Open innovation

open innovation

by Carla Zorzofor Domus Academy

designed by Carla Zorzo - [email protected]

“Innovation is increasingly about having groups of people coming together to leverage their diverse

talents and expertise to solve multi faceted challenge that cross multiple disciplines.

To make this happen within your organization and byond as you move towards open innovation requires

a networking culture that is designed, supported and modeled by your company’s leader.”

Stefan Lindegaard


During most of the 20th century:

vertical integration of the research function

before... the Closed Innovation Model

R&D€

I NVESTMENTS

INNOVATI

ON

S

INVESTMENTS

P

ROFITS

a large research laboratory was a great

competitive advantage

new products

innovations

high profit margins to re-invest in the research

intellectual propriety

http://www.quickmba.com/entre/open-innovation/


before... the Closed Innovation Model

ideas are developed through internal research

just the most promising are realized and introduced on the market

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new market

new market

currentmarket



the crisis of Closed Innovation Model

the closed innovation paradigm has eroded due to the following factors:

Increased availability of highly-capable outsourcing partners

Increased mobility of skilled workers

Expansion of venture capital

External options for unused technologies



Open Innovation is a term promoted by Henry Chesbrough (professor and executive director at the Centre for Open Innovation at the University of California,

Berkeley) in his book Open Innovation back in the 60s: The new imperative for creating and profiting from technology. The

concept is related to user innovation, cumulative innovation, Know-How Trading, mass innovation and distributed innovation.

The Open Innovation Model

http://www.wikipedia.org



internal research sets the

right questions

external resources integrate the

development with fresh inputs

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=

globalmarket

winning companies

global companies



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globalmarket

globalcompetences

winning companies

global companies


there are institutional ways to apply the open innovation...

the role of the network

company

governament

business services


... and bottom up channels


company

individuals

clients


together they create an interconnected system


company

individuals

clients

governament

business services



company

governament

INNO

VATION

the advantages of such a system

individuals

clients

business services




company

individuals

clients

governament

ENGAG

EMENT

INNO

VATION

business services




company

individuals

clients

governament

ENGAG

EMENT

BUZZ

INNO

VATION

business services




company

need

solution

external expertise




company

need

serviceprovider

solution

€€

=external expertise


the business stages

financing

R&D

creation

production

marketing customer care

consumption

institutional open innovation


the institutional Open Innovation

OPEN INNOVATIONSERVICES PROVIDER

INNOVATION MANAGEMENT

SOFTWARE

OPEN INNOVATIONPLATFORM

EXPERT SOURCING

BUSINESS INCUBATOR

technology parks

H-Farm

presans

NineSigma

yet2.com

Spigit

Brightidea

trada.com

ideasicle.com

InnoCentive

InventionMachine

triz

technology broker

strategic design studio

inkling

idea connection

http://www.spigit.com/




company

need

communitiesusersexperts

possible solutions

external expertise =

open brief

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company

need

possible solutions






company

need

possible solutions


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the business stages

buttom-up open innovation

R&D

creation

production

marketingcustomer

care

consumption

financing


the business stages

click and pledge

donation portals and social networks

no-profit fund rising

profit fund rising

Examples

corporate initiatives

Research & Development platforms

local business and cultural promotor

Examples

R&D

financingcustomer

care

consumption

creation

production

marketing

http://www.kickstarter.com/

http://www.causes.com/

www.fundable.org/

http://www.fundingcircle.com/

http://www.fiatmio.cc/en/

http://innovetionvalley.com/

http://www.onebillionminds.com/


the business stages

prosumption

DIY

from copyright to right to copy

Examples

open source hardware: 3D painters

Arduino

Examples

creation

production

customer care

consumption

financing

R&D

marketing

http://blog.makezine.com/archive/2009/12/open-source-hardware-2009-the-def.html

http://creativecommons.org/

http://www.widwi.com/

http://current.com/

http://www.fabathome.org

http://www.arduino.cc/


the business stages

rate & comment

prosumption

blogging

Examples

bloggingExamples

marketingcustomer

care

consumption

creation

production

financing

R&D

http://www.tripadvisor.com/

http://www.indie-spot.com/

http://mashable.com/

http://appleinsider.com/


the business stages

rate & comment

prosumption

blogging

Examples

creation

production

customer care

consumption

financing

R&D

marketing

bloggingExamples

http://www.tripadvisor.com/

http://www.indie-spot.com/

http://mashable.com/

http://appleinsider.com/

http://www.youtube.com/watch?v=lde77E4PY4Q


the business stages

customizing

upgrading

hacking

sharing

Examples consumption

customer carecreation

production

financing

R&D

marketing

http://www.elementalchile.cl/viviendas/quinta-monroy/quinta-monroy/#

http://designforeveryone.howest.be/output/index.php

http://www.openstructures.net/pages/1

http://www.youtube.com/watch?v=EInGuIVW_Fw&feature=related


how is this applied by businesses?


Open innovation examples: threadless.com

CC

C

C

P

F

R&D

M

I host it

I post my design

I rate it

I rate it

I rate itI suggestchangings


Open innovation examples: threadless.com

CC

C

C

P

F

R&D

M

I get payed

I buy it

I buy itI buy it

I buy itI produce and sell it


Open innovation examples: Quirky

CC

C

C

P

F

R&D

M

I evaluate it

I post my design

I rate it

I curate it

I rate itI suggestchangings

http://www.quirky.com/learn



CC

C

C

P

F

R&D

M

we finalizethe project









CC

C

C

P

F

R&D

M

I get payed

I pre-buy it

I pre-buy itI pre-buy it

I pre-buy itI produce and

distribute it



open business for open entrepreneur

R&D

creation

productionmarketing

customer care

consumption

financing

Open innovation

Art & Photos

carla zorzo

book open innovation

mass innovation

distributed innovation

cumulative innovation

user innovation

innovation paradigm

closed innovation modelduring