Open innovation and user centricity for living labs

Open Innovation 2.0 & User Centricity
Francesco Niglia
Studio Francesco Niglia International Networking

OI2 & UC for Living Labs - Francesco Niglia (2014)
Disclaimer / thanks to
The author is grateful to
• Bror Salmelin (EC Directorate General CONNECT) and
• Martin Curley (Intel Labs Europe )
for sharing their insights on the Open Innovation 2.0
This presentation, with the courtesy of the OISPG -
Open Innovation Strategy and Policy Group, includes
text, pictures and schemes from the White Paper ‘Open
Innovation 2.O: A New Paradigm’ (2013), in particular:
Slide # [8-10], [12-19], 21, [32-42], 44 are easily
recognisable by the OISPG logo in the upper-left side

topics
• The role of innovation
• The open innovation 2.0 - OI2
• The living labs
• The user centricity approach
– How to implement in Living Labs
– How to engage users

The Innovation
• What is innovation?
• (One of) the most complete definition: Innovation
is the result of a complex intertwines of intuition,
application of scientific discoveries as well as an
instituted process that accompanies the intuition
from research to the early development to the
final application (and exploitation), in this
process, institutions as well as the intermediaries
and the final beneficiaries do have different
characteristics, roles, positions and behaviours in
the innovation system.
• …the missing words?

Let’s try to think wider…
• ‘RADICAL OPENNESS’ by Jason Silva
http://www.youtube.com/watch?v=WEWaBlSSUgw
• New words
• …other…?
Evolution
Human imagination

Radical openness
• “We need better maps and metaphors,
better ways of connecting with that feeling that
there is something larger than ourselves.”
• “We want to be transformed. We want
spaces where ideas can
accelerate the evolution process.
We want to be able to contemplate space and
time on a scale just short of the infinite.”

Some considerations
• We innovate ourselves because we die
• We can easily add the words:
technology
networking
awareness
Mental approach
Collective awareness
scalability

The Open Innovation 2.0
• New, bigger, more complex challenges
• A new paradigm approaching big societal challenges:
healthcare, transportation, climate change, youth
unemployment, financial stability, prosperity,
sustainability, and growth.
– (Global System Science)
• An endorsement coming from the ‘past’
– Creative destruction model (Joseph Schumpeter 1942)
where the failure of old approaches fuels the motivation for
change and shapes the future.
• The quadruple helix model (+ civil society)
– drive changes far beyond the scope of single organisations

The evolution of innovation
INDIVIDUAL INNOVATION
VISIONING, INVENTING, VALIDATING AND VENTURING

Open Innovation: an evolutionary vision - 1
• The Open Innovation 2.0 is continuously
evolving and changing so rapidly (prof. David
Teece, Haas School, University of Berkley), and
this suggests to adopt an evolutionary vision
of the whole issue.
• the target is to formalise and validate the
model approached by “Ecology of Innovation”
that takes the ecology to mean the science of
the interrelationships of organisms and their
environment to discuss and validate the OI2.

Open Innovation: an evolutionary vision - 2
• Individuals, the education system, university
and research laboratories, firms and the
government are the constituent elements
which constitute an innovation ecology but
they do not constitute an innovation system.
• The ecology of innovation become a proper
system only through the emergence of
system-making connections and these
connections typically flow form the need to
solve specific innovation problems.
W
H
O
H
O
W

Some statements (Michael Schrage)
• Innovation is not innovators innovating, but
customers adopting.
• Innovation happens when a customer becomes a
co-creator of value, an active subject of the
innovation process, and is not merely a passive
object.
invention + adoption = innovation.
• OI2 is not the panacea, but it adds an essential
component to the traditional innovation
approaches and it accelerates collective learning
and value creation.

Innovation is ruled by an ecosystem
an innovation model
based on extensive
networking and co-
creative collaboration
between all actors in
society, spanning
organizational
boundaries well
beyond normal
licensing and
collaboration
schemes.

New VS traditional models

Added-value in the innovation cycle
• Innovation can be defined as the “adoption of
something new which creates value for the
individual or organization that adopts it”
(Baldwin and Curley, 2OO7) so it is the user or
citizen who is often at the fulcrum of where
value gets realized from an innovation. Who
better to determine what value an
innovation should deliver than an intended
user

Industrial Perspective on OI2
• create mechanisms that are able to span the
so-called valley of death that lies between
research and product adoption and thus
enable much higher returns on research
investments
• Example. Intel Labs Joint Pathfinding process
– research laboratories and business groups share
resources, risks, and decisions jointly.
– Team working together to build product roadmaps
that identify the pathways from research to
results.

Citizen / User Perspective on OI2
• Instead of the user or citizen being seen as a
research object and innovation “being done”
to the citizen, the citizen and user becomes an
integral part of the innovation process.
• mass collaboration as a dominant mega trend
• As connectivity and awareness builds more
and more individuals will aspire to become
high expectations entrepreneurs

Government perspectives on OI2
The role of the public sector is to
• accelerate the creation of both business and
societal value through innovation.
• create the environments for OI2 where the
mash-up of the needed components can
happen in a frictionless environment.
• Bring-in the fuel for the innovation processes,
for example, by procuring innovative products
and sharing RD&I risk.

The Living Labs in OI2
• Create in 2006 by the EC as innovation
ecosystem
• LL create attractive innovation ecosystems
following the quadruple helix innovation
model, where the innovation trials and scale-
up can happen more successfully due to
strong engagement of the citizens in the
regions.
• Since founded as a modest start-up, the Living
Labs has developed into a network of regional
innovation ecosystems on all continents.

What is a Living Lab
• A Living Lab is both a methodology for User Driven Innovation
(UDI) and the organizations that primarily use it. A Living Lab is
about experimentation and co-creation with real users in real
life environments, where users together with researchers, firms
and public institutions look together for new solutions, new
products, new services or new business models. But also Living
Labs are about societal involvement, about promoting
innovation in a societal basis, involving academia, SMEs, public
institutions and large companies in an Open Innovation process
that because happens in real environments has an immediate
impact
• Public-Private-People Partnerships (PPPP) for user-driven open
innovation.
• It’s innovation to market
• It’s sustainability linked to a territory

Aalto University

Why a living lab?
• Because innovation
occurs in ecosystems
• The ‘test-bed’ for the a
lot of ICT innovation as
outlined in the Digital
Agenda and by
DGConnect
– Smart Services at all the
levels
– Application of
innovation

An example: ENoLL
• ENoLL is the European Network of Living Labs
• Thousands companies, hundreds universities
research centres, thousands on people.
• Fixed procedures…already a process of
‘labelling’ for becoming a living lab
– Procedures, outcomes, business, sustainability,
territorial impact
• Ensuring a minimum quality of performances
http://www.openlivinglabs.eu

Distribution of living lab in ENoLL
•Energy Efficiency. Sustainable Energy.
Climate change
•Well Being and Health
•Smart Cities. Future Internet. Internet of
things.
•Social Innovation. Social Inclusion
•e-Government. e-Participation
•Creative Media. User driven contents.
Social Networks. Web 2.0
•Thematic Tourism. Culture Services
•Regional, territorial and rural development
of Smart Regions
•Sustainable Mobility
•Industrial and logistics development
•Security0 50 100
Other World
Other…
Sweden
Germany
Portugal
Finland
UK
Italy
France
Spain
344 LL

5 Key elements to define added-value
5 key elements in the new innovation process:
• Networking.
• Collaboration involving partners, competitors,
universities, and users.
• Corporate Entrepreneurship, enhancing
corporate venturing, start-ups and spin-offs.
• Proactive Intellectual Property Management:
to create markets for technology.
• Research and Development (R&D): to achieve
competitive advantages in the market.

how to define and visualise the added-value
• List the targets of the Living Lab
• List and define the actors
• Exactly check the role of each actor within the LL
• Dynamics and weights: connections, the ‘cost’
• Exactly define the I/O flow of a-v for each actor
– What can be useful to that actor?
– What can be provided by the actor?
• Balance the I/O
– For each actor
– For the whole system
– Sankey or similar diagrams might be used
• 2-3 round checks, what is missing?
– New dynamics, New services, etc., A new (unexpected) actor, Other…
MONEY, SERVICES,
GOODS, IN KIND
GAIN MUST BE > 0!!

Example: Sankey

Example: free scheme
ACTORMONEY
I ≠ O
SERVICES
GOODS
IN-KIND
MONEY
SERVICES
GOODS
IN-KIND
ELABORATION
CREATION OF
ADDED -VALUE
OWN
CAPABILITIES /
KNOWLEDGE
M+S+G+IK = VALUE

Cartogram map
it shows the world from the data’s point of view.
The cartogram, created by (Bryan Boyer on
behalf of the Institute of Large Scale Innovation)
sizes countries according to several factors
related to their innovation efforts:
• R&D spending,
• the number of postsecondary degrees
awarded,
• the number of patents issued.

Innovation world - 2011

…let’s try to make your own map!
• Mapping the single actors and try to establish
a whole infographic vision
Actor
#1
Actor
#2
Actor
#k
Actor
#N
Actor
#3
LL €’s LL KB LL S-P

Formulating an Ecosystem Strategy
Often managers revise their performance expectations and rethink
their initial plan: lower performance targets, reassigning
responsibility , changing the target market, lobbying the
government, acquiring a competitor or partner

Apple: the first mover
…at a time when Apple had its back to the wall…
• an independent product design consultant
approached the company to propose an
innovation consisting of an easy-to-use MP3
player and music-management and purchase
software.
• This external idea was then taken up by Apple
– a 35-member team hired from Philips, Ideo, Connectix
and WebTV developed the design and user interface
– a partner, Portal Player developed the technical
design.
– The final product was then produced together with
Wolfson, Toshiba and Texas Instruments.

OI2 ecosystem in Deutsche Telekom
Problem: liberalization of the TELCO industry in 1995, former small scale SMEs
[Skype] entering with VOIP, shift from network to services providers

OI2 ecosystem in Institute Telecom - France

Twenty Snapshots of Open Innovation 2.0

Quadruple Helix Innovation
Industry, government, academia, and
citizens work together to co-create and
drive structural changes far beyond the
scope of what organizations can do on
their own. There is much deeper
networking among all participants,
including societal capital, creative
commons, and communities.

Co-creation and Engagement Platforms
Co-creation includes all stakeholders,
including citizens, users, or customers,
in the development of innovative
solutions. An engagement platform
provides the necessary environment,
including people and resources, for co-
creation.

User Involvement, U-Centricity, U-Experience
The role of the user has changed from
being a research object, to being a
research contributor, and on to being a
co-innovator. The locus of innovation
has shifted from guessing about
product and service features users
may want to user experience design to
guarantee that features are desirable.

Business Model Innovation
Business model innovation is about
defining and designing new models for
capturing business value. Osterwalder &
Pigneur’s (2O1O) business model canvas is
a good tool for visualizing and prototyping
business models and incorporates
techniques such as visual thinking, design
thinking, patterns, and platforms.

Management of Innovation
Process/Capability
OI2 recommends explicitly setting up
management systems for innovation
and systematically improving
innovation capability in individual
organizations as well as across
members of innovative ecosystems.

Social Innovation
“Innovative activities and services that are
motivated by the goal of meeting a social
need and that are predominantly
developed and diffused through
organisations whose primary purposes are
social.”
Mulgan et al (2OO7)

An upper-view scheme
GLOBAL SYSTEM SCIENCE
OPEN INNOVATION 2.0
FET
ECOLOGY OF
INNOVATION
USER CENTRICITY
SMART COMMUNITIES
SMART TERRITORIES
LIVING LABS

User Centricity: link to OI2
CO-CREATION
CO-
DEPLOYMENT
SOCIAL
IMPACT
USER
SATISFACTION

User Centricity: what exactly
• It’s the “human-centred” aspect of Global System
Science / Open Innovation 2.0, including user/citizen
participation and clearly concerned with reasoning.
• Here, the ‘smartness’ shall not be referred uniquely
to the technologies, but includes a broader view of
ensuring a minimum QoS for public and private
services, the direct contact and management of the
resources in the territory, the coopetition among
citizens and the other actors (government, industry,
academia) working together to co-drive structural
changes.
• It’s the application of the 4xHelix model in OI2

User Centricity for services
• ‘The users are meant as persons, citizens and
the whole concept of service is based on
“putting the user at the center of innovative
services/products” starting from the
enablement of a specific procedure: users will
be involved in the service/product
development that will be driven by what
users want and operate on a scale that is
relevant to them’. [NET-EUCEN]

Some key issues
What is user-centricity?
Matter of
technology
awareness
Answer to
user
needs
participation
• It’s thinking about
new solutions with
the user
• It’s adaptation.
• a multi-level
user/citizen
empowerment
• In order to have
smart cities we need
smart citizensʺ

Involvement in: Co-design stage
• this means the engagement and
involvement of users in the stage of the
development of new ideas and concepts,
i.e. the definition of the service/product
shall be made with users by starting from
the users’ needs, wishes and
requirements without any technological
constraint.

Development and implementation stage
• this means the engagement of a
sample/group of users in the first
implementation of the services/products
in order to evaluate its features and
continuously discuss with developers
how to optimise the outcomes and
suggest improvements and/or changes
before the final running of the service;

Deployment and running stage
• this refers to the possibility to validate the
service/product through an, even wider,
user-test campaign. This test shall imply a
check of the flexibility of the service from the
technological perspective and the
interoperability of the applications, thus to
give the possibility to customise it following
the changes in the political, economic or
social environment and, furthermore, to
enable business exchanges with the users

The user engagement
• be interactive and include active user/citizen
participation through discussion, dialogue and
debate, possibly supported by social networks
and platforms.
• Use of techniques such as narratives, games or
even art may be important vehicles for expressing
evidence and forming opinion.
• The whole approach can be actualised through
very different ways and using very different tools,
often not only ICT-based; public workshops and
consultation are still a powerful instrument to
create a co-operative debate

...and ICTs?
• ICT is only a tool, both for information gathering and
information delivering, as we can elicit useful information
through face-to-face discussions.
…but…
• ICT opens the door to the development of new ways of
citizens’ engagement in the design and planning.
Enabling new scenarios in which active users can help
gathering sensible data through participatory sensing and
social computation activities:
– stimulating individual+collective awareness+learning;
– providing relevant inputs for data analysis, modelling
and decision making.

Open Innovation VS User-Driven Innovation
• In user-driven innovation: you listen to
customers or partners in the early phases of
the innovation process, or later, as feedback is
generated.
But this is not really business transformation
as you still go through your own internal
innovation and development process.
• It becomes open innovation: when you not
only get ideas from external sources, but also
let external sources become key players in
the process of turning ideas into a business.

New business models with user-centricity
• We consider that the Internet, and the tools
and services offered through Internet, are the
computing platform on which to build user-
driven innovation and new business models.
When the user is provided with the
appropriate tools, which they have the
freedom to use as they wish, they can
remodel and combine them to create services
tailored to their needs.

User-centricity for smart communities / LL
• The user-centricity will be the basis for
adopting a shared approach: people living in a
smart multimodal environment which
maximizes the economies of scope and scale
across its multiple infrastructure layers.
• The target is to understand how to shift the
user-centric paradigm in the engagement of
citizens and users for fostering the innovation
and research in the industrial sectors closer to
the people.

How to engage?
• The first challenge is to define the added-
value we think we might offer to the
user/citizen
• After that we need to understand the most
suitable interface and tool we shall use to
empower the user/citizen to interact
(workshops, Scenario building, Mail, Round
tables, Consultations, Etc…)
• Finally, we must ensure a continuous feedback
mechanism to user to maintain the
expectations on the added-value.

Method of involvement
• Deliberative polling
• Focus groups
• Citizens’ juries
• Consensus conferences
• Stakeholder dialogues
• Internet dialogues
• Deliberative mapping

Deliberative polling
• In a deliberative poll, a large, demographically
representative group of perhaps several
hundred people conducts a debate, usually
including the opportunity to cross-examine
key players. The group is polled on the issue
before and after the debate.
Es. The PERIPHERIA project
http://www.peripheria.eu/

Focus groups
• A focus group is a qualitative method used widely in
commercial market research and increasingly in
academic social research. Typically, a group of eight to
ten people, broadly representative of the population
being studied, is invited to discuss the issue under
review, usually guided by a trained facilitator working
to a designed protocol. The group is not required to
reach any conclusions, but the contents of the
discussion are studied for what they may reveal about
shared understandings, attitudes and values. Focus
groups may also help to identify the factors (which
large-scale surveys rarely do) that shape attitudes and
responses, including trust or mistrust. They also help in
the design and interpretation of quantitative public
opinion surveys.

Citizens’ juries
• A citizens’ jury (or panel) involves a small
group of lay participants(usually 12–20)
receiving, questioning and evaluating
presentations by experts on a particular issue,
often over three to four days. At the end, the
group is invited to make recommendations.
• Used by local authorities, government
agencies, policy researchers and consultants
on a wide range of policy issues.

Consensus conferences
• By convention, a group of volunteers is selected for a
consensus conference according to socioeconomic and
demographic characteristics. The members meet first
in private, to decide the key questions they wish to
raise. There is then a public phase, lasting perhaps
three days, during which the group hears and
interrogates expert witnesses, and draws up a report.
The main differences between a consensus conference
and a citizens’ jury or focus group are the greater
opportunity for the participants to become more
familiar with the technicalities of the subject, the
greater initiative allowed to the panel, the admission of
the press and the public, and the higher cost.

Stakeholder dialogues
• This is a generic term applied to processes
that bring together affected and interested
parties (stakeholders) to deliberate and
negotiate on a particular issue. Stakeholders
can range from individuals and local residents
to employees and representatives of interest
groups.

Internet dialogues
• This term is applied to any form of interactive
discussion that takes place through the internet. It may
be restricted to selected participants, or open to
anyone with internet access. The advantages of
internet dialogue include the ability to collect many
responses quickly and to analyse them using search
engines. Similarly, they can combine the benefits of
rapid exchange of ideas (brainstorming) with a
complete record. On the other hand, participation may
be self-selecting and unrepresentative, and the
anonymity of the internet may encourage impulsive
rather than considered responses. Anonymity may
make it difficult to investigate the provenance of
information provided.

Deliberative mapping
• This is a process in which expert and citizen
assessments are integrated. In a deliberative
mapping exercise, citizens’ panels and
specialist panels are convened and interact
with each other, allowing participants to
interrogate each others’ views and knowledge,
and exposing framing assumptions made by
both sides. Deliberative mapping seeks to
bring together the views of ‘experts’ and
‘public’, through face-to-face deliberation
between these two groups.

A method to elicit and assess innovation
INNOVATORS
USERS DEVELOPERS
SERVICE / PRODUCT
GATHERING
ASSESSMENT
COLLATION

Some biblio and refs
• Put User in the Centre for Services A reference model. Myriam Corral
http://ec.europa.eu/information_society/newsroom/cf/dae/document.cfm?doc_id=2188
• The Open Innovation Strategy and Policy Group
https://ec.europa.eu/digital-agenda/en/open-innovation-strategy-and-policy-group
• ENoLL. http://www.openlivinglabs.eu/
• Open Innovation 2.O: A New Paradigm. Curley, Salmelin (2013)
• Unlocking the Digital Future through Open Innovation - An Intellectual
Capital Approach A critical analysis of open innovation as structural
capital
• RADICAL OPENNESS for TEDGlobal by @JasonSilva
http://www.youtube.com/watch?v=WEWaBlSSUgw
• User-centric approach in NET-EUCEN
http://www.net-eucen.org/usercentric.php

thank you!
Happy to discuss!
Any question?
Contacts
Francesco Niglia
francesco@fnstudio.net tel: +393493947146
Studio Francesco Niglia http://www.fnstudio.net
Social
skype: effennebis twitter: fnpolicy
linkedin: http://www.linkedin.com/in/francesconiglia

Open innovation and user centricity for living labs

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