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"After a turbulent spell and a change in leadership the company decided to open up innovation to the community, initially through the Ambassador program created in 2005, allowing not only collaboration with customers but also suppliers that would enable Lego to churn out more advanced products. This modular approach was borrowed from the open source community and allowed manufacturers to design for the Lego ecosystem."
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(1) Use external suppliers to fill in your gaps
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(2) Utilize the ‘weak ties’ in your community –
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"Répondre aux demandes du marché nécessite un recours à une innovation permanente. Dans cette optique, faire de ses employés les premières sources d’innovation peut être intéressant. "
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. Par exemple, chez TIBCO, plus de 50% de nos revenus proviennent de produits qui n’existaient pas il y a de cela 5 ans. C’est bien simple, il faut innover en permanence
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Il faut avoir plusieurs coups d’avance sur le marché, et cela passe par une innovation intégrée au process de fonctionnement de l’entreprise.
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"In 1974, 3M scientist Art Fry came up with a clever invention. He thought if he could apply an adhesive (dreamed up by colleague Spencer Silver several years earlier) to the back of a piece of paper, he could create the perfect bookmark, one that kept place in his church hymnal. He called it the Post-It Note.
What you might not know is that Fry came up with the now iconic product (he talks to the Smithsonian about it here) during his “15 percent time,” a program at 3M that allows employees to use a portion of their paid time to chase rainbows and hatch their own ideas."
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How is the program implemented? In Beinlich’s telling, workers often use 15 percent time to pursue something they discovered through the usual course of work but didn’t have time to follow up on. And even that depends on other factors -- how closely managers keep tabs on projects, for one. What’s more, 15 percent time is extended to everyone, not just the scientists (you can hear the cheers in marketing), the idea being: Who knows where the next Post-It Note will come from?
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Still, it’s a rare perk at most companies, technical or not. For starters, it’s expensive. 3M invests more than $1 billion in R&D alone; 15 percent of that starts to be a sizable outlay.
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"C’est parce que le robinet de la nouveauté nécessite aujourd’hui un débit plus abondant que la firme de Stuttgart a élargi son modèle d’innovation afin de pourvoir intégrer des inputs différents que ceux issus de ses labos.
Voici trois ans, Daimler a mis en place un programme spécifique, Business Innovation, auquel les employés ont la possibilité de participer.
Une équipe d’une quinzaine de personnes encourage chacun à proposer des idées originales axées, a priori, davantage sur d’autres manières de voir l’activité et les services de l’entreprise. La collecte de ces suggestions et idées de projets est facilitée par la mise en place d’un portail collaboratif en ligne."
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- Une communauté de quelque 20.000 employés s’est créée autour de l’initiative.
- 1.500 idées nouvelles ont été déposées via la plate-forme collaborative.
- Sur ce total, 35 ont été retenues et sont à présent mises en exécution.
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Selon cet article de The Economist, le programme Business Innovation de Daimler est considéré comme l’une des initiatives importantes destinées à assurer les débouchés et la croissance future du groupe automobile allemand.
De fait. Pour recevoir l’approbation pour une mise en oeuve, chaque projet retenu doit avoir démontré que Daimler pourra générer sur celui-ci un chiffre d’affaires minimal de 100 millions d’euros par an, avec un marché global évalué à plus de 1 milliard d’euros.
"If you follow discussions in these developing strategies, you see that there are differing views as to the value of customer feedback. Understanding the different use cases of customer feedback helps organizations to set objectives and expectations appropriately, and to create effective frameworks for engaging customers.
Let’s look at three models for applying customer feedback to innovation."
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- Features – product or service requests
- Product’s “job” – understand the deeper purpose your product fulfills
- Proposal – putting a new concept in front of customer’s to understand its key value drivers
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As Vice President, External Business Development, Jeff Weedman leads a team of over 50 P&G “trailblazers” who search the globe for open innovation opportunities in engineering, technology, trademarks, packaging and more. Weedman recently shared his company’s secrets on open innovation success with IdeaConnection.com.
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"But are companies, with all their good intentions, getting the most from open innovation? We suspect that the initial successes, encouraging as they are, represent only the beginning. What if open innovation were defined more broadly and more ambitiously? Could even greater value be realized? If so, what would the next wave of open innovation look like?"
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This approach has two limitations. First, it misses the opportunity to build long-term trust-based relationships among participants. Second, it does not encourage participants to build cumulatively upon the contributions of others.
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On the other side, really challenging problems require tapping into the tacit knowledge possessed by more than one individual in order to create new knowledge and generate a workable solution.
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"Point: By picking where open innovation occurs and what it communicates to the rest of the organization, innovators can protect open innovation efforts from corporate antibodies
Story: All organizations, especially large ones, have an "immune system" in the form of an army of fine-tuned antibodies that root out risk and threats to the smooth-operating status quo. These antibodies help drive efficiencies, attack waste, promote uniform performance, and prevent infection for foreign ideas."
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The sandbox metaphor works on two levels. It provides a protected place for innovation to do its value-creating experimental work. The sandbox also is the container for the innovator's gritty sand, protecting the larger organization from the risky rough ideas.
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The most-cited communications recommendation, used at HP and Shell's programs, is communicating what the innovators did and not what they are doing or planning to do. This focuses the discussion on the new products, new customers, new revenues, and new profits generated by innovation, rather than on the potentially risky or disruptive projects underway by the innovators
"Solid advice for any type of social software is that the greater the transparency, the greater the benefit. This means a bias toward making information available to all, not a few. It also means associating contributions to specific individuals. Visibility of contributors gives context, improves the quality of discussions and makes it easier to find individuals with ideas and knowledge on specific subjects.
But there are occasions when it makes sense to allow individuals to contribute ideas without revealing their identity, which Spigit's platform does allow. In these cases, the ideas and related information are visible to anyone who has eligibility to see them. However, participants in the innovation community won't know who submitted the ideas. There are two reasons companies would enable anonymous posting:
1. Employees are concerned about retribution for their ideas
2. Employee identity may influence the feedback others provide"
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Fundamentally, this is a cultural issue. Something in the environment has sent the message that execution more than participative innovation is valued. The foundations of that culture need to be addressed.
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In this scenario, anonymous posting is a bridge to a more transparent culture. It is a temporary feature to be turned off when the core work environment changes.
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L’assureur américain Chubb Group of Insurance correspondait sans aucun doute, récemment, à cette lugubre description. Voici quelques mois, cependant, le groupe s’est lancé dans une nouvelle expérience, raconte le magazine Rick & Insurance, visant à insuffler durablement un esprit d’innovation dans toutes les strates de l’organisation.
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Trente jour après l’installation de la plate-forme en ligne, l’assureur avait récolté 607 idées.« Certaines de ces idées tenaient sur un email de trois paragraphes, rapporte l’article de R&I. D’autres idées étaient bien plus longuement développées. Elles renvoyaient à des documents annotés des commentaires. Nous en sommes sûr: beaucoup de ces idées vivotaient depuis de nombreuses années dans le cerveau de certains employés. Ils voulaient les soumettre mais ils n’avait personne pour les entendre et nul par où les exprimer. Elles étaient perdues… »
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« Je sais que je peux partir d’une graine d’idée et, en trois mois, bâtir tout un business plan. Et je dispose des fonds pour soutenir la mise en oeuvre. De la sorte, je suis armé pour devancer n’importe qui« , précise Jon Bidwell, Chief Innovation Officer de Chubb Group of Insurance, à R&I.
In my talks with innovation leaders on this, the issues evolve around the funnel system and stage-gate like models; how to identify the ideas and get them from one stage to the next. Another key issue is how you organize for this. It is my experience that companies often make a couple of mistakes on this. They are:
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1. Too much focus on internal sources
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2. Too much focus on ideas and too little on processes and people
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Its role will be smaller and its advantage diminished, suggests Michael Schrage, a research fellow at the Center for Digital Business at the Sloan School of Management at M.I.T. The idea-production process, according to Mr. Schrage, will continue to shift away from the centralized model epitomized by large corporate labs, going from “proprietary innovation to populist innovation.”
As you start the evolutionary process of adopting open innovation to your organization, always remember that open innovation is just a tool, not a goal. The goal is to grow your company and make a profit. Some companies might also have the goal of changing the world to a better place.\n\nUnderstand that open innovation is only a piece of an overall innovation strategy. To begin, look for opportunities to develop overall open innovation capabilities out of the pockets of open innovation you may already have in your company in areas such as key partnerships, supply/value chain, and selected employees with the right mindset and toolbox.
The leading question
Should companies organize outside innovation through collaborative communities or competitive markets?
Findings
* Communities are useful when an innovation problem involves cumulative knowledge, continually building on past advances. Markets are effective when an innovation problem is best solved by broad experimentation.
* In general, communities are more oriented toward the intrinsic motivations of external innovators (the desire to be a part of some larger cause, for instance), whereas markets tend to reward extrinsic motivations (such as through financial compensation).
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- Communities are useful when an innovation problem involves cumulative knowledge, continually building on past advances. Markets are effective when an innovation problem is best solved by broad experimentation.
- In general, communities are more oriented toward the intrinsic motivations of external innovators (the desire to be a part of some larger cause, for instance), whereas markets tend to reward extrinsic motivations (such as through financial compensation).
The leading question
Should companies organize outside innovation through collaborative communities or competitive markets?
Findings
According to Harvard Business School professor Karim R. Lakhani, Boeing's approach is an excellent example of how not to manage external innovation. The right way to do it is the subject of an article in the current issue of MIT Sloan Management Review by Lakhani and collaborator Kevin J. Boudreau (London Business School), "How to Manage Outside Innovation" (free registration required).
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The solution then is to connect with external innovators and invite them to participate with you on your critical problems. Of course, the Internet and the massive reduction in communication and computation costs have made accessing external innovators a much easier task than what was possible 10 or 15 years ago
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More practically, working with outside innovators does not mean that all the "keys to the kingdom" have to be given away. Instead, firms can become intelligent about selectively revealing core issues in ways that their IP is protected. Firms like Procter & Gamble and IBM have learned to do this—others can learn as well.
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McKinsey & Company has recently published a report with the title "And the winner is..." reviewing the current academic and business literature on prize-based innovation. The report is also partly based on a number of case studies from companies and governmental organization practicing such strategies in different forms.
The catchphrase of Henry Chesbrough’s work on innovation (a doctrine called “open innovation” and described in Open Innovation, 2003, and Open Business Models, 2006), is “not all the smart people work for you.” The key operational message that corporations seem to take away from it though, is “buy and sell intellectual property vigorously and throw some money at universities.” Somewhere along the way unfortunately, a sophisticated reconstruction of the logic of innovation becomes reduced to quick-money recipes.
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Here is the obvious conclusion that Chesbrough is unwilling to draw from his own theory: if intellectual property moves around in an economy through the clumsy and cumbersome process of trade, things get drastically slowed down. The solution isn’t just more trade. It is faster trade, and sometimes, free sharing.
Recognized by Fortune magazine as “the world’s leading strategy expert in business today”,
Gary Hamel has outlined ten design rules for innovation for companies intent on generating sustained wealth in the future:
SAP is sponsoring a part of the Innocentive site where both SAP and other SAP users such as customers, can post problems. SAP considers this to be an open marketplace for their customers can go to get solutions. The organization posting the problem also posts a bounty of how much they are willing to pay for the solution.
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