examples
• DSM
– Dutch performance chemicals company (8 bill
euro revenues)
– Open innova-on also in long term development
of growth plavorms
• Bio-­‐based Products & Services
• Biomedical Materials
• Advanced Surfaces
DSM’s targets
EBAs at DSM
IntegraEon of OI with business and
corporate strategy
• What is the value of OI examples for companies?
• Start from a corporate growth strategy
• What are the long term growth areas?
• Which technologies do you need, and which are no longer
crucial
• How to get these new technologies / competencies. Who
to partner with?
• Define alliance targets and build the rela-onship
– Different for LT growth through NBD or ST product
improvements
– Different types of partners
– Different types of involvement and risk taking
– Different teams and team members
Open innova-on as part of the overall
strategy execu-on
Why
Source; Adapted from
Slowinsky & Sagal, 2010,
RTM, September-­‐October,
38-­‐45
Want
Find
Stretch the ambiEon?
Get
Defining the targets.
Which capabiliEes do we need to deliver the
innova-ons?
Manage
Ideas Management in rela-on to
defined needs
ScouEng for capability providers
Define business goals of alliance and likely
alliance type.
Approach & build deal quickly or separate
Manage delivery incl. rela-onship.
Project management
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Open innova-on and branding
3. Apply open innova-on in
rela-on to other assets!
The case of branding
• Does your firms have brands?
• Did you ever think how openness can help you
in advancing sales of exis-ng brands or how
to build new ones?
• Open innova-on can / has to be smoothly
integrated in these new branding strategies
• We use a con@nuum from closed to open
focusing on examples of Unilever
License scheme of Bekaert & ConEnental
(technical standards)
5. Open innova-on and IP
100% 60%: compensa*on for licensing ac*vi*es 40%
Bekaert
Other
suppliers
0%
x %
2x %
Con-nental
Other
clients
100%
Proposal:
• X = …% of net sales value of supplied product
• Supplier collects royalties
• Cross-license agreement between client and supplier implying:
• Bekaert to supply "other clients" at X%
• "Other suppliers" to supply the Continental at X%
• Bekaert grants sublicenses to "other suppliers". The latter can supply to
"other clients" at 2X%
IP policy: IMEC’s posi-on in the technology life cycle
Collaborative research
embryonic potential growth mature
generic
technology
potential
Own Research
application
oriented
declining/
obsolete
technology life cycle
IP policy:
IMEC Industrial AffiliaEon Program
• What
– R&D coopera-on in generic technologies
– Strategic program develop by IMEC and executed in IMEC
– IIAP partners send guest researcher(s) to IMEC
• Advantages
– Sharing costs, risks, research infrastructure, IP
– IIAP partners get access to:
-­‐ IMEC’s background knowledge
-­‐ selected results of other partners in IIAP
– bilateral contract within the framework of IIAP
• Leverages
– resources
– knowledge
– cross-­‐fer-liza-on of research of different partners
– shortening -me to market
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IP policy:
IAP – Generic framework
common IP (R 1 - R 1* )
co-owned – non-exclusive license partner IP (R 2 )
exclusive license
partner A
partner …
IMEC
IIAP
background
knowledge
partner B
IIAP
foreground
knowledge
6. Technology markets
and the role of innomediaries
IMEC IP (R o )
non-exclusive
licensing
partner C
knowledge developed
within the program
Shi]ing roles and the emergence of
(intermediate) technology markets
Shi]ing roles and the emergence of
(intermediate) technology markets
Running business
Running business
Industrial
Research
Developments in
Science & Technology
Source: Adapted from Jos Put - DSM
Industrial
Research
Developments in
Science & Technology
Technology users
Growing
Gap
Technology suppliers
• TTO
• External CV
• Public / private research institutes
• OI campus: HTC, Chemelot, etc…
• Markets for technology: Yet2.com,
Innocentive, Ninesigma
• OI services: IDEO, BIG, …
Source: Adapted from Jos Put - DSM
OI and technology markets
Role of innomediaries
– 2-­‐sided markets (Rochet & Tirole (2005) Two-­‐Sided Markets: A
Progress Report; Eisenmann, Parker, and Van Alstyne (2006) Strategies
for Two-­‐Sided Markets, HBR)
– Innomediaries can clear the market more efficiently
• Innocen-ve, Ninesigma, …
• Yet2.com, Ocean Tomo
• YourEncore
– Problem of quality of technology (garbage technology
on the market)
• High quality technology searched in embedded
networks
– Why companies s-ll have their own portals (P&G’s C
+D)
7. Public policy and OI
S-ll uncharted territory!
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R&D globalizaEon and changing policy
making?
CERN:: the par-cle accele-­‐
rators and other infrastructure
Needed for high-­‐energy physics
research
2006 2011
Abroad
Knowledge
centers
Domes-c
• s-mulate interna-onaliza-on
of R&D of domes-c firms
• reduce costs of interna-onal
R&D sourcing of these firms
• old paradigm: local for local
• Build centers of excellence
• S-mulate domes-c firms to
make use of local knowledge
centers
• Be strongly involved in
interna-onal R&D policy
making (European Inn Center)
• Par-cipate in major R&D
networks
• new paradigm: local for global
• S-mulate foreign firms to make use of
local knowledge centers
• S-mulate them to relocate / extend
their R&D centers
2003
A new wave
of researching
open
innovation
Domes-c
Firms
Foreign
2006
2011
2013
OUP
Exnovate as a network of excellence for OI-­pracEEoners
and scholars?
• www.exnovate.org
– An interna-onal network for excellence in managing Open and
Collabora-ve Innova-on
• Projects
– CE and OI Masterclass (9 -mes Philips / ESADE) – 9-­‐14 June 2013,
Barcelona
– PhD course open innova-on at ESADE (4 th -me in January 7-­‐9,
2013)
– Open innova-on metrics
– Using best prac-ces to improve OI in SMEs
• Open Innova-on Community (OIC) on Facebook
and Linkedin
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