Open Innovation and the Ecosystem

1. From Ideas to Innovation
Open Innovation and the Ecosystem
Javed Mohammed
Innovation and Marketing Consultant
k2film@live.com
alchemyofinnovation.wordpress.com
A K2Vista Production

2. What is Creativity?
• Using the
imagination to
come up with
new ideas or
combine existing
ones in unique or
usual ways

3. What is Innovation
• The process of taking
a new idea and
making it useful

4. So what is an idea?
• A thought or a group
of thoughts that
develop in the mind.

5. How does an invention factor in?
• It’s basically how a
new idea comes into
being

6. The invention then has to spread
Called Diffusion
or S-curve of adoption
Terms originates from Everett M. Rogers' Diffusion of Innovations

7. The invention has to be faster, smaller,
cheaper, or differentiated from what
exists

8. The Adoption Curve of new technologies

9. Adoption curve players
• Innovators open to new ideas and like to tinker
• Early adopters are the trendsetters and opinion leaders
• Early majority are above average but still followers
• Late majority adopt after “it” has become the norm.
• Laggards are the die-hards and only adopt when they are
forced to.
Terms originates from Everett M. Rogers' Diffusion of Innovations

10. Majority of innovations not able to
cross the Chasm

11. An Innovation can be a new
• Product (can be goods or service)
• Process (eg online banking)
• Business Model: way a firm delivers value and
secures profits
• Technology (eg GPS)
• Social
• Market or
– new way of organizing the business, business practices
– new sources of supply or external relations.
Reference: Schumpeter, The Oslo Manual

12. Not every innovation is revolutionary

13. Type of Innovation
Can vary in newness and impact
• Incremental: Organic, the next logical step
• Radical (or breakthrough): a quantum leap
forward
• Transformational ( or disruptive)
Reference: http://www.innovation-management.org/types-of-innovation.html

14. Every act of creation
is first of all an act of
destruction.
Pablo Picasso

15. We Know Innovation is Important
Innovation
distinguishes
between a
leader and a
follower.
Steve Jobs

16. Innovation: Are we there yet?

17. In the past most innovation was
created internally
• R&D Centers,
Employees across
divisions, locations,
functions

18. But the rate of innovation isn’t enough
• "When the rate of
change outside an
organization is
greater than the
change inside, the
end is near”
Jack Welch

19. Innovation needs diversity of thought
Global
U.S. only
Economist Intelligence Unit and Grant Thornton survey of Business Exec, June 2010
"Innovation: The Key to Future Success?" Global results shown here.

20. This is where we have to look outside
• Customers/Consumers
• Partners/Suppliers
• Universities & research institutes
• Media, Analysts, Fortune-tellers
• Anyone with a passion or vested interest
• That’s OPEN INNOVATION

21. Open Innovation
• Use both internal
and external ideas,
and innovation to
grow and remain
competitive in the
market.
Chesbrough, H., “Open Innovation”, Harvard
Business School Publishing, Boston MA, 2003

22. Innovation relies on a good Ecosystem
Ideas
&
Commerci-
alization
Basic
Capital
Research
Laws/ Human
Regulation Resources

23. And funnels & filters
Idea Idea Idea
Idea Idea
Best Ideas

24. Ideas are a commodity, it’s the
execution that counts
Idea Generation
Selection
Execution
Launch to Market

25. Ideas are a commodity, it’s the
execution that counts
Idea Generation Ideation: develop new ideas
Selection Select the best ones through Crowdsourcing
Execution Test it, Alpha sites, prototypes
Launch to Market Launch to Market

26. Creating incentives
• To get people to participate in innovation,
requires different incentives.
1. Recognition: A mention in the newsletter,
lunch with an executive, Leaderboard
2. Competition: Leaderboard
3. Economic incentives: A financial or other
type of gift
4. Altruistic reasons: if self motivated no need
for rewards

27. Can apply Crowdsourcing
and Gamification to address
innovation
 Idea Generation
 Enterprise Collaboration
 Idea Markets
 Prediction Markets
 Jams
 Challenge Events

28. Parting thoughts on Innovation
• Innovation is multi-faceted
• There is no one way to do it
• No simple formulas
• Make it safe, make it transparent, make it fun,
make it rewarding for people to participate.
• Make it open, make it easy, get everyone
internal and external involved.

29. Parting thoughts on Innovation
• Get management on board, it needs sponsors,
it needs a budget to implement the best ideas.
• Recognize and reward not only winners but
participation.
• It takes time for people and culture to change.
Expect resistance, but learn, adapt and be
persistent.

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A K2 Vista Project
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Copyright 2012