Organizational Competences for Open Innovation

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Organizational Competences for Open Innovation in Small and Medium Sized Enterprises of the Digital Economy

Joachim Hafkesbrink innowise GmbH Duisburg, 7.12.09

„Competences Development and Process Support in Open Innovation Networks of the Digital Economy through Knowledge Modeling and Analysis“

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Index

Methodological Background

A spotlight on the Digital Economy – proponents of Open Innovation

How to define Open Innovation in the Digital Economy

Linking Open Innovation and Competences

Linking Organizational and Individual Competences

Concluding remarks: some hypotheses on the future of Open Innovation in the Digital Economy

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Methodological Background

Underlying Methodology and Informational Background

• Literature on Open Innovation

• Conferences attendance ISPIM 2008 (Tours) and 2009 (Vienna)

• Consultancy and Research on New Business Models in the Digital Economy/ New Media Industry

• Four in-depth longitudinal case studies within the KOPIWA project („Competences Development and Process Support in Open Innovation Networks of the Digital Economy through Knowledge Modeling and Analysis“)

• Online questionnaire (investigation within the BVDW – German Professional Association of the Digital Economy)

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multiple digital segments

A spotlight on the Digital Economy – proponents of Open Innovation (1)

Source: www.newmediaranking.de OVK Online Report 2009/02 Overview of figures and trends (ed. BVDW 2009)

„steady growth even in the crisis“ „highly dynamic project driven business“

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Technology and Market Convergence need for collaborative innovation

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Games, BlueRay-Player,

Internet

+ ???

Playstation 3

Examples of technology convergence

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How to define Open Innovation in the Digital Economy? (1)

“Open Innovation focuses on how to combine different competences or technological capabilities whether they are inside or outside the firm and apply them to commercial ends.” (Lazzarotti/Manzini 2009; Vanhaverbeke/Cloodt/Van de Vrande 2008)

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Facets of Open Innovation in the Digital Economy:

Bottom-up: e.g. starter-kernel / common programming context (e.g. tools, languages, environments, etc), but no common project, a common goal or a common organizational context of production (e.g. Yahoo! Developer Network or programming discussion forums like http://php-forum.com/; and code sharing sites e.g., http://snipplr.com/)

Top down:decisive common project context and programming goal , a centralized authority with control over the code base, organized in star-shaped networks with developers only communicating to one central hub.

Development (Open Technology):technological development, where collaboration is more or less open to all and the innovative source technology is shared, licensed etc. between stakeholders to develop software programs or applications for different fields

Application (Open Content): application development based on one or more technologies e.g. to enable and stimulate collaborative innovation and open business models that i.a. allow for crowd-sourcing in different application fields (e.g. social software applications like Web 2.0 platforms)

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Examples of Open Innovation in the Digital Economy:

OSS

MyS

QL

Open Design

Yahoo! Pipes

Apache Commons

Examples of Open Innovation in the KOPIWA project:

Case Study „Mobile

CMS“

Case

Stu

dy

Open

SIM

Case Study User

GeneratedLearning SnippetsLinkedIn

Xing

MySpace Facebook

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Linking Open Innovation and Competences (1)

Macro-level (society, regulatory framework)

Meso-level

(sector environment)

Micro-level (firm level) Capacity to act

Experience

Knowledge/Skills

• Mastery• Proficiency

• Vantage• Threshold

• Waystage• breakthrough

Organizationalreadiness

Collaborative capability

Individual Compe-tences

Capabilityto act

Experience

Skills

Absorptive Capacity

Organizational Competences

Success CriteriaEffectiveness

Efficiency

measured against

Open Innovation Competences Model

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Macro-level

Technology convergence

Regulatory Push

Diffusion of Enabling Technologies (mobile devices,

broadband)

Interaction between B2C, C2C, C2G ….,

„Prosumers“New Lifestyles, Individualisation

Meso-level

Changes in supply chains

Networking

Communities

Micro-level

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Organizational Competences for Open Innovation

Requirements based on comprehensive literature research (> 100 sources)

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Moving from closed to open innovation: the challenge

Closed Innovation (Innovation 1.0)

Open Innovation (Innovation 2.0)

Internal R&D

Control over everything

Siloed mind-set

Collaboration = threat

Internal & external R&D

Laisser faire controlling

open mind-set

Collaboration = opportunity

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Innovation 2.0


Different Perspectives of Organizational Competences

Innovation 1.0

Structural View• Infrastructure

• Policy

• Culture

Process View• Unfreezing

• Moving

• Freezing

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10 Golden rules to kill (Open) Innovation:

• Distrust all ideas coming from inferior levels and insist on approvals of superior levels!• Treat employees communicating external as a betrayers and always endorse the NIH

syndrome!• Encourage reciprocal criticism!• Critizise without restraint and disable acclamations!• Treat disclosure of problems as blunder!• Always be in full control of everything!• Make reorganization decisions underhand and implement them abruptly!• Always ask for accurate justifications of information inquiries (who wants to know

what?)!• Above all delegate savings programs!• Don’t forget that you, as an incumbent of a superior level, still are aware of the most

important things in your business and nobody else!


Unfreezing ( to slacken crusted organizational structures and processes)

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Dynamic change capabilities

overcome routines

install philosophy of constant change

improve self-organization ability

install continuous learning

improve responsiveness to uncertainty and ambiguity


Moving (1) ( to configurate trials, working in a new way, gaining trust and commitment)

Effective organizational structures and processes

Install heterarchical and ad-hoc structures

Build cross-functional interfaces

Provide enabling spaces

Develop dedicated rewarding systems

Enable decentralized decision making

Cultural openess

Open up borderlines, communication and mindsets

Develop identification and institutionally based trust

Install knowledge friendly organizational structures

Set up participative structures

Admit high level of fault tolerance

Supportive technological enhancement

Introduce techniques to enable adductive thinking

Install interactive collaboration tools

Improve ability to use (collaboration) software for web interaction and knowledge elicitation

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Internal collaboration

Enable internal networks to acquire external know how

coordinate knowledge exchange across boundaries

synergetically integrate creative capacities

Networking capabilities

leverage individual and company network

balance strong and weak ties

manage serial, pooled or mutual inter-dependencies

increase networking reputation, goodwill & trust

induce synergetic interactions with universities, suppliers and users

· ability of balancing transaction value and costs

ability to leverage intermediary services for outside-in and inside-out processes

outside-in/inside-out collaboration

bridge the cognitive distance between external and internal knowledge

increase proximity to innovation partners

develop gate-keeper competences

enforce co-ideation, co-design and co-development capabilities

strenghten active user involvement capability

Moving (2) ( to configurate trials, working in a new way, gaining trust and commitment)

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Re-Freezing ( to enable new organizational competences in ...)

identification of technological opportunities, i.e.

the ability to identify sources and gaining access to external and internal knowledge/ technologies

elicitation and assimilation, i.e.

the ability to recognize compatibility of external and internal knowledge/ technologies

understanding/transforming, i.e.

the ability to acquire, adjust and integrate external knowledge/technology into the product / services development

sharing/disseminating/exploitation, i.e.

the ability to valorize integrated knowledge towards the market

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Linking Organizational and Individual Competences

readiness collaboration absorption Etc.

Individual Competences

Organizational Competences

Research Question in KOPIWA: what are important individual competences that lever the organizational capability for Open Innovation in the Digital Economy?

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1. The properties of digital technologies favor Open Innovation in the Digital Economy, with attributes of being distributed, collaborative, interactive and often systemic.

2. The shift to Open Innovation in the Digital Economy is – in contrast to other industry segments – an ongoing natural and evolutionary development, nothing special but still challenging.

3. In future the challenges of Open Innovation will increase as a result of diminuishing threshholds in using enabling technologies by a broader community of prosumers of digital products and services (swarm intelligence).

4. Swarm intelligence and increasing convergence of digital technologies rises additional requirements in terms of complex organizational and individual competences beyond professional skills, especially to develop new business models.

5. The Digital Economy is therefore desperately in need for a smart, prospective and responsive competences monitoring system. KOPIWA is the first step in that direction.

Some Hypotheses on Open Innovation in the Digital Economy

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Some Hypotheses on Open Innovation in the Digital Economy

By the Way: Crowdsourcing is not....

Contact:

Joachim Hafkesbrink

Innowise gmbh

Bürgerstr. 15

47057 Duisburg

[email protected]

Organizational Competences for Open Innovation

Business

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