Open Collaborative Systems (OCS) is a new approach to design the fuzzy frontend of innovation processes. It is based on the principals of openenss and collaboration.
1. OCS Open Collaborative Systems
New Excellence in the Fuzzy Frontend Innovation Management
April 2012
Dr. Joachim von Heimburg
Innovation Architect and Executive Advisor. joachim@jvhinnovation.de
Telefon: 0049 172 6976534, 00966 5692 13145. www.jvhinnovation.de
Clemens Frowein
HLP entwicklungspartner GbR . Voltastraße 31 . D-60486 Frankfurt . info@hlp-entwicklungspartner.de
Telefon: 0049(69)43 00 820-00 . Telefax: 0049(69)43 00 820-10 . www.hlp-entwicklungspartner.de
2. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
Background – time for paradigm change in early stage innovation
Strategic agenda for most cooperation's
Relevant innovations are essential for the further future business growth and expansion
Incremental innovations just not enough to stay in game
Lack of more transformational and disruptive innovations for growth
..and the Top Management experience with front end innovation process
Attempts in designing more performing early stage process far behind the expectations
Result: No innovative top sellers in the past years - nor in the pipeline
The root causes to be reflected
Clear innovation strategy and orientation missing
Discovery activities limited to invention / R&D
Weak in the culture of innovation
It’s time for change: leaders have to innovate the innovation
2
3. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
Fuzzy Front End: Challenge and Benchmarking
Early stage insights from innovation champions
Strategy driven early stage management
Radical change in paradigm:
Open Innovation: Leading companies are opening up
Idea Sourcing: New ways / Platforms for generating ideas
Innovation Eco Systems: Network management becomes competitive advantage
Collaboration as a core competence
Managing the fringes becomes key capability (trends, unconventional insights, non-
obvious competitors,….)
Differentiation between horizons: Breakthrough vs. transformational vs. incremental
Broader view: From product innovation to business model innovation
3
4. Das Bild k ann
zurzeit nicht
angezeigt
werden.
Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
Redesign Fuzzy Front End: Trend to Open Collaborative Systems
Champions in search for collaboration and openess
4
5. Das Bild k ann
zurzeit nicht
angezeigt
werden.
Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
“Invention comes in many forms and at many scales. The
most radical and transformative of inventions are often
those that empower others to unleash their creativity – to
pursue their dreams. We are creating powerful self-service
platforms that allow thousands of people to boldly
experiment and accomplish things that would otherwise be
impossible or impractical”
Amazon.com CEO & Founder Jeff Bezos.
5
6. Excellence in Fuzzy Frontend Innovation
Building the Open Collaborative System (OCS)
Mission of the OCS: Identify and
OCS Open Collaborative System
incubate powerful innovative ideas and
concepts (manage the fuzzy front-end)
Two elements:
“Collaborative Ideation Space (CIS)”
Vessel for ideation: interdisciplinary
teams are creating ideas
“Open Innovation Ecosystem “
Infusion of knowledge, insight and
support to the CIS teams
• OCS is a change in paradigm:
People driven – not process based
Open: Use the outside potentials and power
Innovation Eco System: Competitive advantage in the network
Beyond products: More innovation in design, communication, business models
6
7. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
Redesign Fuzzy Front End: Logic of the OCS
3 5
1
2
4
1 Set focus and install CIS
2 Generate powerful ideas and solutions within a dedicated CIS team
3 Empower the idea generation by infusing knowledge
4 Discuss and decide on ideas to move further
5 Create concept for transfer to the development/innovation process
7
8. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
Redesign Fuzzy Front End: What boosts innovativeness in OCS?
CIS = team, room, platform, rules,
tools, space, etc.
Dedicated team for each CIS:
Strong leader with power and end to
end responsibility
Experts / champions in relevant
disciplines (formula, design etc.)
Mix: Internal / external, young /
experienced, locals / hubs etc.
Team members (max 7-8) with (min.)
25% time,
No processes - CIS teams will organize on their own
Setup: Meet often (weekly) / full days; dedicated CIS “war-room”, Greenhouse or Hub
Knowledge platform for support and collaboration platform
“Soft” success factors are: great people, diversity, excellent collaboration skills, attitude
8
9. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
Redesign Fuzzy Front End: Design of the OCS Innovation Ecosystem
The Mission: Empower
CIS teams in their ability
to create and innovate
The Ecosystem provides
“FUEL” for CIS teams
Data, information,
knowledge, ideas,
consumer insights,
technology etc.
Managed by a champion
and / or a team
Every discipline is “OPEN”: Inside AND outside knowledge is available
Challenge: Build a powerful network to the outside and learn
Push / Pull interaction with CIS teams
10. Das Bild k ann
zurzeit nicht
angezeigt
werden.
Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
Redesign Fuzzy Front End: High Flexibility with the OCS
Use Setup Outcome
CIS for Business Units Every business unit can have one or More incremental approaches,
Initiatives more CIS where they generate ideas. more focus on innovation of
Based on innovation strategy, within products and communication
the budget allocated to unit
CIS for Cross Unit Focus Topics are defined as strategic Incremental to
(Focus Topic) initiatives for growth. Mostly cross transformational innovations,
Initiatives unit innovations and funded by focus on new platforms, new
central budget business / customer groups
CIS for Greenhouse Broad and disruptive initiatives to Transformational to disruptive
initiatives develop new rudiments for future innovations; focus on
growth. An outside “Greenhouse” fundamentally new
or Hub approach can be useful. opportunities, can also be used
Could be funded e.g. with corporate for strategic initiatives
venture
10
11. Das Bild k ann
zurzeit nicht
angezeigt
werden.
Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
Redesign Fuzzy Front End: Connecting OCS to the implementation process
Rapid Concept Design
Idea prepare
evaluate first concept Gate 1
Gate gate 1
Evaluate Idea: From Idea to Concept Design: Evaluate Concept:
Idea Gate: Global
Innovation Board Business potential Design Thinking, value max. Customer Test
decision (go, hold, Develop or source First Product / Pack Design Pre Check Region
kill) – based on Product challenges Communication basics (selling Prepare Gate 1
innovation strategy Fit to regions idea etc.)
Business Model Design (Supply,
Deliverables: Idea
Price, Markets etc.)
Sketch, rough
business scenario,
max. 3 months - responsible: CIS team
view idea portfolio
11
12. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
Change & Innovation Culture: Towards a New OCS Culture
What should top management do to foster an innovation culture?
Become open to change -> learning culture which encourages challenging the status quo
Any change carries risk. Accept it and reward managing risk - not avoiding risk
Accept failure as part of learning
Fail early and cheaply - not in a full scale plant. Vital sign: People share their failures
Keep R&D focused on creating inventions but make innovation everybody’s job
Do not worry about activities – only results count
To make the point:
People are creative and many are ready to innovate – organization is often the limitation
Top Management - and only the Top Management - sets the culture
It needs to motivate managers / staff to integrate innovation into their daily operations
All this requires personal, long term commitment, leading by example
12
13. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
The Benefits of Excellence in Early Stage Innovation with OCS
Average Performance Excellence / High Performance
BUSINESS RESULTS
Business growth driven mainly by Business growth powered by innovation
invention (invention turns money into (Innovation turns knowledge into money
knowledge → commercial success is → commercial success is more likely)
uncertain)
ENGAGEMENT
Innovation and change driven by a few Innovation and change driven by many /
(mainly R&D) all (cross-functional involvement and
excellent collaboration)
PACE OF CHANGE
Moving slowly and minimize risk (never Moving fast and manage risk (fail
fail, never learn) cheaply and learn from failures)
INTEGRATION OF IDEATION - EXECUTION
Ideas needs to be sponsored by top to Seamless integration of ideation with
make it to execution (cross “valley of execution process (idea funnel feeding
death” between idea and project) the stage gate process)
13
14. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
OCS created by..
Dr. Joachim von Heimburg Clemens Frowein
Innovating to create business value is Studium des Wirtschaftingenieur-
the theme of my professional life. I wesens und der Betriebswirtschaft an
design and implement innovation den Universitäten TH Darmstadt und
processes and structures and make JWG Frankfurt / Main. Assistent des
them operational driving the business. Vorstands bei einem führenden
As an independent Executive Advisor Systemhaus.
and Innovation Architect I help Von 2004 bis 2011 war er
companies to deliver better business
Gesellschafter bei HLP Hirzel Leder &
results by growing the innovation Partner, seit Oktober 2010 Partner bei
capabilities of their organizations and
HLP entwicklungspartner GbR.
people. I enable higher levels of
innovation by introducing and Clemens Frowein berät mit den Schwerpunkten Unternehmens-
operating new innovation processes, und Geschäftsfeldstrategie, Innovationsmanagement,
e.g. Open Projektmanagement und Organisationsentwicklung. Nach
Innovation, and new organizational structures, e.g. Corporate Branchen liegen die Erfahrungen in der Konsumgüterbranche,
Venturing. I build diverse collaborative relationships across Chemische Industrie, Dienstleistungsbereich, bei IT Diensten und
organizational and functional boundaries via networking and auch im landwirtschaftlichen Bereich. Er unterstützt
partnering enabling the whole organisation to contribute to Unternehmen in der Orientierung und der Geschäftsentwicklung
innovation. insbesondere mit dem Konzept „Strategie Coaching“, wobei in
Strong technical background (Ph.D. in physics) and commercial besonderer Weise „harte“ Faktoren (Geschäftslogik) kombiniert
sense (member of European Business Leadership Teams, studies mit „weichen“ Faktoren (Dynamik der Organisation) in den Blick
in economics). Multi-cultural experience through working in 7 genommen werden. Veröffentlichung zahlreicher Artikeln und
countries. Over 30 years of diverse work experience in Brand, Beiträgen sowie Vorträge zu den Themen Strategie und
Product and Technology Development. Innovation.
14
15. Excellence in Fuzzy Frontend Innovation Open Collaborative Systems
Process Consulting for OCS
Consulting based on outstanding senior team of experts with a good mix of skills,
knowledge and experience. We believe in process consulting: creating skills, build
capacities, enabling the people and the organization
Therefore we…
1. offer new, state-of-the-art approaches and perspectives
2. propose option of models and concepts for the solution
3. help to tailor strong concepts – we do not believe in pre-fabricated approaches from
consultants
4. connect the competences and ideas in the organization – and we organize involvement
5. facilitate collaboration and cooperation. This ensures energy for successful change
6. coach top management, leaders and teams for orientation and change
We ensure best results / impact by building and supporting a strong internal project team
and powerful governance. Step by step we will involve more people in the process.
15