Connecting Global Competence
Messe München Open Innovation Case
A pilot for a new service to our customers
Stefan Rummel, Milan, October 23rd 2014
Connecting Global Competence
Digital Strategy
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Connecting Global Competence
The rise of digital technology disrupted the ways ofdoing busssiness…
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Connecting Global Competence
The rise of digital technology disrupted the ways ofdoing busssiness – now we have to adapt fast!
Developenew services &
business models forour customers
Redefine ourmarketing & sales
system
Redesign our existingcustomer processes(From application to
billing)
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Connecting Global Competence
The rise of digital technology disrupted the ways ofdoing busssiness – now we have to adapt fast!
Redefine ourmarketing & sales
system
Redesign our existingcustomer processes(From application to
billing)
Developenew services &
business models forour customers
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Connecting Global Competence
Our innovation projects follow a clear customerfocused process…
Gate
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Gate
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Gate
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Project- Portfolio
Idea sourcing
UnderstandObserveDefine
TestPrototype
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Innocentive`s Services seemed to be interesting to our customers and the „players“ are familiar…
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How does it work?
Seekers
Companies/Multinationals
Market Place
Open Innovation Platforms e.g. Innocentive
Solvers
Engineers, Scientists, Industry
Professionals etc.
?
www
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Innocentive Challenge Center – branded and incognito challenges
Abruf vom 26.4.2013
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Innocentive Challenge Center – Details
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The best solution will be awarded!
The Netflix Challenge “The Netflix Prize”
� World class companies are offering financial awards for solutions to their scientific challenges
� $1M Grand Prize for best collaborative filtering algorithm to predict user rating for films based on previous ratings
� Requirement: 10% improvement of accuracy of Netflix’ own algorithm
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Open Innovation Market Place: InnocentiveMarket Leader in North America
Innocentive – The Open Innovation Marketplace At a Glance
� Founded in 2001
� Concept: expertise knowledge and creativity from talented outsources to solve Research & Development problems in Engineering, Math, Physical Science, Computer Science, Business, Chemistry and Life Sciences
� Online community of 300,000+ total registered solvers in more than 200 countries
� More than 475.000 posted challenges up totoday (branded + anonymous)
� Range of awards: $5,000 to $1+ million based on the complexity of the problem and nature of the Challenge
� Premium Challenge Success Rate: 85%
Innocentive has a proofen business model
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What are some of the key success factors ofInnocentive´s idea…?
Key success factors
� Active and interdisciplinary solver community with scientists, engineers, industry professionals, lead user etc.
� Successful community management
� Neutral platform for all seeker companies, even if they are competitors
� High credibility
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Exhibitors = Seekers/Solvers
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Visitors = Solvers/Seekers
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…and what does it have to do with us?
A good match – and a good way to extend our relationship with our customers
…compared with our resources
� National and International Exhibitors, Visitors, University and Institutional Research Partner etc. that can be either seekers or solvers
� Interdisciplinary community managed by MMG
� Leading International Trade Fair Brands are a neutral Platform for an Industry
� Challenges could be presented online and offline
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Key success factors
� Active and interdisciplinary solver community with scientists, engineers, industry professionals, lead user etc.
� Successful community management
� Neutral platform for all seeker companies, even if they are competitors
� High credibility
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We decided to run the pilot with our ISPO Community…
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ISPO OPEN INNOVATION & COMMUNITYBe part of the movement!
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…since their characteristics seemed a perfect match for an innovation project
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INTERNET SAVVY
80% use online media once a week to get information on the latest sports topics
INNOVATIV
70% of ISPO´s visitors main interests are product innovations
CURIOUS
63% of ISPO´s visitors want to co-develop innovative sports products
ISPO is the world`s leading community of sports business professional and they are:
Connecting Global Competence
Examples
GeneralEffects
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Three ways of using Open Innovation and the wisdom of the crowd
Co-Creation
Products developed by customers manage to achieve:
� three times higher revenue
� four times higher margins
� Development of an user friendly Control-Display for cockpits of construction and agricultural machinery
TechnologyScouting
Open Innovation R&D projects:
� Reduce R&D Timeby 42%
� Reduce R&D Costs by 20%
� Development of a new jet-engine bracket with major weight reductions
ProductTesting
� Introduction of a new ski collection to trendsetters and opinion leaders within the blogger scene in a test series ahead of market rollout!
With Product Testing to a better allocation of marketing budgets
� Reduce Marketing Budget through more efficient use of budget
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ISPO Open Innovation: Co-Creation
Access to ISPO User Experts – not confined to the trade fair, but 365 days per year.
Setup of a protected space for new ideas, which are derived from working with the community.
Efficient execution through standardized process on established web-platform.
Project examples:
� Organic sports food – develop a healthy high-class
nutritional concept of highest biological quality together with
athletes!
� Fun & Boulder Collection – a new sportswear collection for
fans of sport climbing – designed by and created with
exactly this target group!
� Skiers create a collection jointly with you to perfectly satisfy
the needs of “sophisticated free skiing”!
Develop products jointly with your target group.
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Connecting Global Competence
ISPO Open Innovation: Product Testing
Access to user or test groups respectively that can be structured and segmented.
Channeling and structuring of customer feedback and ideas.
Simple administration of focus groups in one efficient and professional tool.
Project examples:
� Introduce your new ski collection to trendsetters and
opinion leaders within the blogger scene in a test series
ahead of market rollout!
� Have the Boulder Softshell Jacket’s outdoor aptitude tested
in a real-life usage scenario on an actual rock!
� A team embarking on a trip around the world puts the
revolutionary functionality of the new outdoor collection to
the acid test!
Receive feedback ahead of your market rollout.
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Access to lead users, scientists, engineers, industry professionals as solvers
Channeling and structuring of ideas from outside the company
Professional assistance for drafting and defining the challenges
Project examples:
�New Materials for Snowboard Bindings with a weight
reduction
of 20-30%
�Special glue for glueing crystals to waterproof fabrics
ISPO Open Innovation: Technologie Scouting
Find new solutions
to your technical challenges.
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The Open Innovation Business Model of ISPO
Revenue and Service Streams The Process and Value Chain
Challenge
SolutionsReward for #1Solution
1Service FeeConsultingServices
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Company buys one of our Open Innovation Packages
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ISPO and it´s Partner consultwith drafting the challenge and „air“ it
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Solvers hand in their solutions and suggestions
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ISPO´s Partner is the Moderator along the process
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The best solution is awarded(from +150 € up to +50.000 €
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Co-Creation:The „New Ski Jacket Challenge“ by Lasse Kjus
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Co-Creation: Sport Scheck´s Personal Coach Challenge
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� Convince people to support an innovation and to not be afraid of trying new things
� Foster a climate where it is safe to innovate and where people are allowed to fail
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The Project is a successful pilot – we failed fast and often but did learn faster!
Convince people in our company to
try new things
� Involve the key people in the development of the idea from the beginning. It has to be their baby!
� Discuss with them the idea extensively
� A „not invented here syndrome“ will kill the idea
Get a common understanding
of the idea
� New innovative ideas often come along with a high complexity. To get everyone who is necessary “onboard” you have to get a common understanding what´s the idea all about and where the idea is heading to
Key Challenges Solutions
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� Integrate a radical new service in your traditional and existing sales processes
� Just do it! Prepare all selling arguments and documents, train the sales people intensively, give a proper incentive and don´t take „no“ for an answer.
Integration of service into an existing Sales
Process
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Next Step: Different industry platforms and one interdisciplinary solver community
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