Wim Vanhaverbeke | OIS 2012 | O passado, o presente e o "futuro" da inovação aberta

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Open innova-on: The past, the present and the future

Prof. Dr. Wim Vanhaverbeke

Hasselt University ESADE Business School

Na-onal University of Singapore

Open Innova*on Seminar Sao Paulo – November 12, 2012

1. Do you have to be involved in NPD / NBD?

Should we refocus OI to make it more relevant?

•  Tradi-onally: – Technology driven, and applicable to large advanced MNEs (Xerox)

– Focus on the innova-on funnel: •  Focus on new product development •  How external partners help improve our internal NPD? •  How our technology can be mone-zed by licensing out or spinning off our technology?

Open Innova-on: View in 2003

Our current market

Our new market

Other firm´s market

External technology insourcing

Internal technology base

External technology base

Internal/external venture handling

License, spin out, divest

Source: Bengt Järrehult based on Chesbrough

Should we refocus OI to make it more relevant?

•  Tradi-onally: –  Technology driven, and applicable in large advanced MNEs (Xerox)

–  Focus on the innova-on funnel: •  Focus on new product development •  How external partners help improve our internal NPD? •  How our technology can be mone-zed by licensing out or spinning off our technology?

•  How relevant is that for your company ? •  Do you have a staged gated, open innova@on NPD process?

Broadening the scope

•  OI when it is not related to your NPD: – You are a service company with no technical exper-se

–  SME with insufficient technological exper-se –  Government agency:

•  Nasa: new technologies may help you a lot in your mission as space agency

•  Insourcing knowledge of others in an indirect way through an open business model (OBM)

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•  KLM Royal Dutch Airlines, the North Sea Group and Spring Associates joined forces and founded SkyNRG in Nov 2009.

•  Goal: to help create and accelerate the development of a market for sustainable jet fuel (safe, sustainable and affordable) & avoid large price swings in petro-‐based kerosene

•  Crea-ng a viable market for sustainable jet fuels for avia-on can only be achieved by combining exper*se and experience in the fields of air transport, product knowledge, R & D, regula*on and effec*ve sustainability criteria

•  SkyNRG is the hub firm in the ecosystem

SkyNRG

Financial world (VCs…)

Airline industry

Govern-‐mental agencies

Biofuel value chain

KLM’s value driver? KLM profits as a customer of a steady supply of sustainable and affordable biofuel

Open innova*on: SkyNRG sets up the avia-on biofuel value chain and drives the accelera-on of joint

technological innova-ons between partners

Only for large companies?

•  Is innova-on ecosystem building only for large companies such as KLM?

•  No, Curana is highly successful and has only 25 employees

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Curana Curana: combining innovaEon and industrial design

•  The old situaEon: –  Steel mudguards and fenders –  Belgium as market (10 million inhabitants) –  Family owned business

•  Challenge: –  Growing economies of scale and globaliza-on of the industry –  Strategic change:

•  differen-a-on through innova-on •  or price compe--on with low-‐cost import

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Curana: B"Lite : Mudguard of Curana

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Curana: innovaEon combined with industrial design in low-‐tech markets

•  Open innovaEon: –  combina-on of internal and external knowledge

•  external design company •  polymer extrusion manufacturer •  Mold makers •  Material suppliers •  …

–  Lead-‐users (bicycle manufacturers) promised to buy B”Lite via an exclusive deal which is limited in -me (Batavus and Sparta)

Curana: Spectacular results


Curana: a small company in transformaEon


Original Design Manufacturer

•  price sejng •  design driven •  added value

OEM ODM OSM OBM

Original Equipment Manufacturer

•  price pressure •  technology driven •  no added value

Original Strategic Management

•  vision driven •  proac-ve design solu-ons •  Innova-ve

Original Brand Management

•  Image driven •  Reliability & authen-city •  Market pull from customers

> > >

How innovaEon is processed at Curana?


ExploraEon

Design

RealizaEon

PromoEon

Curana’s innova-on ecosystem

Curana Steel and market

knowledge

Polymer extruder

Bicycle manufac-‐turers

Design offices

Material suppliers,moldma-‐kers, etc

Technical centers

Exclusive deal with a customer for a

par-cular accessory Does this always

work?

Open innova*on? Innova-on capability is in the network.

Managing the network for innova-on

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MagIQ

02/11/12 16:05Curana magIQ - Fidlock GmbH

Page 1 of 2http://www.fidlock.com/en/applications/curana-magiq.html

Fastener: SNAPApplication: Bike luggage systemManufacturer: CuranaProduct name: magIQ

With the magIQ system, Curana hasdeveloped a solution for attaching items ofluggage and accessories to bicycles at theplace they are actually needed. Theinnovative bike luggage system thereby offerscyclists completely new possibilities for easyattachment and detachment of panniers,lights, air pumps, locks and flasks.

Secure attachment with a simple "snap"

The magIQ system from Curana allows you to secureluggage and biking accessories to the bicycle with a quick"snap" – and to detach them again with ease. The clever"luggage concept" is based on the Fidlock SNAP male fixand SNAP male retractable fastener as well as the FidlockSNAP female pull and SNAP female push, which are highlysecure and easy to use. Thanks to the proven FidlockPrinciple that combines a magnetic fastener with amechanical snap fastener, items of luggage practically

Application areas

Fitting

Material/colour

Other features

Innovation based on Fidlock technology

With product characteristics such as fast, secure attachmentand detachment in addition to simple one-hand operation,the Fidlock SNAP fastener forms the core of the magIQsystem. It has allowed Curana to develop a completely newand highly flexible "luggage concept" for bicycles that makesfor an improved biking experience – in keeping with Fidlock's"Fun + Function" Principle.

Find more information at: www.curana.com

Products

Stadthelm / ABUS

Curana magIQ

Sammies by Samsonite

Salomon SAS

Porsche Design Sport /Bag

Porsche Design Sport /Boot

HOME NEWS PRODUCTS APPLICATIONS COMPANY CONTACT

Deutsch

MagIQ A new standard to fix what you need where you need it on your bike

ApplicaEon: bags

OI is relevant when your products are commodi-es

•  Petrobras pumps crude oil from wells and produces petro products (commodi-es)

•  Product innova-on is not a value driver •  Effec-veness in oil well explora-on and extrac-on is

a major value driver •  Set up a collabora-ve innova-on ini-a-ve

(ecosystem) with Schlumberger and others to advance their technology in order to find the best wells earlier than compe*tors and to extract those wells in ways not known today.

Broadening open innovaEon

•  Past –  NDP / NBD as applica-on of OI

–  The firm is an innova-ng company (only hi-‐tech)

–  One on one (inside out and

outside in) –  OI is not related to a business

model –  Manage individual rela-ons

•  Future –  All value drivers can be a

reason to develop OI –  The firm should not be an

innovator, any company can be an ins-gator of OI

–  Involve a network of partners in an ecosystem

–  OI comes in indirectly through OBM

–  New role of ecosystem orchestrator

–  Need new management processes to make a ecosystem successful (N & S, 2010)

–  Co-‐innovator risk & technology adop-on risk ( Adner, 2012)

2. Embed OI always in a firm’s strategy!

3 examples

•  Printed Pringles at P&G •  P&G wrote a public brief describing the technical problem to be solved

and sent it out worldwide. A professor in Bologna had inherited a bakery. He had dabbled with the equipment and created an edible food dye that could be printed on cakes and cookies. P&G licensed the IP from him and launched Pringles Prints in eight months (compared to spending one year just discussing IP with the large company). Within one year, the new product grew P&G’s revenues 14%. (Larry Huston -‐ P&G)

•  Pringles’ sales total about $1.5 billion annually. •  14% = $ 210 million

•  P&Gs revenues 2011: $ 82.6 billion

•  Pringles sold to Kellogg in 2012

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3 examples

•  Swiffer duster •  UniCharm (Japan) had the technology and product but not

the distribu-on power to sell the product worldwide •  P&G had the distribu-on ower •  Licensing deal to sell the Swiffer duster outside Japan

3 examples

•  DSM – Dutch performance chemicals company (8 bill euro revenues)

– Open innova-on also in long term development of growth plavorms

•  Bio-‐based Products & Services •  Biomedical Materials •  Advanced Surfaces

DSM’s targets EBAs at DSM

IntegraEon of OI with business and corporate strategy

•  What is the value of OI examples for companies? •  Start from a corporate growth strategy •  What are the long term growth areas? •  Which technologies do you need, and which are no longer

crucial •  How to get these new technologies / competencies. Who

to partner with? •  Define alliance targets and build the rela-onship

–  Different for LT growth through NBD or ST product improvements

–  Different types of partners –  Different types of involvement and risk taking –  Different teams and team members

Open innova-on as part of the overall strategy execu-on

Want

Find

Get

Manage

Defining the targets. Which capabiliEes do we need to deliver the innova-ons?

Ideas Management in rela-on to defined needs ScouEng for capability providers

Define business goals of alliance and likely alliance type. Approach & build deal quickly or separate

Manage delivery incl. rela-onship. Project management

Why Stretch the ambiEon?

Source; Adapted from Slowinsky & Sagal, 2010, RTM, September-‐October, 38-‐45

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3. Apply open innova-on in rela-on to other assets!

The case of branding

Open innova-on and branding

•  Does your firms have brands? •  Did you ever think how openness can help you in advancing sales of exis-ng brands or how to build new ones?

•  Open innova-on can / has to be smoothly integrated in these new branding strategies

•  We use a con@nuum from closed to open focusing on examples of Unilever

5. Open innova-on and IP

License scheme of Bekaert & ConEnental (technical standards)

Bekaert Con-nental

Other clients

Other suppliers

Proposal: •  X = …% of net sales value of supplied product •  Supplier collects royalties •  Cross-license agreement between client and supplier implying:

•  Bekaert to supply "other clients" at X% •  "Other suppliers" to supply the Continental at X% •  Bekaert grants sublicenses to "other suppliers". The latter can supply to

"other clients" at 2X%

0%

x %

2x %

100% 100% 60%: compensa*on for licensing ac*vi*es 40%

embryonic potential growth mature declining/ obsolete

Collaborative research Own Research

technology life cycle

potential

generic technology

application oriented

IP policy: IMEC’s posi-on in the technology life cycle IP policy:

IMEC Industrial AffiliaEon Program •  What

–  R&D coopera-on in generic technologies –  Strategic program develop by IMEC and executed in IMEC –  IIAP partners send guest researcher(s) to IMEC

•  Advantages –  Sharing costs, risks, research infrastructure, IP –  IIAP partners get access to:

-‐ IMEC’s background knowledge -‐ selected results of other partners in IIAP

–  bilateral contract within the framework of IIAP •  Leverages

–  resources –  knowledge –  cross-‐fer-liza-on of research of different partners –  shortening -me to market

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IIAP foreground knowledge

partner B

partner C

partner …

partner A

IMEC IIAP

background knowledge

knowledge developed within the program

common IP (R1 - R1*)

co-owned – non-exclusive license partner IP (R2) exclusive license

IMEC IP (Ro) non-exclusive

licensing

IP policy: IAP – Generic framework

6. Technology markets and the role of innomediaries

Shi]ing roles and the emergence of (intermediate) technology markets

Running business

Developments in Science & Technology

Source: Adapted from Jos Put - DSM

Industrial Research

Shi]ing roles and the emergence of (intermediate) technology markets

Running business

Industrial Research

Developments in Science & Technology

Source: Adapted from Jos Put - DSM

•  TTO •  External CV •  Public / private research institutes •  OI campus: HTC, Chemelot, etc… •  Markets for technology: Yet2.com, Innocentive, Ninesigma •  OI services: IDEO, BIG, …

Technology suppliers

Technology users

Growing

Gap

OI and technology markets

Role of innomediaries –  2-‐sided markets (Rochet & Tirole (2005) Two-‐Sided Markets: A

Progress Report; Eisenmann, Parker, and Van Alstyne (2006) Strategies for Two-‐Sided Markets, HBR)

–  Innomediaries can clear the market more efficiently •  Innocen-ve, Ninesigma, … •  Yet2.com, Ocean Tomo •  YourEncore

–  Problem of quality of technology (garbage technology on the market)

•  High quality technology searched in embedded networks

– Why companies s-ll have their own portals (P&G’s C+D)

7. Public policy and OI

S-ll uncharted territory!

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R&D globalizaEon and changing policy making?

Knowledge centers

Firms

Domes-c

Domes-c

Foreign

Abroad

•  old paradigm: local for local •  Build centers of excellence •  S-mulate domes-c firms to make use of local knowledge centers

•  s-mulate interna-onaliza-on of R&D of domes-c firms •  reduce costs of interna-onal R&D sourcing of these firms

•  new paradigm: local for global • S-mulate foreign firms to make use of

local knowledge centers •  S-mulate them to relocate / extend their R&D centers

•  Be strongly involved in interna-onal R&D policy making (European Inn Center) •  Par-cipate in major R&D networks

CERN:: the par-cle accele-‐ rators and other infrastructure Needed for high-‐energy physics research

A new wave of researching open innovation OUP

2003

2006

2006 2011

2013 2011

Exnovate as a network of excellence for OI-‐pracEEoners and scholars?

•  www.exnovate.org –  An interna-onal network for excellence in managing Open and

Collabora-ve Innova-on

•  Projects –  CE and OI Masterclass (9 -mes Philips / ESADE) – 9-‐14 June 2013,

Barcelona –  PhD course open innova-on at ESADE (4th -me in January 7-‐9,

2013) –  Open innova-on metrics –  Using best prac-ces to improve OI in SMEs

•  Open Innova-on Community (OIC) on Facebook and Linkedin

Wim Vanhaverbeke | OIS 2012 | O passado, o presente e o "futuro" da inovação aberta

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