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.
73. It’s as if students flatlined after their “terminal” degree.
Current Situation (Traditional Degrees)
74. LIFELONG LEARNING
Let go of traditional models of education
Hold tight to the value of education, wherever it comes from
75. “
”
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
76. ACCESS TO ONLINE TALENT
Let go of boundaries around employment
Hold tight to clear goals and long term relationships
88. “
”
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
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
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?
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%.