Innovation Management-Open Innovation management Culture - PowerPoint PPT Presentation

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Innovation Management-Open Innovation management Culture

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Corporate culture can be defined as the values, norms, attitudes and behavior patterns, that are shared within an organization [Herzog, 2011]. Corporate culture can be seen as the personality of a company that influences people's behavior within the organization, regardless of size and field of action – PowerPoint PPT presentation

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Title: Innovation Management-Open Innovation management Culture


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MOOI Theme 5How to create a corporate culture
where OI can thrive
Prof. Henry Chesbrough, University of
California, Berkeley ESADE Prof. Wim
Vanhaverbeke, Hasselt University, ESADE
National University of Singapore Dr. Nadine
Roijakkers, Hasselt University April 1, 2014
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Rome, , wasn't built in a day. Likewise, open
innovation is not something you can achieve
overnight. It is not a single event, but a
process and a culture that must grow over
time. Rome did not build itself, either, and
similarly, open innovation won't just happen. It
takes work, commitment and patience to cultivate
an effective program. It is a major initiative
requiring focus, investment and time. Kevin
Stark, director, technology solutions,
NineSigma Industry Week, October 12 2011
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What is an open innovation corporate culture? Do
we have the same understanding ?
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Open innovation culture
  • What is corporate culture?
  • Corporate culture can be defined as the values,
    norms, attitudes and behavior patterns, that are
    shared within an organization Herzog, 2011.
    Corporate culture can be seen as the personality
    of a company that influences people's behavior
    within the organization, regardless of size and
    field of action
  • OI and corporate culture?
  • Herzog (2011) cultural issues sparked by open
    innovation fit into three layers of firms
    culture.
  • Practices these are the easiest to change and
    in the open innovation context include issues
    such as management support, freedom to express
    doubts, organizational risk-taking, and
    technological opportunism.
  • Organization's norms not-invented-here and the
    not-sold-here syndromes (Chesbrough 2003,
    2006). Harder to change.
  • Shared basic values in the organization which are
    the most difficult to change.

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Open innovation culture
  • Implications when moving from closed to open
    innovation?
  • Culture for closed innovation is not appropriate
    for OI
  • Starting OI entails a cultural shift, whereby
    working with other companies becomes accepted and
    endorsed throughout the organisation.
  • Resistance will lead to (cultural) barriers
  • How to overcome these barriers? What are the
    mechanisms and management tools to be successful?
  • Cultural changes usually take time adapting to
    an OI culture may be one of the most difficult
    hurdles to take
  • An OI culture implies that OI is embedded in
    values and norms, practices and behaviors OI
    culture is emerging at mature levels of OI
    implementation.
  • Implementation of OI culture is (thus) a slow,
    stepwise process how do corporate crises help
    in speeding up this process?

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Interactive poll 1
  • What are the three most important items in
    establishing an OI culture in a company
  • Commitment of and communication by top-management
  • Using informal networks to communicate the change
    to OI
  • Align individual rewards with OI requirements
  • Train managers and employees
  • Go for quick successes with OI
  • Focus on tearing down cultural barriers against
    OI
  • Provide processes and tools to implement OI
  • How the organization responds to failure

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Culture as an enabler and an obstacle when
implementing Open Innovation
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Benefits and Enablers of having Open Innovation
Enablers
SOURCE Mortara, L, Napp, J., Sladk, I. And
Minshall, T (2009), How to implement opn
innovation, IfM, University of Cambridge.
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Barriers to Open Innovation
Barriers
SOURCE Mortara, L, Napp, J., Sladk, I. And
Minshall, T (2009), How to implement opn
innovation, IfM, University of Cambridge.
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In the beginning. the really good IP was being
held back by the PG businesses. This is when
the 3/5 program was created. 3 years after the
product is shipping into the market, or 5 years
after the patent is issued, the patent would be
made available to others. Nothing was
untouchable. Martha Depenbrock, PG, quoted in
Chesbrough, Open Business Models 2006
The move from Closed Innovation to Open
Innovation needs to be accompanied by a change in
the underlying innovation culture. A different
way of thinking and a different way of dealing
with ideas and technologies is required to fully
exploit the potential of Open Innovation  - Gali,
2011, p. 206
the biggest challenge was changing the culture,
shifting the mindset from only invented in PG
to proudly found elsewhere. Chris Thoen
(2009), PG
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SOURCE Mortara, L, Napp, J., Sladk, I. And
Minshall, T (2009), How to implement opn
innovation, IfM, University of Cambridge.
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Culture as an obstacle when implementing OI
SOURCE Mortara, L, Napp, J., Sladk, I. And
Minshall, T (2009), How to implement opn
innovation, IfM, University of Cambridge.
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Culture as an obstacle when implementing OI
SOURCE Mortara, L, Napp, J., Sladk, I. And
Minshall, T (2009), How to implement opn
innovation, IfM, University of Cambridge.
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Culture as an obstacle when implementing OI
SOURCE Mortara, L, Napp, J., Sladk, I. And
Minshall, T (2009), How to implement opn
innovation, IfM, University of Cambridge.
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Culture as an obstacle when implementing OI
SOURCE Mortara, L, Napp, J., Sladk, I. And
Minshall, T (2009), How to implement opn
innovation, IfM, University of Cambridge.
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Interactive poll 2
  • What are the two most important barriers in
    establishing an OI culture in a company
  • The know-it-all, control-freak managers
  • Rigid top-down approach
  • Lack of incentives to innovate
  • Traditional channels of communication
  • When failure is a sign of weakness

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NIH and NSH
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it is about losing what you are and have now
for building for the future
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Overcoming NIH / NSH syndromesChesbrough
(2003,2006)
NIH-syndrome
  • - Threat of being fired
  • - Loss of capabilities
  • Best practices are established by the best
    companies. How will we become industry leaders if
    we adopt others best practices?

WHAT CAN WE DO ABOUT IT?
  • Rotate and cross-pollinate team members on a
    project basis
  • Engage outsiders to ensure fresh perspectives and
    new thinking
  • Encourage team members to regularly interact with
    the wider community (e.g., conferences).
  • Formalize regular competitor reviews and
    environmental scanning to stay abreast of them
  • Consider open innovation models, competitions
    (e.g., Netflix Prize), and outside collaborations
    to institutionalize a meritocratic approach to
    new ideas.
  • Teach team members about the causes, costs, and
    remedies for NIH

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Overcoming NIH / NSH syndromesChesbrough
(2003,2006)
  • - Unwillingness to undertake extra-organizational
    knowledge transactions
  • Loss of IP
  • Risk that licensee / spin-off may become very
    successful

NSH-syndrome (resistance against external
commercialization of technology)
WHAT CAN WE DO ABOUT IT?
  • It is actually a way to boost morale among
    RD-employees (us through licensing or spin-off)
  • Communicate positive experiences with external
    monetization of technologies
  • Establishing an appropriate incentive system to
    fight the NSH syndrome.  
  • Use it or loose it policy technologies are
    shelved because business units may insist on
    vetoing any external use of the technology.
  • Better to license than to face competition
    without licensing income

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10 steps that companies should follow to create
and cultivate a successful open-innovation
programSource K. Stark (2011)
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it is about losing what you are and have now
for building for the future
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How to create an appropriate culture for OI
1
CREATE A LIST OF STRATEGIC AND BUSINESS NEEDS
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How to create an appropriate culture for OI
2
DEFINE THE COMPANYS CORE COMPETENCIES
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How to create an appropriate culture for OI
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INITIATE SCOUTING (new partners technologies)
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How to create an appropriate culture for OI
4
DEVELOP AN IP STRATEGY
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How to create an appropriate culture for OI
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BROADEN OUTREACH TO ADDITIONAL STAKEHOLDERS such
as customers and employees
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How to create an appropriate culture for OI
6
LET EVERYONE KNOW THAT THE COMPANY IS OPEN TO
INNOVATION The role of OI portals
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How to create an appropriate culture for OI
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TRANFORM EXISTING RELATIONS
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How to create an appropriate culture for OI
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BUILD A KNOWLEDGE BASE MEASURE PROGRESS
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How to create an appropriate culture for OI
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COLLABORATE WITH PEER ORGANIZATIONS
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How to create an appropriate culture for OI
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CREATE ACCOUNTABILITY
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Interactive poll 3
  • What are the three most important of the 10 steps
    that companies should follow to create and
    cultivate a successful open-innovation program?
  • Create a need list
  • Define the companys core competencies
  • Initiating scouting
  • Develop an IP strategy
  • Broaden outreach to additional stakeholders
  • Let everyone know that the company is "open" to
    innovation.
  • Transform existing relationships into strategic
    relations
  • Build a knowledge base
  • Collaborate with peer organizations
  • Create accountability

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QA
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References (1/2)
  • Chesbrough, H. (2003). Open innovation The new
    imperative for creating and profiting from
    technology, Harvard Business School Press,
    Harvard Boston.
  • Chesbrough, H. (2006). Open innovation Business
    Models How to thrive in the new innovation
    landscape, Harvard Business School Press, Harvard
    Boston.
  • Coppolino, A. (n.d.). Open innovation and
    creativity conceptual framework and research
    propositions. Unpublished manuscript, University
    of Messina.
  • Grimaldi, M. (2012). Assessing and managing
    intellectual capital to support open innovation
    paradigm. World Academy of Science, Engineering
    and Technology
  • Herzog, P. (2011). Open and closed innovation
    Different cultures for different strategies, 2nd
    edition, Gabler Verlag, Germany


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References (2/2)
  • Ihl, C., Piller, F., Wagner, P. (2012).
    Organizing for open innovation - aligning
    internal structure and external knowledge
    sourcing. Informally published manuscript, RWTH
    Aachen University.
  • Mortara, L, Napp, J., Sladk, I. And Minshall, T
    (2009), How to implement opn innovation, IfM,
    University of Cambridge.
  • Mortara, L., Minshall, T, 2011. How do large
    multinational companies implement open
    innovation? Technovation, 31 586-597.
  • Piller, F. (2010). Open innovation readiness.
    TIM-Group at RWTH Aachen University,


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We acknowledge contributions of ESADE MSc
students Silvia García, José Miarnau, Marc
Rovira, Nahikari Zuasti, Alandra Stadler, Sanna
Gräno, Johannes Papp, Maximilian Almayer-Beck
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