Helix Innovation HiveApplied Innovation for Value RealizationApplied Innovation for Value Realization

[Caspar van Rijnbach]

[Open Innovation- Experiences from Europe and Brazil]

[TerraForum Consulting]

June 2, 2010

Fiat Mio: Open source design

Any company can use the ideas (more than 10.000) submitted by users

The world has become smaller...

© 2010 Information is not to be copied without permission by Helix Commerce International Inc. 3

Closed Innovation

The smart people in our field work for us

To profit form R&D, we must discover, develop and ship it ourselves

Open Innovation

Not all of the smart people work for us so we must find and tap into the knowledge and expertise of

bright individuals outside our company

External R&D can create significant value; internal R&D is needed to claim some portion

of that value

Open Innovation REQUIRES a new mental model

Base on Chesbrough 2003

If we discover it, we will get it to market first

If we are the first to commercialize we will win

If we create the most and the best ideas in the industries, we will win

We should control our intellectual property (IP) so that our competitors don´t profit from our

ideas

We don´t have to originate the research in order to profit from it

Building a better business model is better than getting to market first

Is we make the best use of internal and external ideas we will win

We should profit from others´ use of our IP, and we should buy others´ IP whenever it

advances our own business model

Open Innovation Model – The Innovation Funnel

With the open innovation model, the company keeps strong

relationships with external partners within different stages

of the innovation development process

Joint Venuture

Licencing

External TechnologyInsourcing

Research Development Comercialization

INTERNALR&D

MARKET

Spin-inMerge and Aquisitions

Divest

Spin-off

Licencing

R&D Services

Based on Chesbrough 2003

Open innovation: new ideas,insights and collaboration

Challenges

Philips High Tech Campus (Eindhoven)

� Modern technology park

Philips High Tech Campus (Eindhoven)

� More than €500M in investments;

� Technology-based startups incubation

� The design stimulates and forces collaboration

between partners

� Close to universities

� “Research Hotel” concept

Natura: Open Innovation to develop new products

Develop 50% of technologies externally

The main innovation target is radical innovation, using strongly with knowledge management

Partnerships usually on ideas generation

Partners use Natura´s infrastructure and laboratories

Has various partners for external collaboration: universities, research centers, companies, laboratories and foundations to support innovation

Good Practices in Open Innovation Systems (OIS)

Telefónica has established a network that involves more than 1,000 partners. The

company structured 7 research centers, most in Spain and close to technology parks.

“

Nokia promotes “Day Dreams” with “ Nokia promotes “Day Dreams” with their partners, where they discuss about the technology and products

trends and forecast.

“

Syngenta keeps a full time partnership manager to manage collaboration and the network relationship, stimulating new

business and solving conflicts.

“

Key Factors for Open Innovation Success

Strong Relation Network

Support and Services for

Partners

Clearly Defined IP policies Organizational

Structure and Governance

Infrastructure and location

Open Innovation

System

Strategic Alignment

Collaborative Culture

Adequate Partners Funding

Stakeholders Support

Processes and KPIs for Innovation

Mgmt

WEB 2.0 Facilitates Innovation even more…

Peugeot Design Contest - Open Design

• More than 4 million page views

• 5 demonstration models exhibited at automotive marketing events

• Designers of around 100 nationalities

• € 10.000 prizes

• 5th year of the contest

Threadless Co-creation made by users

What about having students helping your company to innovate?

Our inspiration

“Every company has its issues and challenges.

Students have time, drive and innovative solutions.”

“Promoting innovation through open concept battles, in which

companies offer challenges (Battles) and college students

and young professionals offer solutions (the Concepts).”

Our concept

Dutch fever spreading…

History

Ba

ttle

of C

on

ce

pts

Ho

llan

d • Since 2006, already distributed 500 thousand euros to participants

Ba

ttle

of C

on

ce

pts

Bra

zil • In six months distributed

46 thousand reais (US$ 25 K) and will distribute another 74 thousand reais (US$ 40 k) to the

Ba

ttle

of C

on

ce

pts

Ho

llan

d

• More than 5 thousand students registered

• More than 100 battles concluded

• Received more than 3 thousand concepts

• Participation of various public entities

Ba

ttle

of C

on

ce

pts

Bra

zil

reais (US$ 40 k) to the participants

• More than 3 thousand students registered

• 30 students received prices

• Participation of Government

Some participating companies

Challenge Find new ideas for the re-use of oil or gas platforms in the sea

Specification

What can we do with oil or gas platforms?They are not only ugly, but they can be a threat to the environment.

Some important factors: �Technical execution

�Security and well being�Environment

�Cost

Eneco Case

Specification �Cost�Reputation and influence on public opinion

The permanent question is: How to re-use obsolete installations? Do they necessarily need to become old iron or can they be re-used?

Research in the last ten years have shown that there have been some re-use of platforms such as the Spar, that was transformed in a pier and other ideas such

as prisons etc.

Challenge

How can the minister of transport and water reduce the consumption of energy and water and CO2 emission in its infrastructure? With the slogan “Good ideas have no value when not implemented” Rijkswaterstaat invite the participants

with the three best ideas to present their ideas and show how they work in practice.

Specification

Scope restrictions: Rijkswaterstaat will not implement wind mills or biodiesel energy –

“Windmills will encounter resistance from the populations and biodiesel is not

Rijkswaterstaat Case

“Windmills will encounter resistance from the populations and biodiesel is not sustainable and need to be bought”.

Prices:1º 1.500 euros2º 750 euros3º 350 euros

4º a 10º 200 euros11º a 20º 100 euros

"Battle Of Concepts is a simple and innovative way to find

solutions for challenges and opportunities for our

organization. Moreover it promotes the company and

Testimony

organization. Moreover it promotes the company and

creates stronger links with young talents, that can present

solutions and see them being brought into practice"

Mônica Reiter Bissi, HR Manager Vopak

Integrated Benefits

Companies Students� Reduced Investiment

in ideation process and recruiting of talent

� Relationship with

� External collaboration with talent

� Emotional relationship with young professionals and possible clients

� Market display

� Payment

� Experience with real challenges

� Relationship with companies

� Employability

UniversitiesCountry

� Relationship with academic world

� Employability

� Prestige and positive display of brand

� More interested and engaged students

� Real world cases to use in class room

� More innovative companies

� Engagement of young and innovative people

� Feeling of co-creation and search for solutions together

� More interaction between companies and universities

Q&A