20081126 opinno 22@_breakfast_v1_pml

[email protected] · www.opinno.com

Internationalization strategies in the current economic scenario.

Open Innovation alternatives for technology intensive companies

Pedro Moneo, CEO

Barcelona, November 26th, 2008

Spain Calle Plátano 14, 28029 – Madrid

USA 1835 Vallejo St. #105 – San Francisco, CA 94123

[email protected]

www.opinno.com


Pedro Moneo is currently:

• Founder and CEO of Opinno, Open Innovation

• CEO of the technology magazine Technology Review from MIT in Spain and Latin America

• Strategic Advisor to Fedit, Spanish Network of Research and Technology Centers

In the past, Pedro has been:

• Corporate Strategy Director at Fedit

• Strategy and corporate finance consultant at Accenture

• Researcher at Argonne National Laboratory in Illinois, USA

• M.Sc. graduate in Nuclear Engineering from the French Atomic Energy Commission

• M.Sc. & Bachelors graduate in Mechanical & Energy Engineering from the

Polytechnic University of Madrid

The speakerPedro Moneo, CEO


1. Context

2. Opinno

3. Some advice

4. Opinno Corporate Presentation

5. Appendix 1. Analysis of the current economic situation

6. Appendix 2. Open Innovation additional information

Agenda


The profile of global economy is changing. The supremacy of the triad US - Europe - Japanis diluting. Emerging markets are creating a much more diverse landscape of powerfuleconomies

• Today, the developing world represents 49% of the world GDP, whereas in 1990 it used to beonly 39%

This new landscape, characterized by multiple centers of prosperity and economic poweris commonly referred as multi-polar world

ContextNew world economic landscape


The role of countries and regions is no longer as important as the role of innovation nodes

Challenges for companies

Which poles do you need to be at?

How will you land and grow in those poles?

How will you take advantage of the opportunities arising from that specific pole?

How can you manage a multi-polar company? What can I do from home, what shouldI do outside?

Challenges for governments

You need to be the best in class in something. And the class is the world

You need to specialize, taking into account your current situation and market trends

You need to become a magnet, attract and breed the top performers

You need to gain visibility and to interact with the most important poles

ContextThe poles of the multi-polar world


Internationalization of business activities has become a much more complex. Exporting isnot enough anymore

Today, internationalization is a global management attitude, and a two way road forsourcing and exchange of:

1. Talent and knowledge

2. Competitive, market and customer intelligence

3. Resources

4. Capital (public and private, from investors, VCs, banks, consumers)

5. New consumers

6. Geo-political advantages

ContextThe new meaning of internationalization


2008 is the beginning of a new era. A time to learn from the past, and to quickly readaptto get over the dangerous threats and take advantage of enormous market opportunities

ContextHard times and great opportunities ahead

1973 1987 2001 2008


The progress, sophistication and diversification of technology that happened in the 90’shas spread to the world of finance

1. Low interest rates

2. Growth in securitizations

3. Leverage on those products

Three major problems have arisen:

1. Equity value not asset driven. Risk ratings are not sophisticated enough

2. Very high growth expectations. Appearance of intermediaries, inefficiencies

3. The flexibility of the financial market has pushed the consumer market, madeprices go higher and deteriorated savings rates

The current economic context will push us to GET REAL OR GO HOME

ContextGlobalization spreads to finance


The current scenario, will impose a series of new realities:

• $15m raise @ $100m post valuation is gone

• Series a will move towards series b. Series b/c will be smaller raises

• Customer uptake will be slower

• Cuts are a must

• Need to become cash flow positive. Business plans need to be credible and showprofit

Also, this situation will introduce a series of increased challenges:

• M&As will decrease

• Prices will decrease. Valuations will be lower

• Acquiring entities will favor profitable companies

• IPOs will continue to decrease and will take longer

ContextFinancial realities and challenges


Technological progress has produced important changes in the economic model. Mostdeveloped countries, and now many emerging economies traditionally living in aproductivity based economy have already or will need to shift to a knowledge basedeconomic model

ContextA New Knowledge Based Economy

Nat. Resources based economy Productivity based economy Knowledge based economy

1.Quantity, quality and accessibility to natural resources (NR)

2. Low value added transformation of NR

3.High profitability, low operational costs

4. Limited exploitation time

5.Difficulty to train high qualified personnel and to adapt professionals to emerging sectors

1. Production costs – cost based product differentiation

2. Repeatability, mass production, long series, production capacity

3. Low man-hour costs

4. Subject to aggressive and unsustainable global competition

5. Automation increases productivity but produces unemployment

1. Innovation based product differentiation

2.High risk and high value added product

3.Human resource and Intellectual capital as key competitive assets.

4. International intelligence as a key tool to identify opportunities, sources of HR, to define strategies to attract, fix and combine intellectual capacities

5. Constant pressure on R&D intensity.

6. Strong investments on high technology infrastructures

7.Multilocalization


Open Innovation is quickly growing as the most suitable strategy to take advantage ofthe new opportunities and overcome market threats

1. Talent and therefore ideas flow from one company to another in shorter times

2. Market cycles are shorter. Technologies become obsolete sooner

3. Knowledge intensity and therefore R&D intensity are increasingly important

4. Technical difficulties are too big to be faced all at the same time by a singlecompany

5. Lower barriers to entry make competition very aggressive

ContextOpen Innovation as a must


Open Innovation means that valuable ideas can come from inside or outside thecompany (industry) and can go to market from inside or outside the company (industry)as well

ContextOpen Innovation

Our current market

Our new market

Other firm´s market

External technology insourcing

Internal technology base

External technology base Henry Chesbrough, 2004

Internal/external venture handling

Licence, spin out, divest


The challenge is to PLAY GLOBAL, PLAY REAL, PLAY OPEN and PLAY IN MULTIPLEDIMENSIONS

ContextThe Challenge

1. Talent and knowledge

2. Competitive, market and customerintelligence

3. Resources

4. Capital (public and private, frominvestors, VCs, banks, consumers)

5. New consumers

6. Geo-political advantages

42

31


1. Context

2. Opinno

3. Some advice




Agenda


Opinno is an open innovation network. We help technology intensive companies adoptan open innovation strategy and we help entrepreneurs bring their ideas to the market,mainly by bringing high tech startups from the lab to series A venture capital funding.

Opinno has 5 business lines:

1. Corporate Innovation Strategy

2. Business Acceleration

3. Technology Review

4. Opinno Business Plan Competition

5. Entrepreneurs and Investors Club

OpinnoWho are we


Opinno is connected to the main innovation poles through a two way road

We have physical presence in San Francisco, Madrid and Buenos Aires

Through our alliance with MIT Technology Review, we have collaborating antennae inBoston, Munich, Paris, Rome, Bangalore and Shanghai

OpinnoHow we play global


In times of crisis, it makes sense to try and get extra revenues from your IP, bycommercializing it in different ways, and also to reduce costs and time-to-market

Opinno plays real by sharing risk with entrepreneurs. We are not consultants. We areco-entrepreneurs

OpinnoHow we play real

Opinno

Investor, VC,

Angel Netw.

IP house,

consultant,

entrepreneur

technology

intensive

company

Business

acceleration

Intelligence


OpinnoHow we play open

We play open by:

1. Working with clients specialized in different sectors and technologies

2. Sketching opportunities to maximize ROI on IP

3. Exchanging market insight and information with other Technology Review poles

4. Performing hands-on validation results, by interacting directly with potentialclients and investors

5. A business plan competition that links us to many R&D Centers in Spain and tothe top 50 business plan competitions in the world

6. An open entrepreneurs and investors club that holds informal meetings,presentations and other social activities

7. An open and social platform for our entrepreneurs, and open tools like blogs,mailing lists, document repositories and chatting applications


ContextHow we play multidimensional

We play multidimensional by:

1. Direct access to talent from our business plan competition and its social platform

2. Direct contact with all agents in the value chain throughwww.technologyreview.com , www.younodle.com and www.opinno.com

3. Market insight and intelligence through our local offices and contact points

http://www.technologyreview.com/





http://www.younodle.com/





http://www.opinno.com/






1. Context

2. Opinno

3. Some advice




Agenda


The economic cycle shift has been dramatic. Changes in cash burn rate intensivecompanies have to be agile in applying cost cuts or risk entering death spiral

Death spiral: Slow demand creates less revenue. Less revenue imposes need for cost reduction orinnovation. Both take time to reflect on price, which causes demand to slow more, putting company at risk

Strategic advice for technology companies Readapt or die


Reflect the market growth assumptions in your strategic planning by managing whatyou can control:

Impact on financial planning:

Spending

Growth assumptions

Earnings assumptions

Focus on quality

Lower risk

Reduce debt

Strategic advice for technology companiesManage what you can control

Impact on Operations Strategy:

Engineering: decrease headcount for next version?

Product: what features are absolutely essential?

Marketing: measuring & cutting what’s not working?

Sales & bus dev: getting return on expense increase?

Pipeline: real probabilities of closing deals?

Finance & cash burn: where can payments be deferred?

G&A: what departments are essential?


Technology intensive companies should OPEN UP and try to make their IP a revenuesource rather than a cost center. This will provide them with higher and more stablefinancing and also a better business model to seek and deploy new technologies

Strategic advice for technology companiesOpen Innovation in the current economic scenario

1. Identify New Growth Opportunities

2. Define & Implement New InnovationStrategies

3. Generate & Deliver Better Ideas

4. Renew Organizational Capabilities


A Business model approach can lead to interesting strategies in the current situation:

1. Recycle knowledge and products with more creative business models

2. Adapt the business model to a “crisis situation”. Spain has been selling hightech in this low profile for a long time!

3. Consulting is dead. Focus on delivering tangible and measurable results

4. Include the Open Innovation pros and cons in your business model and b. plan

5. Reach out for the new customers globalization is bringing

6. Rethink your commercial strategy. We no longer sell products, we sellexperiences. We no longer sell to clients, we sell to couples:

Client + Situation = Experience

Strategic advice for technology companiesFocus on business model


Companies should draw a strategy to optimize the strategic use of R&D&I outputs. Allchannels of technology transfer make sense and can be combined appropriately

1. Communicate

2. Teach and train

3. Perform R&D

4. Patent and license

5. Create and manage Joint Ventures

6. Create and manage spin-offs

You don’t need to do everything yourself, especially if you are a newcomer!

Strategic advice for technology companiesAdopt a complete technology transfer strategy

Vertical integration in

Technology Transfer

produces higher

returns but rapidly

increases complexity


Performing ROI calculations can help companies improve all steps in the R&D andtechnology transfer value chains:

1. To talk to clients -> make R&D&I tangible. Talk in terms of profitability and risk

2. Talk to investors (public or private) -> defend your budget and complementyour business plan. Make a solid budget proposal to the company’s Corporatecenter

3. Focus your R&D on customer needs and on market impact -> improve themarket orientation and market insight capabilities of your R&D team

4. To measure your results -> strategic planning. Close the innovation cycle

5. Valuate your IP. Put a market price to your R&D work

Strategic advice for technology companiesPerform ROI calculations


When launching a spin-off, companies should take into account that investors will seektangible investment opportunities. VC markets will tighten. This means less players,more difficulty to get funded, less intermediates and tangible investments

Strategic advice for technology companiesPromises versus reality


This is a summary of best practices that companies in Spain can apply to themselves

1. Build a talent driven organization

2. Collaborate among technology companies and also with external agents

3. Intelligence: Develop intelligence. Perform situation analysis and ROI calculations

4. Management: Adapt quickly, reflect market imperatives in planning. Create alliances.Concentrate on high value added segments of the value chain

5. Finance: Use a zero-based budgeting approach. Spend every dollar as if it were yourlast. Make cuts. Review salaries. Bolster balance sheets . Become cash flow positiveas soon as possible . Lower risk. Reduce debt.

6. Market approach: Establish solid revenue model. Study your client and its ability topay.

7. Technology Transfer: Optimize Open Innovation channels for tech. transfer inwardsand outwards. Start with a solid business plan, even before R&D occurs.

8. Sales: Employ a heavily commissioned sales structure.

GET REAL OR GO HOME!!

Strategic advice for technology companies Summary of best practices


1. Context

2. Opinno

3. Some advice




Agenda


Opinno is an open innovation network. We help technology intensive companies adoptan open innovation strategy and we help entrepreneurs bring their ideas to the market,mainly by bringing high tech startups from the lab to series A venture capital funding.

Opinno has 5 business lines:

1. Corporate Innovation Strategy

2. Business Acceleration

3. Technology Review

4. Opinno Business Plan Competition

5. Entrepreneurs and Investors Club

OpinnoWho are we


Opinno is an innovation booster and a high-tech business accelerator. We work withtechnologies from the labs and optimize time-to-market and success ratio.

• Opinno interacts with their customers as an outsourced department of open innovation. Weestablish long-term relationships to allow for business oriented planning of R&D. This implies:

• Variable vs. fixed cost structure & immediate results: As a subcontractor, collaboration can start, stop andresize anytime. No learning period, Opinno delivers results from day 1.

• Broad sector and technology insight: Multiple applications for one technology. Competitor view.

• Our work with corporate clients is structured in three phases:

1. Protected by a confidentiality contract, Opinno and the client build a catalog of the client’s intellectualcapital (IC) (R&D projects, patents, spin-offs, joint ventures, etc).

2. Opinno and the client then map a strategy for the monetization of the IC, ranging from the patenting andlicensing strategy to inorganic venture capital growth and internationalization.

3. For the top 20% projects, Opinno launches a one-on-one hands-on acceleration, meaning that everyproject is managed from the door of the lab till it gets VC funding, gets licensed or sold.

OpinnoCorporate Innovation Strategy


OpinnoBusiness Acceleration

Business Acceleration is the core business of Opinno. This service is applicable tostartups that have received seed funding (300k€ or more) and that are seeking strongventure capital funding and multinational disruptive growth. Acceleration occurs in foursteps:1. Project validation and project back up: Opinno will work closely with the entrepreneurs to examine and

improve their business model and business plan, adapting them to the US VC culture. We will also prepareproposals for back up public funds from ICEX, Neotec and Enisa or others if applicable (local governmentgrants, some angel funding if needed). We will create support materials, as a video pitch, corporate web siteor corporate image if necessary (logos, etc)

2. Project landing: Opinno will incorporate the company in the US, open virtual headquarters, and open bankaccounts in the US. If necessary, we will start the paperwork for US investor visa. We will then concentrateon protecting IP with our allied attorneys, specialist in that particular technology. Simultaneously, we willperform a “hands on validation”, meaning that we will validate the technology, business model and marketwith local potential clients, venture capital firms and entrepreneurs. Last, Opinno will interview a series ofprofessionals to provide around 10 candidates for the position of EIR, or Entrepreneur in Residence. An EIRis a professional that has wide experience in that technology area and that, as an entrepreneur, hasparticipated in the launch of similar ventures in the recent past. This person is normally familiar withpotential VCs, clients, partners, will become the CEO of the company and will bring along other importantteam members in the future.


Once completed the first two steps, the company is officially operating and activelylooking for funding, clients, partners and team members:

Phase 2 ends with a one week visit of the original team to Silicon Valley. This week will be an importantmilestone where the team will interview and select the final EIR candidate, and visit several venture capital firmsand potential clients.

3. Project launch: The incorporation of the EIR will represent the official US project launch. The EIR will be the“eyes and ears” of the local team in the US and will work closely with them to create and improve the“business pitch” of the company to VCs and clients. EIR will work for a period of 4-7 months average to getthe company funded and will then become its formal CEO.

4. Project funding and growth: The CEO will lead the company from now on and Opinno will cease its services(and service fees) on the date the funding occurs. Opinno’s compensation for services includes an upside inthe companies equity, Opinno will continue close to its clients and will provide assessment on themanagement of the company free of charge and at its own interest.

OpinnoBusiness Acceleration


Technology Review and Technologyreview.com are published by Technology ReviewInc., an independent media company owned by the Massachusetts Institute ofTechnology (MIT). The oldest technology magazine in the world (est. 1899), TechnologyReview aims to promote the understanding of emerging technologies and to analyzetheir commercial, social, and political impacts.

Our insight into innovation assists technology and business leaders -- CXOs, entrepreneurs,researchers, venture capitalists, and financiers -- as they drive the global economy. Withinternational editions in Spain, China, Italy, and Germany, Technology Review reaches morethan two million industry and R&D leaders around the world through its print magazine,website, newsletters, and live events.

Opinno is the partner of MIT Technology Review en Spain and Latin America.

OpinnoTechnology Review


OpinnoTechnology Review


Opinno holds an annual business plan competition. Our competition is fueled byprojects from universities, public and private research institutions, companies andindependent entrepreneurs and has a national coverage.

• The competition consists of two phases and has a prize of €100,000 for the winner, plus 50k€and 25k€ prizes for those who finish second and third.

• Projects that make it to the final round are automatically qualified for participation in theworld’s top 50 Business Plan Competitions, out of which Opinno BPC is the onlyrepresentative from Spain. This is done through Opinno’s alliance with Younoodle (SanFrancisco B. Plan management social network)

• Our B. Plan competition features an outstanding team of judges and tutors, strong allianceswith the best schools and labs in the country and a methodology that includes videopitching, business model building and a cutting edge technology to manage the wholecompetition

OpinnoBusiness Plan Competition


OpinnoEntrepreneurs and Investors Club

Opinno also runs an entrepreneurs and investors club. This initiative allows us to createand breed a community of outstanding people that will be a source of interesting ideasand business projects. We divide our activities in the group in two categories:

Social activities:

• Technology Wednesdays: Opinno regularly organizes talks and activities with outstandingcharacters that happen to visit us. We spread the word of our activities through our socialcommunity, our website and through our facebook group.

• Entrepreneurial Fellows: Opinno encourages experienced entrepreneurs to look for young talentand provide their financial support and expertise under a philanthropic perspective. We have asocial network of young and experienced entrepreneurs that we help to match.

Business activities:

• Opinno Investment Club: Ideas are presented to a panel of private investors, who pay a monthlyfee and commit to a code of conduct. The presentation of ideas is done in regular meetings wherethe Opinno team presents the latest opportunities and also through entrepreneur pitches thathappen during these meetings.


Becoming a client of Opinno implies receiving spillovers from all business lines andjoining a powerful network that will add incredible value to the company and its team

• Technology Review and Web Opinno visibility: Opinno owns the version in Spanish of MIT’s TechnologyReview. This allows us to generate content about Spanish companies to be published in Spanish or evenpushed to the global versions. We can also leverage important contacts in the industry, and also withinvestors, clients, and entrepreneurs, specially if they are related to the MIT.

• Product prescription: Opinno only works with breakthrough technology and outstanding teams. Therefore ifwe work with you, we will believe in your product and will become your best prescriptors in the industry.

• Contests and awards: Opinno is networked with many innovation contests and awards world wide and isalways proud to encourage its clients to pursue these objectives, with enormous brand building capability.

• Opinno community of entrepreneurs: Clients are automatically members of our community of entrepreneurs,which means tremendous networking opportunities.

• Conferences, workshops and press: Opinno is a regular speaker at conferences and workshops in Spain andalso in the US. We also organize this kind of event with our clients, sponsors (government, VC firms, privatecompanies and individuals). Opinno showcases his clients at conferences and networks them by allowing themto participate in events. Opinno is a very active communicator and produces fresh innovation news that arevery attractive to the press. We usually showcase our clients in press articles.

OpinnoSpillovers from being a client of Opinno


1. Context

2. Opinno

3. Some advice




Agenda


The Financial crisis of 2007–2008‎has all the traits of the start of new global bear market

Appendix2008, the beginning of a new bear market?

A bull market tends to be associated withincreasing investor confidence, motivatinginvestors to buy in anticipation of future priceincreases and future capital gains. In describingfinancial market behavior, the largest group ofmarket participants is often referred to,metaphorically, as a herd.

A bear market is described as being accompanied by widespread pessimism. Investors anticipating further losses are often motivated to sell, with negative sentiment feeding on itself in a vicious circle. The most famous bear market in history was preceded by the Wall Street Crash of 1929 and lasted from 1930 to 1932, marking the start of the Great Depression. A milder, low-level, long-term bear market occurred from about 1973 to 1982, encompassing the stagflation of U.S. economy, the 1970s energy crisis, and the high unemployment of the early 1980s.


Increases in workforce and productivity, plus attractive financial products …

AppendixConsumer ability to spend has grown significantly

… have fueled a nation ofconsumers


Local consumers buy fundamentally foreign goods and foreign companies buy localtreasuries … as a result, debt balloons and foreign share on treasuries follows

AppendixDebt and foreign ownership of treasuries

U.S. treasuries being easily injected ininternational financial markets through ahuge amount of new financial securities


Liquidity easing spread to housing, causing unprecedented increases in house pricing …

The new financial products took the place and risk of personal funds in thesetransactions

AppendixConsumer capability increases with liquidity on housing


.. putting pressure on property owners. Personal savings rate evaporated, at the timethat real wages strongly eroded per consumption expenditure

AppendixA New Knowledge Based Economy


In the United States, during the dramatic rise in house prices MEW funded PCE 1.1 to1.7% from 1991 to 2000, and almost 3% from 2000 to 2005. 2006 was the first symptomof stagnation

The rate of MEW has been linked to Marginal propensity to consume (MPC), as measured by PersonalConsumption Expenditure (PCE).

Mortgage equity withdrawal (MEW) is the decision of consumers to borrow money against the real value of their houses. Thereal value is the current value of the property less any accumulated liabilities (mortgages, loans, etc.) Some authors also useequity extraction and include net payments received at time of house sale.[1] In this case the traditional usage of equityextraction is the purchase of a new house.



First the landlord owned the house. Now it’s the bank that owns it. The ability of thebanks has been to turn access to high leverage and cheap credit into higher housingprices… but again, this separates the value of credit (passive) from the value of assets

AppendixDerivatives take cover value and risk of the new transactions


The booming of a new portfolio of sophisticated financial products was not limited tothe housing sector and helped feed the global funding demand

AppendixA booming future based new portfolio of financial products


A booming financial and market causes the appearance of intermediaries, a subsequentvaluation increase and no direct access to the measure of risk and real value. Structuredproducts and regulatory changes compound these issues.

• Growth in securitizations

• Leverage on those structures

• Increased leverage on bank’s balance sheets

• Often miss-rated by agencies

• Repeal of Glass-Steagall

• Regulatory changes encouraging home ownership

The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation (FDIC) in the United States and includedbanking reforms, some of which were designed to control speculation. Some provisions such as Regulation Q, which allowed theFederal Reserve to regulate interest rates in savings accounts, were repealed by the Depository Institutions Deregulation andMonetary Control Act of 1980. Provisions that prohibit a bank holding company from owning other financial companies wererepealed on November 12, 1999, by the Gramm-Leach-Bliley Act,

AppendixStructured products and regulatory changes compound these issues


The stagnation of consumer spending capacity forced an abrupt mortgage reset, whichacted as an initiator of a chain of events that may lead to a severe recession

AppendixFrom virtuous to vicious cycle


Symptoms of a recession can already be noticed in different indicators

AppendixSymptoms of recession


There are multiple problems related to the recession process explained before

• Housing led recession, generalized, affecting the end consumer on most tangibleasset

• Over leveraged financials, forcing long time lags until market readjusts

• Falling asset prices due to readjustment worsen asset coverage over debt

• Frozen credit markets paralyze new investments

• Weak household balance sheet

• Globally synchronized slowing exacerbating all of above and causing a significantrisk to gdp growth

The cause of this recession can be summarized as “Credit not equity or asset driven”and the main characteristic is that it is “globally synchronized”

AppendixProblems related to the recession


High tech markets are correlated to the progress of national economy and also sufferingan important deceleration



This effect can be observed on PC and mobile handset sales, as well as on the progressof retail and advertisement



Impact on the high tech industry will be similar to 2001, with a longer recovery time,due to the already achieved competitiveness of the industry, and to the degree ofimpact and volume of the current crisis

AppendixSimilarities with 2001 .com burst


The current scenario, will impose a series of new realities:

• $15m raise @ $100m post valuation is gone

• Series b/c will be smaller raises

• Customer uptake will be slower

• Cuts are a must

• Need to become cash flow positive

Also, this situation will introduce a series of increased challenges:

• M&As will decrease

• Prices will decrease. Valuations will be lower

• Acquiring entities will favor profitable companies

• IPOs will continue to decrease and will take longer

AppendixConclusions


1. Context

2. Opinno

3. Some advice




Agenda


Open Innovation allows for a full market orientation on all steps of the value chain

ContextOpen Innovation vs. Closed Innovation


Open Innovation can and must occur in all phases of product development

ContextSummary of best practices


It is key to understand a few facts about Open Innovation

ContextThe logic of Open Innovation


This new model implies that, in the end, things will be done where they are done best!

ContextOpen Innovation and globalization

1. On an average, about 15% to 20% of strategic(blue-sky) R&D sees the light of day…the restwither away on the shelf over time. (TheAberdeen Group, Boston)

2. Of all the applied R&D done under contractworldwide, almost all of them are underutilizedby a vast percentage. (rdmag.com / Battelle)

3. All tasks around the globe will move wherethey are done the best…and the smartest.(Prof. Michael Treacy, MIT…restated)

4. Over 70% of startup businesses that fail, do sonot because they were bad ideas, but becauseof lack of smart capital, lack of strategy &improper execution. (Startup 101)

1. You can derive value from your R&D only ifyou execute them - put them to use;commercialize them; and bring them tomarket

2. The value of your contract research can beexploited exponentially by making themavailable for other commercial uses

3. While innovation must be done where it isdone the best, it must be commercializedwhere it can be done so most effectively

4. World class startups must be smartly andadequately funded and lead by experiencedentrepreneurs with domain expertise,experience, and best practices


Business model based innovation starts and finishes on market approach. It shifts theorganization towards the customer and its current and future needs

ContextProduct vs. Business model Innovation


Open Innovation allows us to identify the best in class in the different stages ofinnovation, learn from their practices, but also use them as partners in our innovationcycle

ContextBest practices in Open Innovation

Open

CapabilitiesDynamic

Capabilities

Operational

Capabilities

Technology

Capabilities

Portfolio


Opinno, Open Innovation

Spain Calle Plátano 14, 28029 – Madrid

USA 1835 Vallejo St. #105 – San Francisco, CA 94123

[email protected]

www.opinno.com