Posts Tagged open innovation
The tyranny of change and telling fortunes
Posted by jayvanzyl in 04 Ecosystems on July 8, 2010
I’ve had some push-back on my views about socially driven innovations and that in turn means a push back on open innovation. When “The Process Innovation Imperative” was written (leading up to 2002), the 4th Generation of R&D was in full swing. The focus was on using learning theories and knowledge based approaches to drive new innovations. I do not think that learning is less important today, it is just more imbedded in the make-up of our organizations as we are educated on the possibilities of what this can bring. With regards to 4th Gen R&D, the premise of getting the customer more involved in your business is a modern phenomena; and here to stay.
Some pertinent questions are being raised in light of a more open and transparent approach to innovation:
1. Our culture and organization does not function like this, so how will this work?
2. Our industry does not work like this, where can it be applied?
3. As an innovation leader I have no control over the more federally designed business units, how open can we be?
There are some undeniable evidence that movements towards a more open world is moving at a consistent pace. We do, as humans, have a problem in telling the future though. Our mental pictures of what’s possible are always different to those views of what actually happen. the result is that when we look back things don’t look so well crafted and planned.
Look at “Back to the future” Marty McFly arrived in the future (a few days ago) after hitting 88mph in a Delorean in 1985. What were you thinking about innovation in 1985? Remember the hovering skateboard?
There are some signs of change, especially those that are socially driven, that normally go unnoticed. This one isn’t; we are in a world where humans demand rights, want to be treated well, and feel they have the right to the benefit of their actions. Having just experienced the soccer world cup in South Africa, I once again feel that a movement like “against racism” is driving a society to believe (rightfully so) that inequality is wrong and that individuals should be valued.
A colleague just returned from China (Guangzhou an economic powerhouse). He found that after interviewing some prominent business leaders the result was quite clear. “So, why do you want to do open innovation again?” Let’s leave it at that for now…
Open innovation orientation
Posted by jayvanzyl in 05 Ecogenetic Changes on April 20, 2010
Stefan Lindegaard is working on his new book on Open Innovation. He has his first chapter available for download to get a taste of his thinking on the subject. I love his views and the initial read definitely presents a real world view on this topic of open innovation and crowdsourcing. There is however one key concern; I think we forget about the services companies and their role in open innovation. R&D is not seen in the same light as P&G for example, and there are many different challenges on delivering service innovations.
Our 
Open Innovation Orientation Model was developed together with a number of services and industrial organizations. These include banks, insurance organizations, manufacturers, distributors, and professional services firms. I do like Stefan’s definition of open innovation: “open innovation is very much about bridging internal and external resources to make innovation happen”. We have found that companies develop a “style” of operation over time that favors one approach over another namely:
1. Organizational Orientation (inside-out) – using the capabilities and key strengths of the business to figure out what to make next and sell to customers (or “clients” as for professional firms).
2. Customer Orientation (outside-in) – using customers to shape what needs to be focused on next and then shaping some key delivery capability to achieve the stated intent.
Organizational orientation is when a business relies on its analytical capabilities to drive new innovation campaigns. Furthermore it focuses on obtaining information from customers through deliberate actions and crafted surveys and research activities.
Customer orientation is determined based on the primary actions of “listening to customers” and then to include the customer as a co-producer of value creation. The act of listening has limited value as we can’t really learn a lot from absorbing information from our customers only. We need to immerse ourselves in co-produced activity where the inventor lives with the recipient; understanding the way in which the invention will be used and value derived. The act of immersion will prepare you to drive innovation that focuses on “surprise”. As humans we want to be surprised with great products and services, we don’t want to be asked all the time.
The Open Innovation Orientation Model is used to shape your involvement in a portfolio of activities to drive innovation activity. All actions are driven towards creating an innovation ecology where an organization can benefit from both the ability to engage the customer meaningfully and the ability to externalize some of the key capabilities to co-produce innovative outcomes.
“Apple never holds focus groups. It doesn’t ask people what they want; it tells them what they’re going to want next.” wrote Stephen Fry in Time Magazine. If Apple can re-invent itself from the inside-out, what does it mean for Open Innovation? What does “open” really mean?