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Are 20th Century Constraints Holding Back Open Innovation? (Yes!)

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Are 20th Century Constraints Holding Back Open Innovation? (Yes!)

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Managers who want to be strategic about open innovation need to let go of practices that might have worked in the 20th century but are outmoded in the faster-paced, more collaborative, technology-reliant 21st century.

Managers who want to be strategic about open innovation need to let go of practices that might have worked in the 20th century but are outmoded in the faster-paced, more collaborative, technology-reliant 21st century.

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Are 20th Century Constraints Holding Back Open Innovation? (Yes!)

  1. 1. LEAD BY LETTING GO ARE 20TH CENTURY CONSTRAINTS HOLDING OPEN INNOVATION BACK?
  2. 2. LEAD BY LETTING GO TERRI GRIFFITH SANTA CLARA UNIVERSITY @terrigriffith Slideshare.net/TerriGriffith
  3. 3. Examples/Opportunities Lead By Letting Go Experiments Open Innovation Success
  4. 4. PATH How to Let Go How to Hold Tight Examples Small & Large Background Challenge Pressures Opportunity Application Send Off…
  5. 5. PATH How to Let Go How to Hold Tight Examples Small & Large Background Challenge Pressures Opportunity Application Send Off
  6. 6. PICTURE OF AUDIENCE
  7. 7. 2014
  8. 8. Chesbrough, H., & Bogers, M. (2014).
  9. 9. PATH How to Let Go How to Hold Tight Examples Small & Large Background Challenge Pressures Opportunity Application Send Off
  10. 10. Google Trends
  11. 11. 15 OPEN INNOVATION IS HOW GROWTH HAPPENS IN THE 21ST CENTURY
  12. 12. 16 WHAT 20TH CENTURY BOUNDARIES OR PRACTICES MAY BE HOLDING US BACK?
  13. 13. Open Innovation Knowledge Sharing Performance Management Participation Intellectual Property Rules
  14. 14. PATH How to Let Go How to Hold Tight Examples Small & Large Background Challenge Pressures Opportunity Application Send Off
  15. 15. PLEASE, FOR EACH OF THESE – TAKE A NOTE RELATED TO YOUR OWN ORGANIZATION….
  16. 16. Globalization
  17. 17. http://research.ncsu.edu/docs/joint_meetings/fy2014-15/Lomax_Data_Science.pdf
  18. 18. Disintermediation
  19. 19. Disintermediation “Fractioning”
  20. 20. AirBnB Lyft LegalZoom Coursera, Udemy, Udacity YouTube eBay Etsy UpWork (Elance/oDesk) Amazon Mechanical Turk
  21. 21. 26http://www.bbc.com/news/world-europe-33267581
  22. 22. MONKEY SELFIE CAN’T BE COPYRIGHTED
  23. 23. Social Networks of Greater Interest than Organizational Structure
  24. 24. CAN’T CHANGE JUST ONE THING…
  25. 25. 30
  26. 26. PATH How to Let Go How to Hold Tight Examples Small & Large Background Challenge Pressures Opportunity Application Send Off
  27. 27. Purpose, Direction, and a Thoughtful Design
  28. 28. Photo Credit: Steven Vance
  29. 29. Photo Credit: Cpl. Sean Capogreco Sgt. 1st Class Cheryl Stearns
  30. 30. Photo Credit: Deepwater Horizon Response Get Strong, Then Let Loose
  31. 31. Photo Credit: Rob Swystun
  32. 32. Photo Credit: Rob Shenk
  33. 33. Photo Credit: Rob Shenk Hold tight to your performance standards, engagement, the value of education, and the laws of physics.
  34. 34. Photo Credit: Rob Shenk What are “the laws of physics” in your situation? How can you know?
  35. 35. Autonomous Modular Systemic “PHYSICS” Exists Ally Ally with Caution Must Be Created Ally or Bring in House In House Type of Innovation Chesbrough & Teece, 2002 Capabilities
  36. 36. WHERE IS THERE AN OPPORTUNITY TO LET GO IN YOUR ENVIRONMENT?
  37. 37. WHO HAS AN EXAMPLE OF WHERE THEY HAVE EFFECTIVELY LET GO?
  38. 38. PATH How to Let Go How to Hold Tight Examples Small & Large Background Challenge Pressures Opportunity Application Send Off
  39. 39. CHALLENGE: LEAD BY LETTING GO BUT MAINTAIN ENGAGEMENT
  40. 40. CHALLENGE: LEAD BY LETTING GO BUT MAINTAIN ENGAGEMENT WHY?
  41. 41. http://www.millennialinc.com/Millennial_Inc_PRINTPDF.pdf 8 18 → 27
  42. 42. http://www.millennialinc.com/Millennial_Inc_PRINTPDF.pdf 8 18 → 27 Jobs
  43. 43. http://www.millennialinc.com/Millennial_Inc_PRINTPDF.pdf 8 “In search of something more” Jobs
  44. 44. https://hbr.org/2014/11/the- us-chairman-of-pwc-on- keeping-millennials-engaged
  45. 45. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged
  46. 46. https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged
  47. 47. COMMUNICATION KEY TO ENGAGEMENT TECHNOLOGY SUPPORT OF WORK PROCESS
  48. 48. PERSONAL ENGAGEMENT WITH INNOVATION
  49. 49. YOU CAN’T JUST LET GO HUMAN, TECHNICAL, & ORGANIZATIONAL SCAFFOLDS SET THE STAGE
  50. 50. PATH How to Let Go How to Hold Tight Examples Small & Large Background Challenge Pressures Opportunity Application Send Off
  51. 51. Letting go of a strict org chart Holding tight to learning & teamwork
  52. 52. Letting go of “stealth mode” Holding tight to co-innovation
  53. 53. Letting go of boundaries around R&D Holding tight to resourcing R&D through training, practices, and attention
  54. 54. 66 Letting go of boundaries around R&D Holding tight to formal agreements “Good fences make good neighbors”
  55. 55. 67 Letting go of selling a box or upfront services. Holding tight to investment investing in users’ experiments - $100M
  56. 56. Hyperloop 760mph?
  57. 57. 69
  58. 58. 70 Letting go of idea ownership Holding tight to incentives & opportunity
  59. 59. PATH How to Let Go How to Hold Tight Examples Small & Large Background Challenge Pressures Opportunity Application Send Off
  60. 60. LIFELONG LEARNING
  61. 61. It’s as if students flatlined after their “terminal” degree. Current Situation (Traditional Degrees)
  62. 62. LIFELONG LEARNING Let go of traditional models of education Hold tight to the value of education, wherever it comes from
  63. 63. “ ” WHEN INTEGRATED WITH THE HUNDREDS OF MILLIONS OF MEMBERS AND MILLIONS OF JOBS ON LINKEDIN, LYNDA.COM CAN CHANGE THE WAY IN WHICH PEOPLE CONNECT TO OPPORTUNITY. Jeff Weiner, LinkedIn’s CEO, press release
  64. 64. ACCESS TO ONLINE TALENT Let go of boundaries around employment Hold tight to clear goals and long term relationships
  65. 65. • http://elance-odesk.com/online-work-report-global Global Online Work Report
  66. 66. McKinsey & Co
  67. 67. WORKING WITH MACHINES
  68. 68. WORKING WITH MACHINES Artificial intelligence and jobs – STEM fields as a protection
  69. 69. WORKING WITH DATA
  70. 70. Wiley and SAS Business Series
  71. 71. “ ” BUILDING INTO THE COMPANY FEEDBACK LOOPS WHERE THE CUSTOMER CHANGES THE COMPANY FOR YOU John Battle, yesterday
  72. 72. PATH How to Let Go How to Hold Tight Examples Small & Large Background Challenge Pressures Opportunity Application Send Off
  73. 73. TESTING FOR YOURSELF
  74. 74. “ ” MY REAL BOTTOM-LINE HYPOTHESIS IS THAT NOBODY HAS A SWEET CLUE WHAT THEY’RE DOING. THEREFORE YOU BETTER BE TRYING STUFF AT AN INSANELY RAPID PACE. YOU WANT TO BE SCREWING AROUND WITH NEARLY EVERYTHING. RELENTLESS EXPERIMENTATION WAS PROBABLY IMPORTANT IN THE 1970S—NOW IT’S DO OR DIE. Sep 2014: Tom Peters, founder of McKinsey Organizational Effectiveness Practice
  75. 75. “ ” DO THE PROOF OF CONCEPT PROJECT Dick Kouri, yesterday
  76. 76. “ ” DOING IS THE BEST KIND OF THINKING Tom Chi, then Head of Experience - Google X
  77. 77. PATH How to Let Go How to Hold Tight Examples Small & Large Background Challenge Pressures Opportunity Application Send Off…
  78. 78. T@TerriGriffith.com
  79. 79. Photo Credit: Rob Shenk Hold tight to your performance standards, engagement, the value of education, and the laws of physics.
  80. 80. LET’S SEE WHERE WE GO…

Notas do Editor

  • Good morning and thank you….

    Santa Clara sits in the heart of the Silicon Valley. We have Stanford to the West and Berkeley to the North. Cisco is about 10 minutes away. Google and Facebook about 20. Ebay is around the corner and Polycom is just up the road. IBM’s Almaden research center is a bit to the South. These are the settings where my students and I get to develop and test our ideas.

    I’ll be sharing some of these stories with you today.
  • My goal is to suggest a perspective – Lead by Letting Go – and to offer enough examples and opportunities so that you leave with at least one possible experiment for your own organization.
  • Note that the path doesn’t end with the sendoff. This is our first chance to get to know one another and I know CIMS is just as eager as I am to hear from you later with remaining questions or examples.
  • Let’s start with some background: Yours and mine.
  • How many of you are from organizations that actively practice open innovation? How many of you are looking for strategies to improve your open innovation practices? We’ll come back at the end to see if we’ve taken a step forward today.
  • My background:

    I want to acknowledge that my research is not specific to open innovation. I’m an expert on the collaboration and implementation that underlies innovation in general – rather than the design of the technical systems or the strategic planning. Given the number of hands that went up, you bring that expertise to this group.

    I do want to share a bit about my background in terms of the authors I think of first when teaching these topics.

  • http://papers.ssrn.com/sol3/Papers.cfm?abstract_id=2427233
    Chesbrough, H., & Bogers, M. (2014). Explicating open innovation: clarifying an emerging paradigm for understanding innovation. New Frontiers in Open Innovation. Oxford: Oxford University Press, Forthcoming, 3-28.


    Coupled Open Innovation
    Enkel, E., Gassmann, O., & Chesbrough, H. (2009). Open R&D and open innovation: exploring the phenomenon. R&d Management, 39(4), 311-316.
  • Any of the changes we make, can’t be made with a silver bullet… you need to work with the human, technical, and organizational dimensions to thrive

    Comments from Monday regarding analytics innovations
    Ramesh Ratan (Bell & Howell) mentioned on Monday the importance of culture.
    Preston Linn BME UNC/NCSU made the comment about politics
    Greg Hopper Strategic Edge Executive Resources, LLC mentions the McKinsey report
    Doug Calaway mentions leadership, creativity and issues of upside (limited potential) downside severe. Right people in the room. “All about the team.”
    Structural


  • One of the things I did when first approached about this talk was to do a quick check on the attention being paid to open innovation.

    This is a Google Trends chart. Number of times a term is searched for in blue, number of times it’s found in a literature subject is in red.

    Whether our attention to open innovation is trailing off or not, many, most of us, have opportunities to improve given the changing innovation environment.
  • Open innovation is how growth happens in the 21st century. Then the question becomes, how can you make it a more efficient and effective part of your innovation strategy in your own organization.


  • Some 20th century boundaries limit the flow of needed knowledge. My own university limits the extent we can openly share our documents either to be read or edited. Performance management systems based on year-long cycles may miss or even work against innovation project timelines. Some employment rules may block the use of non-employees, dramatically reducing the perspectives brought to bear. Limits on how ideas come into the organization and are assessed may also limit the knowledge brought to bear.

    I can generally find a kernel of logic in these 20th century approaches – but the demands (and opportunities) of the 21st century push us to let go of these limitations.
  • This picture of 1950’s coal miners is to keep me grounded. Some organizations have been practicing 21st century open innovation since the 50s. In the 1950s, some coal mining operations brought in innovative mining techniques, but their performance wasn’t at all what they hoped. It took them working on the process portion of the innovation with partners from the Tavistock Institute to realize their outcomes. In the 1960s Nucor Steel changed their organizational structure and performance management systems to enable innovation to come from throughout the organization. Later I’ll talk about Intuit’s 21st century version of this.

    http://explorepahistory.com/displayimage.php?imgId=1-2-922

  • I say pressures – but note that I could have also said opportunities, but I want to save that heading for later.
  • Our markets are global, our innovation should be too. Open innovation facilitates global innovation.
  • Requires deep expertise – Yesterday’s sessions were a beautiful example. You need access to data science, but you may not need to bring it in house. I’ll give an example of such a situation later.
  • Just look around this room
  • http://fortune.com/unicorns/uber-2/
    AirBnB doesn’t own any real estate
    Lyft & Uber don’t own any cars
    Coursera etc. don’t employ faculty
    50 B in July 2015 http://www.wsj.com/articles/uber-valued-at-more-than-50-billion-1438367457

    Basically – your competition may already be doing it.
  • http://www.bbc.com/news/world-europe-33267581

    But it’s not always easy.
  • Even monkeys have more power now.

    Power is spread
  • Appearing in books.google.com
  • http://www.flickr.com/photos/yto/6008588712/

    It’s about working with the human, technical and organizational dimension. No silver bullets.
    …and that brings us to design

  • …and that gets us to how to let go
  • I love this image. She’s letting go, but with purpose, direction, and a thoughtful design.
  • But I’m not talking about letting go of control everywhere

    https://www.flickr.com/photos/jamesbondsv/8643220891/
  • Sam Snead was known as having a “perfect swing.” He said the best grip for a long golf shot as the same as holding a baby bird in your hand.
  • Some people, not me, even like to let go of a perfectly good airplane

    https://www.flickr.com/photos/soldiersmediacenter/397629064 “At a zero angle of attack, better known as a “No Lift Dive,”
    Sgt. 1st Class Cheryl Stearns, from the U.S. Army Parachute Team Golden Knights, holds her position to build enough air
    speed to execute the “style set” in a competitive amount of time. This photo appeared on www.army.mil.”
  • Helping someone or something get strong, and then let it loose

    https://www.flickr.com/photos/deepwaterhorizonresponse/4731238723/
  • A conductor doesn’t play all the notes herself. She provides the human, technical, and organizational resources to support the organization in making great music. https://www.flickr.com/photos/rob_swystun/8098008837/in/photostream/
  • What’s wrong with this picture?
    Sean D. Tucker – the best aerobatic pilot in the world. Counsels new sales hires to not cross the line (in my words, to pay attention to respect gravity)
  • Others in the room could provide us more nuance on this idea

    http://netvis.fuqua.duke.edu/iande/readings/chesbrough_1996.pdf

    Systemic
    Complementary Innovation
  • Time for Reflection
  • Time for Reflection
  • Study in the UK “The average 26-year-old …changed jobs an astounding seven times from age 18, in search of something more.”
  • “The average 26-year-old …changed jobs an astounding seven times from age 18, in search of something more.”
  • “The average 26-year-old …changed jobs an astounding seven times from age 18, in search of something more.”
  • https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged

    Let’s stay with our focus on millenials
  • https://hbr.org/2014/11/the-us-chairman-of-pwc-on-keeping-millennials-engaged
  • Engagement has been key to innovation for a long time.

    Making a point: We can all engage personally with Innovation
  • Engagement with fans – Levi’s stadium
  • Pixar friends and family days
  • Hands on Lean Innovation Statup -- ESADE students come to SV
  • So let’s see some examples.
  • Small to large
  • Holding tight to
  • http://www.ibm.com/smarterplanet/us/en/ibmwatson/ecosystem.html

    “…partner program providing Watson cognitive technology to businesses, access to IBM’s network and a community of entrepreneurial organizations working to solve their industry’s toughest challenges”

    $80/user/year http://www.ibm.com/analytics/watson-analytics for the analytics engine

    https://console.ng.bluemix.net/pricing/ 2-5K for big instances

    Pay for what you use. Instead of buying everything up front, experiment and find value.
    Thanks to John Feller for checking my notes.
  • I’m not quite sure of what to make of this one
  • Hyperloop Transoportation Technologies 10hours/week http://hyperlooptransp.com/
    Hyperloop Technologies http://hyperlooptech.com/

    Letting go of idea ownership
    Holding tight to incentives
  • Hyperloop Transoportation Technologies 10hours/week http://hyperlooptransp.com/
    Hyperloop Technologies http://hyperlooptech.com/

    Letting go of idea ownership
    Holding tight to incentives
  • Those are interesting examples and ideas, but others are already using them – how can we lead, rather than follow?
  • It’s as if we thought students “flatlined” after their “terminal” degree.
  • Changing jobs, changing careers, changing technology
    “Nano degrees.” Laura Tyson, Chairman, President's Council of Economic Advisors; Boards of AT&T Inc.; Morgan Stanley; CBRE Group Inc.; Silver Spring Networks
  • http://elance-odesk.com/online-work-report-global

    Kelly report – the analytics question yesterday – will the flexible distributed workforce cloud be viable in the healthcare market?
  • http://www.mckinsey.com/insights/employment_and_growth/connecting_talent_with_opportunity_in_the_digital_age
  • Google redoing most of the critical HR studies, but in their own setting.
  • http://www.mckinsey.com/insights/organization/tom_peters_on_leading_the_21st_century_organization?cid=mckq50-eml-alt-mip-mck-oth-1410
  • Pick one light weight experiment – even if it’s just to reality check an idea you had.
  • At the beginning I asked how many of you are from organizations that actively practice open innovation. I also asked about whether you are looking for strategies to improve your open innovation practices. Let’s see how we did – please raise your hand if you have at least one new thing to consider in your own organization.

    All right, let’s take some questions and comments and see if we can get that to 100%.

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