OPEN INNOVATION

José Cláudio C. Terra

Global trends in

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Battle of Concepts
Challenges to undergraduate students

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TerraForum Consulting
Our Mission

Help our clients
in more effective ways

to learn, collaborate and innovate

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More than 300 projects with leading companies within the last 7 years 44 .

Publishing Portfolio – TerraForum Consulting 55 .

TerraForum Consulting Innovation Center Portal 6 .

Steve Jobs 7 .What is Open Innovation? “ Innovation distinguishes a leader from his followers.

2003 8 . respectively." Henry Chesbrough.“ Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation. and expand the markets for external use of innovation.

Open Innovation Model – The Innovation Funnel Through the open innovation model organizations keep strong relationships with external parties at different stages of the innovation development process Research Joint Venuture Licensing External Technology Insourcing Spin-in Merge and Aquisitions Development Comercialization INTERNAL R&D Divest Spin-off Licencing R&D Services MARKET 9 .

.Through Open Innovation businesses are increasingly open to insights. ideas and collaboration from multiple sources.. 10 .

develop and ship ourselves External R&D can create significant value.For most companies innovation is a proprietary activity but for others. we will get it to market first We don´t have to originate the research in order to profit from it If we are the first to commercialize we will win Building a better business model is better than getting to market first If we create the most and the best ideas in the industry. Closed Innovation Most of the smart people in our field work for us Open Innovation Not all of the smart people work for us.. we must discover. so we must find and tap into the knowledge and expertise of bright individuals outside our company To profit from R&D. internal R&D is needed to claim some portion of that value If we discover it.. we will win If we make the best use of internal and external ideas we will win We should profit from others´ use of our IP. and we should buy others´ IP whenever it advances our own business model 11 We should control our intellectual property (IP) so that our competitors don´t profit from our ideas .

Open Innovation creates new revenues opportunities Closed Model Past Revenues Closed Model Present Open Model Future New Businesses Spin-Offs Royalties New Revenues Revenue Revenue Revenue Internal Development Cost Internal Development Cost Internal Development Cost Costs 12 .

How companies will organize themselves to support open innovation approaches? “ The best manner to predict the future is inventing it. 13 .

that are composed by.Companies are creating their own Open Innovation Systems. Processes and Governance Partners´ Network relationship Open Innovation System Infrastructure Organizational structure 14 ...

Key Factors for Open Innovation Success Support and Services for Partners Strong Relation Network Clearly Defined IP policies Organizational Structure and Governance Infrastructure and location Adequate Partners Funding Collaborative Culture Stakeholders Support Strategic Alignment Open Innovation System Processes and KPIs for Innovation Mgmt 15 .

Benchmark Study: “Best Practices in Open Innovation Systems” Participating Companies Brazil Global 16 .

from basic research to commercialization. Besides. patents office. 17 . research specialists. Philips High Tech Campus offers infrastructure for their partners. It also offers paid services. consultants. e.: suppliers. such: offices for rental. governmental research organizations. developed a technology park in Eindhoven that became worldwide renowned that was capable to attract the strategic competencies to the company.Best Practices in Open Innovation Systems (OIS) “ Philips established partnerships all over the innovation stages. incubation and laboratories.g. venture capitalists.

Technology-based startups incubation The design stimulates and forces collaboration between partners Close to universities “Research Hotel” concept 18 .High Tech Campus. a new concept on Open Innovation System       Modern technology park More than €500M in investments.

Best Practices in Open Innovation Systems (OIS) Philips High Tech Campus (Eindhoven) 19 .

“ Syngenta keeps a full time partnership manager to manage collaboration and the network relationship. The company structured 7 research centers. where they discuss about the technology and products trends and forecast. Nokia promotes “Day Dreams” with their partners.000 partners. most in Spain and close to technology parks. 20 . stimulating new business and solving conflicts.Best Practices in Open Innovation Systems (OIS) “ “ Telefónica has established a network that involves more than 1.

0 tools to improve open innovation in organizations “ The best manner to predict the future is inventing it. 21 .Using web2.

.0 – as an open and participatory platform.What facilitates this NEW approach to innovation is the rise of Web 2.. 22 .

23 .Procter & Gamble Tremor Competitive Intelligence • Capture impressions and trends from teenagers • Establish relationships and understand specific publics • Benefits: • Improve the relationship of P&G products with strategic customers.

Dell IdeaStorm Ideas and Insights Users can: • Submit ideas.000 ideas • 84 comments and votes • 347 ideas implemented 24 . • Vote on ideas • More than 12. • Comment ideas posted.

25 25 .000 researchers 50 universities Companies such Basf. Syngenta e DuPont participate. Benefits: • Increase the network • Improve the quality and speed on development of new solutions • Reduce the R&D investments More than 70.Innocentive R&D Companies propose challenges to researchers and universities and give prizes up to US$1M.

26 .Kraft First Taste Testing Community to discuss new products where users can: • Provide feedback to new products • Share opinions • The most participative users have a “first taste” new products first than others Benefit: Kraft improves products by using costumers experiences.

P&G and Honeywell. Participation of 90% of Fortune 500.com Commercialization and Scaling up Companies buy and sell licenses for the usage of technologies and patents. Benefits: • Profits from non-strategic and not used technologies • Companies can innovate without internal R&D Partnerships with DuPont.Yet2. 27 .

000) submitted by users 28 .Fiat Mio: Open source design Any company can use the ideas (more than 10.

000 prizes 5th year of the contest • • • • 29 .Peugeot Design Contest Open Design • More than 4 million page views 5 demonstration models exhibited at automotive marketing events Designers of around 100 nationalities € 10.

Threadless Co-creation made by users 30 .

Lego Open source community Accelerating product innovation and turning Lego MindStorms into a highly profitable product for Lego 31 .

br www.com.slideshare.OPEN INNOVATION Jose Cláudio Terra jcterra@terraforum.net/jcterra Global trends in 32 .

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