Innovation and its Evolution
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What is the major difference between "open source" and "open innovation"?

  • Open source software is free, while open innovation projects involve monetary transactions.
  • Open source projects have the source code available to anyone, while open innovation usually involves confidentiality and proprietary information. (correct)
  • Open source and open innovation are essentially the same concept.
  • Open source initiatives are confidential, while open innovation initiatives are open to the public.

    • Give an example of a successful open source project for browsers.

    Firefox

    Which company offers Red Hat Enterprise Linux, an enterprise version of the Linux operating system?

    Red Hat

    Open innovation is strictly against ownership and promotes complete sharing of intellectual property.

    <p>False</p> Signup and view all the answers

    LEGO Ideas is an online platform where LEGO fans can submit their own creations and ideas for new LEGO sets. If a project reaches a certain number of votes, LEGO officially reviews it to consider turning it into a _______ LEGO set.

    <p>commercialized</p> Signup and view all the answers

    What is the goal of the course mentioned in the content?

    <p>To provide concrete examples of how to implement an open innovation process within innovative ecosystems and organizations to create value and develop new products and services.</p> Signup and view all the answers

    What is the primary tool used in Procter & Gamble's 'Connect & Develop' open innovation program?

    <p>Platform</p> Signup and view all the answers

    According to a study by Professors Linus Dahlander and Siobhan O'Mahony, the most common sources of inspiration for new ideas for IBM employees are colleagues inside the company.

    <p>True</p> Signup and view all the answers

    Chesbrough's definition of open innovation emphasizes the use of outgoing and incoming knowledge flows to accelerate both internal innovation and external _____ of that knowledge.

    <p>use</p> Signup and view all the answers

    Match the following historical periods with their associated innovation highlights:

    <p>Prehistory = Stone tools for hunting, cutting, and shaping Renaissance = Advancements in painting, anatomy, engineering Industrial Revolution = Invention of steam engine, mechanization of production 20th Century = Advances in electricity, automobiles, computers</p> Signup and view all the answers

    What does the 'Outside-in' open innovation approach involve?

    <p>The 'Outside-in' open innovation approach involves tapping into the ideas and talents of people outside the company to innovate and meet consumer expectations.</p> Signup and view all the answers

    Explain the concept of 'Inside-out' open innovation.

    <p>The 'Inside-out' open innovation approach is when a company shares its ideas, technologies, or knowledge with external players to allow others to use and enrich them, leading to the development of new technologies or opportunities.</p> Signup and view all the answers

    What is the primary goal of 'Inside-out' open innovation?

    <p>To collaborate with external players to enrich knowledge and ideas.</p> Signup and view all the answers

    What is a key feature of the mixed open innovation approach?

    <p>Combines 'Outside-in' and 'Inside-out' open innovation approaches.</p> Signup and view all the answers

    InnoCentive is a platform where organizations can post challenges related to specific scientific, technical, or business ____. Solvers can submit solutions to these challenges.

    <p>issues</p> Signup and view all the answers

    What is the purpose of comments and discussions on innovation platforms?

    <p>Facilitate the exchange of information and enable participants to work together to develop ideas further.</p> Signup and view all the answers

    What is the first step organizations, companies, or individuals can take on the HeroX platform?

    <p>Submitting challenges</p> Signup and view all the answers

    What is the role of evaluation and moderation on innovation platforms?

    <p>Ensures ideas comply with corporate guidelines</p> Signup and view all the answers

    Which stage involves participants proposing their solutions on the HeroX platform?

    <p>Rewards</p> Signup and view all the answers

    Innovation managers review top-rated ideas to identify the most promising ones.

    <p>True</p> Signup and view all the answers

    Open Innovation primarily involves a cultural issue.

    <p>True</p> Signup and view all the answers

    NineSights connects companies with external problem solvers, startups, and researchers to tackle complex challenges in industries like healthcare, materials, and manufacturing.

    <p>NineSigma</p> Signup and view all the answers

    What is one essential shift in culture for successful Open Innovation implementation?

    <p>Shift from a culture focused on what you've done yourself to a culture of efficiency that recognizes external talent and innovation.</p> Signup and view all the answers

    Match the following platforms with their primary focus areas:

    <p>NineSights = Connects companies with external problem solvers, startups, and researchers Yet2 = Facilitates research, commercialization, and collaboration worldwide HeroX = Specializes in hosting open innovation challenges</p> Signup and view all the answers

    What type of service does Eelway offer?

    <p>Mobile concierge service</p> Signup and view all the answers

    Google's Project 10 to the 100 generated 154,000 ideas in response to the open-ended question 'What would help?'

    <p>True</p> Signup and view all the answers

    What was the difficulty faced by Google in evaluating the 154,000 ideas generated by Project 10 to the 100?

    <p>Rewarding individual contributors</p> Signup and view all the answers

    Google honored its initial promise to invest $10 million, choosing 5 organizations each corresponding to a chosen topic and receiving between $__ million each.

    <p>1 and 3</p> Signup and view all the answers

    Match the following concepts with their definitions:

    <p>API = Enables two computer systems to communicate with each other Open Data = Public data made available for others to use Lead User = A user ahead of others in the market who can contribute to product development</p> Signup and view all the answers

    What is the challenge faced by a manager in charge of monitoring or partnerships when introducing a new technology to an R&D expert colleague?

    <p>The R&amp;D expert colleague is unlikely to admit they don't know about the technology or may feel unimpressed to preserve their expert status.</p> Signup and view all the answers

    Why is it important for a company to implement an Open Innovation strategy?

    <p>To facilitate communication of knowledge gaps</p> Signup and view all the answers

    NASA's approach to crowdsourcing challenges involves asking its internal community multiple questions to maximize participation.

    <p>False</p> Signup and view all the answers

    The Spark Life Contest launched by Sodexo is the first European innovation contest dedicated to quality of ______________.

    <p>life</p> Signup and view all the answers

    What is the purpose of the Netflix Prize competition mentioned in the text?

    <p>To improve the Cinematch algorithm by 10%</p> Signup and view all the answers

    What type of data set did Netflix make available for the algorithms to be developed during the Netflix Prize competition?

    <p>training data set of 100,480,507 ratings between 1 and 5 that 480,189 users had given to 17,770 films</p> Signup and view all the answers

    Netflix pays a progress bonus of $50,000 for the best improvement of at least 1% each year.

    <p>True</p> Signup and view all the answers

    In the final year of the Netflix Prize competition, the winning team's algorithm provided an ___ increase in accuracy.

    <p>8.43%</p> Signup and view all the answers

    What does the 7th axis mentioned in the text focus on?

    <p>Developing partnerships with start-ups</p> Signup and view all the answers

    Match the following services with their descriptions:

    <p>Access to customers for testing products = communication opportunities Access to free expertise = access to free technical resources Networking opportunities with other partners = access to customers Short-term hosting for prototyping = budget for equipment purchase</p> Signup and view all the answers

    According to the content, what percentage of U.S. patent owners generated 99% of revenues in 2009?

    <p>40%</p> Signup and view all the answers

    What is one of the success criteria identified by Ulrich Lichtenthaler for out-licensing?

    <p>Formation of project teams for specific licenses</p> Signup and view all the answers

    What is the purpose of out-licensing in times of crisis, according to the content?

    <p>To enable greater profit to be made from existing company assets.</p> Signup and view all the answers

    Due to the difficult economic situation, more and more companies are systematically looking for new uses for their existing __________.

    <p>patents</p> Signup and view all the answers

    Match the following success criteria for out-licensing:

    <p>Existence of a team or individual responsible for license sales = On average, more contracts are signed Creation of project groups to identify licensing opportunities = More efficient than creating opportunities only when identified Internal sponsorship from company executives = Counter employees' fear of selling off valuable assets</p> Signup and view all the answers

    Study Notes

    Open Innovation

    • Open innovation is an innovation model that involves developing an open and collaborative culture within organizations and mobilizing all stakeholders in their ecosystem to solve major strategic or societal challenges.

    History of Innovation

    • Humanity's first innovations date back to prehistoric times, when our ancestors invented stone tools for hunting, cutting, and shaping objects.
    • In antiquity, many civilizations made significant contributions to innovation, such as the Egyptians, Greeks, and Romans.
    • The Middle Ages saw innovation continue, especially in agriculture, architecture, and craftsmanship.
    • The Renaissance was a time of intellectual and artistic ferment, with minds like Leonardo da Vinci bringing innovation to fields like painting, anatomy, engineering, and aviation.
    • The Industrial Revolution marked a major turning point in the history of innovation, with inventions like the steam engine, mechanization of production, and advances in transportation, textiles, and metallurgy.
    • The 20th century witnessed extraordinary technological advances, including electricity, the automobile, aviation, computers, telecommunications, medicine, space travel, and the Internet.
    • The 21st century continues to be characterized by rapid technological advances, including artificial intelligence, biotechnology, renewable energy, nanotechnology, autonomous vehicles, virtual reality, and the Internet of Things (IoT).

    Success Stories

    • P&G's "Connect & Develop" program is a continuous open innovation program that has led to the development of flagship products like Swiffer and Olay Regeneriste, with external partners.
    • P&G has a very aggressive out-licensing strategy, particularly in terms of brands, licensing unused patents at reasonable prices after five years, and patents for launched products after three years.

    Looking for Innovation

    • A 2016 study by Professors Linus Dahlander and Siobhan O'Mahony found that if innovation managers spend too much time looking for new ideas outside their company, it will be detrimental to their work within the company.
    • The study drew on field research at IBM to determine whether the search for new ideas outside the company led to greater innovation for the company.

    Case Study: GoldCorp

    • In 1999, GoldCorp was in crisis, with costs higher than the market value per ounce of gold.
    • CEO Rob McEwen took a radical decision to apply open innovation principles to solve the problem, publishing critical geological data online and launching the GoldCorp Challenge.
    • The challenge attracted over 1,000 professionals from 50 countries, and the winner was an association of two Australian companies.
    • Thanks to the competition, GoldCorp's price per ounce fell from 360to360 to 360to59 between 1999 and 2001, while the selling price was $307.

    Open Source

    • Open source refers to the openness of software's source code, allowing collaboration among contributors.
    • Successful open source projects like Firefox or Open Office bring together a large number of contributors.
    • Open source companies like Red Hat offer open source software and be successful, with revenue exceeding $1 billion.

    Customization and Co-Creation

    • Customization is not an open innovation modality, but there are bridges between customization and OI practices, particularly co-creation.
    • Threadless.com is an example of co-creation, where anyone can suggest a T-shirt design that Threadless will produce if enough people like it.
    • Lego's evolution from customization to co-creation is a notable example, from Lego Factory to Lego Cuusoo, where users can create objects using software and other users can decide to order the same bricks.

    Crowdsourcing

    • Crowdsourcing is sometimes identified with open innovation, but the two approaches have different goals.

    • Crowdsourcing involves reaching out to a large number of people, usually on the Internet, to find ideas, raise funds, or solve problems.

    • Examples of crowdsourcing platforms include Dell Ideastorm, Kickstarter, Quora, 99designs, eYeka, and OpenIdeo.### Open Innovation Forms and Platforms

    • Open innovation is classified into three types: Outside-in, Inside-out, and Mixed.

    • Outside-in open innovation involves opening up to external sources for ideas, knowledge, and technologies.

      • Companies adopt this approach by collaborating with external entities such as customers, suppliers, universities, startups, and research institutions.
      • Examples of Outside-in open innovation include:
        • Engaging with customers to gather insights, feedback, and ideas for new products or improvements.
        • Partnering with suppliers to lead to mutually beneficial innovations.
        • Collaborating with universities and research institutions to access cutting-edge research, specialized expertise, and novel technologies.
        • Working with startups or entrepreneurs to access disruptive ideas and innovative solutions.
        • Cooperating with competitors on certain projects to achieve mutual benefits.

    • Inside-out open innovation involves sharing ideas, technologies, or knowledge with external players.

      • Companies adopt this approach by making part of their research work public, publishing data, sharing open technologies, or offering licenses.
      • Examples of Inside-out open innovation include:
        • Google's "20% Time" or "Time Off" initiative, which encourages employees to devote 20% of their working time to working on personal projects or creative ideas.
        • Developing internal innovation and exploring new opportunities through in-house project development programs, hackathons, idea competitions, and internal knowledge-sharing platforms.

    • Mixed-type open innovation is a blend of the Outside-in and Inside-out approaches.

      • Companies adopt this approach by combining both the search for and integration of external ideas with the sharing of their own ideas, technologies, or knowledge with other players.
      • Example: ABC Tech, a software development company that fosters an innovative culture within the organization and collaborates with external partners to expand their innovation capabilities.

    Open Innovation Platforms

    • Open innovation platforms are digital tools or online ecosystems that facilitate the process of open innovation.
      • Examples of open innovation platforms include:
        • InnoCentive, a global platform where organizations can post challenges or "seeker problems" related to specific scientific, technical, or business issues.
          • Solutions can be submitted by experts and individuals from various domains.
          • Rewards are offered for successful submissions.
        • IdeaScale, a platform that allows businesses to capture ideas from employees, customers, and partners.
          • Users can submit ideas, comment on existing ones, and vote for their favorites.
          • The platform helps organizations crowdsource innovative ideas and prioritize projects based on community feedback.
        • NineSights, an open innovation community that connects companies with external problem solvers, startups, and researchers to tackle complex challenges and find innovative solutions.
          • Focuses on industries like healthcare, materials, and manufacturing.### Open Innovation Platforms
    • NineSights:
      • Allows community members to access challenges and participate in their resolution
      • Members can propose solutions in response to challenges
      • Solutions are evaluated by NineSigma experts or the organizations that submitted the challenges
      • Best solutions are selected based on relevance, feasibility, and innovative potential
      • Facilitates connections between organizations and innovators to explore collaborations, licenses, or partnerships
    • Yet2:
      • Enables innovators to present technologies, expertise, and offerings to companies looking for innovative solutions
      • Facilitates research, commercialization, and collaboration between companies and innovators worldwide
      • Allows companies to discover new technologies, access licensing or partnership opportunities, and find innovative solutions to specific problems
      • Protects confidentiality of information and facilitates interactions between parties
    • HeroX:
      • Specializes in hosting open innovation challenges
      • Allows organizations to create and manage innovation competitions to crowdsource solutions for specific problems or opportunities
      • Enables participants to propose solutions in response to challenges
      • Solutions are evaluated by challenge initiators and/or designated experts
      • Best solutions are selected based on relevance, originality, feasibility, and potential impact
      • Offers rewards to participants whose solutions are selected

    Other Open Innovation Platforms

    • Kaggle:
      • Focuses on data science and machine learning challenges
      • Hosts competitions where data scientists and researchers can compete to develop the best models for specific datasets and problem statements
    • HYVE:
      • Runs an online innovation community that engages users in co-creation activities, design thinking workshops, and idea generation sessions
      • Fosters open innovation within organizations
    • Innovation Cloud:
      • Offers a platform for idea management, collaborative innovation, and project portfolio management
      • Helps organizations streamline their innovation processes and involve internal and external stakeholders in the innovation journey

    Implementing Open Innovation

    8 Axis Model

    • Culture and Know-how:
      • Open innovation requires a cultural change within an organization
      • Shift from a "scholastic" culture to a "culture of efficiency"
      • Recognize talent in finding innovative elements, regardless of whether they come from within or outside the organization
    • Cultivation Essentials:
      • Top management must embrace IO projects and make necessary resources available
      • Create incentives for collaboration and recognize those who have played a key role in acquiring IP
      • Set up evaluation systems to demonstrate success or failure of an initiative
      • Develop a tolerance for error and understand that a small failure is less serious than a strategic error
      • Share knowledge and know-how internally
      • Structured communication is key to successful collaboration

    Implementing an Open Innovation Strategy

    • Transforming corporate culture to share "what you know" and "what you don't know"
    • Radical cultural change required to get internal experts to admit and start sharing "what they don't know"
    • Need to transform "in-house experts" into "collaboration champions"

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    Explore the concept of open innovation and how it fosters collaboration within organizations. Learn about the history of innovations, from prehistoric times to ancient civilizations.

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