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7 Steps for Open Innovation 
- Grading Your Company’s Open Innovation Capabilities 
www.15inno.com 
stefanlindegaard@me.com 
Twitter: @lindegaard 
Hey! Free books, white papers and exercises on 15inno.com!
Stefan Lindegaard 
Author, speaker and strategic 
advisor on open innovation, 
innovation management / 
culture and the people side of 
innovation. 
Get in touch! 
www.15inno.com 
stefanlindegaard@me.com 
@lindegaard
7 Steps for 
Open Innovation 
1. Common Language and Understanding, Motivation, 
Mandate and Strategic Purpose 
2. Assets and Needs 
3. Value Pools and Channels 
4. Internal Readiness 
5. External Readiness 
6. New Skills and Mindset 
7. Communications Strategy
Faster pace, shrinking window of opportunity, 
less time for cash cows 
Driven by global megatrends: faster, more 
open, more transparent and more connected 
We need a more holistic approach to innovation!
What is open innovation? 
“…a philosophy or a mindset that they should 
embrace within their organization. 
This mindset should enable their organization 
to work with external input to the innovation 
process just as naturally as it does with internal 
input” 
Open innovation as a term will disappear in 5-7 
years!
P&G MEDTECH PHARMA 
Cycle time, money, IPR, conservatism, 
government regulations and internal readiness
Corporate 
benefits: 
(open innovation/crowdsourcing) 
• Speed, diversity, new 
knowledge pools 
• Experimentation (don’t be 
left behind) 
• Marketing as well as 
innovation vehicle 
• More cost-effective than 
hiring consultants
Change how we innovate 
Be competitively unpredictable 
Develop the right conditions and framework
WORK 
PRODUCTS FUNDING 
INTER-MEDIARIES 
COMPANIES 
PUBLIC
Social media is key for crowdsourcing 
LEGO went out of comfort zone, partnered 
with another company 
Do you know your external touch-points? Do 
you use them properly?
Current pilot projects: 
"People are much more likely to act their way into a new way of 
thinking, than think their way into a new way of acting." 
- Richard Pascale 
Therefore we run pilot projects 
- in our production area (solving hard, “unsolvable” problems) 
- on improving the core LEGO experience through crowdsourcing 
- on how to improve core HR processes 
- on an Open Innovation platform
Design, build and sell awesome products 
together.
Is the real business model facilitation? 
1. Develop a community 
2. Make it work in chosen area (vehicles) 
3. Move into other industries (complex 
mechanical devices) 
This can work for startups. What about SME’s 
and bigger companies? New business areas?
“FirstBuild is global co-creation paired with a 
microfactory on site,” said Chip Blankenship, 
CEO of GE Appliances. “We will innovate and 
bring products to market faster than ever before.” 
Image: Colin West McDonald / CNET
Samsung Open Innovation Center has 3 of 4 
legs focusing on startups
Current (open) 
innovation trends 
• go beyond products and technologies - more 
innovation teams without R&D link even in R&D 
heavy companies (BASF, Cisco, Pfizer) 
• the start-up value pool is sizzling hot 
• the big issue is how to scale up open innovation 
• tolerance for failure, experimentation and 
“smartfailing” are growing issues 
• companies are about to upgrade their innovation 
capabilities (some are in for a surprise) 
• Near future: From 1-1 to many-to-many
www.businessmodelsinc.com
21 
Open innovation works!
Source: Open Innovation Executive Survey Frauenhofer and UC Berkeley
Source: Open Innovation Executive Survey Frauenhofer and UC Berkeley
Source: Open Innovation Executive Survey Frauenhofer and UC Berkeley
Source: Open Innovation Executive Survey Frauenhofer and UC Berkeley
It’s about execution! 
People first, processes next, 
then ideas…
7 Steps for 
Open Innovation 
1. Common Language and Understanding, Motivation, 
Mandate and Strategic Purpose 
2. Assets and Needs 
3. Value Pools and Channels 
4. Internal Readiness 
5. External Readiness 
6. New Skills and Mindset 
7. Communications Strategy
Step 1: Common language and 
Understanding, Motivation, Mandate 
and Strategic Purpose
Think / Reflect 
• Does your organization have a good 
understanding of open innovation and the 
demands it puts upon your company? 
• What is motivating the organization to 
pursue open innovation? 
• Is the mandate for open innovation clear 
and the strategy and strategic purposes 
well thought out and well understood by 
everyone involved?
“You need to speak the same language if you 
want to get internal and external stakeholders 
onboard. 
This starts with a clear agreement on how 
innovation – internally as well as externally 
focused - fits the specific situation of your 
company.” 
- Stefan Lindegaard
To Clorox, open 
innovation means 
• More capabilities and expertise: Using 
others to deliver meaningful innovation 
• More find: Developing external networks to 
exponentially increase the source of new ideas 
Clorox wants to use open innovation to: 
1. Find ideas, technologies and products 
2. Outsource entire chunks of product 
development 
3. License / sell internal ideas and technologies 
to others
Clorox says that for 
open innovation to 
work, they need… 
• strong internal and external networks 
• clear, choiceful corporate strategy that directs 
the “find” activities 
• capabilities, teams and processes to find more 
ideas 
• and capabilities, teams and processes to 
enable what’s found to be used: combined with 
other inputs, quickly assessed and built into 
business opportunities.
Clorox, don’t get too narrow! 
“We will no longer talk about open innovation in 
most industries within the next five to seven 
years. 
It will just be about innovation, but the level of 
external input to the innovation process will be 
much higher than what we see today.” 
- Stefan Lindegaard
What is Connect 
+ Develop? 
“It's our version of open 
innovation: the practice of 
tapping externally 
developed intellectual 
property to accelerate 
internal innovation and 
sharing our internally 
developed assets and 
know-how to help others 
outside the Company.”
Shell 
GameChanger 
The programme started in 
1996 and has long 
practised open innovation, 
inviting ideas from outside 
and working with others… 
…designed to prove the 
technical and commercial 
viability of an idea quickly 
and affordably… 
…worked with 1,500+ 
innovators; more than 100 
ideas into reality.
What open 
innovation means 
Open innovation at Tate & 
Lyle means partnering with 
external innovators to bring 
products to market faster 
and develop innovations 
we cannot create alone. 
In short, the aim of open 
innovation is to deliver 
faster growth. 
John Stewart, Head of Open Innovation
This happens 
by… 
• partnering with companies 
(large and small) to bring 
new products to market 
• helping to grow our 
innovation pipeline with 
externally-sourced products 
and technologies 
• finding new products and 
technologies we cannot 
create alone 
John Stewart, Head of Open Innovation
What it does 
NOT mean… 
• Contract research 
• Academic collaborations into 
basic research (our technical 
teams do this directly) 
• Joint Ventures (other teams 
manage these directly) 
• Spinning out technologies or 
companies 
John Stewart, Head of Open Innovation
Two key 
questions: 
• What is your motivation 
for pursuing open 
innovation? 
• Why is open innovation 
relevant to your company, 
its present situation, and its 
mission and vision? 
Tie this into your strategic 
purpose and innovation 
mandate!
Danfoss: Man 
on the Moon 
• To identify and develop new 
ventures that creates 
significant growth and/or 
strategic advantages 
• To spot and develop talent 
• To change the culture and 
establish ”intrapreneurship” 
as a fourth career path
Intel 
(elements of a specific 
innovation drive) 
• Foster and encourage 
innovation and creative 
thinking 
• Challenge the status quo 
and embracing change 
• Provide a challenging work 
environment
Grundfos 
(part of an innovation intent) 
• Experiment with and 
develop towards future 
organizational paradigms 
• Create new career paths 
for Grundfos managers
“Executives and senior innovation leaders must 
develop an intention in the form of a strategic 
purpose, but they must also define the mandate 
given to the innovation leaders. 
A clearly given mandate can help work out the 
inevitable internal conflicts with regards to 
resources and authority given to an innovation 
team.” 
- Stefan Lindegaard
A clear innovation 
mandate should: 
• Lay out the resources and 
authority given to the 
innovation team 
• Clarify how potential 
conflicts are to be handled 
• Encourage stakeholders to 
solve problems on issues 
such as resource allocation 
and commitment without 
involving the executives
The TBX model 
or why middle 
managers stop…
...innovation just 
by doing their job! 
• T (Top Down): Get executives 
onboard, personally committed to 
innovation. Without executive 
support, no change occurs 
• B (Bottom Up): Value creation 
begins with people, one by one, team 
by team. Nothing happens unless you 
get employees engaged 
• X (Across): Middle managers get the 
job done (for good and bad) – set the 
right objectives and incentives!
Think / Reflect 
• What is the most important question to 
have in mind when leading change driven 
initiatives such as open innovation? 
• It is simple yet a question that everyone 
will ask themselves… 
What’s in it for me?
“You should also have in mind that open 
innovation is just a piece of the overall 
innovation strategy, and it might not even work 
for all companies. 
So, again, start by being clear about what is 
motivating you to move towards open 
innovation.” 
- Stefan Lindegaard
Step 2: Assets and Needs
Think / Reflect 
• Have you identified the assets and resources 
(internally as well as externally in your ecosystem) 
that are relevant for your innovation projects? 
• Have you identified other assets and resources 
that are needed but are not available within your 
current ecosystem? 
• Do you have a process for getting access to 
these needed assets and resources? 
• Do you have a process for merging internal and 
external resources?
Three main 
areas: 
1) Internal Assets, 
2) Ecosystem Assets and 
3) Needs
“(Internal) assets are capabilities and 
resources that enable you to bring innovation 
to market faster. 
This includes physical resources such as R&D 
facilities, but it also includes nontangible 
capabilities, such as tested and proven 
processes that are in place to move innovation 
forward – and people.” 
- Stefan Lindegaard
Different companies, 
different assets: 
• Smaller companies: Higher need for 
ecosystem partners – find right place, ask if we 
can grow more together? 
• Big companies: Might have most in own 
corporate structure; still ask if we can grow 
more with others? 
Bonus for big companies! They get to decide 
where the bus is going and who should be 
onboard. 
Jackpot for OI leaders! Preferred partners get 
the first pick; others get the leftovers…
“Archer or magnet? Try to become a preferred 
partner of choice with either approach. 
Why? Any given industry will have lots of small 
winners, but there will only be one clear winner 
among the big companies – and several 
losers. Big companies have more at stake.” 
- Stefan Lindegaard
3M also has an active external open innovation program. Can 
you describe it? 
”Our corporate labs are continually bringing in new 
employees and technologies from universities and other 
sources. And we collaborate closely with customers. We have 
30 customer technology centers around the world, where 
our technical and marketing employees meet with 
customers and expose them to the full range of 3M 
technology platforms.We ask them what their technical 
issues, problems, and opportunities are, and whether any of 
3M’s many different technologies can help them.“ 
Fred J. Palensky, CTO at 3M 
Strategy + Business, May 11, 2011
Can you discuss a specific product that arose out of 
3M’s open innovation process? 
”Really, all of them. To take one example, we just 
introduced an entirely new kind of sandpaper… The 
mineral technology came from the abrasives division, 
some of the shape technology came from optical 
systems, coating technologies came from the tape 
division, and mathematical modeling and fracture 
analysis came from the corporate research center. 
Altogether, the abrasives division used seven different 
technologies to create the product, only two of which 
came from the division itself.” 
Fred J. Palensky, CTO at 3M 
Strategy + Business, May 11, 2011
5 business groups, 88,000 employees, 40+ 
technology platforms, 30+ technology centers
Why is this 
relevant? 
• Internal open innovation = better internal 
collaboration, less silo mentality 
• Lots of white space = internal open 
innovation opportunities (3M excels here) 
• More than “just” corporate innovation; also 
a learning platform for external innovation 
• 60-80% of the same issues, challenges on 
i-OI and OI (mindset, approaches - not IPR) 
• Experimentation is much easier internally, 
less risk of back-fires, not public domain
Getting started – 
some key questions 
• What are the (learning) objectives? 
• Who are the project owners? Who sees 
the big picture? Are they committed? 
• Where is the right place to experiment? 
How do you prepare / motivate people in 
the right place? 
• Are you ready to learn? Do you have a 
“smartfailing” process? 
• What is the right balance between 
exploration and exploitation?
What tools can 
help make this 
happen?
Insights and 
inspiration
Can business model insights help companies 
go beyond R&D and include more functions? 
www.businessmodelsinc.com
Business plan competitions dig deep in the 
drawers, uncover white space opportunities… 
…and bring organizations together on innovation 
What if you invited external partners into such an 
initiative? Learn together!
Horizontal: disposition for 
collaboration across disciplines 
Vertical: 
depth of 
skill which 
allows to 
contribute 
Only T-shapes: 
“Occasionally, we 
have people who 
don’t really have a 
depth of skills, and 
they really struggle. 
They don’t get 
respect from the 
group.” 
Credit: Tim Brown / IDEO 
Only I-shapes: 
“…very hard for them 
to collaborate…each 
individual discipline 
represents its own 
point of 
view…becomes a 
negotiation…you get 
gray compromises… 
The results are never 
spectacular but at 
best average.” 
Not Invented Here versus Re-applied with Pride
Seed capital: Inventors can request seed capital from 
their business unit managers; if their request is denied, 
they can seek funding from other business units or 
corporate funding. 
New Venture Formation: Product inventors must recruit 
their own teams, reaping the benefit of 3M’s many 
networking forums as they seek the right people for the 
job at hand. If it fails, previous jobs are guaranteed. 
Dual career ladder: Scientists can continue to move up 
the ladder without becoming managers. 3M does not lose 
good scientists and engineers only to gain poor 
managers. 
Credit: Govindarajan / Srinivas
It’s almost fair to 
say that 3M does 
not need open or 
external innovation. 
They do so well by 
themselves…
CEO, Six Sigma 
key elements for 
crisis in 2007. 
Will a lack of 
understanding of 
open innovation 
lead to a new one?
Transformational Growth: 
Industry is accessing the world for innovation 
The “Want, Find, Get, Manage” Model® 
Want What external resources do we need to 
Manage What tools, metrics and management 
techniques will we use to implement the 
relationship? 
succeed in our mission? 
Find What mechanisms will we use to find these 
resources? 
Get What processes will we use to plan, 
structure and negotiate an agreement to 
access the resources?
Step 3: Value Pools and 
Channels
Think / Reflect 
• What value pools can you tap into to build value 
for your innovation initiatives? 
• Are these relationships solid or do you need to 
do additional work to build good, mutually 
beneficial working relationships? 
• Are there potential external value pools that you 
have not yet tapped at all? If so, what is your plan 
for reaching out to them? 
• Are your channels for communicating with your 
value pools strong or do they need further work?
Employees Managers Suppliers Academics / 
institutions 
Executives Alumni VCs Startups 
Business unit 
/ function 
Users / 
consumers 
Government 
Competitors Inventors
“This is important. Most big companies have 8, 10 
or perhaps even 12 different external value pools 
that they can look into. 
However, even companies that are doing well with 
open innovation are generally not capable of 
working with more than two to four value pools at 
the same time.” 
- Stefan Lindegaard
A quick and dirty 
exercise… 
• Write down a list of your 
current and potential value 
pools 
• Which of them are the 
most important? Rate their 
importance on a 1-10 
scale. Why this grade? 
• Rate your current efforts 
on the top 5 rated value 
pools on a 1-10 scale
“More companies should ask themselves what it 
takes to become a preferred partner of choice 
within their innovation ecosystems. 
They will discover that building the foundation and 
creating the perception are equally important.” 
- Stefan Lindegaard
Build the 
foundation 
• You cannot build a strong 
reputation and a perception 
of being a preferred partner 
if you do not have the 
infrastructure in place to 
deliver on your open 
innovation efforts. 
Be careful about inviting 
guests into a home that is 
not in order…
Create the 
perception 
• Once the foundation is in 
place, you must make 
others believe that your 
company has what it takes 
to be a “preferred partner 
of choice” within your 
industry. 
More focus on stakeholder 
management and 
communication efforts, 
please!
Best potential vs 
least resistance 
• Do not always start out 
where the biggest potential 
lies. See the bigger picture 
and balance two factors 
against each other when 
selecting the starting 
projects 
Internal resistance = fear of change in general, bad risk 
management attitudes such as low tolerance for failure 
and worries on sharing intellectual property
“As with value pools,most companies can only be 
successful in managing two to four channels at a 
time, especially when you are new to open 
innovation. 
You need to experiment to determine which 
channels work best for you.” 
- Stefan Lindegaard
InnoCentive Alliances / 
joint ventures 
Campaigns 
(Comm / Public) 
Entrepreneur 
Day 
Consortia 
MyStarbucks 
Idea.com 
Campaigns 
(Comm / Public) 
Supplier 
Summit 
CREDIT: OVO Innovation
Step 4: Internal readiness
Think / Reflect 
• What is your company’s state of internal 
readiness for open innovation? 
• Does your culture support networking across 
internal units and with external organizations? 
• Is senior management up to speed on how 
innovation really works? 
• Do you have the right people in place to make 
open innovation happen?
Every corporate culture is innovative! Find the 
pockets, build the foundation and perception
Today, innovation is about having groups of 
people come together – internally as well as 
externally. 
This requires a networking culture that is 
designed, supported, and modeled by your 
company’s leaders. 
You simply can’t have a strong innovation culture 
without a strong networking culture. 
- Stefan Lindegaard
What does a good 
networking culture 
look like?
Networking efforts require direction, training and 
time. Few executives get this.
Embrace experimentation 
– and the failures that 
come along with it!
Most companies are 
not ready for this… 
• Small failures are accepted, but not 
big ones: 47 % 
• Failure is not accepted here: 7 % 
• More than half of the companies do not recognize 
failure as an inherent part of an innovation culture!
“Two types of failure: 
• honorable failure is where an honest attempt at 
something new or different has been tried 
unsuccessfully and 
• incompetent failure where people fail for lack of 
effort or competence in standard operations.” 
Credit: Paul Sloane
“A mistake is when you do something wrong, 
even though you knew the right way to do it. 
Failure is when you are trying something new, 
and you don’t know ahead of time how to make it 
successful. 
Credit: Jamie Notter
Developing a culture that is constructive about 
failure requires a new vocabulary. 
Smartfailing 
When an organization embraces smartfailing, it 
de-stigmatizes failure internally and uses failure 
as an opportunity to learn and to find a better 
course.
System failure (collapse of communism) 
System component failure (stock market crash) 
Major firm failure (Enron going out of business) 
Start-up failure (Pets.com going out of business) 
Product failure (New Coke tanking) 
Idea failure (Apple Navigator protype, no launch 
Credit: Tim Kastelle
The failure to anticipate / execute on… 
…markets and technologies 
…platforms for bringing innovation to market 
…how companies innovate 
External change is faster than internal change! 
You win or lose in these pockets of opportunity!
Full survey: http://www.15inno.com/2012/11/08/surveyresults/
There are no quick fixes because the top 
executives that got us into this mess are not 
ready to lead us out of it!
Too much focus on products, technology 
Unrealistic expectations on time, resources 
Lack of resources in budget, people, infrastrucure 
Silo rather than collaborative approaches 
Poorly defined innovation strategy (if any)
Don’t make your platform too complicated! 
- but learn from your mistakes…
Identify reasons, create learning process! 
Go beyond products and technologies! 
Be open – more communication, new terms! 
Reward learning behaviors! 
Educate up and down on innovation!
Intrapreneurship is 
an overlooked tool!
“Intrapreneur: 
a person within a large corporation who takes 
direct responsibility for turning an idea into a 
profitable finished product through assertive risk-taking 
and innovation.” 
American Heritage Dictionary, 1992
The Man on The Moon competition 
• To identify and develop new ventures that creates significant growth 
and/or strategic advantaages 
• To spot and develop talent 
• To change the culture and establish ”intrapreneurship” as a fourth career path
“…an intrapreneur must have the ability to see and pursue possibilities by 
piecing together innovations across three or more business functions 
simultaneously.” 
Paul Campbell, former VP, HP
A career path for trouble-makers? 
“When someone tries to innovate within a traditional 
organization, few will understand what he/she is 
doing, but everybody will understand who is a trouble-maker. 
After the innovation has been embraced by the 
organization, few will remember who started it, 
but everybody will remember who was a trouble-maker. 
This is the dilemma encountered by many 
intrapreneurs - they risk punishment for success.” 
David Nordfos, Stanford
The Lean Startup approach relies on validated 
learning, scientific experimentation, and iterative 
product releases to shorten product development 
cycles, measure progress, and gain valuable 
customer feedback. 
Fail fast, fail often and fail cheap!
Stage 1: Shock and Surprise 
Stage 2: Denial 
Stage 3: Anger and Blame 
Stage 4: Depression 
Stage 5: Acceptance 
Stage 6: Insights and Change 
Credit: Steve Blank
Six stages of failure and redemption 
Don’t get stuck in 2, 3 or 4 – move forward 
Don’t skip acceptance of your role 
Get to insights to change behavior… 
…commit to challenge / do different next time 
Credit: Steve Blank
Innovation metrics – 
what and how?
Number of innovation-related rewards and recognitions 
Numbers from various feedback mechanisms, showing employee 
acceptance and understanding of the initiative 
Results from the innovation self assessment capability maturity 
framework (survey measuring five levels of maturity related to innovation 
behavior) 
Percentage of our budget dedicated to innovation, research, and 
exploration of emerging technologies 
Shareholder value created from innovation activities. (Shareholder Value 
= IT Efficiencies + Business Value provided to the IT customers) 
# of ideas generated in specific innovation harvesting campaigns 
# of ideas harvested from campaigns, turned into implementable projects 
# of Intel patent submissions 
#Number of white papers published
Inspiration Jeff Murphy, former Executive Director 
• Focus on engagement, training and participation 
of individuals. Get critical mass 
• Shift / add focus on innovation pipeline (active 
projects by stage, flow of projects, development, 
launch and kill) 
• Shift / add focus on end goals (ROI, successful 
products/services, revenue/savings from new 
launches, optimized processes)
Inspiration Jimm Feldborg, Director Global Projects 
• Lag indicator: Results are historic and can’t be 
changed (rewards, number of patents) 
• Current indicator: Results are present, indicators 
can be changed (# of ideas, ongoing projects) 
• Lead indicator: Results are predictive for future 
and can be changed to high degree (hard to 
identify)
Why you should not 
pay too much 
attention to this! 
Open innovation changes 
perspectives and approaches
If you really want to 
change a culture… 
Reward behaviors, not just 
outcomes!
Step 3: External Readiness
Think / Reflect 
• How ready is your industry for open innovation? 
• What are the obstacles and drivers for open 
innovation within your industry? 
• What are you doing to persuade your partners to 
work with you on open innovation? 
• How strong is the trust between your 
organization and your external partners?
P&G MEDTECH PHARMA 
Cycle time, money, IPR, conservatism, 
government regulations and internal readiness
If you are the visionary 
in your industry… 
1) educate others in the industry, bring them up to 
speed and get them to experiment with you 
2) find new partners that are ready for open 
innovation outside your industry 
You can of course do both…
Some key 
questions 
• What should our future innovation eco-system 
look like? 
• How will current and potential partners perceive 
our open innovation initiative? How can we adjust 
as we get feedback on what we say and more 
importantly how we act? 
• Can we develop systems and processes that 
enable us to deal with external input and handle 
this in a proper way and in reasonable time? 
• How can we work with external consultants, 
service providers and innovation intermediaries?
…create a new business model for the manufacturing 
industry by harnessing open innovation, the maker 
movement, and community involvement to build a 
revolutionary new wave of smart appliances. Goal: 100 
micro-factories in the next decade 
Image: Colin West McDonald / CNET
Change how we innovate 
Be competitively unpredictable 
Develop the right conditions and framework
Lessons from 
Psion 
Todd Boone, former Director, Corp Comms 
• Biggest obstacle? Getting partners to 
understand the full scope of our efforts 
Solution? We brought all partners together 
• Communication messages were focused on an 
industry opportunity; not just a Psion initiative
Some thoughts 
on trust 
• What does it take for you to trust others? What 
can you do to convince others to trust you? 
• Trust is a personal thing; it is first and foremost 
established between people and then perhaps 
between organizations 
• Transparency is essential to trust. Without 
transparency, trust will not take root
Trust barriers in 
your ecosystem 
• Most organizational structures foster an internal 
rather than an external perspective 
• Partners are viewed as someone paid to deliver 
a service rather than a source of co-creation 
• Most companies are more focused on protecting 
own knowledge and intellectual property rather 
than opening up and exploring new opportunities 
• Forging strong relationships takes time and 
personal commitment
“There are a number of elements that are critical 
in building a successful innovation partnership, 
but the key is for everyone to be the partner 
they’re looking for.” 
- Chris Thoen, former Managing Director, 
Global Open Innovation Office at P&G
Good advice from 
Chris Thoen 
• Don’t think in terms of one-off deals 
• Unless win-win is the mentality, there are no 
wins in the long run 
• Grow the total pie versus growing your piece of 
the pie 
• Be up front and transparent
Step 6: New Skills and Mindset
Think / Reflect 
• Do your company’s leaders understand that 
people matter more than ideas when it comes to 
making innovation happen? 
• Have you identified people who are best suited 
for working at the different stages of innovation? 
• Do you hire for potential or is your hiring based 
on past experience and competencies? 
• Are your hiring and training programs geared 
toward developing the characteristics and skills 
needed for innovation?
A CFO is wary about investing in the training and 
education of the employees. 
He asks the CEO: ”What happens if we invest in 
developing our people and then they leave the 
company?” 
The CEO is a bright person and replies: ”What 
happens if we don’t and they stay?”
Discovery – Incubation – Acceleration: Have the 
right people at the right time!
What skills / key people do you need now, short 
and long term? How do you get access to them?
1) Holistic point of view (intrapreneurial skills) 
2) Ability to constructively handle conflict 
3) Optimism, passion and drive 
4) Curiosity and belief in change 
5) Tolerance for / ability to deal with uncertainty 
6) Adaptive fast learner with sense of urgency 
7) Talent for networking / strategic influencing 
8) Communication skills
58 replies, 62% working in companies with 
more than 5000 people 
45% work with innovation in full-time position 
as leaders/managers, 18% full-time with no 
leadership role and 27% on ad-hoc basis 
Full survey = search “survey” on 15inno.com
Please rate these qualifications for a team 
working to create a stronger innovation culture. 
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i
Please rate these ways for leaders to motivate 
employees to become more innovative, help 
create better culture for innovation. 
S 
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r 
d 
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m 
g 
t 
P 
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v 
i
Innovation is a team sport. To which extent do 
these statements resonate with you. 
T 
e 
a 
m 
s 
" 
O 
n 
n 
e 
b 
e 
o 
d 
Y 
a 
o 
t 
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l 
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s 
r 
n
Companies need to upgrade their innovation 
capabilities. How relevant are these 
initiatives and activities for this? 
T 
r 
a 
i 
n 
T 
r 
i 
a 
n 
i 
g 
t 
n 
D 
e 
i 
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p 
i
No networking culture? No innovation culture! 
- future winners get communities to work!
Networking efforts require direction, training and 
time. Few executives get this.
Horizontal: disposition for 
collaboration across disciplines 
Vertical: 
depth of 
skill which 
allows to 
contribute 
Only T-shapes: 
“Occasionally, we 
have people who 
don’t really have a 
depth of skills, and 
they really struggle. 
They don’t get 
respect from the 
group.” 
Credit: Tim Brown / IDEO 
Only I-shapes: 
“…very hard for them 
to collaborate…each 
individual discipline 
represents its own 
point of 
view…becomes a 
negotiation…you get 
gray compromises… 
The results are never 
spectacular but at 
best average.”
Thoughts on 
training programs 
• Begin by training the trainer 
• Intrapreneurship-like programs are one of the 
best ways of identifying and developing people 
who will drive innovation forward 
• Bring in real life experiences 
• Training program itself must be agile to keep up 
with emerging trends in innovation 
• Don’t forget the executives
Finding and developing 
the right people 
• Future potential versus past competencies 
• Adaptability is key – but in what direction? 
• Future innovation leaders create communities 
(shared sense of purpose, values and rules of 
engagement) 
• Future innovators are intelligent in many ways 
• Build the right conditions and frameworks
Step 1: Common language and 
Understanding, Motivation, Mandate 
and Strategic Purpose
Think / Reflect 
• Do you have clear messaging that lets people know 
why innovation is important to the company? 
• Are you working cohesively with the corporate 
communications team on communicating about 
innovation? (You might have to train them.) 
• Are you doing a good job of communicating with 
internal and external stakeholders? 
• Do you train your innovators to become better 
communicators?
Great innovators are 
great communicators! 
• Have a plan in place… 
• View communication in the broad sense – 
include networking and stakeholder management 
• Have clear messages that resonate with the 
audience – go beyond the corporate speak 
• Use a range of communication tools – too few 
innovators know about social media
Identify and interact with innovation partners 
Generate more ideas, faster 
Get market and competitor insights 
Promote corporate innovation capabilities
Identify 10 keywords / terms and work with them 
on LinkedIn and Twitter. What happens?
It’s about execution! 
People first, processes next, 
then ideas…
Get in touch! 
Send me your questions! 
Let’s connect on LinkedIn! 
Join my LinkedIn group: 
15inno by Stefan Lindegaard 
Check my blog on www.15inno.com - share it! 
stefanlindegaard@me.com / @lindegaard

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7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innovation Capabilities

  • 1. 7 Steps for Open Innovation - Grading Your Company’s Open Innovation Capabilities www.15inno.com stefanlindegaard@me.com Twitter: @lindegaard Hey! Free books, white papers and exercises on 15inno.com!
  • 2. Stefan Lindegaard Author, speaker and strategic advisor on open innovation, innovation management / culture and the people side of innovation. Get in touch! www.15inno.com stefanlindegaard@me.com @lindegaard
  • 3. 7 Steps for Open Innovation 1. Common Language and Understanding, Motivation, Mandate and Strategic Purpose 2. Assets and Needs 3. Value Pools and Channels 4. Internal Readiness 5. External Readiness 6. New Skills and Mindset 7. Communications Strategy
  • 4.
  • 5. Faster pace, shrinking window of opportunity, less time for cash cows Driven by global megatrends: faster, more open, more transparent and more connected We need a more holistic approach to innovation!
  • 6. What is open innovation? “…a philosophy or a mindset that they should embrace within their organization. This mindset should enable their organization to work with external input to the innovation process just as naturally as it does with internal input” Open innovation as a term will disappear in 5-7 years!
  • 7. P&G MEDTECH PHARMA Cycle time, money, IPR, conservatism, government regulations and internal readiness
  • 8. Corporate benefits: (open innovation/crowdsourcing) • Speed, diversity, new knowledge pools • Experimentation (don’t be left behind) • Marketing as well as innovation vehicle • More cost-effective than hiring consultants
  • 9. Change how we innovate Be competitively unpredictable Develop the right conditions and framework
  • 10. WORK PRODUCTS FUNDING INTER-MEDIARIES COMPANIES PUBLIC
  • 11. Social media is key for crowdsourcing LEGO went out of comfort zone, partnered with another company Do you know your external touch-points? Do you use them properly?
  • 12. Current pilot projects: "People are much more likely to act their way into a new way of thinking, than think their way into a new way of acting." - Richard Pascale Therefore we run pilot projects - in our production area (solving hard, “unsolvable” problems) - on improving the core LEGO experience through crowdsourcing - on how to improve core HR processes - on an Open Innovation platform
  • 13. Design, build and sell awesome products together.
  • 14. Is the real business model facilitation? 1. Develop a community 2. Make it work in chosen area (vehicles) 3. Move into other industries (complex mechanical devices) This can work for startups. What about SME’s and bigger companies? New business areas?
  • 15. “FirstBuild is global co-creation paired with a microfactory on site,” said Chip Blankenship, CEO of GE Appliances. “We will innovate and bring products to market faster than ever before.” Image: Colin West McDonald / CNET
  • 16. Samsung Open Innovation Center has 3 of 4 legs focusing on startups
  • 17. Current (open) innovation trends • go beyond products and technologies - more innovation teams without R&D link even in R&D heavy companies (BASF, Cisco, Pfizer) • the start-up value pool is sizzling hot • the big issue is how to scale up open innovation • tolerance for failure, experimentation and “smartfailing” are growing issues • companies are about to upgrade their innovation capabilities (some are in for a surprise) • Near future: From 1-1 to many-to-many
  • 18.
  • 19.
  • 22. Source: Open Innovation Executive Survey Frauenhofer and UC Berkeley
  • 23. Source: Open Innovation Executive Survey Frauenhofer and UC Berkeley
  • 24. Source: Open Innovation Executive Survey Frauenhofer and UC Berkeley
  • 25. Source: Open Innovation Executive Survey Frauenhofer and UC Berkeley
  • 26. It’s about execution! People first, processes next, then ideas…
  • 27. 7 Steps for Open Innovation 1. Common Language and Understanding, Motivation, Mandate and Strategic Purpose 2. Assets and Needs 3. Value Pools and Channels 4. Internal Readiness 5. External Readiness 6. New Skills and Mindset 7. Communications Strategy
  • 28. Step 1: Common language and Understanding, Motivation, Mandate and Strategic Purpose
  • 29. Think / Reflect • Does your organization have a good understanding of open innovation and the demands it puts upon your company? • What is motivating the organization to pursue open innovation? • Is the mandate for open innovation clear and the strategy and strategic purposes well thought out and well understood by everyone involved?
  • 30. “You need to speak the same language if you want to get internal and external stakeholders onboard. This starts with a clear agreement on how innovation – internally as well as externally focused - fits the specific situation of your company.” - Stefan Lindegaard
  • 31. To Clorox, open innovation means • More capabilities and expertise: Using others to deliver meaningful innovation • More find: Developing external networks to exponentially increase the source of new ideas Clorox wants to use open innovation to: 1. Find ideas, technologies and products 2. Outsource entire chunks of product development 3. License / sell internal ideas and technologies to others
  • 32. Clorox says that for open innovation to work, they need… • strong internal and external networks • clear, choiceful corporate strategy that directs the “find” activities • capabilities, teams and processes to find more ideas • and capabilities, teams and processes to enable what’s found to be used: combined with other inputs, quickly assessed and built into business opportunities.
  • 33. Clorox, don’t get too narrow! “We will no longer talk about open innovation in most industries within the next five to seven years. It will just be about innovation, but the level of external input to the innovation process will be much higher than what we see today.” - Stefan Lindegaard
  • 34. What is Connect + Develop? “It's our version of open innovation: the practice of tapping externally developed intellectual property to accelerate internal innovation and sharing our internally developed assets and know-how to help others outside the Company.”
  • 35. Shell GameChanger The programme started in 1996 and has long practised open innovation, inviting ideas from outside and working with others… …designed to prove the technical and commercial viability of an idea quickly and affordably… …worked with 1,500+ innovators; more than 100 ideas into reality.
  • 36. What open innovation means Open innovation at Tate & Lyle means partnering with external innovators to bring products to market faster and develop innovations we cannot create alone. In short, the aim of open innovation is to deliver faster growth. John Stewart, Head of Open Innovation
  • 37. This happens by… • partnering with companies (large and small) to bring new products to market • helping to grow our innovation pipeline with externally-sourced products and technologies • finding new products and technologies we cannot create alone John Stewart, Head of Open Innovation
  • 38. What it does NOT mean… • Contract research • Academic collaborations into basic research (our technical teams do this directly) • Joint Ventures (other teams manage these directly) • Spinning out technologies or companies John Stewart, Head of Open Innovation
  • 39. Two key questions: • What is your motivation for pursuing open innovation? • Why is open innovation relevant to your company, its present situation, and its mission and vision? Tie this into your strategic purpose and innovation mandate!
  • 40.
  • 41. Danfoss: Man on the Moon • To identify and develop new ventures that creates significant growth and/or strategic advantages • To spot and develop talent • To change the culture and establish ”intrapreneurship” as a fourth career path
  • 42. Intel (elements of a specific innovation drive) • Foster and encourage innovation and creative thinking • Challenge the status quo and embracing change • Provide a challenging work environment
  • 43. Grundfos (part of an innovation intent) • Experiment with and develop towards future organizational paradigms • Create new career paths for Grundfos managers
  • 44. “Executives and senior innovation leaders must develop an intention in the form of a strategic purpose, but they must also define the mandate given to the innovation leaders. A clearly given mandate can help work out the inevitable internal conflicts with regards to resources and authority given to an innovation team.” - Stefan Lindegaard
  • 45. A clear innovation mandate should: • Lay out the resources and authority given to the innovation team • Clarify how potential conflicts are to be handled • Encourage stakeholders to solve problems on issues such as resource allocation and commitment without involving the executives
  • 46. The TBX model or why middle managers stop…
  • 47. ...innovation just by doing their job! • T (Top Down): Get executives onboard, personally committed to innovation. Without executive support, no change occurs • B (Bottom Up): Value creation begins with people, one by one, team by team. Nothing happens unless you get employees engaged • X (Across): Middle managers get the job done (for good and bad) – set the right objectives and incentives!
  • 48. Think / Reflect • What is the most important question to have in mind when leading change driven initiatives such as open innovation? • It is simple yet a question that everyone will ask themselves… What’s in it for me?
  • 49. “You should also have in mind that open innovation is just a piece of the overall innovation strategy, and it might not even work for all companies. So, again, start by being clear about what is motivating you to move towards open innovation.” - Stefan Lindegaard
  • 50. Step 2: Assets and Needs
  • 51. Think / Reflect • Have you identified the assets and resources (internally as well as externally in your ecosystem) that are relevant for your innovation projects? • Have you identified other assets and resources that are needed but are not available within your current ecosystem? • Do you have a process for getting access to these needed assets and resources? • Do you have a process for merging internal and external resources?
  • 52. Three main areas: 1) Internal Assets, 2) Ecosystem Assets and 3) Needs
  • 53. “(Internal) assets are capabilities and resources that enable you to bring innovation to market faster. This includes physical resources such as R&D facilities, but it also includes nontangible capabilities, such as tested and proven processes that are in place to move innovation forward – and people.” - Stefan Lindegaard
  • 54. Different companies, different assets: • Smaller companies: Higher need for ecosystem partners – find right place, ask if we can grow more together? • Big companies: Might have most in own corporate structure; still ask if we can grow more with others? Bonus for big companies! They get to decide where the bus is going and who should be onboard. Jackpot for OI leaders! Preferred partners get the first pick; others get the leftovers…
  • 55. “Archer or magnet? Try to become a preferred partner of choice with either approach. Why? Any given industry will have lots of small winners, but there will only be one clear winner among the big companies – and several losers. Big companies have more at stake.” - Stefan Lindegaard
  • 56.
  • 57.
  • 58.
  • 59. 3M also has an active external open innovation program. Can you describe it? ”Our corporate labs are continually bringing in new employees and technologies from universities and other sources. And we collaborate closely with customers. We have 30 customer technology centers around the world, where our technical and marketing employees meet with customers and expose them to the full range of 3M technology platforms.We ask them what their technical issues, problems, and opportunities are, and whether any of 3M’s many different technologies can help them.“ Fred J. Palensky, CTO at 3M Strategy + Business, May 11, 2011
  • 60. Can you discuss a specific product that arose out of 3M’s open innovation process? ”Really, all of them. To take one example, we just introduced an entirely new kind of sandpaper… The mineral technology came from the abrasives division, some of the shape technology came from optical systems, coating technologies came from the tape division, and mathematical modeling and fracture analysis came from the corporate research center. Altogether, the abrasives division used seven different technologies to create the product, only two of which came from the division itself.” Fred J. Palensky, CTO at 3M Strategy + Business, May 11, 2011
  • 61. 5 business groups, 88,000 employees, 40+ technology platforms, 30+ technology centers
  • 62. Why is this relevant? • Internal open innovation = better internal collaboration, less silo mentality • Lots of white space = internal open innovation opportunities (3M excels here) • More than “just” corporate innovation; also a learning platform for external innovation • 60-80% of the same issues, challenges on i-OI and OI (mindset, approaches - not IPR) • Experimentation is much easier internally, less risk of back-fires, not public domain
  • 63. Getting started – some key questions • What are the (learning) objectives? • Who are the project owners? Who sees the big picture? Are they committed? • Where is the right place to experiment? How do you prepare / motivate people in the right place? • Are you ready to learn? Do you have a “smartfailing” process? • What is the right balance between exploration and exploitation?
  • 64. What tools can help make this happen?
  • 65.
  • 66.
  • 67.
  • 69. Can business model insights help companies go beyond R&D and include more functions? www.businessmodelsinc.com
  • 70. Business plan competitions dig deep in the drawers, uncover white space opportunities… …and bring organizations together on innovation What if you invited external partners into such an initiative? Learn together!
  • 71. Horizontal: disposition for collaboration across disciplines Vertical: depth of skill which allows to contribute Only T-shapes: “Occasionally, we have people who don’t really have a depth of skills, and they really struggle. They don’t get respect from the group.” Credit: Tim Brown / IDEO Only I-shapes: “…very hard for them to collaborate…each individual discipline represents its own point of view…becomes a negotiation…you get gray compromises… The results are never spectacular but at best average.” Not Invented Here versus Re-applied with Pride
  • 72. Seed capital: Inventors can request seed capital from their business unit managers; if their request is denied, they can seek funding from other business units or corporate funding. New Venture Formation: Product inventors must recruit their own teams, reaping the benefit of 3M’s many networking forums as they seek the right people for the job at hand. If it fails, previous jobs are guaranteed. Dual career ladder: Scientists can continue to move up the ladder without becoming managers. 3M does not lose good scientists and engineers only to gain poor managers. Credit: Govindarajan / Srinivas
  • 73. It’s almost fair to say that 3M does not need open or external innovation. They do so well by themselves…
  • 74. CEO, Six Sigma key elements for crisis in 2007. Will a lack of understanding of open innovation lead to a new one?
  • 75. Transformational Growth: Industry is accessing the world for innovation The “Want, Find, Get, Manage” Model® Want What external resources do we need to Manage What tools, metrics and management techniques will we use to implement the relationship? succeed in our mission? Find What mechanisms will we use to find these resources? Get What processes will we use to plan, structure and negotiate an agreement to access the resources?
  • 76. Step 3: Value Pools and Channels
  • 77. Think / Reflect • What value pools can you tap into to build value for your innovation initiatives? • Are these relationships solid or do you need to do additional work to build good, mutually beneficial working relationships? • Are there potential external value pools that you have not yet tapped at all? If so, what is your plan for reaching out to them? • Are your channels for communicating with your value pools strong or do they need further work?
  • 78. Employees Managers Suppliers Academics / institutions Executives Alumni VCs Startups Business unit / function Users / consumers Government Competitors Inventors
  • 79. “This is important. Most big companies have 8, 10 or perhaps even 12 different external value pools that they can look into. However, even companies that are doing well with open innovation are generally not capable of working with more than two to four value pools at the same time.” - Stefan Lindegaard
  • 80. A quick and dirty exercise… • Write down a list of your current and potential value pools • Which of them are the most important? Rate their importance on a 1-10 scale. Why this grade? • Rate your current efforts on the top 5 rated value pools on a 1-10 scale
  • 81. “More companies should ask themselves what it takes to become a preferred partner of choice within their innovation ecosystems. They will discover that building the foundation and creating the perception are equally important.” - Stefan Lindegaard
  • 82. Build the foundation • You cannot build a strong reputation and a perception of being a preferred partner if you do not have the infrastructure in place to deliver on your open innovation efforts. Be careful about inviting guests into a home that is not in order…
  • 83. Create the perception • Once the foundation is in place, you must make others believe that your company has what it takes to be a “preferred partner of choice” within your industry. More focus on stakeholder management and communication efforts, please!
  • 84. Best potential vs least resistance • Do not always start out where the biggest potential lies. See the bigger picture and balance two factors against each other when selecting the starting projects Internal resistance = fear of change in general, bad risk management attitudes such as low tolerance for failure and worries on sharing intellectual property
  • 85. “As with value pools,most companies can only be successful in managing two to four channels at a time, especially when you are new to open innovation. You need to experiment to determine which channels work best for you.” - Stefan Lindegaard
  • 86. InnoCentive Alliances / joint ventures Campaigns (Comm / Public) Entrepreneur Day Consortia MyStarbucks Idea.com Campaigns (Comm / Public) Supplier Summit CREDIT: OVO Innovation
  • 87. Step 4: Internal readiness
  • 88. Think / Reflect • What is your company’s state of internal readiness for open innovation? • Does your culture support networking across internal units and with external organizations? • Is senior management up to speed on how innovation really works? • Do you have the right people in place to make open innovation happen?
  • 89.
  • 90. Every corporate culture is innovative! Find the pockets, build the foundation and perception
  • 91. Today, innovation is about having groups of people come together – internally as well as externally. This requires a networking culture that is designed, supported, and modeled by your company’s leaders. You simply can’t have a strong innovation culture without a strong networking culture. - Stefan Lindegaard
  • 92. What does a good networking culture look like?
  • 93.
  • 94. Networking efforts require direction, training and time. Few executives get this.
  • 95. Embrace experimentation – and the failures that come along with it!
  • 96. Most companies are not ready for this… • Small failures are accepted, but not big ones: 47 % • Failure is not accepted here: 7 % • More than half of the companies do not recognize failure as an inherent part of an innovation culture!
  • 97. “Two types of failure: • honorable failure is where an honest attempt at something new or different has been tried unsuccessfully and • incompetent failure where people fail for lack of effort or competence in standard operations.” Credit: Paul Sloane
  • 98. “A mistake is when you do something wrong, even though you knew the right way to do it. Failure is when you are trying something new, and you don’t know ahead of time how to make it successful. Credit: Jamie Notter
  • 99. Developing a culture that is constructive about failure requires a new vocabulary. Smartfailing When an organization embraces smartfailing, it de-stigmatizes failure internally and uses failure as an opportunity to learn and to find a better course.
  • 100. System failure (collapse of communism) System component failure (stock market crash) Major firm failure (Enron going out of business) Start-up failure (Pets.com going out of business) Product failure (New Coke tanking) Idea failure (Apple Navigator protype, no launch Credit: Tim Kastelle
  • 101. The failure to anticipate / execute on… …markets and technologies …platforms for bringing innovation to market …how companies innovate External change is faster than internal change! You win or lose in these pockets of opportunity!
  • 103.
  • 104.
  • 105.
  • 106. There are no quick fixes because the top executives that got us into this mess are not ready to lead us out of it!
  • 107. Too much focus on products, technology Unrealistic expectations on time, resources Lack of resources in budget, people, infrastrucure Silo rather than collaborative approaches Poorly defined innovation strategy (if any)
  • 108. Don’t make your platform too complicated! - but learn from your mistakes…
  • 109. Identify reasons, create learning process! Go beyond products and technologies! Be open – more communication, new terms! Reward learning behaviors! Educate up and down on innovation!
  • 110. Intrapreneurship is an overlooked tool!
  • 111. “Intrapreneur: a person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation.” American Heritage Dictionary, 1992
  • 112.
  • 113.
  • 114.
  • 115. The Man on The Moon competition • To identify and develop new ventures that creates significant growth and/or strategic advantaages • To spot and develop talent • To change the culture and establish ”intrapreneurship” as a fourth career path
  • 116. “…an intrapreneur must have the ability to see and pursue possibilities by piecing together innovations across three or more business functions simultaneously.” Paul Campbell, former VP, HP
  • 117. A career path for trouble-makers? “When someone tries to innovate within a traditional organization, few will understand what he/she is doing, but everybody will understand who is a trouble-maker. After the innovation has been embraced by the organization, few will remember who started it, but everybody will remember who was a trouble-maker. This is the dilemma encountered by many intrapreneurs - they risk punishment for success.” David Nordfos, Stanford
  • 118.
  • 119. The Lean Startup approach relies on validated learning, scientific experimentation, and iterative product releases to shorten product development cycles, measure progress, and gain valuable customer feedback. Fail fast, fail often and fail cheap!
  • 120. Stage 1: Shock and Surprise Stage 2: Denial Stage 3: Anger and Blame Stage 4: Depression Stage 5: Acceptance Stage 6: Insights and Change Credit: Steve Blank
  • 121. Six stages of failure and redemption Don’t get stuck in 2, 3 or 4 – move forward Don’t skip acceptance of your role Get to insights to change behavior… …commit to challenge / do different next time Credit: Steve Blank
  • 122. Innovation metrics – what and how?
  • 123.
  • 124.
  • 125.
  • 126. Number of innovation-related rewards and recognitions Numbers from various feedback mechanisms, showing employee acceptance and understanding of the initiative Results from the innovation self assessment capability maturity framework (survey measuring five levels of maturity related to innovation behavior) Percentage of our budget dedicated to innovation, research, and exploration of emerging technologies Shareholder value created from innovation activities. (Shareholder Value = IT Efficiencies + Business Value provided to the IT customers) # of ideas generated in specific innovation harvesting campaigns # of ideas harvested from campaigns, turned into implementable projects # of Intel patent submissions #Number of white papers published
  • 127. Inspiration Jeff Murphy, former Executive Director • Focus on engagement, training and participation of individuals. Get critical mass • Shift / add focus on innovation pipeline (active projects by stage, flow of projects, development, launch and kill) • Shift / add focus on end goals (ROI, successful products/services, revenue/savings from new launches, optimized processes)
  • 128. Inspiration Jimm Feldborg, Director Global Projects • Lag indicator: Results are historic and can’t be changed (rewards, number of patents) • Current indicator: Results are present, indicators can be changed (# of ideas, ongoing projects) • Lead indicator: Results are predictive for future and can be changed to high degree (hard to identify)
  • 129. Why you should not pay too much attention to this! Open innovation changes perspectives and approaches
  • 130.
  • 131.
  • 132. If you really want to change a culture… Reward behaviors, not just outcomes!
  • 133. Step 3: External Readiness
  • 134. Think / Reflect • How ready is your industry for open innovation? • What are the obstacles and drivers for open innovation within your industry? • What are you doing to persuade your partners to work with you on open innovation? • How strong is the trust between your organization and your external partners?
  • 135. P&G MEDTECH PHARMA Cycle time, money, IPR, conservatism, government regulations and internal readiness
  • 136. If you are the visionary in your industry… 1) educate others in the industry, bring them up to speed and get them to experiment with you 2) find new partners that are ready for open innovation outside your industry You can of course do both…
  • 137. Some key questions • What should our future innovation eco-system look like? • How will current and potential partners perceive our open innovation initiative? How can we adjust as we get feedback on what we say and more importantly how we act? • Can we develop systems and processes that enable us to deal with external input and handle this in a proper way and in reasonable time? • How can we work with external consultants, service providers and innovation intermediaries?
  • 138. …create a new business model for the manufacturing industry by harnessing open innovation, the maker movement, and community involvement to build a revolutionary new wave of smart appliances. Goal: 100 micro-factories in the next decade Image: Colin West McDonald / CNET
  • 139. Change how we innovate Be competitively unpredictable Develop the right conditions and framework
  • 140. Lessons from Psion Todd Boone, former Director, Corp Comms • Biggest obstacle? Getting partners to understand the full scope of our efforts Solution? We brought all partners together • Communication messages were focused on an industry opportunity; not just a Psion initiative
  • 141. Some thoughts on trust • What does it take for you to trust others? What can you do to convince others to trust you? • Trust is a personal thing; it is first and foremost established between people and then perhaps between organizations • Transparency is essential to trust. Without transparency, trust will not take root
  • 142. Trust barriers in your ecosystem • Most organizational structures foster an internal rather than an external perspective • Partners are viewed as someone paid to deliver a service rather than a source of co-creation • Most companies are more focused on protecting own knowledge and intellectual property rather than opening up and exploring new opportunities • Forging strong relationships takes time and personal commitment
  • 143. “There are a number of elements that are critical in building a successful innovation partnership, but the key is for everyone to be the partner they’re looking for.” - Chris Thoen, former Managing Director, Global Open Innovation Office at P&G
  • 144. Good advice from Chris Thoen • Don’t think in terms of one-off deals • Unless win-win is the mentality, there are no wins in the long run • Grow the total pie versus growing your piece of the pie • Be up front and transparent
  • 145. Step 6: New Skills and Mindset
  • 146. Think / Reflect • Do your company’s leaders understand that people matter more than ideas when it comes to making innovation happen? • Have you identified people who are best suited for working at the different stages of innovation? • Do you hire for potential or is your hiring based on past experience and competencies? • Are your hiring and training programs geared toward developing the characteristics and skills needed for innovation?
  • 147. A CFO is wary about investing in the training and education of the employees. He asks the CEO: ”What happens if we invest in developing our people and then they leave the company?” The CEO is a bright person and replies: ”What happens if we don’t and they stay?”
  • 148.
  • 149.
  • 150. Discovery – Incubation – Acceleration: Have the right people at the right time!
  • 151. What skills / key people do you need now, short and long term? How do you get access to them?
  • 152.
  • 153.
  • 154. 1) Holistic point of view (intrapreneurial skills) 2) Ability to constructively handle conflict 3) Optimism, passion and drive 4) Curiosity and belief in change 5) Tolerance for / ability to deal with uncertainty 6) Adaptive fast learner with sense of urgency 7) Talent for networking / strategic influencing 8) Communication skills
  • 155. 58 replies, 62% working in companies with more than 5000 people 45% work with innovation in full-time position as leaders/managers, 18% full-time with no leadership role and 27% on ad-hoc basis Full survey = search “survey” on 15inno.com
  • 156. Please rate these qualifications for a team working to create a stronger innovation culture. N e t w o r k i n g c a p a b i l i t i e s S t a C k e o m h F m o u a l n d A i i b e r i c l P a i m l t t i a e a n t r i s t A b y o a i i g t n o s l o e A k n b i g t m / e i i e l p t l t n n c y r t l i
  • 157. Please rate these ways for leaders to motivate employees to become more innovative, help create better culture for innovation. S e t c l e a r o b j e c t i v e s a P r o v i d e f i n a n c i a l G i v e R f e r w e a e r d d o s m g t P r o v i
  • 158. Innovation is a team sport. To which extent do these statements resonate with you. T e a m s " O n n e b e o d Y a o t o u r n i d i T n e n e c a d g l t " u m d r E o t x c h u e m h e l a t c e o u e s r n
  • 159. Companies need to upgrade their innovation capabilities. How relevant are these initiatives and activities for this? T r a i n T r i a n i g t n D e i h n r v g o e t u l I h g o n h p r o w t t e r u r a b a g p i
  • 160. No networking culture? No innovation culture! - future winners get communities to work!
  • 161. Networking efforts require direction, training and time. Few executives get this.
  • 162. Horizontal: disposition for collaboration across disciplines Vertical: depth of skill which allows to contribute Only T-shapes: “Occasionally, we have people who don’t really have a depth of skills, and they really struggle. They don’t get respect from the group.” Credit: Tim Brown / IDEO Only I-shapes: “…very hard for them to collaborate…each individual discipline represents its own point of view…becomes a negotiation…you get gray compromises… The results are never spectacular but at best average.”
  • 163. Thoughts on training programs • Begin by training the trainer • Intrapreneurship-like programs are one of the best ways of identifying and developing people who will drive innovation forward • Bring in real life experiences • Training program itself must be agile to keep up with emerging trends in innovation • Don’t forget the executives
  • 164. Finding and developing the right people • Future potential versus past competencies • Adaptability is key – but in what direction? • Future innovation leaders create communities (shared sense of purpose, values and rules of engagement) • Future innovators are intelligent in many ways • Build the right conditions and frameworks
  • 165. Step 1: Common language and Understanding, Motivation, Mandate and Strategic Purpose
  • 166. Think / Reflect • Do you have clear messaging that lets people know why innovation is important to the company? • Are you working cohesively with the corporate communications team on communicating about innovation? (You might have to train them.) • Are you doing a good job of communicating with internal and external stakeholders? • Do you train your innovators to become better communicators?
  • 167. Great innovators are great communicators! • Have a plan in place… • View communication in the broad sense – include networking and stakeholder management • Have clear messages that resonate with the audience – go beyond the corporate speak • Use a range of communication tools – too few innovators know about social media
  • 168. Identify and interact with innovation partners Generate more ideas, faster Get market and competitor insights Promote corporate innovation capabilities
  • 169.
  • 170. Identify 10 keywords / terms and work with them on LinkedIn and Twitter. What happens?
  • 171. It’s about execution! People first, processes next, then ideas…
  • 172. Get in touch! Send me your questions! Let’s connect on LinkedIn! Join my LinkedIn group: 15inno by Stefan Lindegaard Check my blog on www.15inno.com - share it! stefanlindegaard@me.com / @lindegaard