Open Collaboration:

The Power of “We”

Tamra Hall, Ph.D.

Vice President, Executive Partner
Gartner Executive Programs

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We Know Innovation is Important
"The most successful organizations co-
create products and services with
customers, and integrate customers into
core processes." IBM CEO Survey

"We need diversity of thought in the world

to face the new challenges," Tim Berners-Lee

"When the rate of change outside an

organization is greater than the change
inside, the end is near” Jack Welch
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Open Innovation

How do we harness the power of the crowd?

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The Crowd Wants to Contribute

“People are inherently creative and want to engage with

organizations; they don’t want to have products and
processes imposed on them.”
Venkat Ramaswamy & Fancis Gouillart
HBR, October 2010

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Build an Innovation Network
Focus Areas Resources

Business Employees
Objectives Innovation Customers
Programs
Boundary Partners/Supplies
Conditions 1
2 Market/Trend
Strategic Watchers & Experts
Platforms
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Etc. Marketplaces
Wicked
Tech/Business
Problems
Media, Analytics

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The Targets of Innovation Are Expanding …
…. and success is dependent on
explicit goals

Products & Services

Greater customer value

Operations
New ways of working

Management
Oversight & decision making
structures & competencies

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Open Innovation Focus
Business Focus

Business
Avoid – not for Yes – engage
Model Avoid – not
the average key participants
Innovation for novices.
organization and mine the
social Web.

Yes – include all

Products,
Yes – start with Yes – include targets, &
Services, participants.
one target. multiple targets.
& Markets Mine the social
Web.
Avoid – will Avoid – will Yes – if potential
Process draw little draw little savings are
Innovation interest or interest or high; engage
results results experts and key
partners.
Novice Competent Expert
Expertise
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in Open Innovation
Innovation Networks can Contribute to Every
Stage of an Enterprise's Innovation Process
Innovation Need Techniques Examples
Phase: Generate Ideas
Concepts & ideas Source to communities Netflix crowdsourcing
Components Acquire from idea markets yet2.com
Patterns Web-based pattern seeking Social network analysis
Phase: Evaluate & Select ideas
Prototyping Acquire prototypes; scale up P&G entrepreneur network
Comment, extend Participants review, rank Lego User Group
Rank, vote, select Use prediction markets Intrade Prediction Markets
Phase: Develop & Implement
Co-develop Partner to develop Co-research on Alzheimers
Outsource Source full development InnoCentive challenges
Source key components TopCoder ESPN Challenge
License IP to others License solution/components Xerox PARC
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 Know the Sources of Innovation

Global
U.S. only

Economist Intelligence Unit and Grant Thornton survey of Business Exec, June
13 2010
"Innovation: The Key to Future Success?" Global results shown here.
Engaging Customers
"You can't just ask customers what they
want and then try to give that to
them. By the time you get it built,
they'll want something new.“
Steve Jobs

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Lead Customers

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Engaging Business Unit Leaders

• Business simulations
• Exercises to envision the
"company of the future"
• Focus groups with lead
customers
• Expert conferences or
networking events
focused on future trends

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 Building the Co-Creative Enterprise

“Stakeholders won’t wholeheartedly participate in co-

creation unless it produces value for them”

“Generating new experiences for end customers often requires

designing better experiences for internal players”

Venkat Ramaswamy & Fancis Gouillart

HBR, October 2010

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 Open Innovation Enabled by Social Apps
Scope of
Participation
Social Applications
Develop  Idea Generation
 Crowdsourcing
 Idea Markets
Evaluate/  Prediction Markets
Select  Challenge Events
(comment,
rank & vote)  Co-Design
 Co-Development
Contribute  Open Innovation Networks
Ideas  … more

Internal Experts External

Participants
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 In the "Landscape" of Innovation,
Governments are not Well-placed

Direct and Some Fertile Fields

compelling Flowers for
Bloom Innovation IT Leadership
challenge:
Impetus Monopoly Competitive
organizations commercial To initiate and lead
for
organizations innovative change
Change
Governments in an unreceptive
environment
Limited or Barren Many
diffused Ground for Seedlings
Innovation

Risk averse Risk taking

Attitude to Risk

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 Does your Innovation Approach Match
the IT Organization's Positioning?
Business: Leader/Risk Taker/Change

The Butler The Entrepreneur

Serve the business Co-own the future

"IT provides support "IT is a vital

Expected IT services but is not component of our Expected
Role: strategically important" business model" IT Role:
Tactical/Utility Strategic/Transform
The Grinder The Team Player
Do as the business says Formally collaborate
"We depend on IT
"IT is a cost of systems in our
doing business" business, so we give
it as much time as
Usual Range
for Government
we can afford"
IT Organizations
Business: Follower/Risk-Averse/Mature
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Open Innovation Defined by Cultural Shift
The Blind Spot of Open
Innovation …
Innovation is being first
Competitors will discover our
ideas
We don't know how to manage
open innovation
We know what customers want
and need
If it's "not invented here", it
probably won't work for us
The Sweet Spot of Open
Innovation …
Innovation is ideas that are new to us
Our competitive advantage is design and
execution, not just ideas
We should start now and experiment to build
competence
Our customers (and prospects) have great
ideas
We can multiply our innovation capabilities
through open innovation
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Ability to Execute is Critical to Maintain
Participation
Management Market Awareness
• Key Managers capable of • Real-time market awareness
launching new business
• Active ability to sense,
endeavors
analyze and respond to
• Strong innovation portfolio trends
governance

Organizational
Processes
Integration
• High performing workplace • Rapid prototyping and
• High project execution experimentation to support
capabilities fail or succeed fast

• Mass collaboration and social

networking literacy
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Ideation: Best Practices and Pitfalls
 Leadership creates clear  Leadership fails to set the
imperatives for the need stage for the need to
to change; change;
 Focus on all dimensions  Limit efforts to R&D (new
of innovation; Products & Services);
 Cultivator: Build out/on  Gunslinger: settle on the
ideas; first good idea;
 Evaluate both evolution  Neglect new opportunities
ideas and revolution by selecting evolution
ideas; ideas only;
 Dot on the horizon:  Tunnel vision: Ignore
Constantly on the lookout internal or external
for changes. changes
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Innovation Maturity Curve

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How is NASA Doing? What’s Next?

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