Start Innovating Already: 13 Poisons to Open Innovation

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An somewhat irreverant intro to Open Innovation for advanced beginners. The presentation discusses 13 poisons (and their antidotes) to Open Innovation. Companies covered include AirBNB, Best Buy, LudoBites,Netflix, NPR, Starbucks, Saatchi & Saatchi, RelayRides and Threadless.


<ul><li> 1. Start Innovating Already.A Punk View of 13 Poisons to Open Innovation&amp; Building Engaged Communities <br />Lisa ThorellRutgers University PDS - Keynote Address, June 7, 2011<br />Off the Grid PR<br /></li> <li> 2. Build It All Yourself<br />1<br />POISON<br />Source: Henry Chesbrough, 2006<br />Slow time to market High Fixed Costs Closed Pool of Talent<br /></li> <li> 3. That model arose in the early 1900s.<br />Concerns of the day were<br /> Economies of scale Coordinating large numbers of people Limit Liability<br /></li> <li> 4. Today we buy in more quickly<br /></li> <li> 5. We throw out more quickly<br />18<br /> Months from purchase to discard of a cell phone for a person living in the US or UK.<br /> Months from purchase to discard for a cell phone user in Japan.<br /> The number of iPods you would own if you upgraded to every new iPod that had come onto the market from 2001 to 2009.<br />12<br />18<br />Source: Rachel Botsman &amp; Roo Rogers book Whats Mine Is Yours: How collaborative consumption is changing the way we live (2011)<br /></li> <li> 6. Creating 100 gigapascals of pressure<br />Source:<br />_Survey_results_2706Nov 2010<br /></li> <li> 7. Also rocking our world<br />Source: McKinsey Quarterly Riding Asias Digital Tigers<br /></li> <li> 8. Rocking it still more: Hyper Innovation<br />Source: Adrian Ott, The 24-Hour Customer: New Rules for Winning in a Time-Starved Always-Connected Economy<br /></li> <li> 9. Whats a way to go faster?<br />Take in more ideas from outside?<br />Spin out ideas for others to use?<br />Solution: Punch more holes in the funnel.<br /></li> <li> 10. Open Innovation<br />ANTIDOTE<br />Source: Henry Chesbrough, 2006<br /></li> <li> 11. Get to Market Faster<br /></li> <li> 12. Break into Partner Markets<br /></li> <li> 13. Transfer risk to someone else<br /></li> <li> 14. Make your customers crazy-scream with rage <br />If they cant get your product. <br /></li> <li> 15. Employees as Lifeblood<br />2<br />POISON<br /> Expensive fixed assets Salary independent of performance<br /></li> <li> 16. As Bill Joy said,<br />There are always more smart people outside your company than inside it.<br /> Bill Joy,<br /> Founder, Sun Microsystems<br /> Partner, Kleiner Perkins<br /></li> <li> 17. Crowdsourcing:Lifeblood on steroids<br />ANTIDOTE<br />Example: Netflix $1 Million Challenge<br />Pay only on Performance<br />Off the Grid PR<br /></li> <li> 18. Crowdsourcing:Netflix $1 M Challenge<br />ANTIDOTE<br />Netflix $1 Million Challenge<br />55,000 Engineers Enter<br />A huge virtual workforce Decrease HR costs: Talent finds you!<br /></li> <li> 19. Crowdsourcing:Netflix $1 M Challenge<br />ANTIDOTE<br />Movie Recommendation Engine<br /> Improved 10%<br />Problem Solved: 5 2 years <br />Decrease Time to Market<br /></li> <li> 20. 3<br />The Human Resources Department<br /></li> <li> 21. Hire People HR would Never Hire<br />ANTIDOTE<br /></li> <li> 22. People HR would Never Hire<br />ANTIDOTE<br />1760 A self-educated clock maker invents longitude<br />1990s Design firm Ideo creates up the best-selling kids toothbrush by working with anthropologists<br /> A home-schooled coder invents WikiLeaks<br /> 2007 An oil-industry outsider provides the solution for cleaning up oil spills borrowing from the concrete industry<br />.<br />.<br /></li> <li> 23. Diversity + Will-to-Win Trump Superstars<br />ANTIDOTE<br />Off the Grid PR<br /></li> <li> 24. Trad Market Research<br />4<br />Interviews<br />Secondary<br />Research<br />Roundtables<br />Focus Groups<br />Surveys<br />Greatbrilliant clarity on the past Usually company internal<br />Budget-constrained sample size<br /></li> <li> 25. Customer Crowdsourcing<br />ANTIDOTE<br />Up-to-minute 24 x 7 customer feedback<br />Community vetted<br />Social Proof of <br />Open Brand<br />MyStarbucksidea<br />Build it? No!<br /></li> <li> 26. Customer Crowdsourcing<br />ANTIDOTE<br /><ul><li>Over 100,000 ideas </li> <li> 27. 100 ideas launched </li> <li> 28. Note Starbucks did not</li></ul> build this. They license the platform from<br />MyStarbucksidea<br />Build it? No!<br /></li> <li> 29. Profitability<br />Animate with Annual Report, Investors, SEC sliding up under NI.<br />You own a company thatsells a product, like tee-shirts<br />5<br /><ul><li>Limits Shape-Shifting </li> <li> 30. Makes C-levels risk-averse</li></ul></li></ul>