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7 Steps for Open Innovation

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Innovation Drift
- Vilnius, September 3
www.innovationupgrade.com
stefanlindegaard@me.com
Twitter: @lindegaard
Hey! Free books, white papers and exercises on innovationupgrade.com!
Stefan Lindegaard
Author, speaker and strategic advisor
on open innovation, innovation
management / culture and the people
side of innovation.
Get in touch!
www.innovationupgrade.com
stefanlindegaard@me.com
@lindegaard
Three global megatrends drive innovation today: Everything moves
faster, everything will be connected and there will be a much higher
degree of transparency with regards to knowledge.
Focus is shifting away from ideas as they are in abundance. Now, the
front end of innovation is the easier part and the execution is what
really matters. We have begun the transition phase.
Disruption hits much harder and much faster than ever before. You
can’t plan for disruptive or radical innovation, but you can be sure you
will be disrupted.
What is open innovation?
“…a philosophy or a mindset that they should embrace within their
organization.
This mindset should enable their organization to work with external
input to the innovation process just as naturally as it does with internal
input”
Open innovation as a term will disappear in 5-7 years!
7 Steps for Open
Innovation
1. Common Language and Understanding, Motivation,
Mandate and Strategic Purpose
2. Assets and Needs
3. Value Pools and Channels
4. Internal Readiness
5. External Readiness
6. New Skills and Mindset
7. Communications Strategy
P&G
MEDTECH
PHARMA
Cycle time, money, IPR, conservatism, government regulations and
internal readiness
Employees
Managers
Suppliers
Academics /
institutions
Executives
Alumni
VCs
Startups
Users /
consumers
Government
Competitors
Inventors
Business unit
/ function
InnoCentive
Alliances /
joint ventures
Entrepreneur
Day
Consortia
Campaigns
(Comm / Public)
Supplier
Summit
Campaigns
(Comm / Public)
MyStarbucks
Idea.com
CREDIT: OVO Innovation
How big companies innovate with SME’s and
startups
• the mini-bus: who sits where?
• accelerators and incubators
• challenges and competitions
• corporate venture (now with an open innovation mix)
Big companies tap into the potential of small companies
(execution more than ideas) and they want to become more
like startups (get their corporate culture infected)
Speed of decision-making: Slow, bureaucratic meets rapid, lean =
tensions!
Attitude towards risk: Vested interest versus nothing to protect, everything to
win!
Following rules versus breaking rules: Real progress often requires you to
break / bend rules
Differing definitions of innovation: Do we speak the same language?
Entrepreneurship is do or die based on market necessity, opportunity
and ingenuity. Innovation is about strategic choices. Different things =
different approaches!
Innovation as a career choice
What got you into the game 10 years ago is no
longer enough! Engineers, pay attention!
Horizontal: disposition for
collaboration across disciplines
Only I-shapes:
Only T-shapes:
“…very hard for them
to collaborate…each
individual discipline
represents its own
point of
view…becomes a
negotiation…you get
gray compromises…
The results are never
spectacular but at
best average.”
“Occasionally, we
have people who
don’t really have a
depth of skills, and
they really struggle.
They don’t get
respect from the
group.”
Vertical:
depth of
skill which
allows to
contribute
Credit: Tim Brown / IDEO
1) Holistic point of view (intrapreneurial skills)
2) Ability to constructively handle conflict
3) Optimism, passion and drive
4) Curiosity and belief in change
5) Tolerance for / ability to deal with uncertainty
6) Adaptive fast learner with sense of urgency
7) Talent for networking / strategic influencing
8) Communication skills
No networking culture? No innovation culture!
- future winners get communities to work!
Networking efforts require purpose/direction, training, time and
commitment/structure. Few executives get this.
Great innovators are great
communicators!
• View communication in the broad sense – include networking
and stakeholder management
• Use a range of communication tools – too few innovators
know about social media let alone communication in general
• Develop a strategy for this
Innovation Upgrade
- a training program
and network on innovation
- Tap into my knowledge and
my global network
- Work with our city ambassadors
- Frequent webinars, Q&As and physical sessions around the world
- Build a stronger brand for yourself and your company (use our platform)
- Corporate innovators: Speak at global conferences
www.innovationupgrade.com
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