Prof. Martin CurleyVP Intel Labs, Director Intel Labs EuropeChair EU OISPG

@OI2Dublin2013#OI2Dublin

IntroducingOpen Innovation 2.0

Richard Bruton T.D.Minister for Jobs, Enterprise and Innovation Irish Government

Alexander von Gabain European Institute of Innovation & Technology

Elias CarayannisGeorge Washington University

Leif EdvinssonUniversity of Lund

Venkat Ramaswamy University of Michigan

Megan RichardsEuropean Commission

Alexander OsterwalderBiz Model Innovation

With video contributions from: Professor Stephen Hawking and European Commissioners Neelie Kroes, Máire Geoghegan-Quinn and Androulla Vassiliou.

Justin RattnerManaging Director Intel Labs VP & CTO Intel Corp

Sean Sherlock T.D.Minister of State for Research and InnovationIrish Government

Thierry van Landergem Bell Labs / Alcatel Lucent

Paul SteinRolls Royce

Peter Van ManenMcLaren

Naoise Ó Muirí Lord Mayor of Dublin

Sean O’DriscollGlen Dimplex

2 days - 300 delegates - 3 venues - 1 technology showcase - public engagement activities – better cities competition - innovation luminary awards dinner

Conference Chairs:

Bror SalmelinAdvisor DG ConnectEuropean Commission

Martin CurleyVP Intel Labs Europe Chair OISPG

…the Winds of Change“When the winds of change come, some people build walls, other build windmills”Brian and Sangeeta Mayne

Let’s go buildsome windmills!

OI2 Conference FocusWhat? • Sustainable Intelligent Living• Financial, Social & • Environmental Sustainability

How? • Open Innovation 2.0

Firm

Start-up

University

Firm

Nascent Start-up

User

Co-innovator

CreativeCommons

GovernmentEcosystemsupport

Europe 2020 Strategy

• Goal high levels of employment, productivity and social cohesion

• five ambitious objectives – on– employment– innovation– education – social inclusion and – climate/energy

Growth Goal

Sustainable

Inclusive

Smart

Innovation Matters75% of US GDP growth came from Technological Innovation sinceWorld War II

US Department of Commerce

“Innovation doesn’t just change our lives, it is how we make a living”

President Obama

Innovation Adoption Matters“Innovation is not innovators innovating, it is customers adopting”

Michael Schrage, MIT

80% of Innovation Value comes from the widespread adoption of Innovation with 20% of value coming from the production of Innovation (OECD)

From “Research to Retail”Knowledge is the crude oil of the 21st century

Commissioner Maire Geogeghan Quinn

Data is the new GoldCommissioner

Neelie Kroes

“Innovation is not a sausage machine, You don’t get it by a plan imposed by government and you can’t measure it just by counting patents or even just spend on R&D. It is all about creative interactions between science and business”.

George Osborne, UK Chancellor

Mass Collaboration

SustainabilityDigital

Transformations

Shared Value through Open

Innovation 2.0

Key Mega Trends

Digital Transformations

“Integrated electronics will make electronic techniques more generally available throughout all of society, performing many functions that presently are done inadequately by

other techniques or not done at all.” Gordon Moore

90nm300mm

130nm200mm

180nm200mm

250nm200mm

65nm300mm

45nm300mm

Feature Width

Wafer Size

32nm300mm

Relentless Pursuit of Moore’s Law Opens the Door to InnovationNumber of transistors on a chip doubles every ~2 years

…Moore’s law is colliding with many domains

Genomics Research

Medical Imaging

Financial Analysis

Weather Prediction

Oil Exploration

Design Simulation

Cloud Computing

Data Center Refresh

Point of Sale IP CamerasPower Lines IP PhonesIn-VehicleInfotainment

Home Storage

Sensors Net book

Security IPTV/IMS Military/AeroLearning Home AutoDigital Signage Portable Medical

Net top

Gaming Industrial PC PrintersMedical Transport Robotics FactoryAutomation

MID

Sustainability

The Changing Shape of Society

From Resource Based . . .

The Changing Shape of Society

To Knowledge Based

Resource Extraction and Growth

Source: Global Footprint Network

If consumption trends continue, we will need two Earths to support us.

There is no Planet B!

Jose Maria Figueres

Plan C

An Inconvenient Truth: Our Collective Challenge

If consumption trends continue, we will need two Earths to support us.

Source: UNEP International Resource Panel

Resource Decoupling

Source: “A Smarter Shade of Green,” ACEEE Report for the Technology CEO Council, 2008.

Automobiles

Passenger Airlines

Agriculture

Steel Manufacturing

Lighting

Computer Systems

40%

121%

132%

167%

339%

2,857,000%

1978 2008 Energy-efficiency Improvement

14.3 miles per gallon of gas

20.0 miles per gallon of gas

22.8 revenuepassenger

milesper gallon

50.4 revenuepassenger miles

per gallon

0.63 units ofoutput per unitof energy use

1.46 units ofoutput per unitof energy use

63 pounds of steel per MBtu

167 pounds of steel per MBtu

Incandescent light bulb— 13

lumens per watt

Compact flourescent bulb

—57 lumens per

watt1,400

instructionsper second per

watt

40,000,000Instructions per second per watt

Increasing Energy Efficiency ICT leading sector in energy efficient improvements : need to take advantage of this out-performance.

ResourceDecouplingOpportunity

MassCollaboration

Mass CollaborationEuropean Internet Foundation

The central

paradigm we propose is that of a

world driven by Mass Collaboration

Innovation moving out of the Lab

Centralized inward looking innovationClosed Innovation

Ecosystem centric, cross-organizational innovation Innovation Networks Ecosystems

Externally focused, collaborative innovation Open Innovation

40 Labs4000 R&D Professionals

>400 collaborators in Ecosystem

Intel Labs Europe NetworkHarnessing the collective value of Intel’s R&D investments in Europe

A vibrant Pan-European Ecosystem

Introducing

Open Innovation 2.0

)

)

OISPG Researching and Mapping the Landscape

Open Innovation 1.0

Source: Henry Chesbrough

Triple Helix Innovation

Source: Henry Etzkowicz

Innovation is changing faster than a speeding bullet!

Life ca. 600 Million Years Ago (Precambrian)

First Multi-Cell Organisms

Cambrian Explosion ~530 Million Years ago

Open Innovation 2.0: A new Milieu

Firm

Start-up

University

Firm

Nascent Start-up

User

Co-innovator

CreativeCommons

GovernmentEcosystemsupport

… Re-imagining the World at Light Speed

From the Obvious…

Knowledge

Educating

Shopping

Travelling

Sharing

Industries established over a Century re-architected in under a Decade

Communicating

Entertaining

to

to

to

to

to

to

to

ConstructionNew ServicesSmart Grid

… Re-imagining the World at Light Speed

… to the Not so Obvious

Agriculture The Way We Work

Hotels

Cars

Freelenace

GoogleHome

When the impossible…becomes possible

to

to

to

to

to

to

to

Snapshots of OI2Shared

Vision & Value

QuadrupleHelix

Innovation

ExponentialTechnologies

EcosystemManagement & Cultivation

AdoptionFocus

High Expectation

Entrepreneurship

NetworkEffects

UserDriven

Innovation

Co-Creation &InnovationPlatforms

BusinessModel

Innovation

Openness to Innovation &

Culture

21st CenturyIndustrial Research

SustainableIntelligent

Living

SimultaneousInnovation

IntersectionalInnovation

FullSpectrum

Innovation

Servitization

InnovationCapability

Management

Social Innovation

StructuralCapital

Innovation

Shared Value• Re-conceiving the intersection

between society and corporate performance

• Find Win – Win outcomes• Profit through solving Big problems

Intel Labs EuropeAdvance Intel by bringing the benefits of the ongoing digital

revolution to European economy & society by:

Advancing breakthrough research

Forming close partnerships with the European technology community

Quadruple Helix InnovationGovernment, Academia, Industry and Citizens collaborating together to drive structural changes far beyond the scope

of any one organization could achieve on it’s own

Government/Public

Academic

Industry

Citizen

Intel Sustainable & Connected Cities Institute

Institute Research Outputs• Novel user experiences• Understanding of future workloads• Future network architectures & protocols• Security & privacy insights• New opportunities in big data• Architectural requirements• New business models• A step on the way to creating more

environmentally friendly, sustainable cities

Open Innovation at Work!

The Testbed: London

Collaborative Open Innovation

The Concept: driving the computing continuumand innovating the city of the future

Sustainable Connected Cities Dublin

Dublin as an exemplar of Open Innovation 2.0

Open Innovation Business Models

Source: EU OISPG

Exponential Scaling and Growth

Creating Innovation PlatformsEngagement platforms“Assemblages of persons, interfaces, processes, and artifacts, purposefully designed to intensify engagements to co-create value”

from Prof V Ramaswami

Hi

Lo

Volu

me o

f In

novati

on

Eff

ort

sLa

st 1

0 y

ears

Core process

Process

Enabling

process

Business

model

Finance

Networking Product performance

Offering

Product system Service Channel

DeliveryBrand Customer

experience

Source: Doblin Analysis

Innovation EffortsInnovationValue

Servitization

• Shift from– From Products to Services– From Maximizing Consumption to

Optimizing Asset Utilization and Longevity

– From one time payment to annuities

• Platforms for Innovations

What it is? IT is the enabler

Innovation Systems

Funding the Innovation Portfolio

Measuring Innovation Value / Impact

Setting Strategy & Managing Innovation

Delivering / Scoping Innovation Capability

Source: Martin Curley Intel / Innovation Value Institute - NUIM

European Innovation Scorecard

Inputs,Intermediate & Outputs indicators

Innovation Capability Maturity Models

Systemic Innovation

Initial / Ad-hoc Innovation

Managed Innovation

Sporadic Innovation

Defined Innovation

1

2

3

4

5

Managing innovation Funding innovation Developing innovation capability

Assessing innovation value

Continuous realignment of

pipelineAmplified budget

Innovation excellence

Predictable, probable and

profitable

Explicit strategy Co-fundingInfrastructure

integratedProactive change

management

Management commitment

Formal budget allocation

Infrastructure established

Active change management

Tacit toleranceProject-based

allocationOccasional skunk

worksInformal

assessment

Ad - hoc

Source: Martin Curley Intel / Innovation Value Institute - NUIM

Business Model & Canvas

Source: Alex Osterwalder

Innovation Frameworks

ArchitecturalInnovation

DisruptiveInnovation

ModularInnovation

IncrementalInnovation

Source: Henderson and Clark

Choice to be Made

$139M

$1.13B

$8.32B

Disrupter or Disrupted?

The Rise of the User

• Observation and Surveying• Prototype Development• Testing (Usability, Feasibility, Market Testing• Piloting

• Interactive User Feed-back• Incremental User Innovation Ideas• User Idea Generation• User Community innovation• Services by Definition “Co-creation”

Consumers

Industry R&D Led User/User Community Led

User as “Research-Object” User as Innovator

Contributors Innovators

Source: IPTS; Jean Claude Burgelman, 2007

Customization

Customization

Experiences

Goods

Commodities

Services

Commoditization

Commoditization

Stage

Deliver

Make

Extract

The progression ofeconomic value

Sustainable Intelligent Living

Source: 2003 – James I. Cash, Jr.

Innovation Value Chain

Idea Generation Idea Implementation Idea Adoption

Hard? Harder Hardest

effortEuropeanFunding

Horizon 2020A potentialGamechanger

M Curley Copyright Intel © 2013

Open Innovation 2.0: A new Milieu

Firm

Start-up

University

Firm

Nascent Start-up

User

Co-innovator

CreativeCommons

GovernmentEcosystemsupport

Open Innovation 2.0: A new Milieu

Value

Efficiency

Quality ofLife

All innovating together - moves the value needle

Value

Efficiency

Quality ofLife

Ecosystem Examples - SmartBay

SmartOcean Innovation Cluster

Virtual Ecosystems Example

IVI Vision: Drive a structural change in the way public and private sector organisations manage IT for business value and innovation

Ente

rpri

se IT c

apabili

ty t

o

deliv

er

busi

ness

valu

e

Level of Firm / Industry Adoption

Dated processes/practices/

Standard processes/ practices

Best processes/practices

Emerging next processes/practices

High

High

IT V

alu

e C

ontr

ibuti

on

Low

High

Low

Dig

ital Jo

bs

Synergy and Exponential Technologies

Source: Goretex

Innovation: Ideas aren’t enough!Innovation =

Ideas X Execution X AdoptionStrategic Innovation = Vision (Ideas x Execution x Adoption)Strategic Innovation is innovation in the context of a vision!

Accelerating the Sustainable City Society

Part Inspired by Rifkin: The Third Industrial Revolution

Accelerating the Sustainable Society

Part Inspired by Rifkin: The Third Industrial Revolution

Create a virtuous circle: energy efficiency/self sufficiency, new services and jobs

Value Cyclevs

Value Chain

..but it takes courage too.

Thanks!

Martin.G.Curley@intel.com

More Information

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