«Open innovation typology»

Jeffrey Phillips (VP Marketing at OVO). Open innovation typology. This framework was introduced in the book Open Innovation and Crowdsourcing.

«Key Points

»_ Open Innovation is gaining popularity in the innovation space.

»_ However, Open Innovation is a generic term for a number of tools and techniques. The only common thread is working with customers or partners to gain ideas.

»_ It’s important to understand the differences between the different techniques.

»Open Innovation

»Open Innovation is a term coined by Henry Chesbrough to refer to a number of methods for gaining ideas from customers and business partners.

»Open Innovation is usually represented by this funnel graphic:

»In it’s simplest form, open innovation is a suggestion box that your customers can use to submit ideas. More sophisticated versions rely on vetted partners. Other open innovation programs use contests to solve problems – like the X-Prize.

»Our Framework

»OVO has a framework to help our clients think about “open” innovation using two characteristics:

»Who can participate?

»How are they directed to submit ideas?

»Let’s look at this in a framework. (The typology we’ll review was included in a chapter in the recently published book Open Innovation and Crowdsourcing.)

»Directed, Invitational

»Example: P&G Connect + Develop. Vetted partnerships that form “proprietary networks”. Only invited firms can participate, terms and conditions are established previously. Excellent for exchanging ideas with a small team of trusted partners.

»Directed, Participative

»Example: Gulf Oil Spill idea contest. A contest to submit ideas to solve a specificproblem or opportunity. Anyone can submit ideas to solve a stated problema. Good for broad participation and seeking novel or unusual solutions.

»Suggestive, Invitational

»Example: IBM’s Idea Jams. People with specific insights or knowledge are invited to submit ideas that they believe are important. Jams and other campaigns allow invited participants to submit ideas about anything they believe is important. Good as a “birds of a feather” idea generation session.

»Suggestive, Participative

»Example: Dell’s IdeaStorm, StarbucksMyStarbucks Idea. Anyone can submit an idea about any topic. Freely accessible to anyone on the planet with access to the internet. Any possible idea can be submitted. Excellent as a listening post to spot customer ideas and trends. Number of ideas can be overwhelming.

»Other “Open Innovation” types

»There are other types of open innovation that fit within the framework: Using Innocentive or Nine Sigma to present a problem to the community at large. Technology transfer –“spin in” or “spin out”.

»Key Takeaways

»Open innovation is a generic term that aggregates a number of tools and techniques that: Require vastly different investments. Engage different customer segments. Result in very different types and quantities of ideas. Decide the goal, then choose the technique.»

Innovation Typologies
Thematic Readings

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