Sunday, July 25, 2010

Three books, open innovation, and Maslow's hammer

On a recent hot, quiet and remote vacation, I read three books and when I had finished them I found myself pondering the implicit (or explicit) connections between the core theme of each book to open innovation. The three books were:
I'm not going to attempt to summarise these very interesting books other than to highlight what I think might be some of the open innovation angle that can be taken from each one (but I am still working on this ..).

Matt Ridley's core message is about the power of the exchange and reproduction of ideas, the trade in goods and services, and innovation as a 'collective phenomenon'. As such the book (to me) seems to push the role of collaboration innovation to the fore and, in fact, raise it to high prominence as an essential component in underpinning our ability to maintain growth across the globe in the face of major social, economic and environmental challenges.

Carlota Perez presents an excellent, structured summary of the patterns that can be observed in technological revolutions. She splits analysis of past revolutions into two broad phases of installation and deployment, and each of these is in turn split into irruption and frenzy, and synergy and maturity. She stresses the difference between financial and production capital in supporting the widespread adoption of the technology. A key message of this book, from an open innovation perspective, is the recognition that technologies are extremely unlikely to be brought to market by firms acting in isolation and that the development of the whole ecosystem - or 'techno-economic paradigm' - is required to support successful diffusion of novel technologies. And this is not a feature only of modern technologies, but something that can be observed in the analysis past technological revolutions such as canals, steel making, railways, automobiles, and many others.

Finally, Brian Arthur's delivers 'an -ology of technology'. He discusses technology in terms of links to natural phenomena, the combining of and building upon existing technologies, and how technologies deepen and develop over time. He also presents an interesting discussion of the links between the evolution of the economy and technologies, and the way in which an economy can be considered as an expression of its technologies. From an open innovation perspective, this book provokes numerous interesting areas for further discussion. Among these, the links between modern technologies, management change and collaboration are interesting. E.g. "[..] the nature of modern technology is bringing a new set of shifts: In the management of businesses, from optimizing production processes to creating new combinations - new products, new functionalities. From rationality to sense-making; from commodity-based companies to skill-based companies; from the purchase of components to the formation of alliances; [..]. Order, closedness, and equilibrium as ways of organizing explanations are giving way to open-endedness, indeterminancy, and the emergence of perpetual novelty" (p210-211).

However, in reading all three of these books and looking for the open innovation links as I have attempted above, I'm not sure whether I have fallen into the trap identified by Abraham Maslow when he stated: "It is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail". So, if anyone else has read these books and has an interest in open innovation, your comments would be welcome.

Sunday, May 2, 2010

Key points from IfM's open innovation workshops

The open innovation workshops organised by the Institute for Manufacturing on 20/21 April attracted delegates representing a range of industry sectors and company sizes, with diverse experiences at implementing (or plans for implementing) open innovation. Ruth Thomson from Cambridge Consultants has kindly written two blogs summarising the key themes discussed at this event, and these can be accessed via the links below:

Tuesday, March 30, 2010

Two open innovation events in Cambridge in April

The Institute for Manufacturing (IfM) is organising two workshops on 20th and 21st April 2010 focused on the challenges and opportunities of implementing Open Innovation (OI) from two perspectives:

  • "Open innovation for small firms: how to set up and manage collaborations with large firms" will look at the challenges for small and start-up companies in forming productive collaborations with large companies.
  • "Implementing open innovation" is focused at large and multinational companies wanting to understand how to develop the skills, processes, culture and motivation for OI.

Both workshops will draw upon research findings at the IfM's Centre for Technology Management (CTM), revealing ways in which companies collaborate and configure themselves to succeed in OI. They will be illustrated with case studies by experienced practitioners from technology-driven companies that have embraced the OI approach. Facilitated mini-workshops will focus on identifying the key challenges faced by participating companies, sharing best practice and learning from research understandings identified by CTM.

The workshops will be an ideal opportunity for companies to build momentum for the next step along the OI journey, whatever their current stage of development. The evening between the two workshops will also provide an excellent opportunity for participants to share experiences with colleagues who share similar challenges and to identify collaborative opportunities between large and small companies.

For more information, see http://www.ifm.eng.cam.ac.uk/service/events/info/openinnovation.html

Wednesday, March 3, 2010

We know open innovation is not new ..

There's an interesting paper recently published comparing open and closed approaches to innovation in the US steel industry in the 1920s. This contrasts with a comment made in the first post on this blog pointing out that open innovation does seem to have some of the characteristics of a recent management fad. So, I'm interested in finding further documented examples of open innovation going back through industrial history. If you know of any, please add a comment. I'll then collate the responses and attempt to produce a historical timeline of open innovation examples.

Thursday, January 28, 2010

Links between cluster development and open innovation

As part of the preparation for a talk at the Japanese Cluster Conference 2010, I came across several interesting websites providing data on policies to support cluster formation, cluster / open innovation activities, and sites with slightly more tenuous - but potentially relevant - content. In case these might be of interest to others, I have grouped links to them below. Also the slides used at the conference can be downloaded from here.

Policies for clusters:
UK Department for Business, Innovation and Skills cluster strategy
French Pôles de Compétitivité
European Commission's view on the importance of 'Powerful Clusters'

Everyone wants to be Silicon Valley
Examples of 'Silicon + {geographic feature}'

Open innovation
IfM report on 'How to implement open innovation'
Examples of idea submission websites: P&G and 3M
Examples of open innovation intermediaries: Innocentive and NineSigma.

Corporate R&D and clusters
Examples of companies locating innovation activities within clusters: Nokia and Microsoft
Examples of companies seeking to develop clusters around their R&D facilities: Unilever@Colworth and Philips@Eindhoven

Examples of cluster strategies
Local = Cambridge; Regional = East of England Enterprise Hubs; Cross-border = Eindhoven-Leuven-Aachen Triangle (ELAT)

Networks within the Cambridge cluster
Cambridge Network
ERBI
University of Cambridge Enterprise Network

Thursday, October 22, 2009

30 second open innovation survey

Open innovation researchers at the University of Cambridge Institute for Manufacturing are investigating how people are most likely to gather intelligence. In particular, they are interested in the perceived relevance of scanning published documents versus talking to people through networks of contacts.
An extremely quick survey (1 question) has been set up on-line to capture your personal preferences. It will take you approximately 30 sec. to complete. You can access this by clicking http://www.surveymonkey.com/s.aspx?sm=x2aPoMfu_2bawfXfVo3FMQZw_3d_3d
The researchers would be very grateful if you could fill this in and if you could ask some of you colleagues and contacts to do the same.

Wednesday, September 30, 2009

New guide highlights ways to introduce open innovation

Cambridge University’s Institute for Manufacturing (IfM) has produced a new guide to show how other companies can follow in their footsteps.

The report, “How to Implement Open Innovation”, is the result of a two-year study of some of the world’s leading firms and can be downloaded from the IfM's website.

The research team looked at more than 30 major companies from a variety of sectors, including energy, aerospace and defence, software and media, electronics and telecommunications.

It is thought that open innovation could be a way of improving a firm’s ability to create and capture value, by improving the rate and quality of innovation.

Rather than relying on internal resources firms share knowledge and technologies with other companies in a bid to create new commercial opportunities

Report co-author Dr Letizia Mortara, of the IfM’s Centre for Technology Management (CTM), described its purpose: “While Open Innovation is a relatively new phenomenon, it has started to gain traction in businesses across a range of sectors. We wanted to try and find out if there was a framework or guide for other firms to implement Open Innovation and to understand what people involved in its adoption did on a day-to-day basis.

“Philips is a good illustration of OI implementation; it created incubation processes to carry out research into ideas which do not immediately fit within existing businesses, but in time could lead to the introduction of new products.

“But Philips is not the only firm to embrace OI, and others have adopted interesting approaches. Our study provides an overview of a range of current practice and illustrates the challenges firms may face when attempting to implement OI.”

Fellow author Dr Tim Minshall, a senior lecturer at CTM, said: “Open Innovation has already shown it can help firms cope with emerging challenges and create new opportunities

“While not a panacea to all business problems, it can be a positive process. We think the report offers an overview of existing approaches to OI and an outline of how to implement it and some of the main obstacles that need to be overcome.”

Among the guidance contained within the report is how companies can build an open innovation culture, how to develop the necessary skills within the business and how to motivate employees.

Dr Minshall added: “While each company will face different challenges and will have different reasons for pursuing open innovation, the report offers a framework which can be tailored to their needs.”

The report was written by Dr Mortara, Dr Minshall, and Johann Napp of the IfM and Imke Slacik now of McKinsey and Co.

Open innovation in Japan: A noticeable change?

For the past 7 years, I have been visiting Japan each year to work with colleagues in Kyoto on various projects relating to the management ...