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Helix Innovation Hive
        Applied Innovation for Value Realization

                            [Caspar van Rijnbach]

[Open Innovation- Experiences from Europe and Brazil]

                             [TerraForum Consulting]
                                            June 2, 2010
Fiat Mio: Open source design




Any company can use the ideas (more than 10.000) submitted by users
The world has become smaller...




                  © 2010 Information is not to be copied without permission by Helix Commerce International Inc.   3
Open Innovation REQUIRES a new mental model
                                                                                Base on Chesbrough 2003




           Closed Innovation                                      Open Innovation
                                                       Not all of the smart people work for us so we must
    The smart people in our field work for us           find and tap into the knowledge and expertise of
                                                             bright individuals outside our company

                                                        External R&D can create significant value;
 To profit form R&D, we must discover, develop        internal R&D is needed to claim some portion
               and ship it ourselves                                   of that value

                                                        We don´t have to originate the research in
  If we discover it, we will get it to market first               order to profit from it


                                                      Building a better business model is better than
 If we are the first to commercialize we will win                 getting to market first


 If we create the most and the best ideas in the         Is we make the best use of internal and
              industries, we will win                           external ideas we will win


 We should control our intellectual property (IP)      We should profit from others´ use of our IP,
  so that our competitors don´t profit from our        and we should buy others´ IP whenever it
                     ideas                                advances our own business model
Open Innovation Model – The Innovation Funnel

   With the open innovation model, the company keeps strong
   relationships with external partners within different stages
   of the innovation development process
                 Research                   Development                  Comercialization

                 Joint Venuture

                                   Licencing
                                           External Technology
                                                Insourcing
                                                            Spin-in
                                                                      Merge and Aquisitions




  INTERNAL                                                                                    MARKET
     R&D

                                                                        Divest
                                                          Spin-off
                                     Licencing
                    R&D Services

                                                                                   Based on Chesbrough 2003
Open innovation: new ideas,insights and collaboration



                               Challenges
Philips High Tech Campus (Eindhoven)
Philips High Tech Campus (Eindhoven)




                                Modern technology park
                                More than €500M in investments;
                                Technology-based startups incubation
                                The design stimulates and forces collaboration
                                between partners
                                Close to universities
                                “Research Hotel” concept
Natura: Open Innovation to develop new products




                                      Develop 50% of technologies externally



                               The main innovation target is radical innovation, using
                                      strongly with knowledge management



                                     Partnerships usually on ideas generation



                 Partners use Natura´s infrastructure and laboratories



     Has various partners for external collaboration: universities, research centers,
            companies, laboratories and foundations to support innovation
Good Practices in Open Innovation Systems (OIS)




                   “       Telefónica has established a network that
                            involves more than 1,000 partners. The
                         company structured 7 research centers, most in
                             Spain and close to technology parks.


       “      Nokia promotes “Day Dreams” with
              their partners, where they discuss
              about the technology and products
                      trends and forecast.


                       “         Syngenta keeps a full time
                               partnership manager to manage
                                collaboration and the network
                                relationship, stimulating new
                               business and solving conflicts.
Key Factors for Open Innovation Success




                                                 Clearly Defined
                                  Support and      IP policies     Organizational
                                  Services for                     Structure and
                                   Partners                         Governance

                        Strong
                       Relation                                                     Infrastructure
                       Network                                                       and location



            Adequate
            Partners                                                                           Funding




     Collaborative                                                                                   Stakeholders
       Culture                                                                                         Support



                                                     Open                                               Processes
    Strategic                                     Innovation                                           and KPIs for
    Alignment                                                                                           Innovation
                                                    System                                                Mgmt
WEB 2.0 Facilitates Innovation even more…
Peugeot Design Contest - Open Design




                                       • More than 4 million
                                         page views


                                       • 5 demonstration
                                         models exhibited at
                                         automotive marketing
                                         events


                                       • Designers of around
                                         100 nationalities


                                       • € 10.000 prizes


                                       • 5th year of the contest
Threadless Co-creation made by users
What about having students helping your
        company to innovate?
Our inspiration



         “Every company has its issues and challenges.
       Students have time, drive and innovative solutions.”



                           Our concept
  “Promoting innovation through open concept battles, in which
    companies offer challenges (Battles) and college students
     and young professionals offer solutions (the Concepts).”
Dutch fever spreading…
History




                                   • Since 2006, already                                    • In six months distributed
      Battle of Concepts Holland




                                                                Battle of Concepts Brazil
                                     distributed 500                                          46 thousand reais (US$
                                     thousand euros to                                        25 K) and will distribute
                                     participants                                             another 74 thousand
                                                                                              reais (US$ 40 k) to the
                                   • More than 5 thousand                                     participants
                                     students registered
                                                                                            • More than 3 thousand
                                   • More than 100 battles                                    students registered
                                     concluded
                                                                                            • 30 students received
                                   • Received more than 3                                     prices
                                     thousand concepts
                                                                                            • Participation of
                                   • Participation of various                                 Government
                                     public entities
Some participating companies
Eneco Case



   Challenge      Find new ideas for the re-use of oil or gas platforms in the sea


                                     What can we do with oil or gas platforms?
                         They are not only ugly, but they can be a threat to the environment.
                                              Some important factors:
                                                  Technical execution
                                                Security and well being
                                                      Environment
  Specification                                           Cost
                                     Reputation and influence on public opinion
                          The permanent question is: How to re-use obsolete installations?
                        Do they necessarily need to become old iron or can they be re-used?
                  Research in the last ten years have shown that there have been some re-use of
                  platforms such as the Spar, that was transformed in a pier and other ideas such
                                                    as prisons etc.
Rijkswaterstaat Case



                  How can the minister of transport and water reduce the consumption of energy
                  and water and CO2 emission in its infrastructure? With the slogan “Good ideas
   Challenge       have no value when not implemented” Rijkswaterstaat invite the participants
                    with the three best ideas to present their ideas and show how they work in
                                                      practice.


                   Scope restrictions: Rijkswaterstaat will not implement wind mills or biodiesel
                                                     energy –
  Specification
                  “Windmills will encounter resistance from the populations and biodiesel is not
                                        sustainable and need to be bought”.




                                                        Prices:
                                                    1º 1.500 euros
                                                     2º 750 euros
                                                     3º 350 euros
                                                  4º a 10º 200 euros
                                                  11º a 20º 100 euros
Testimony




    "Battle Of Concepts is a simple and innovative way to find
        solutions for challenges and opportunities for our
      organization. Moreover it promotes the company and
    creates stronger links with young talents, that can present
       solutions and see them being brought into practice"

                            Mônica Reiter Bissi, HR Manager Vopak
Integrated Benefits




                         Companies               Students
                      Reduced Investiment          Market display
                      in ideation process
                      and recruiting of talent     Payment
                 External collaboration with       Experience with real
                 talent                            challenges
                Emotional relationship with
                young professionals and                Relationship with
                possible clients                       companies
             Relationship with                           Employability
             academic world

                                                        Country
              Universities                              More innovative
                 Prestige and positive                  companies
                 display of brand                     Engagement of young
                                                      and innovative people
                  More interested and             Feeling of co-creation
                  engaged students                and search for
                      Real world cases to         solutions together
                      use in class room          More interaction
                                                 between companies
                                                 and universities
Q&A

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Helix Open Innovation Caspar Van Rijnbach 2 [Compatibility Mode]

  • 1. Helix Innovation Hive Applied Innovation for Value Realization [Caspar van Rijnbach] [Open Innovation- Experiences from Europe and Brazil] [TerraForum Consulting] June 2, 2010
  • 2. Fiat Mio: Open source design Any company can use the ideas (more than 10.000) submitted by users
  • 3. The world has become smaller... © 2010 Information is not to be copied without permission by Helix Commerce International Inc. 3
  • 4. Open Innovation REQUIRES a new mental model Base on Chesbrough 2003 Closed Innovation Open Innovation Not all of the smart people work for us so we must The smart people in our field work for us find and tap into the knowledge and expertise of bright individuals outside our company External R&D can create significant value; To profit form R&D, we must discover, develop internal R&D is needed to claim some portion and ship it ourselves of that value We don´t have to originate the research in If we discover it, we will get it to market first order to profit from it Building a better business model is better than If we are the first to commercialize we will win getting to market first If we create the most and the best ideas in the Is we make the best use of internal and industries, we will win external ideas we will win We should control our intellectual property (IP) We should profit from others´ use of our IP, so that our competitors don´t profit from our and we should buy others´ IP whenever it ideas advances our own business model
  • 5. Open Innovation Model – The Innovation Funnel With the open innovation model, the company keeps strong relationships with external partners within different stages of the innovation development process Research Development Comercialization Joint Venuture Licencing External Technology Insourcing Spin-in Merge and Aquisitions INTERNAL MARKET R&D Divest Spin-off Licencing R&D Services Based on Chesbrough 2003
  • 6. Open innovation: new ideas,insights and collaboration Challenges
  • 7. Philips High Tech Campus (Eindhoven)
  • 8. Philips High Tech Campus (Eindhoven) Modern technology park More than €500M in investments; Technology-based startups incubation The design stimulates and forces collaboration between partners Close to universities “Research Hotel” concept
  • 9. Natura: Open Innovation to develop new products Develop 50% of technologies externally The main innovation target is radical innovation, using strongly with knowledge management Partnerships usually on ideas generation Partners use Natura´s infrastructure and laboratories Has various partners for external collaboration: universities, research centers, companies, laboratories and foundations to support innovation
  • 10. Good Practices in Open Innovation Systems (OIS) “ Telefónica has established a network that involves more than 1,000 partners. The company structured 7 research centers, most in Spain and close to technology parks. “ Nokia promotes “Day Dreams” with their partners, where they discuss about the technology and products trends and forecast. “ Syngenta keeps a full time partnership manager to manage collaboration and the network relationship, stimulating new business and solving conflicts.
  • 11. Key Factors for Open Innovation Success Clearly Defined Support and IP policies Organizational Services for Structure and Partners Governance Strong Relation Infrastructure Network and location Adequate Partners Funding Collaborative Stakeholders Culture Support Open Processes Strategic Innovation and KPIs for Alignment Innovation System Mgmt
  • 12. WEB 2.0 Facilitates Innovation even more…
  • 13. Peugeot Design Contest - Open Design • More than 4 million page views • 5 demonstration models exhibited at automotive marketing events • Designers of around 100 nationalities • € 10.000 prizes • 5th year of the contest
  • 15. What about having students helping your company to innovate?
  • 16. Our inspiration “Every company has its issues and challenges. Students have time, drive and innovative solutions.” Our concept “Promoting innovation through open concept battles, in which companies offer challenges (Battles) and college students and young professionals offer solutions (the Concepts).”
  • 17.
  • 19. History • Since 2006, already • In six months distributed Battle of Concepts Holland Battle of Concepts Brazil distributed 500 46 thousand reais (US$ thousand euros to 25 K) and will distribute participants another 74 thousand reais (US$ 40 k) to the • More than 5 thousand participants students registered • More than 3 thousand • More than 100 battles students registered concluded • 30 students received • Received more than 3 prices thousand concepts • Participation of • Participation of various Government public entities
  • 21. Eneco Case Challenge Find new ideas for the re-use of oil or gas platforms in the sea What can we do with oil or gas platforms? They are not only ugly, but they can be a threat to the environment. Some important factors: Technical execution Security and well being Environment Specification Cost Reputation and influence on public opinion The permanent question is: How to re-use obsolete installations? Do they necessarily need to become old iron or can they be re-used? Research in the last ten years have shown that there have been some re-use of platforms such as the Spar, that was transformed in a pier and other ideas such as prisons etc.
  • 22. Rijkswaterstaat Case How can the minister of transport and water reduce the consumption of energy and water and CO2 emission in its infrastructure? With the slogan “Good ideas Challenge have no value when not implemented” Rijkswaterstaat invite the participants with the three best ideas to present their ideas and show how they work in practice. Scope restrictions: Rijkswaterstaat will not implement wind mills or biodiesel energy – Specification “Windmills will encounter resistance from the populations and biodiesel is not sustainable and need to be bought”. Prices: 1º 1.500 euros 2º 750 euros 3º 350 euros 4º a 10º 200 euros 11º a 20º 100 euros
  • 23. Testimony "Battle Of Concepts is a simple and innovative way to find solutions for challenges and opportunities for our organization. Moreover it promotes the company and creates stronger links with young talents, that can present solutions and see them being brought into practice" Mônica Reiter Bissi, HR Manager Vopak
  • 24. Integrated Benefits Companies Students Reduced Investiment Market display in ideation process and recruiting of talent Payment External collaboration with Experience with real talent challenges Emotional relationship with young professionals and Relationship with possible clients companies Relationship with Employability academic world Country Universities More innovative Prestige and positive companies display of brand Engagement of young and innovative people More interested and Feeling of co-creation engaged students and search for Real world cases to solutions together use in class room More interaction between companies and universities
  • 25. Q&A