In this session, Jeffrey Phillips examines the critical questions you should ask as you establish an open innovation framework: which technologies or ideas? Which partners and how many? Which methods? By taking a strategic approach to open innovation, you’ll find the right ideas or partners more effectively, and you’ll accelerate new products to market more quickly.

1. A Strategic Approach to
Open Innovation
With Jeffrey Phillips

2. About the
Conference 6 Education-packed sessions

3. About Jeffrey Phillips
Jeffery Phillips
Jeffrey is a senior consultant and leads our consulting practice. He is responsible
for thought leadership, project engagements and business development.
Jeffrey has led innovation projects in the US, Western Europe, South Africa, Latin
American, Malaysia, Dubai and Turkey. He has expertise in the entire “Front End
of Innovation”, with specific focus on trend spotting and scenario planning,
obtaining customer insights, defining an innovation process and open
innovation. He is the author of three books about innovation, Relentless
Innovation, 20 Mistakes Innovators Make and Make us more Innovative. He also
writes the Innovate on Purpose blog, which ranks as one of the top blogs about
innovation.

4. Open Innovation

5. • Brief OVO Introduction
• Closed and Open Innovation
• Types and Methods
• The future of (open) innovation

6. About OVO
• OVO is a consulting firm helping our clients build
sustainable innovation capabilities.
• We work primarily with large, distributed
organizations that seek to make innovation an
internal, consistent, repeatable capability
• We believe innovation can become a core
capability, backed by a definitive process or
approach and trained, engaged advocates

8. Our Publications
Our Blog
Our whitepapersOur books

9. Innovation best practices
• Get lots of ideas
• Use diverse teams, built
of people with different
experiences, different
perspectives
• Combine ideas and
technologies; build on
existing ideas
• Explore/Discover/
Experiment

13. Build, Add, Copy, Combine

15. Filament
Bamboo, Cotton, Cardboard,
Wood, Platinum
Power Source
AC current or DC current
Mount
Screw, Flat ring, Grooves,
Bayonet

16. Menlo Park was Open Innovation

17. Large Hadron Collider at CERN

18. The best innovation comes from….
Lots of ideas
Diverse Perspectives
IP and Technology

19. Question: can my company do internal innovation effectively without
tapping into the ideas, intellectual property and technology available
in the global marketplace?

20. Arthur Lafley, CEO of P&G

22. Closed Innovation

24. “Closed” Innovation
For the purposes of this
discussion we’ll define “closed”
innovation as innovation activities
that rely exclusively on the ideas,
insights and technologies of the
company. No external
participation or insights will be
involved.

25. Internal Idea Generation

26. Advantages / Disadvantages
Advantages
• Rely only on internal
team
• Faster to conduct
• No need to educate the
team
• Far fewer intellectual
property concerns
• Full ownership of ideas
Disadvantages
• Idea scope may be
constrained
• May lack critical
knowledge or insights
• May be unaware of
emerging trends, ideas
or technologies

27. Open Innovation

28. “Open” Innovation
Open innovation is an umbrella
term that describes a range of
techniques to search for, find,
acquire and implement new
ideas, intellectual property,
technologies or products, OR
to spin out the same to other
companies.

29. The book that defined it
In 2005 Henry Chesbrough
published Open Innovation,
which was one of the first
books to name and define
the activities surrounding
what we now call open
innovation.

30. Open Innovation Types
Technique Definition Partners
Technology
Scouting
Internal resources or external teams seeking emerging research or technologies that can address product challenges
PreScouter
Lux Research
Contests
Broadcast challenges to a selected population that seek solutions to a specific problem. For example, BP created a
contest after the Gulf Oil spill seeking ideas to remove crude oil from the Gulf waters. Anyone was welcome to
submit ideas or technologies. This was an Open, public contest, but the way the contest is framed and publicized, and
who is allowed to respond, can be moderated.
Hyve
Hype
Spigit
Blind RFPs
Firms provide a means to connect a firm seeking a new solution or technology with “solvers” through a blind
matching process. The firm seeking a new technology develops an “RFP” with specific technical specifications.
NineSigma, Innocentive and other firms solutions like them publish these RFPs and seek responses. These firms
provide some initial validation of the proposed solutions and can make introductions as appropriate.
NineSigma
Innocentive
Crowd-
Sourcing
Crowdsourcing is similar to a contest in that a firm seeking ideas implements a “suggestion box” or other means of
capturing ideas for products or solutions from its customers. Dell’s IdeaStorm site is probably the most well-known.
In just over seven years of operation, the site has received almost 22,000 ideas and over 500 of those ideas have been
implemented.
IdeaScale
Wazoku
Chaordix
Vetted
Partnerships
P&G’s Connect+Develop partnerships represent co-development or joint development “Open Innovation”
relationships. P&G identifies key suppliers, partners and even competitors to work with, reducing barriers and
sharing more information. These vetted partnerships are similar to work Hollister has done with its trusted suppliers.
DSM
Sponsored
Research
Working with universities or research institutions to indicate specific areas of vital research or actually sponsor
research is another way to develop Open Innovation and acquire new technologies or products.
Various
Institutions
Brokers/
KOLs/
Conferences
Many industry conferences and VC conferences are also Open Innovation venues, seeking to connect entrepreneurs
and small businesses that have interesting new technologies with larger businesses who may wish to acquire or
license those technologies. Key Opinion Leaders (KOLs) can introduce or act as brokers
EpiCenterIP
Tynax

31. Advantages / Disadvantages
Advantages
• Broader array of ideas, IP
and technologies to
choose from
• Broader array of
expertise
• No need to reinvent the
wheel
• May combine ideas,
channels and business
models
Disadvantages
• May expose some of
your strategic thinking
to 3rd parties
• Ideas/technologies may
come at a cost
• Legal/IP issues;
ownership issues

32. Evolution of Corporate Innovation

33. Types and Methods

34. Open Innovation Framework
Instructions
None
Directed
Invitations
Relatively Few “Everyone”
Directed, Invitational Directed, Participative
Suggestive, Invitational Suggestive, Participative
©OVO Innovation 2006-2017.

35. Open Innovation Techniques
• Different Open Innovation techniques introduce varying amounts of risk and
provide different kinds of ideas or technologies.
• While all techniques are viable, innovation teams must choose carefully according
to their needs and expectations
• The techniques are plotted according to the instructions offered and number of
companies to invite – using an OVO matrix
354/24/2017
These techniques
require close relationships
and deeper discussions
to provide results
These techniques
expose strategic goals to
a broader audience
These techniques often
lead to ideas or further
research rather than solutions

36. Categorized another way
Source: Bagherzadeh & Brunswicker (2015)

37. Open Innovation Methodology
Gene Slowinski

39. An Innovation Bazaar

40. Innovation Marketplace Participants

41. Channels or Interactions

42. Lessons learned
Exposing your strategy
• “No other company would be seeking this technology”

43. Lessons learned
Building partnerships before you need them

44. Lessons learned
Being able to accurately determine the value of
internal and external IP

46. (Open) Innovation Future
• No distinctions
• Broaden the definition
• Speed and agility
• Organize platforms and
ecosystems
• Achieving experiences

48. Beyond technologies and products

50. Platforms and Ecosystems

51. To what end?
• Products
• Linked to platforms
• Supported/Surrounded
by ecosystem partners
• Seamlessly linked to
provide a total
customer experience
Product
Platform
Ecosystem
Experience

52. Implication
• Start with the
customer’s experience
goals in mind
• Determine which
solution partners we
need
• Define the appropriate
open innovation
methods or tools to
invite them in
From Sinek’s book Start with Why

53. Two ecosystem approaches
Same ecosystem partners (Carriers, software developers, musicians, etc)
Different methods (Dictate the platform and ecosystem versus encourage
developers for the platform)

54. Watch this play out in real time

55. Old closed/open innovation
• Examine ideas and
technologies
• Identify interesting
capabilities
• Develop a product
• Promote to customers
New innovation
• Define “experiences to
be had” that customers
want
• Identify relevant
platforms and
ecosystem partners
• Build relationships and
prototype experiences

57. Understand the drivers of change
Product Lifecycles are Shrinking

58. Cultural Change
• Where the idea is from
doesn’t matter, what
matters is that it drives
value for customers
• Need to eliminate the
“Not Invented Here (NIH)”
mentality
• Must view third parties as
partners rather than
competitors. Find a way to
get to “yes”

59. More about how and what

60. Open or Closed Innovation?

61. How to contact me
jphillips@ovoinnovation.com
@ovoinnovation
www.ovoinnovation.com
703-714-7345 x789

62. 62
Q&A

63. 63
Don't Miss the Next Session!