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© 2014 IBM Corporation The Dilemmas of Innovation Management Dr. Matthias Kaiserswerth Vice President, Europe IBM Research
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The Dilemmas of Innovation Management

Oct 30, 2014

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Presentation 3 June 2014 at the Science to Business Marketing.
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Page 1: The Dilemmas of Innovation Management

© 2014 IBM Corporation

The Dilemmas of Innovation ManagementDr. Matthias Kaiserswerth Vice President, Europe IBM Research

Page 2: The Dilemmas of Innovation Management

© 2014 IBM Corporation© 2014 International Business Machines Corporation 2© 2014 International Business Machines Corporation

Brazil

T.J Watson

AlmadenAustin

Ireland

Zurich

Haifa

Africa

India China Tokyo

Australia

The World is Our Lab

IBM invested $6.2B on R&D

in 2013

More than 3,000 scientists and

engineers

World's largest information technology research organization

Page 3: The Dilemmas of Innovation Management

© 2014 IBM Corporation

IBM Research - Zurich: Big Data Analytics to Atoms

3

!

- 90 collaborative projects with universities, industrial partners and governments

- Ultramodern Nanotech Center opened in 2011

!

- Nobel Prizes (1986/1987)

Big Data Analytics

Atoms

Cognitive Computing & Computational Sciences

Industry and Cloud Solutions

Cloud & Computing Infrastructure

Science & Technology

Page 4: The Dilemmas of Innovation Management

© 2014 IBM Corporation

Evolution of IBM Research

4

Isolated Research

’50s — ’90s ’90s — ’00s ’00s …

In-world Research, Smarter Planet Research

Hardware+ Software & Services + Smarter Planet

Propriety Innovation Corporate funding for business profit

Select Partnerships Joint programs with strategic allies

Client Partners Partner with key customers

Collaborative Innovation Knowledge-based economy

Page 5: The Dilemmas of Innovation Management

© 2014 IBM Corporation5

Milestones of our Radical Collaboration with ETH Zurich19

56

1977

2001

2011

2009

Page 6: The Dilemmas of Innovation Management

© 2014 IBM Corporation

What is Innovation?

“Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value.” !

National Innovation Initiative

“Innovation has been and always will be all about generating new real value. It has more to do with putting deep insights into problems and challenges—be they business, government, education, or societal—together in a unique and facile manner with your knowledge and technology to unlock hidden value.” !

Nick Donofrio, IBM Fellow Emeritus

Page 7: The Dilemmas of Innovation Management

© 2014 IBM Corporation

TechnologyTrends

IndustryTrends

Social Trends

Idea

Prototype

Patents AcademicPapers

Pilot

Deployment /Productization

Experience Papers

IBM THINK Labs

Research Solution Centers

Trend Scan3-10 years out

Research

Acquisitions

Transfer

Licensing

Collaboration

How an Idea Becomes an Innovation at IBM

FOAK

Page 8: The Dilemmas of Innovation Management

© 2014 IBM Corporation

SuperMUC: How an Idea Becomes an Innovation at IBM

Idea Prototype

PilotDeployment /Productization

Collaboration

ResearchOct 2006

March 2008 - CeBIT

June 2009 - ETH Zurich

June 2012 - LRZ - 80M EURO Supercomputer

FOAK

Page 9: The Dilemmas of Innovation Management

© 2014 IBM Corporation9

Strategic Decision MakersStrategic Decision Makers

Strategic Decision MakersGrass Roots Research Community

Dilemma #1: Top Down vs Bottom Up

Page 10: The Dilemmas of Innovation Management

© 2014 IBM Corporation10

vs.

Dilemma #2: Long-term research vs. short-term success

Page 11: The Dilemmas of Innovation Management

© 2014 IBM Corporation

Num

ber o

f Pat

ents

0

1'000

2'000

3'000

4'000

5'000

6'000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Dilemma #3: Open Innovation vs. Developing Intellectual Property

6,809

Page 12: The Dilemmas of Innovation Management

© 2014 IBM Corporation12

Summary

!

! Collaboration and Open Innovation are essential ! Treasure Wild Ducks ! Success relies on how well you can balance the

three innovation dilemmas - Bottom Up vs Top Down - Long Term Research vs Quarterly Profits - Open Innovation vs Generating IP