According to data gathered by Bluenove in 2011, major industrial players in France have taken the steps to integrate Open innovation concepts, that are today understood and being applied in all industrial sectors. This is a major evolution in corporate behavior and has had a positive effect on their operating modes (54%). On the other hand, behind the scenes, these same companies are continuing to question themselves on the concrete impact of Open Innovation. 55.7% of these companies do not expect to gain any short term benefit from an Open Innovation strategy and do not expect this to have an impact before a number of years. In this way they are addressing Open Innovation as a long term stake in the deep and sustainable transformation of French industrial culture.
In parallel to this, surprisingly these same companies show confidence in their Open Innovation programs. They know the risks involved in intellectual property rights, the eventual loss of control over innovation processes and the difficulties associated with integration and collaboration. With these risks now identified, measured and accepted, these major industrial players consider that they possess the means and the corporate culture necessary to overcome them and successfully embark on an Open Innovation program.
Today the actions applied by major French companies are primarily focused on the initial stages of open innovation with 41.2% stating that they are still in the very first stages of this strategy. This contrasts with an American study conducted in 2009, where 49% of the major American companies interviewed had already moved into development stages of applying open innovation practices and 40% were actually in the process of optimizing it. Whereas in France, only 21.9% of equivalent firms claim to be in this process of optimization.
The report can be read here.
NineSigma has announced the launch of their new online OI Scorecard for innovation and business leaders to quickly assess open innovation capabilities. The web-based tool provides an initial evaluation of a company’s ability to collaborate as part of their innovation process, both with internal and external partners. The tool also assesses the organizational structure and systems that are needed to effectively support collaborative innovation.
“Understanding where you are in your open innovation efforts is a critical first step to charting a path forward,” said Matthew Heim, president of NineSigma. “Companies at varying levels of open innovation maturity come to us looking for better results from their open innovation investments. We help them build on their strengths while addressing their needs for improvement. Using key indicators, the scorecard is a quick way to get a snapshot of a company’s capabilities. In addition to an OI “score”, the tool provides recommendations for how to address the gaps identified.”
Specifically, the open innovation tool measures a company’s ability to collaborate on innovation in three tiers: within and across the company, with the company’s existing external network, and with the global innovation community. Capabilities are evaluated on two axes that measure the extent to which the company engages with innovation partners and how well enabled they are to assimilate resulting knowledge and solutions into their organization.
The 3 tiers of collaborative innovation
Business and innovation leaders interested in assessing their company’s open innovation capabilities can access the NineSigma OI Scorecard tool at http://www.ninesigma.com/OIscorecard.aspx. The web-based survey takes approximately 5-7 minutes to complete.
Interesting article in the New York Times: “Innovate, Yes, But Make it Practical”
Key messages include:
- LinkedIn found that more than 700 people listed their current job title as “chief innovation officer” and that nearly 25,000 had the word “innovation” in their job title
- Innovation Managers are now senior executives in major corporations. Indeed, many smart companies now have VP-level Open Innovation Managers
- These senior leaders need unfettered access to all parts of the organisation to be effective
- Internal venture funds are essential for successful execution of Innovation activities
- Innovation is certainly possible in the services industries e.g. Banking and finance
- Customer-centricity is paramount
- Incubating ideas that deliver scale is powerful
- Does your organisation need a VP for Innovation?
- Indeed, should you have a VP for Open Innovation?
- How are you breaking down barriers to allow “unfettered access”?
- Do you have sufficient focus on customer-centricity?
- Have you set aside sufficient funds for “internal ventures”?
P&G have long been held up as a flagship corporation when it comes to Open Innovation. After reading the Pictures of the Future document from Siemens, I really feel I can put Siemens up there with P&G. The message from Siemens is clearly that Open Innovation is vitally important to their future. The document highlights many of the projects that Siemens is undertaking around the globe that have Open Innovation at their core. It is exceptionally impressive. Siemens have taken the concept of Open Innovation and are truly making it a reality.
There are an excellent series of podcasts produced on EnterpriseLeadership.org. I am bringing links to these here.
Dr. Joel West, Academician and Author, Talks about the Open Innovation Paradigm for Technology Development In this podcast, Dr. West explores what powers the concept of open innovation and how it differs from traditional innovation efforts, such as research and development.
Tom DeGarmo, a principal at PricewaterhouseCoopers, Makes a Case for Open Innovation in Economic Downturn DeGarmo provides insight from his research experience with open innovation, gives examples of open innovation communities, and gives CIOs and CTOs several takeways for using technology to carry out open innovation initiatives.
Steve Shapiro, InnoCentive’s vice president of Strategic Consulting, Talks about Using Open Innovation to Solve Tough Problems Shapiro explains the reasons for using open innovation to solve tough problems, InnoCentive’s business model for generating revenue, some of InnoCentive’s most successful challenges, the benefits of using InnoCentive, and the challenges the company faces in this economy.
How CIOs Can Reshape Their Company’s Business Model: C.K. Prahalad, Best-selling Author and Academic Prahalad provides specific examples of how senior IT executives can address new business opportunities for their companies, how new technology initiatives can drive business opportunities at the bottom of the pyramid, why companies should embrace the concept of open innovation, and what the CIO role will be like 10 years from now.
Dr. David Tennenhouse, partner at New Venture Partners, Talks about Different Approaches to Open Innovation In this podcast, Tennenhouse talks about the need for companies to turn to open innovation, the way open collaboration enhanced open innovation at Intel and other organizations, the emergence of innovation that venture capital firms are seeing, and the takeaways CIOs need to be aware of if they want to promote innovation and open innovation.
Former Air Products Research Executive Talks about Establishing Successful Corporate Innovation Programs Why are some major companies good at driving corporate innovation in technology? For some answers, Enterpriseleadership.org turned to Dr. Ron Pierantozzi, who built his entire career on driving corporate innovation in a technology-related company and doing research in this area.
Open Innovation can be be found everywhere.
DuPont has announced the winners in the 22nd DuPont Awards for Packaging Innovation, including the first fully compostable snack bag from Frito Lay and new PET bottles from Coca Cola that incorporate plant-based renewable polymer.
“These winners demonstrate that collaborative innovation has no boundaries. It crosses disciplines, markets and geographies,” said William J. Harvey, president — DuPont Packaging & Industrial Polymers. “The collective ingenuity of these business partnerships has yielded innovative new solutions that address pressing consumer needs.”
DuPont sponsors this long-running awards program to recognize innovation, provide learnings to the industry and highlight the importance of collaboration among value chain participants.
Do you know who TSMC is? I had the great pleasure about two years ago of visiting TSMC and speaking to some of their management. TSMC is the world’s largest dedicated semiconductor foundry. Its corporate headquarters are in Hsinchu, Taiwan.
Today, TSMC announced that it is extending its already hugely successful Open Innovation platform. TSMC originally launched the Open Innovation Platform in 2008 as an industry-wide design enablement initiative. To date, the Open Innovation platform has accelerated time-to-market, improved return on design investment and reduced design infrastructure duplication. It includes a set of interoperable ecosystem interfaces, collaborative components and design flows that efficiently empower innovation throughout the supply chain thereby enabling creation and sharing of newly-created revenue and profitability.
The Open Innovation Platform’s Alliance programs collaborate with EDA, IP, software IP, systems software and design services partners. The objectives are to deliver accelerated system-level design, reduced system design cost, a faster system-to-IC implementation design cycle, and faster time-to-market.
“The design ecosystem must move beyond its current bounds and embrace the systems- level challenges that are at the heart of every design consideration. The Open Innovation Platform began setting the standard for ecosystem collaboration two years ago. TSMC continues to answer the market’s call and will build that same collaborative spirit on a system-level basis,” explained S.T. Juang, senior director, Design Infrastructure Marketing at TSMC.
The Open Innovation Platform’s global Ecosystem Alliance programs have grown to include 30 EDA partners, 38 IP partners, 23 Design Center Alliance (DCA) partners, and 9 Value Chain Aggregator (VCA) partners. All partners participate in one or more of the Open Innovation Platform collaboration programs. TSMC also begins to work collaboratively with industry organizations, such as IPL Alliance and Si2, to promote the interoperability standards based on TSMC interoperable EDA formats.
“TSMC’s Open Innovation Platform delivers comprehensive and innovative design technology services that remove advanced technology adoption barriers. It helps lower design costs and improves time-to-market,” said Dr Fu-Chieh Hsu, Vice President of Design Technology Platform and Deputy Head of Research & Development. “The Open Innovation Platform will now begin addressing system-level design’s cost and complexity and enable packaging of entire electronic systems onto multi-chip packages.”