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Visualizing the Invisible

Resolving Dilemmas in
Collective Innovation
Project leaders:
Tobias Fredberg, Pascal Le Masson, Blanche Segrestin, Martin Wiener

Team Members:
Marine Agogué, Elsa Berthet, Martin Stötzel, Anna Yström

Munich, October 24th, 2011
Dilemmas of collective innovation

Motivation
                                                                         Share assets                Protect assets

 Well-known dilemmas                                                 No authority                   Slow convergence
  in innovation                                                       Free commitment               No work division
                                                                 Multiple stakeholder               Conflict of interests
 In case of collective innovation:                                 Multiple perspective             Shared vision
  – Some dilemmas are reduced: larger and                           Take risk     Explore          Exploit   Take Risk
    cheaper access to knowledge and ideas…                           Create Knowledge              Reuse Knowledge
  – A lot of new dilemmas emerge!
                                                                                  Management Dimension
                                                                                  Managers of collective
 Recent insights in the literature suggest that                                      innovation?
  1. Successful collective innovation is based on the capacity to solve these dilemmas
     (see Ihl 2010)
  2. There are today managers of collective innovation who might be able to organize this
     simultaneous solve (see Fredberg et al. 2011, Agogué & Yström 2010)
    Managing for solving the dilemmas of collective innovation: actors, activities, methods?

                                    Resolving Dilemmas in Collective Innovation                                          2
Collective innovation manager?

State of the art
                                                                                       Research Questions:
 Research has focused on the innovation leader (“focal firm”) who
  makes use of external resources for his own goals… (Elmquist,
  Fredberg, Olilla 2009)                                                               1. Where and how are
 Recent results have underlined that these “heroes of open                               these managers of
  innovation” actually rely on organized milieux, structures and                          collective innovation
  processes:                                                                              doing this?
   – First approaches have studied open innovation market                              2. What are the key
     intermediaries (Innocentive, Ninesigma,…) (Diener & Piller 2010)                     management areas to
   – These works underlined the limits of pure brokering: limited                         create conditions for
     cooperation, knowledge transfer rather than knowledge creation,                      for collective
     limited exploration (Sieg et al. 2010, Birkinshaw 2011)                              innovation initiatives?

   – Some works described more complex innovative milieux,                             3. How can we help
     collaborative ecosystems, platforms and colleges (Gawer 2009, Le                     collective innovation
     Masson et al. 2011) that support the activities of open innovators                   managers to
                                                                                          visualize/manage
 Hence there might be managers of collective innovation that are                         these areas?
  more than pure brokers... But their role, management areas and
  methods are largely hidden (research gap)

                                         Resolving Dilemmas in Collective Innovation                                3
Four case studies to uncover a new actor: The collective innovation manager

Research Background and Method

       Management
                                Exploration                         Centralized
       Dimensions             vs. Exploitation                   vs. Decentralized

                                Innovation
                                                                     Organization
                                  strategy


                     Protecting                                                       Conflicting
                    vs. Revealing                                                    vs. Collective
                                             Simultaneous
                         IP                                                          Interests/
                                                Solve?
                     management                                                        Goals




                                Governance                                Focus


                                Hierarchical                           Company
                              vs. Autonomous                          vs. Network

                                       Resolving Dilemmas in Collective Innovation                    4
Four case studies to uncover a new actor: The collective innovation manager

Research Background and Method
Management Dimensions
                   Exploration              Centralized
                  vs. Exploitation       vs. Decentralized                                       Four Case Studies to help “visualize” the
                     Innovation
                      strategy
                                              Organization                                        invisible collective innovation manager
          Protecting                                   Conflicting
         vs. Revealing                                vs. Collective
                               Simultaneous
               IP                                     Interests/
                                  Solve?
           management                                   Goals




                    Governance                   Focus

                    Hierarchical               Company
                  vs. Autonomous              vs. Network


Toward a new management actor:
The collective innovation manager,
relying on specific managerial techniques:
 visualizing the unknown,
 visualizing the interdependencies,
 visualizing the nature of the OI place,
 visualizing network creation

                                                                       Resolving Dilemmas in Collective Innovation                           5
1.   Our case findings support the assumption that collective innovation managers
     apply simultaneous solves in several management dimensions
Case Study Results (Siemens)
                                                                             Simultaneous
                                                                                Solve1)
                                          Centralized: Structures, guidelines,
                                           processes and tools
           Organization                   Decentralized: Responsible for
                                           running collective innovation
                                           initiatives
                                          Protecting: Intellectual property is
                                           systematically secured in patents
        IP Management                     Revealing: Unused IP and
                                           technologies are commercialized
                                           via licenses and Spin-outs

                                          No top-down targets and KPIs, and
                                           no pure bottom-up activities
           Governance                     Idea selection: Bottom-up pre-
                                           selection (short-listing) via voting,
                                           but final top-down management
                                           decision
1) Harvey balls:   = simultaneous solve identified;   = simultaneous solve not identified


                                                                   Resolving Dilemmas in Collective Innovation   6
Example: Visualize the Unknown to support collective innovation (1/2)

Visualization (of opportunities)
                                                                                 EXPLOITATIONS




                                                                                  Known competences and skills
                                                                                  Established firms and
                                                                                   interactions with partners
                                                                                  Stable identity of the objects

                                                                                 EXPLORATIONS




                                                                                  Re-discussing the identity of
                                                                                   the objects
                                                                                  Exploring new ideas
                                                                                  Involving new actors


                                   Resolving Dilemmas in Collective Innovation                                     7
Example: Visualize the Unknown to support collective innovation (2/2)

Using C-K referential : Cases of ST-Microelectronics and of I-Care
                                                                                     Generated actions of C-K referential
                                                                                   1. Define new projects for established
                                                                                      firms
                                                                                   2. Build new partnerships
                                                                                   3. Expand the scope of action for
                                                                                      institutions who want to act as an
                                                                                      open innovation facilitator
                                                                                   4. Foster new ways to interact
                                                                                      (seminars)


                                                                                                 Identifying complementary actors who
                                                                                             2   have the knowledge and/or skills that are
                                                                                                 currently lacking
                                                 Identifying missing knowledge, and interesting concepts to develop
             Mobilizing existing
         1   knowledge in a different    3&4                                             +
                                                                                         +
             concept is attainable for           Launching collaborative workshops with relevant actors to fill the
             established firms                   knowledge gaps and to explore interesting unexplored concepts


                                           Resolving Dilemmas in Collective Innovation                                                       8
Example: Visualize Conflicts to manage collective innovation (1/2)

Initial situation
                            Agrosystem
                                                                                                                          Local
                       That produces food for                                                                             Auth.
                              humans
                                                                                                       NGO
                       That provides food of                                                                        Research
                           good quality
                                                                                                                     Center
                                                                                          Farm
              Maximizing yields     Preserving natural
                                        equilibria
                                                                                                             Coop
     Only with profitable                 With areas of regulations                       Farm
            crops                               (grasslands)
                                                                                                                              Farm
 Using chemicals,                                Using ecosystem                                          Farm
   fertilizers…                                      services


                    Initial situation: no                                                                Few relationships
                     common ground                                                                     between stakeholders



                                                         Resolving Dilemmas in Collective Innovation                                 9
Example: Visualize Conflicts to manage collective innovation (2/2)


                            Concepts                                                                                         Knowledge
                                                                                                List of attributes from a productive and from an ecological
                                                                                                perspective:
                                                                                                   Common/cleaving attributes
                            A productive agrosystem that
                             preserves natural equilibria                                          Potential values associated to
                                                                                                   these attributes
                                                                                                                          Functions having an           Functions having a
                    Without                                  With                                                      individual potential value   collective potential value
                    grassland                             grasslands
                                                                                                Design parameters                                   i.e. reduce the use of
                                                                                                                       i.e. use fertilizers to
                                                                                                (DP) activated at an                                herbicides to preserve
                                                                                                                       increase grassland yields
                    Frequent                  No mowing in                                      individual level                                    groundwater
                                                                      No mowing
                    mowing                      Summer                                                                 i.e. coordinate grassland    i.e. coordinate grassland
                                                                                                DP activated at a
                                                                                                                       localization to reduce       localization to maximize
                                                                                                collective level
                                                                                                                       individual costs for farmers biological control
              Use of             Use of            Reduced            No use of
            herbicides           herbic.            herbic.           herbicides



         Without                      Without                    With
      localization of               localization              localization
        grasslands




                    Visualize opportunities for open innovation
                        that overcome the initial dilemma




                                                                         Resolving Dilemmas in Collective Innovation                                                             10
2.    Building on the identified simultaneous solves, we were able to identify four
      key management areas for collective innovation initiatives
Key Management Areas
                                                                                                  Centralized vs.
                                                                                                  decentralized
                                                    Media
                                                                                                   organization
                                                Infrastructure
                                               How can we find
                                             the relevant people
                                              and through what
                                               channels/tools?
                                                                                    Interdepen-
                          Issue and
                                                                                      dencies
                         opportunties               Collective
                                                   Innovation                     How can we go
     Exploitation vs.   How can we use
                                                  Management                     from conflicting         Conflicting vs.
       exploration      what we know to
                                                                                    interests to
        strategy         open the box?                                                                      collective
                                                                                 collective goals?
                                                       Focus                                             interests/goals
                                                 How can we
                                                    create a
                                               legitimate place
                                                   for open                                                    Company vs.
                                                 innovation?                                                     network
                                                                                                                  focus


                                          Resolving Dilemmas in Collective Innovation                                       11
Uncover an (unexpected) collective innovation management…

Key Management Areas                                                                          More than incentives…
                                                                                             …Commit the right people
                                                     Media                                   to contribute to collective
                                                 Infrastructure                                      innovation
Before sharing
                                                How can we find
knowledge …
                                              the relevant people
  …Share an
                                               and through what
  agenda of                                     channels/tools?
 open issues                                                                         Interdepen-
                           Issue and
                                                                                       dencies
                          opportunties               Collective
                                                    Innovation                     How can we go
                         How can we use
                                                   Management                     from conflicting           Don’t avoid
                         what we know to
                                                                                     interests to          conflicts, don’t
                          open the box?
                                                                                  collective goals?         look for trade
                                                        Focus
                                                                                                                offs…
                                                  How can we                                                  …Deal with
      Not a shared vision!                           create a
                                                                                                             conflicts in a
A legitimate place for collective               legitimate place
                                                                                                             creative way
          innovation                                for open
                                                  innovation?



                                           Resolving Dilemmas in Collective Innovation                                     12
… with relevant visualization techniques

Key Management Areas                                                                          More than incentives…
                                                                                             …Commit the right people
                                                     Media                                   to contribute to collective
                                                 Infrastructure                                      innovation
Before sharing
                                                How can we find                            Visualize the emerging, relevant
knowledge …
                                              the relevant people                                      networks
  …Share an
                                               and through what
  agenda of                                     channels/tools?
 open issues                                                                         Interdepen-
                           Issue and
                                                                                       dencies
                          opportunties               Collective
 Visualize the                                      Innovation                     How can we go
                         How can we use
  unknown                                          Management                     from conflicting           Don’t avoid
                         what we know to
                                                                                     interests to          conflicts, don’t
                          open the box?
                                                                                  collective goals?         look for trade
                                                        Focus
                                                                                                                offs…
                                                  How can we                                                  …Deal with
      Not a shared vision!                           create a
                                                                                                             conflicts in a
A legitimate place for collective               legitimate place
                                                                                                             creative way
          innovation                                for open
                                                  innovation?
                                                                                                           Visualize
 Visualize the legitimate place
                                                                                                      interdependencies

                                           Resolving Dilemmas in Collective Innovation                                     13
3.   A workshop concept to help visualizing and managing each of the 4 key
     management areas
Visualization Workshops
         Visualize the opportunity      WORKSHOP STRUCTURE
     1   space
                                                                Objectives                                              Conclusion
                                                                  Media Infrastructure

                                                                  How can we find the
                                                                  relevant people and
                                                                     through what
                                                                    channels/tools?

         Visualize the infrastructure             Issue and
                                                 opportunties                             Interdependencies

     2   (and performance)                       How can we
                                                 use what we
                                                                        Collective
                                                                       Innovation
                                                                      Management
                                                                                          How can we go from
                                                                                         conflicting interests to
                                                know to open                                collective goals?
                                                   the box?
                                                                         Focus

                                                                      How can we
                                                                        create a
                                                                    legitimate place
                                                                        for open
         Visualize conflicts and                                      innovation?

     3 interdependencies
                                                Diagnosis technique                                                    (Tutorial for)
                                                   (visualization)                                                  Practical application

         Visualize the nature of
     4 collective innovation




                                         Resolving Dilemmas in Collective Innovation                                                        14
Workshop – Visualizing the Unknown

1) Purpose                                                                                             6) Conclusion
   Unveiling innovation strategies dilemmas “exploration vs. exploitation”                               Visualizing unknown paths of innovation created at a collective level can help an open
   Can a innovation lock-in situation be diagnosed, and is it possible to objectify the gap between       innovation manager in solving conflicting situations.
    expected innovations and the ones that are currently attainable by existing innovation
    capabilities ?

2) Case study                                                                                          5) Tutorial for an open innovation manager
   Harnessing ICT innovation to augment the lives of the fragile and elderly people in the Rhone-
    Alps region (France)
   An assessment : demand on the market increases (aging population) whereas few products or
    services arrive on the market today and provide successfully solutions
   An orphan innovation situation : an innovation highly expected by society, but that no actor or
    consortium of actors can manage to process whereas all the structural conditions to foster it
    are gathered.

3) Initial diagnosis
   There is a gap between attainable exploitations (that mobilize known
    competences and skills, established firms and interactions with partners, dealing with a stable
    identity of the objects) and expected explorations (that re-discuss the identity of
    the objects, explore new ideas and involve new actors)                                             4) How can an OI manager solve the dilemma?
                                                                                                          Visualizing the unknown can make it possible to overcome an exploration /
                                                                                                           exploitation dilemma




                                                                               Resolving Dilemmas in Collective Innovation                                                                   15
Workshop – Creating Legitimacy in Open Innovation
      How can
    we create a
     legitimate          Diagnosis
      place for          Open collective innovation is paradoxical to participants. They need to optimize both for the collective and for the home organization. The result is a
                         number of tension/dilemmas that must be resolved in order for the open innovation collaboration to be perceived as a legitimate place to share
        open
                         knowledge and generate ideas.
    innovation?

1. Conduct interviews with a                                                        Trust
                                                                                                              4. Identify and emphasize
                                                                                                                                                                  Offices
   subset of involved key people:                                                                                 critical manifestations of Relations
   What are the tensions that they                                                                               legitimacy in the              hips with                     Logo
                                                                                                                                                  others
    experience between the home                                                                                   open innovation
    organization and the arena?                                       Career         OI          Loyalty
   What are the specific dilemmas                                                 Arena                          collaboration             Business               SAFER
                                                                                                                                                                                   Academic
                                                                                                                                                                   legiti-
                                                                                                                                                cards                               papers
    involved in managing these tensions?                                                                                                                           macy


                                                                                  Knowledge
                                                                                                                                                                              Shared
Analyze                                                                           Generation                                                             Con-
                                                                                                                                                        tracts
                                                                                                                                                                              Experi-
                                                                                                                                                                               ences
                                                                                                                                                                   Office
2. Define                                                                                                     Manifest Solution                                     key

   Who are the key people that must be involved in dialogues to solve the tensions?
   What rules need to be established to enable an open and honest conversation?
                                                                                                              3. Characterize the type of higher level solutions needed re-
                                                      Trust
                                                                                                                  solve the dilemmas in the open innovation collaboration
                                                                                                                                       Higher level solution             Example
                                    Higher level solutions to be
                                   developed in open dialogues
                                      between stakeholders                                                                    Home                               Collective
        Career                                                                       Loyalty                               organization                            effort
Solutions                                                          Risks                                                    viewpoint                            viewpoint
The dilemmas are partly solved by creating                         If the process of creating legitimacy is
legitimacy on the project level, but also on                       not open, you end up in a game like
a higher level, where management plays         Knowledge
                                                                   situation where no joint development
an important role                              generation                                                                                     Career
                                                                   actually takes place.
Arrange dialogue                                                                                              Resolve dilemmas

                                                                           Resolving Dilemmas in Collective Innovation                                                                        16
Conclusion

 An (emerging) model of the management of collective innovation…




                    Known interests, known
                                                           Discover interests, values,
                     competences, known
   If the new                                              techniques, stakeholders…
                          futures…                                                         If the new
  changes the
                                                                                          changes the
    game 
                                                                                            game 
 management
                                                                                          management
limits the new
                                                               Shape the unknown,         broadens the
to stabilize the   Incentives, knowledge and                  creative use of conflict,    unknown!
      game              value sharing =                        networks expansion,
                    optimisation & planning                   legitimate cooperative
                                                                       place

 … in which “visualizing the invisible” (the unknown) is critical

                                     Resolving Dilemmas in Collective Innovation                    17
Resolving Dilemmas in Collective Innovation   18
Backup

Resolving Dilemmas in
Collective Innovation
Ambidexterity is an established theme in management research
Theoretical Background
                         • Ambidexterity is the state of being equally adept in the use of both the
                           left and the right hand
                         • In management research, ambidexterity is usually referring to
                           organizations who manage to efficiently run their current business
                           while at the same time preparing for a changing future:
                         • Relevant literature, examples:
                           o Duncan, R. 1976. The Ambidextrous Organization: Designing Dual
                             Structures for Innovation
                           o March, J. G. 1991. Exploration and Exploitation in Organizational
                             Learning
                           o Tushman, M. L. and O’Reilly, C. A. 1996. Ambidextrous
                             Organizations: Managing Evolutionary and Revolutionary Change
                           o Raisch, S. and Birkinshaw, J. 2008. Organizational Ambidexterity:
                             Balancing Exploitation and Exploration for Sustained Performance




                              Resolving Dilemmas in Collective Innovation                       20
Prior research indicates that successful collective innovators apply
contradicting approaches simultaneously for managing their
innovation activities
Motivation
  Simultaneous Solve:                                                                Research Questions:

              Management Dimension
                                                                                     Successful collective innovators
                                                                                     seem to reconcile contradicting
                                                                                     management approaches
                  Ambidexterity                                                      (Simultaneous Solve), but…

  Examples:                                                                          1. Where and how are they doing
                  EXPLOITATION       EXPLORATION                                        this?
                                                                                     2. What are the key management
                                                                                        areas for collective innovation
                                                                                        initiatives?
                                                                                     3. How can we help collective
                   PROTECTING         REVEALING                                         innovators to visualize/manage
                                                                                        these areas?



                                       Resolving Dilemmas in Collective Innovation                                        21
SAFER Context
                                                                                                           VINNOVA
                                                                                                        Swedish Road
                                                                                                        Administration
                                                                                                    Region Västra Götaland

170 persons hold keys to SAFER office                                                                                           Autoliv
                                                                                        CHALMERS                                Epsilon
• 50% from Chalmers, 50% from other partners                                            Gothenburg university                  Folksam
                                                                                        SP                                         Saab
• ca 40 PhD students (40 % industrial)                                                                                            SMW
                                                                                        VTI
• 45 full time in SAFER                                                                 TÖI                          Scan. Auto. Suppl.
                                                                                        Viktoria institute                       Scania
                                                                                        Imego AB                           Telia Sonera
                                                                                        Sicomp AB                             Volvo CC
Focus areas                                                                                                                Volvo Group
                                                                                                                                    LSP
   Incidents and accidents
   Driver state/action/reaction
   Prediction for accident prevention
   Methods for evaluation of safety systems
   Electric Vehicles and Vehicle Combination
   Human Models and Biomechanics


       Pre-crash                         Crash                            Post-crash
                                                Resolving Dilemmas in Collective Innovation
Organizational ambidexterity is a renown theme in management
science
Ambidexterity
                       • Ambidexterity is the state of being equally adept in the use of both left
                         and right appendages (such as the hands)
                       • In Management, organizational ambidexterity is usually referring to
                         organizations who manage to efficiently run their current business
                         while at the same time preparing for a changing future
                       • Literature e.g.:
                         o Duncan, R. 1976. The ambidextrous Organization: Designing dual
                           structures for Innovation
                         o March, J. G. 1991. Exploration and Exploitation in Organizational
                           Learning
                         o Tushman, M. L. and O’Reilly, C. A. 1996. Ambidextrous
                           Organizations: Managing Evolutionary and Revolutionary Change
                         o Raisch, S. and Birkinshaw, J. 2008. Organizational Ambidexterity:
                           Balancing Exploitation and Exploration for Sustained Performance




                             Resolving Dilemmas in Collective Innovation                       23
In 2010, a group a researchers started collaborating on a joint research
project funded by the Peter-Pribilla-Foundation
Research Setting




                             Resolving Dilemmas in Collective Innovation   24
Each team is running their specific case study which is dedicated to the
 underlying research question
 Research Question


Successful collective innovators seem to                  Trade-off:
reconcile contradicting approaches for                                         Management Dimension
managing their innovation activities
(“Simultaneous Solve”), but…

1. How are they doing this?
2. What are the “hidden/invisible”                        Simultaneous Solve:
   variables (from a leadership,                                               Management Dimension
   governance, process, and IT tool
   perspective) enabling them to resolve
   the resulting dilemmas?
                                                                               ambidextrous approach




                                       Resolving Dilemmas in Collective Innovation                     25
We see leading companies apply ambidextrous approaches
(Simultaneous Solve) with regards to innovation management
Simultaneous Solve - Examples

                     • Organizational ambidexterity: Procter & Gamble have decentralized
                       their R&D unit closer towards the business units and simultaneously
                       created central innovation „think-tanks“ for disruptive innovations


                     • Embedded Linux (OSS): Nokia and Philips in some cases have chosen
                       Linux as operating system for their electronic devices. The
                       developers engage with the Linux open source community and
                       selectively share some of their own innovations while protecting
                       (hiding) others


                     • Procter & Gamble as well as Siemens systematically identify
                       Intellectual Property (patents) which they do not use for their own
                       business and commercialize it via Licensing and Spin-outs



                                                                           Source: Web research, press articles

                             Resolving Dilemmas in Collective Innovation                                          26
Our case study: How does Siemens manage their Open Innovation
initiatives? Do they apply the Simultaneous Solve?
Case Study


                              • Founded 1857
                              • 400.000 employees
                              • 31.000 R&D people
                              • Annual R&D spend:
                                ~4 bn. EUR, 56.000
                                active patents
                              • # 34 in Business Week’s list of most innovative companies
                                worldwide (ahead of Dell, Vodafone, Nike)



                                                  How does Siemens manage
                                              collective/open innovation, and do
                                              they apply the Simultaneous Solve?



                          Resolving Dilemmas in Collective Innovation                       27
Siemens has a central Open Innovation unit which provides structures,
 processes and tools
 Open Innovation at Siemens
                                       *)


                                                                     “Service
                                                                    provider”
                                                                                                      Siemens CTO OI

   Industry              Energy         Healthcare



      Corporate Functions (cross-sector)
                               Corporate
                            Technology (CTO)
                                       Open
                                    Innovation
                                      CTO OI


*) Organization as of 04/2011                                                        Open Innovation Activities Framework (by Siemens CTO OI)


                                                 Resolving Dilemmas in Collective Innovation                                                    28
Our case study included interviews with the central OI unit as well
  as operating business units (which run OI initiatives)
 Case Interviews
                                CENTRAL UNIT
                                CTO Open Innovation

                                • Interview with head of Unit Dr.                                          “There is hard work to be
                                  Lackner                                                                   done in opening doors
                                                                                                            while maintaining some
                                • Interview with Open
                                                                                                                 control, (…)”
                                  Innovation Specialist                            Dr. Lackner

OPERATING BUSINESS UNITS




  Innovation Hubs      Siemens Student Award    Smart Grid Contest, 2011                Sustainability Idea           Technology
 Contest (internal),     Middle-East (Dubai),                                         Contest (internal), 2010     Accelerators; Out-
       2011                     2011                                                                              licensing, spin-outs


                                                Resolving Dilemmas in Collective Innovation                                       29
Our findings support first indications from prior literature that the
 simultaneous solve is applied in OI Management
Case Study Findings (1/2)
                                                                                                                    SIMULTANEOUS
MGT. DIMENSION                   FINDINGS                                                                              SOLVE 1)
                              The central open innovation unit develops structures and concepts, identifies
                               technical solutions and solution providers, advertises the concepts across the
    Organization               business units, and supervises the open innovation initiatives.
                              By contrast, the individual initiatives are then run as projects by the respective
                               (decentral) business units with guidance and sparring from the central unit.




                               • Open innovation initiatives are neither demanded top-down from the
                                 management, nor initiated autonomously by the internal or external
    Governance
                                 communities. It is rather the middle management that decides that open
                                 innovation may help in their business context
                               • There are also no top-down targets set, neither for individual open
                                 innovation initiatives nor for the central open innovation unit
                               • The decision process of selecting the best ideas uses a combination of
                                 bottom-up and top-down mechanisms: Short-listing of ideas is done via the
                                 votes of the community and a jury of managers and experts perform the
                                 final selection

1) Harvey balls: Black ball = simultaneous solve identified. White ball = simultaneous solve not identified

                                                             Resolving Dilemmas in Collective Innovation                      30
However this does not apply to all dimensions. Motivation of participants
 seems to be limited to intrinsic mechanisms
Case Study Findings (2/2)
                                                                                                                   SIMULTANEOUS
MGT. DIMENSION                   FINDINGS                                                                             SOLVE 1)
                              IP protection is a well established practice because IP has always been vital for
                               Siemens business success in competitive markets
  IP Management               A dedicated subsidiary (Siemens Technology Accelerator) works with venture
                               capitalists to establish new start-ups that make use of un-used IP by
                               developing innovative business models


                               • Siemens heavily relies on intrinsic motivation. Receiving attention and
                                 feedback in virtual discussions with other participants seems to provide a
     Motivation
                                 sufficient motivation for employees to contribute.
                               • For internal initiatives, the prospect of presenting own ideas in front of a
                                 management jury may motivate employees to invest significant efforts in
                                 open innovation activities


     Innovation                • Innovation Strategy (exploration vs. exploitation) has not been discussed as
    Strategy and                 a management dimension, in the conducted case interviews                               ?
        other                  • Also, we could not yet identify additional management dimensions relevant
                                 for Open Innovation management
     dimensions

1) Harvey balls: Black ball = simultaneous solve identified. White ball = simultaneous solve not identified

                                                             Resolving Dilemmas in Collective Innovation                     31
How does the Simultaneous Solve impact performance? Can we
measure the performance of Innovation Communities?
Performance of Innovation Communities
                           Performance KPIs                           Attributes of participants
                           • Intensity of                             • Specific role-profiles of participants
                             communication                            • Technical / educational background of
 Measure                   • Number of idea &                           participants
  ment                       proposals                                • Time participants spend in the network
  (KPIs)                   • Selected ideas /                         • Geographical proximity
                             solutions
                                                                      • Belonging to the same business unit / area
                           • Business benefit
                                                                      • ...
                           • ...

Communication Infrastructure Performance Evaluation                                        1. Nodes = Participants
                                                                                           2. Arcs = Collaboration
                                                                                           3. Centricity = Performance
                                                                                           4. Colours = Attributes




                                          Resolving Dilemmas in Collective Innovation                                    32
Collaboration (Meetings, Topics)

              Team Workshops                                                                Gothenburg                       Munich
                                                                                               22 Mar 2011                 24 Oct 2011
1. Four reference cases: identify critical dilemmas,
   techniques to solve them, efficiency of these
                                                               Kick-off                    1     Case studies                  Final
   techniques
                                                                                                                           presentation
2. Visualization Management Techniques of the
   OI manager (building the OI square):
       a) Visualize the unknown
       b) Visualize interdependencies
       c) Visualize communication networks                                             Individual Case Studies
       d) Visualize an identity
3. A workable format to help OI managers: “how
   do you design your own OI leader”                        Nuremberg                                 Paris                Paris
       a) Interactive, based on experiences                  15 Dec 2010                        30 Jun 2011              15 Sep 2011
       b) Cumulative
       c) Self evaluation: what kind of dilemma            1      Case studies              1        Case studies    2     Visualization
          do you solve.
                                                                                            2        Visualization   3     OI Manager




                                                       Resolving Dilemmas in Collective Innovation                                         33
Appendix

Resolving Dilemmas in
Collective Innovation
28 th June 2011
               Paris, Pribilla group




Resolving dilemmas in collective innovation
              The I-Care case

                  Marine AGOGUE
                 CGS, MINES ParisTech
                 F-75 272 Paris, France
                 Tel: +33 1 40 51 9201
                Mail: magogue@ensmp.fr,
Diagnosing exploration / exploitation dilemmas


C-K referential on ICT for autonomy in Rhône-Alpes region
                                                                                                attainable exploitations




                                                                                                 expected explorations




           A C-K referential helps to diagnose the gap between reality and expectations, and
           provides a way to objectify the distance between attainable exploitation and
           expected exploration
                                      Resolving Dilemmas in Collective Innovation                                                     36
                                                                        Data : workshop analysis, interviews of firms, questionnaire (22 responses)
   Marine Agogué – MINES ParisTech
Visualizing the unknown to overcome dilemmas


 Using the C-K referential : cases of ST-Microelectronics and of I-Care
                                                                                   Generated actions of C-K referential

                                                                                      1 – Define new projects for established
                                                                                      firms

                                                                                      2 – Build new partnerships

                                                                                      3 - Expand the scope of action for
                                                                                      institutions who want to act as an open
                                                                                      innovation facilitator

                                                                                      4 - Foster new ways to interact
                                                                                      (seminars)


                                                                                                   Identifying complementary
                                                                                        2        actors who have the knowledge
                                                                                                  and/or skills that are currently
                                              3&4                                                              lacking
       1
Mobilizing existing knowledge in a     Identifying missing knowledge, and interesting concepts to develop
different concept is attainable for                                     +
         established firms              Launching collaborative workshops with relevant actors to fill the
                                         knowledge gapsand to explore interesting unexplored concepts
                                           Resolving Dilemmas in Collective Innovation                                           37
     Marine Agogué – MINES ParisTech
How to build the C-K referential ? Toolkit for a OI leader

    C-K referential : A tool that requires to mobilize innovative design C-K
    theory and its formalisms *
                                                                                                                                  STEP 1
                                                                                                                                  Gather classical knowledge (experts) &
                                                 3                           3                                                    list all the current projects

                                                                                                                                  STEP 2
                                                                                                                                  From this first knowledge basis, build the
                                                                                                                  4               known paths of innovation

                                                                                                                                  STEP 3
2                                                                                                                                 Expand the knowledge basis, meet new
                                                                                                                                  experts and build a robust model of high-
                                                                                                                          1       level of abstraction

                                                                                                                                  STEP 4 & 5
                                                                                                                                  Expand the knowledge and concept
                                                                                                                                  spaces until no more expertise or project
                                                                                                                                  seems out of the scope
                                                               5
6                                                                                                                     5
                                                                                                                                  STEP 6
                                                                                                                                  Position projects on the innovation field
                                                                                                                                  mapping

An Open Innovation can then rely on such a tool for balancing between attainable
exploitations and expected explorations
                                         * Bibliography : Hatchuel, A.Dilemmas inC-K design theory: An advanced formulation. Research in Engineering Design 19, 181-192. 4.
                                                      Resolving & Weil, B. (2009) Collective Innovation                                                                                        38
                                         Hatchuel, A., Le Masson P., Weil,B. (2004). C-K theory in practice, lessons from industrial applications. Annual meeting of The Design Society, Dubrovnik.
       Marine Agogué – MINES ParisTech
Resolving Dilemmas in Collective Innovation
 The case of open management of farming systems


                                               Elsa Berthet
                                          Blanche Segrestin


         October 2011 – Mines Paristech
Diagnosis of dilemmas:
Initial situation
                                     Agrosystem
                                                                                                                       Local
                               That produces food
                                                                                                                       Auth.
                                   for humans
                                                                                                NGO
                              That provides food of
                                                                                                               Research
                                  good quality                                                                  Center

                                                                                       Farm
                 Maximizing yields          Preserving natural
                                                equilibria
                                                                                                       Coop
                                                   With areas of regulations
                                                                                       Farm
             Only with
                                                         (grasslands)
          profitable crops                                                                                             Farm

  Using chemicals,                 Initial                Using ecosystem
                                                                                                     Farm
   fertilizers…                situation: no                  services
                                 common                                                           Few relationships
                                  ground                                                        between stakeholders
   40                                             Resolving Dilemmas in Collective Innovation
Identify alternative ways to deal with the
dilemmas
                               (Concepts)                                           List of attributes from a productive               (Knowledge)
                                                                                    and from an ecological perspective:
                                                                                       Common/cleaving attributes
                                                                                       Potential values associated to
                                  A productive agrosystem that
                                                                                    these attributes
                                   preserves natural equilibria

                                                                                                        Functions having an         Functions having a
                   Without                                  With
                   grassland                              grasslands                                    individual potential        collective potential
                                                                                                        value                       value
                       Frequent               No mowing in
                                                                    No mowing
                                                                                    Design              i.e. use fertilizers to     i.e. reduce the use of
                        mowing                  Summer                              parameters (DP)     increase grassland yields   herbicides to preserve
                                                                                    activated at an                                 groundwater
             Use of                                                                 individual level
                                    Use of         Reduced             No use of
           herbicides               herbic.         herbic.            herbicides   DP activated at a   i.e. coordinate grassland   i.e. coordinate
                                                                                    collective level    localization to reduce      grassland localization to
                                                                                                        individual costs for        maximize biological
        Without
                                          Without                With                                   farmers                     control
     localization of
                                        localization          localization
       grasslands




           Visualize opportunities for open innovation
                that overcome the initial dilemma


41                                                     Resolving Dilemmas in Collective Innovation
Ex.
   1) Visualize grassland design parameters                                             2) Visualize interdependencies
                                 Grassland                                                        Watero
                                                                                                   rg.                Local
                                                                                                                      Auth.
               With fodder                         Without fodder
               production                           production                                      NGO
                                                                                                                  Research
    Frequent                  No mowing                                                                            Center
    mowing                    in Summer                                    Loss of
                                                                           harvest,
                                                                            Pests
                                                                                           Farm
   Use of      No use           Use of      Reduced        No use
 herbicides    of herb.         herb.        herb.         of herb.                                        Coop
                                                                                             Farm
                                                                                                                       Farm
  Without         With                Without             With            Biological
localization   localization         localization       localization        control

                                                                                                      Farm


        42                                          Resolving Dilemmas in Collective Innovation
Empty pattern

3° Represent existing design paths, and propose
    intermediary paths that create a common ground               1° Diagnose the conflict: Specify the attributes (design
    between actors                                                   parameters, functions) of the conflicting object

                                                                 2° Identify the potential values of cleaving attributes +
                                                                     Find new attributes with potential values

             DP1a         DP3              DP2a




      DP1b                                           DP2b        4° Visualize interdependences between
                                                                       actors created by the new solutions
                                                                       proposed, and stimulate innovative
                                                                       collaboration




 43                                     Resolving Dilemmas in Collective Innovation
The visualization of the communication infrastructure and its performance is based
on the (quantitative) origin and the (qualitative) rating of idea contributions
Analysis Framework

                                                Platform
                                                                             
                                                           



               Origin                            Ideas                       Evaluation/Rating




   Idea contributors with                       Database
   differentiating attributes
   (e.g., geography, age, job
   title, sector, department etc.)


                                 Quantitative                  Qualitative
                                  Analyses                      Analyses
Heat maps visualize the distribution of ideas by selected user attributes; by
combining heat maps, the tree map offers an integrated perspective on “hot spots”
Visualization: Heat & Tree Maps (Idea Quantity)

   140      Number of Ideas by Age (Attribute 1)                                  Number of Ideas by Region (Attribute 2)
   120                             Max.
   100                                                    high
    80                                                    medium

    60
                                                          low                  Max.

    40
    20
     0
           < 25    25 - 35   35 - 45   45 - 55         > 55


          Tree Map: Number of Ideas by Attributes

   Max-      Attribute 1                                      600                      300                  100
   Max

             Attribute ...                         400              200

   Min-
   Max
             Attribute n                         280     120    140       60
By comparing quantitative and qualitative “hot spots”, the collective innovation
manager can identify “untapped” target groups and derive corrective actions
Evaluation: Idea Quantity vs. Quality

                Quantity of Ideas (Count)                                      Quality of Ideas (Rating)




                                                         Same
                                                       structure


                            „Untapped“
                 Stars
                               Stars




  More ideas,        Fewer ideas,
   but lower          but better      Collective Innovation Manager:
    quality            quality        Pay special attention to “untapped” stars and take corrective actions

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Resolving Dilemmas in Collective Innovation

  • 1. Visualizing the Invisible Resolving Dilemmas in Collective Innovation Project leaders: Tobias Fredberg, Pascal Le Masson, Blanche Segrestin, Martin Wiener Team Members: Marine Agogué, Elsa Berthet, Martin Stötzel, Anna Yström Munich, October 24th, 2011
  • 2. Dilemmas of collective innovation Motivation Share assets Protect assets  Well-known dilemmas No authority Slow convergence in innovation Free commitment No work division Multiple stakeholder Conflict of interests  In case of collective innovation: Multiple perspective Shared vision – Some dilemmas are reduced: larger and Take risk Explore Exploit Take Risk cheaper access to knowledge and ideas… Create Knowledge Reuse Knowledge – A lot of new dilemmas emerge! Management Dimension Managers of collective  Recent insights in the literature suggest that innovation? 1. Successful collective innovation is based on the capacity to solve these dilemmas (see Ihl 2010) 2. There are today managers of collective innovation who might be able to organize this simultaneous solve (see Fredberg et al. 2011, Agogué & Yström 2010)  Managing for solving the dilemmas of collective innovation: actors, activities, methods? Resolving Dilemmas in Collective Innovation 2
  • 3. Collective innovation manager? State of the art Research Questions:  Research has focused on the innovation leader (“focal firm”) who makes use of external resources for his own goals… (Elmquist, Fredberg, Olilla 2009) 1. Where and how are  Recent results have underlined that these “heroes of open these managers of innovation” actually rely on organized milieux, structures and collective innovation processes: doing this? – First approaches have studied open innovation market 2. What are the key intermediaries (Innocentive, Ninesigma,…) (Diener & Piller 2010) management areas to – These works underlined the limits of pure brokering: limited create conditions for cooperation, knowledge transfer rather than knowledge creation, for collective limited exploration (Sieg et al. 2010, Birkinshaw 2011) innovation initiatives? – Some works described more complex innovative milieux, 3. How can we help collaborative ecosystems, platforms and colleges (Gawer 2009, Le collective innovation Masson et al. 2011) that support the activities of open innovators managers to visualize/manage  Hence there might be managers of collective innovation that are these areas? more than pure brokers... But their role, management areas and methods are largely hidden (research gap) Resolving Dilemmas in Collective Innovation 3
  • 4. Four case studies to uncover a new actor: The collective innovation manager Research Background and Method Management Exploration Centralized Dimensions vs. Exploitation vs. Decentralized Innovation Organization strategy Protecting Conflicting vs. Revealing vs. Collective Simultaneous IP Interests/ Solve? management Goals Governance Focus Hierarchical Company vs. Autonomous vs. Network Resolving Dilemmas in Collective Innovation 4
  • 5. Four case studies to uncover a new actor: The collective innovation manager Research Background and Method Management Dimensions Exploration Centralized vs. Exploitation vs. Decentralized Four Case Studies to help “visualize” the Innovation strategy Organization invisible collective innovation manager Protecting Conflicting vs. Revealing vs. Collective Simultaneous IP Interests/ Solve? management Goals Governance Focus Hierarchical Company vs. Autonomous vs. Network Toward a new management actor: The collective innovation manager, relying on specific managerial techniques:  visualizing the unknown,  visualizing the interdependencies,  visualizing the nature of the OI place,  visualizing network creation Resolving Dilemmas in Collective Innovation 5
  • 6. 1. Our case findings support the assumption that collective innovation managers apply simultaneous solves in several management dimensions Case Study Results (Siemens) Simultaneous Solve1)  Centralized: Structures, guidelines, processes and tools Organization  Decentralized: Responsible for running collective innovation initiatives  Protecting: Intellectual property is systematically secured in patents IP Management  Revealing: Unused IP and technologies are commercialized via licenses and Spin-outs  No top-down targets and KPIs, and no pure bottom-up activities Governance  Idea selection: Bottom-up pre- selection (short-listing) via voting, but final top-down management decision 1) Harvey balls: = simultaneous solve identified; = simultaneous solve not identified Resolving Dilemmas in Collective Innovation 6
  • 7. Example: Visualize the Unknown to support collective innovation (1/2) Visualization (of opportunities) EXPLOITATIONS  Known competences and skills  Established firms and interactions with partners  Stable identity of the objects EXPLORATIONS  Re-discussing the identity of the objects  Exploring new ideas  Involving new actors Resolving Dilemmas in Collective Innovation 7
  • 8. Example: Visualize the Unknown to support collective innovation (2/2) Using C-K referential : Cases of ST-Microelectronics and of I-Care Generated actions of C-K referential 1. Define new projects for established firms 2. Build new partnerships 3. Expand the scope of action for institutions who want to act as an open innovation facilitator 4. Foster new ways to interact (seminars) Identifying complementary actors who 2 have the knowledge and/or skills that are currently lacking Identifying missing knowledge, and interesting concepts to develop Mobilizing existing 1 knowledge in a different 3&4 + + concept is attainable for Launching collaborative workshops with relevant actors to fill the established firms knowledge gaps and to explore interesting unexplored concepts Resolving Dilemmas in Collective Innovation 8
  • 9. Example: Visualize Conflicts to manage collective innovation (1/2) Initial situation Agrosystem Local That produces food for Auth. humans NGO That provides food of Research good quality Center Farm Maximizing yields Preserving natural equilibria Coop Only with profitable With areas of regulations Farm crops (grasslands) Farm Using chemicals, Using ecosystem Farm fertilizers… services Initial situation: no Few relationships common ground between stakeholders Resolving Dilemmas in Collective Innovation 9
  • 10. Example: Visualize Conflicts to manage collective innovation (2/2) Concepts Knowledge List of attributes from a productive and from an ecological perspective: Common/cleaving attributes A productive agrosystem that preserves natural equilibria Potential values associated to these attributes Functions having an Functions having a Without With individual potential value collective potential value grassland grasslands Design parameters i.e. reduce the use of i.e. use fertilizers to (DP) activated at an herbicides to preserve increase grassland yields Frequent No mowing in individual level groundwater No mowing mowing Summer i.e. coordinate grassland i.e. coordinate grassland DP activated at a localization to reduce localization to maximize collective level individual costs for farmers biological control Use of Use of Reduced No use of herbicides herbic. herbic. herbicides Without Without With localization of localization localization grasslands Visualize opportunities for open innovation that overcome the initial dilemma Resolving Dilemmas in Collective Innovation 10
  • 11. 2. Building on the identified simultaneous solves, we were able to identify four key management areas for collective innovation initiatives Key Management Areas Centralized vs. decentralized Media organization Infrastructure How can we find the relevant people and through what channels/tools? Interdepen- Issue and dencies opportunties Collective Innovation How can we go Exploitation vs. How can we use Management from conflicting Conflicting vs. exploration what we know to interests to strategy open the box? collective collective goals? Focus interests/goals How can we create a legitimate place for open Company vs. innovation? network focus Resolving Dilemmas in Collective Innovation 11
  • 12. Uncover an (unexpected) collective innovation management… Key Management Areas More than incentives… …Commit the right people Media to contribute to collective Infrastructure innovation Before sharing How can we find knowledge … the relevant people …Share an and through what agenda of channels/tools? open issues Interdepen- Issue and dencies opportunties Collective Innovation How can we go How can we use Management from conflicting Don’t avoid what we know to interests to conflicts, don’t open the box? collective goals? look for trade Focus offs… How can we …Deal with Not a shared vision! create a conflicts in a A legitimate place for collective legitimate place creative way innovation for open innovation? Resolving Dilemmas in Collective Innovation 12
  • 13. … with relevant visualization techniques Key Management Areas More than incentives… …Commit the right people Media to contribute to collective Infrastructure innovation Before sharing How can we find Visualize the emerging, relevant knowledge … the relevant people networks …Share an and through what agenda of channels/tools? open issues Interdepen- Issue and dencies opportunties Collective Visualize the Innovation How can we go How can we use unknown Management from conflicting Don’t avoid what we know to interests to conflicts, don’t open the box? collective goals? look for trade Focus offs… How can we …Deal with Not a shared vision! create a conflicts in a A legitimate place for collective legitimate place creative way innovation for open innovation? Visualize Visualize the legitimate place interdependencies Resolving Dilemmas in Collective Innovation 13
  • 14. 3. A workshop concept to help visualizing and managing each of the 4 key management areas Visualization Workshops Visualize the opportunity WORKSHOP STRUCTURE 1 space Objectives Conclusion Media Infrastructure How can we find the relevant people and through what channels/tools? Visualize the infrastructure Issue and opportunties Interdependencies 2 (and performance) How can we use what we Collective Innovation Management How can we go from conflicting interests to know to open collective goals? the box? Focus How can we create a legitimate place for open Visualize conflicts and innovation? 3 interdependencies Diagnosis technique (Tutorial for) (visualization) Practical application Visualize the nature of 4 collective innovation Resolving Dilemmas in Collective Innovation 14
  • 15. Workshop – Visualizing the Unknown 1) Purpose 6) Conclusion  Unveiling innovation strategies dilemmas “exploration vs. exploitation”  Visualizing unknown paths of innovation created at a collective level can help an open  Can a innovation lock-in situation be diagnosed, and is it possible to objectify the gap between innovation manager in solving conflicting situations. expected innovations and the ones that are currently attainable by existing innovation capabilities ? 2) Case study 5) Tutorial for an open innovation manager  Harnessing ICT innovation to augment the lives of the fragile and elderly people in the Rhone- Alps region (France)  An assessment : demand on the market increases (aging population) whereas few products or services arrive on the market today and provide successfully solutions  An orphan innovation situation : an innovation highly expected by society, but that no actor or consortium of actors can manage to process whereas all the structural conditions to foster it are gathered. 3) Initial diagnosis  There is a gap between attainable exploitations (that mobilize known competences and skills, established firms and interactions with partners, dealing with a stable identity of the objects) and expected explorations (that re-discuss the identity of the objects, explore new ideas and involve new actors) 4) How can an OI manager solve the dilemma?  Visualizing the unknown can make it possible to overcome an exploration / exploitation dilemma Resolving Dilemmas in Collective Innovation 15
  • 16. Workshop – Creating Legitimacy in Open Innovation How can we create a legitimate Diagnosis place for Open collective innovation is paradoxical to participants. They need to optimize both for the collective and for the home organization. The result is a number of tension/dilemmas that must be resolved in order for the open innovation collaboration to be perceived as a legitimate place to share open knowledge and generate ideas. innovation? 1. Conduct interviews with a Trust 4. Identify and emphasize Offices subset of involved key people: critical manifestations of Relations  What are the tensions that they legitimacy in the hips with Logo others experience between the home open innovation organization and the arena? Career OI Loyalty  What are the specific dilemmas Arena collaboration Business SAFER Academic legiti- cards papers involved in managing these tensions? macy Knowledge Shared Analyze Generation Con- tracts Experi- ences Office 2. Define Manifest Solution key  Who are the key people that must be involved in dialogues to solve the tensions?  What rules need to be established to enable an open and honest conversation? 3. Characterize the type of higher level solutions needed re- Trust solve the dilemmas in the open innovation collaboration Higher level solution Example Higher level solutions to be developed in open dialogues between stakeholders Home Collective Career Loyalty organization effort Solutions Risks viewpoint viewpoint The dilemmas are partly solved by creating If the process of creating legitimacy is legitimacy on the project level, but also on not open, you end up in a game like a higher level, where management plays Knowledge situation where no joint development an important role generation Career actually takes place. Arrange dialogue Resolve dilemmas Resolving Dilemmas in Collective Innovation 16
  • 17. Conclusion  An (emerging) model of the management of collective innovation… Known interests, known Discover interests, values, competences, known If the new techniques, stakeholders… futures… If the new changes the changes the game  game  management management limits the new Shape the unknown, broadens the to stabilize the Incentives, knowledge and creative use of conflict, unknown! game value sharing = networks expansion, optimisation & planning legitimate cooperative place  … in which “visualizing the invisible” (the unknown) is critical Resolving Dilemmas in Collective Innovation 17
  • 18. Resolving Dilemmas in Collective Innovation 18
  • 20. Ambidexterity is an established theme in management research Theoretical Background • Ambidexterity is the state of being equally adept in the use of both the left and the right hand • In management research, ambidexterity is usually referring to organizations who manage to efficiently run their current business while at the same time preparing for a changing future: • Relevant literature, examples: o Duncan, R. 1976. The Ambidextrous Organization: Designing Dual Structures for Innovation o March, J. G. 1991. Exploration and Exploitation in Organizational Learning o Tushman, M. L. and O’Reilly, C. A. 1996. Ambidextrous Organizations: Managing Evolutionary and Revolutionary Change o Raisch, S. and Birkinshaw, J. 2008. Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance Resolving Dilemmas in Collective Innovation 20
  • 21. Prior research indicates that successful collective innovators apply contradicting approaches simultaneously for managing their innovation activities Motivation Simultaneous Solve: Research Questions: Management Dimension Successful collective innovators seem to reconcile contradicting management approaches Ambidexterity (Simultaneous Solve), but… Examples: 1. Where and how are they doing EXPLOITATION EXPLORATION this? 2. What are the key management areas for collective innovation initiatives? 3. How can we help collective PROTECTING REVEALING innovators to visualize/manage these areas? Resolving Dilemmas in Collective Innovation 21
  • 22. SAFER Context VINNOVA Swedish Road Administration Region Västra Götaland 170 persons hold keys to SAFER office Autoliv CHALMERS Epsilon • 50% from Chalmers, 50% from other partners Gothenburg university Folksam SP Saab • ca 40 PhD students (40 % industrial) SMW VTI • 45 full time in SAFER TÖI Scan. Auto. Suppl. Viktoria institute Scania Imego AB Telia Sonera Sicomp AB Volvo CC Focus areas Volvo Group LSP  Incidents and accidents  Driver state/action/reaction  Prediction for accident prevention  Methods for evaluation of safety systems  Electric Vehicles and Vehicle Combination  Human Models and Biomechanics Pre-crash Crash Post-crash Resolving Dilemmas in Collective Innovation
  • 23. Organizational ambidexterity is a renown theme in management science Ambidexterity • Ambidexterity is the state of being equally adept in the use of both left and right appendages (such as the hands) • In Management, organizational ambidexterity is usually referring to organizations who manage to efficiently run their current business while at the same time preparing for a changing future • Literature e.g.: o Duncan, R. 1976. The ambidextrous Organization: Designing dual structures for Innovation o March, J. G. 1991. Exploration and Exploitation in Organizational Learning o Tushman, M. L. and O’Reilly, C. A. 1996. Ambidextrous Organizations: Managing Evolutionary and Revolutionary Change o Raisch, S. and Birkinshaw, J. 2008. Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance Resolving Dilemmas in Collective Innovation 23
  • 24. In 2010, a group a researchers started collaborating on a joint research project funded by the Peter-Pribilla-Foundation Research Setting Resolving Dilemmas in Collective Innovation 24
  • 25. Each team is running their specific case study which is dedicated to the underlying research question Research Question Successful collective innovators seem to Trade-off: reconcile contradicting approaches for Management Dimension managing their innovation activities (“Simultaneous Solve”), but… 1. How are they doing this? 2. What are the “hidden/invisible” Simultaneous Solve: variables (from a leadership, Management Dimension governance, process, and IT tool perspective) enabling them to resolve the resulting dilemmas? ambidextrous approach Resolving Dilemmas in Collective Innovation 25
  • 26. We see leading companies apply ambidextrous approaches (Simultaneous Solve) with regards to innovation management Simultaneous Solve - Examples • Organizational ambidexterity: Procter & Gamble have decentralized their R&D unit closer towards the business units and simultaneously created central innovation „think-tanks“ for disruptive innovations • Embedded Linux (OSS): Nokia and Philips in some cases have chosen Linux as operating system for their electronic devices. The developers engage with the Linux open source community and selectively share some of their own innovations while protecting (hiding) others • Procter & Gamble as well as Siemens systematically identify Intellectual Property (patents) which they do not use for their own business and commercialize it via Licensing and Spin-outs Source: Web research, press articles Resolving Dilemmas in Collective Innovation 26
  • 27. Our case study: How does Siemens manage their Open Innovation initiatives? Do they apply the Simultaneous Solve? Case Study • Founded 1857 • 400.000 employees • 31.000 R&D people • Annual R&D spend: ~4 bn. EUR, 56.000 active patents • # 34 in Business Week’s list of most innovative companies worldwide (ahead of Dell, Vodafone, Nike) How does Siemens manage collective/open innovation, and do they apply the Simultaneous Solve? Resolving Dilemmas in Collective Innovation 27
  • 28. Siemens has a central Open Innovation unit which provides structures, processes and tools Open Innovation at Siemens *) “Service provider” Siemens CTO OI Industry Energy Healthcare Corporate Functions (cross-sector) Corporate Technology (CTO) Open Innovation CTO OI *) Organization as of 04/2011 Open Innovation Activities Framework (by Siemens CTO OI) Resolving Dilemmas in Collective Innovation 28
  • 29. Our case study included interviews with the central OI unit as well as operating business units (which run OI initiatives) Case Interviews CENTRAL UNIT CTO Open Innovation • Interview with head of Unit Dr. “There is hard work to be Lackner done in opening doors while maintaining some • Interview with Open control, (…)” Innovation Specialist Dr. Lackner OPERATING BUSINESS UNITS Innovation Hubs Siemens Student Award Smart Grid Contest, 2011 Sustainability Idea Technology Contest (internal), Middle-East (Dubai), Contest (internal), 2010 Accelerators; Out- 2011 2011 licensing, spin-outs Resolving Dilemmas in Collective Innovation 29
  • 30. Our findings support first indications from prior literature that the simultaneous solve is applied in OI Management Case Study Findings (1/2) SIMULTANEOUS MGT. DIMENSION FINDINGS SOLVE 1)  The central open innovation unit develops structures and concepts, identifies technical solutions and solution providers, advertises the concepts across the Organization business units, and supervises the open innovation initiatives.  By contrast, the individual initiatives are then run as projects by the respective (decentral) business units with guidance and sparring from the central unit. • Open innovation initiatives are neither demanded top-down from the management, nor initiated autonomously by the internal or external Governance communities. It is rather the middle management that decides that open innovation may help in their business context • There are also no top-down targets set, neither for individual open innovation initiatives nor for the central open innovation unit • The decision process of selecting the best ideas uses a combination of bottom-up and top-down mechanisms: Short-listing of ideas is done via the votes of the community and a jury of managers and experts perform the final selection 1) Harvey balls: Black ball = simultaneous solve identified. White ball = simultaneous solve not identified Resolving Dilemmas in Collective Innovation 30
  • 31. However this does not apply to all dimensions. Motivation of participants seems to be limited to intrinsic mechanisms Case Study Findings (2/2) SIMULTANEOUS MGT. DIMENSION FINDINGS SOLVE 1)  IP protection is a well established practice because IP has always been vital for Siemens business success in competitive markets IP Management  A dedicated subsidiary (Siemens Technology Accelerator) works with venture capitalists to establish new start-ups that make use of un-used IP by developing innovative business models • Siemens heavily relies on intrinsic motivation. Receiving attention and feedback in virtual discussions with other participants seems to provide a Motivation sufficient motivation for employees to contribute. • For internal initiatives, the prospect of presenting own ideas in front of a management jury may motivate employees to invest significant efforts in open innovation activities Innovation • Innovation Strategy (exploration vs. exploitation) has not been discussed as Strategy and a management dimension, in the conducted case interviews ? other • Also, we could not yet identify additional management dimensions relevant for Open Innovation management dimensions 1) Harvey balls: Black ball = simultaneous solve identified. White ball = simultaneous solve not identified Resolving Dilemmas in Collective Innovation 31
  • 32. How does the Simultaneous Solve impact performance? Can we measure the performance of Innovation Communities? Performance of Innovation Communities Performance KPIs Attributes of participants • Intensity of • Specific role-profiles of participants communication • Technical / educational background of Measure • Number of idea & participants ment proposals • Time participants spend in the network (KPIs) • Selected ideas / • Geographical proximity solutions • Belonging to the same business unit / area • Business benefit • ... • ... Communication Infrastructure Performance Evaluation 1. Nodes = Participants 2. Arcs = Collaboration 3. Centricity = Performance 4. Colours = Attributes Resolving Dilemmas in Collective Innovation 32
  • 33. Collaboration (Meetings, Topics) Team Workshops Gothenburg Munich 22 Mar 2011 24 Oct 2011 1. Four reference cases: identify critical dilemmas, techniques to solve them, efficiency of these Kick-off 1 Case studies Final techniques presentation 2. Visualization Management Techniques of the OI manager (building the OI square): a) Visualize the unknown b) Visualize interdependencies c) Visualize communication networks Individual Case Studies d) Visualize an identity 3. A workable format to help OI managers: “how do you design your own OI leader” Nuremberg Paris Paris a) Interactive, based on experiences 15 Dec 2010 30 Jun 2011 15 Sep 2011 b) Cumulative c) Self evaluation: what kind of dilemma 1 Case studies 1 Case studies 2 Visualization do you solve. 2 Visualization 3 OI Manager Resolving Dilemmas in Collective Innovation 33
  • 35. 28 th June 2011 Paris, Pribilla group Resolving dilemmas in collective innovation The I-Care case Marine AGOGUE CGS, MINES ParisTech F-75 272 Paris, France Tel: +33 1 40 51 9201 Mail: magogue@ensmp.fr,
  • 36. Diagnosing exploration / exploitation dilemmas C-K referential on ICT for autonomy in Rhône-Alpes region attainable exploitations expected explorations A C-K referential helps to diagnose the gap between reality and expectations, and provides a way to objectify the distance between attainable exploitation and expected exploration Resolving Dilemmas in Collective Innovation 36 Data : workshop analysis, interviews of firms, questionnaire (22 responses) Marine Agogué – MINES ParisTech
  • 37. Visualizing the unknown to overcome dilemmas Using the C-K referential : cases of ST-Microelectronics and of I-Care Generated actions of C-K referential 1 – Define new projects for established firms 2 – Build new partnerships 3 - Expand the scope of action for institutions who want to act as an open innovation facilitator 4 - Foster new ways to interact (seminars) Identifying complementary 2 actors who have the knowledge and/or skills that are currently 3&4 lacking 1 Mobilizing existing knowledge in a Identifying missing knowledge, and interesting concepts to develop different concept is attainable for + established firms Launching collaborative workshops with relevant actors to fill the knowledge gapsand to explore interesting unexplored concepts Resolving Dilemmas in Collective Innovation 37 Marine Agogué – MINES ParisTech
  • 38. How to build the C-K referential ? Toolkit for a OI leader C-K referential : A tool that requires to mobilize innovative design C-K theory and its formalisms * STEP 1 Gather classical knowledge (experts) & 3 3 list all the current projects STEP 2 From this first knowledge basis, build the 4 known paths of innovation STEP 3 2 Expand the knowledge basis, meet new experts and build a robust model of high- 1 level of abstraction STEP 4 & 5 Expand the knowledge and concept spaces until no more expertise or project seems out of the scope 5 6 5 STEP 6 Position projects on the innovation field mapping An Open Innovation can then rely on such a tool for balancing between attainable exploitations and expected explorations * Bibliography : Hatchuel, A.Dilemmas inC-K design theory: An advanced formulation. Research in Engineering Design 19, 181-192. 4. Resolving & Weil, B. (2009) Collective Innovation 38 Hatchuel, A., Le Masson P., Weil,B. (2004). C-K theory in practice, lessons from industrial applications. Annual meeting of The Design Society, Dubrovnik. Marine Agogué – MINES ParisTech
  • 39. Resolving Dilemmas in Collective Innovation The case of open management of farming systems Elsa Berthet Blanche Segrestin October 2011 – Mines Paristech
  • 40. Diagnosis of dilemmas: Initial situation Agrosystem Local That produces food Auth. for humans NGO That provides food of Research good quality Center Farm Maximizing yields Preserving natural equilibria Coop With areas of regulations Farm Only with (grasslands) profitable crops Farm Using chemicals, Initial Using ecosystem Farm fertilizers… situation: no services common Few relationships ground between stakeholders 40 Resolving Dilemmas in Collective Innovation
  • 41. Identify alternative ways to deal with the dilemmas (Concepts) List of attributes from a productive (Knowledge) and from an ecological perspective: Common/cleaving attributes Potential values associated to A productive agrosystem that these attributes preserves natural equilibria Functions having an Functions having a Without With grassland grasslands individual potential collective potential value value Frequent No mowing in No mowing Design i.e. use fertilizers to i.e. reduce the use of mowing Summer parameters (DP) increase grassland yields herbicides to preserve activated at an groundwater Use of individual level Use of Reduced No use of herbicides herbic. herbic. herbicides DP activated at a i.e. coordinate grassland i.e. coordinate collective level localization to reduce grassland localization to individual costs for maximize biological Without Without With farmers control localization of localization localization grasslands Visualize opportunities for open innovation that overcome the initial dilemma 41 Resolving Dilemmas in Collective Innovation
  • 42. Ex. 1) Visualize grassland design parameters 2) Visualize interdependencies Grassland Watero rg. Local Auth. With fodder Without fodder production production NGO Research Frequent No mowing Center mowing in Summer Loss of harvest, Pests Farm Use of No use Use of Reduced No use herbicides of herb. herb. herb. of herb. Coop Farm Farm Without With Without With Biological localization localization localization localization control Farm 42 Resolving Dilemmas in Collective Innovation
  • 43. Empty pattern 3° Represent existing design paths, and propose intermediary paths that create a common ground 1° Diagnose the conflict: Specify the attributes (design between actors parameters, functions) of the conflicting object 2° Identify the potential values of cleaving attributes + Find new attributes with potential values DP1a DP3 DP2a DP1b DP2b 4° Visualize interdependences between actors created by the new solutions proposed, and stimulate innovative collaboration 43 Resolving Dilemmas in Collective Innovation
  • 44. The visualization of the communication infrastructure and its performance is based on the (quantitative) origin and the (qualitative) rating of idea contributions Analysis Framework Platform   Origin Ideas Evaluation/Rating Idea contributors with Database differentiating attributes (e.g., geography, age, job title, sector, department etc.) Quantitative Qualitative Analyses Analyses
  • 45. Heat maps visualize the distribution of ideas by selected user attributes; by combining heat maps, the tree map offers an integrated perspective on “hot spots” Visualization: Heat & Tree Maps (Idea Quantity) 140 Number of Ideas by Age (Attribute 1) Number of Ideas by Region (Attribute 2) 120 Max. 100 high 80 medium 60 low Max. 40 20 0 < 25 25 - 35 35 - 45 45 - 55 > 55 Tree Map: Number of Ideas by Attributes Max- Attribute 1 600 300 100 Max Attribute ... 400 200 Min- Max Attribute n 280 120 140 60
  • 46. By comparing quantitative and qualitative “hot spots”, the collective innovation manager can identify “untapped” target groups and derive corrective actions Evaluation: Idea Quantity vs. Quality Quantity of Ideas (Count) Quality of Ideas (Rating) Same structure „Untapped“ Stars Stars More ideas, Fewer ideas, but lower but better Collective Innovation Manager: quality quality Pay special attention to “untapped” stars and take corrective actions