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ENABLING AND MAINTAINING KEY OPEN INNOVATION PROCESSES TO SUPPORT GLOBAL
DEVELOPMENT
HANNES ERLER, INNOVATION EVANGELISTFEB 2017, BERLIN, PI CONFERENCE
FOR INTERNAL USE ONLY – © COPYRIGHT SWAROVSKI AG, 2017
2
OPEN INNOVATION
THE SOCIAL MEDIA REVOLUTION AND HYPERCONNECTIVITY AS A
GLOBAL TREND HAVE OPENED UP NEW FORMS OF COLLABORATION
How to make out the very best use of what emerges?
4
• Why and how Open Innovation is Dramatically Disrupted by Hyperconnectivity and the Digital Revolution
• How Swarovski built a Structure for Utilization of Innovation Ecosystems
• Learnings from 3 years of Open Innovation Networks Management
5
CUSTOMER VALUE CREATION 3 YEARS OF OPEN INNOVATION LEARNING
Va
lue
fo
r C
us
tom
er
Innovation Funnel:
Linear ModelOpen Innovation Funnel:
Chesbrough Model
Open Innovation Networks:
Connecting Ecosystems
The New & Unknown
© Copyright Swarovski AG, 2016
INNOVATION
ECOSYSTEMS
Integrate exploration
(knowledge) and
exploitation (business)
ecosystems
KNOWLEDGE
ECOSYSTEMS
Focus on generating
new knowledge and
technologies
BUSINESS
ECOSYSTEMS
focus on creating
customer value
Model based on K. Valtikari, VTT
7
…TO CROSS BORDER COLLABORATION
Web 1.0
Cash
Flo
w
Time
Physical World
EX
PA
ND
CollaborateWeb 2.0
TEST & FAIL
AND FAST FAIL & LEARN
OPEN INNOVATIONENABLES A CLOSER LINK TO THE OUTSIDE WORLD
• US$ 600 Billion World R&D Investment
• 90% of IP are not utilized by those who invented it
• Innovation driven by speed, transparency,
connectivity and openness in new ecosystem
environments
• Balancing of internal and external stakeholders
seems to be the challenge
• Implementation of OI Networks cross over company
boarders is the key
MAIN DRIVERS FOR INNOVATION IN A HYPERCONNECTED WORLD
CONNECTIVITY TO ECOSYSTEMS VALUES OPEN MINDSET OF PEOPLE
10
LEVELS OF VALUE CREATIONVALUES ARE THE COMMON LANGUAGE FOR THE DEFINITION OF STRATEGIC COLLABORATIONS
With allowance from: Elke den Ouden,
Innovation Design, Springer 2012
Significant Positive
Change
SERENDIPITY = DISCOVERY
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12
• Why and how Open Innovation is Dramatically Disrupted by Hyperconnectivity and the Digital Revolution
• How Swarovski built a Structure for Utilization of Innovation Ecosystems
• Learnings from 3 years of Open Innovation Networks Management
13
IT WORKS BETTER WHEN IT‘S OPEN!
THE INNOVISIONARY
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• EUR 3 billion annual turnover generated by the Swarovski Group
• 30,000 employees in 170 countries
• Headquarter in Wattens, Tirol
THE WORLD’S LEADING PROVIDER
OF PRECISION CUT CRYSTAL
15
THE BRAND APPROACH
As a component and
services brand (B2B)As a finished
goods brand (B2C)As a component within third
party products (B2B2C)
16 Figurines
Jewelry Watches Beauty
EyewearHome & Interior
THE CONSUMER GOODS BUSINESS
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SWAROVSKI CRYSTALS
Jewelry and
Watches
Apparel and
AccessoriesInterior
Packaging and
ElectronicsCreate Your
Style
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1956 AURORA BOREALIS COATING
CROSS INDUSTRY INNOVATION
1931TRIMMINGS
1949OPTICAL INSTRUMENTS
1956NEW COATING EFFECT
AURORA BOREALIS
1975HOTFIX TECHNOLOGY
1993CRYSTAL MESH
2001CRYSTAL FABRIC
2009CRYSTAL CERAMICS
2010CRYSTAL ROCKS
2011ADVANCED CRYSTAL
2012XIRIUS
Together with Christian Dior, Swarovski develops the
Aurora Borealis effect, a shimmering finish that
enhances the sparkle of cut crystal, transferring the
thin film physical vapor deposition technology from
the optical industry into the fashion industry.
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SWAROVSKI OPEN INNOVATION PROCESS
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BUSINESS DRIVEN SEARCH FIELDS
PREEMINENT PLAYER IN THE JEWELRY INDUSTRY: FASHION MEETS TECHNOLOGY
New
Ma
teri
als
an
d M
ate
ria
l C
om
bin
ati
on
s
• Innovative and attractive materials for all fashion oriented segments
• Materials with different physical characteristics e.g. ceramics
• New inspiring carrier materials
Ap
pli
ca
tio
n T
ec
hn
iqu
es
• New application techniques enabling unexpected and easy to use jewelry solutions
• Application of crystal on other materials than usual (outside of the box)
• Automation
New
Lo
oks
an
d S
urf
ac
es
• Functional and
smart surfaces
• Brilliance
• Colors and
effects
• Surface
structure
• Durability
Je
welr
y M
an
ufa
ctu
rin
g E
xc
ell
en
ce
• Disruptive manufacturing technologies
• Process innovations to increase speed and efficiency
• Setting of jewelry stones
• Smart packaging
New
Bu
sin
es
s
• New business concepts along the value chain from production to retail
• New markets and industries
• Digital transformation opportunities
Global
OPEN INNOVATION @ SWAROVSKI
Chemicals
Consumer Goods
Design
FoodFurniture
Industrial Coatings
Manufacturing / Engineering
Materials
Medical
Optics
Personal Care
PlasticsPrint
Product Compliance
Toys Computer / IT
Our SEARCH FIELDSCustomer Needs
TECHNOLOGY in FocusPartner Technology Portfolios
Diversified NETWORKPartner Industries
Global COVERAGE“Somewhere, someone has already solved your problem”*
New Looks and Surfaces
New Application Techniques
New Materials and Material
Combinations
New Jewelry Manufacturing
Technology
New Business Models
* Slogan accredited to Creax, a worldwide reference in innovation consulting
A B R A S I V E S
A D D I T I V E M A N U F A C T U R I N G
A D H E S I V E S
C H E M I L U M I N E S C E N C E
C O A T I N G S
D I G I T A L
M A T E R I A L S & P R O C E S S
N A N O T E C H N O L O G I E S
P O L Y M E R S
P R I N T I N G
R O B O T I C S & A U T O M A T I O N
T H I N F I L M S
ENA
BLI
NG
TEC
HN
OLO
GY
ACTIVE ENGAGEMENTS© Copyright Swarovski AG, 2016
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INNOVATIVE PRODUCTS
Energy Autonomous Activity Tracker
The activity tracker producer Misfit developed in
collaboration with Swarovski a new Shine product,
working without battery thanks to the new “Energy
Harvesting Crystals” technology which transforms
the energy of the daylight into electrical power.
2015 SWAROVSKI SHINE
Digital Transformation in the Jewelry Industry
FASHION MEETS TECHNOLOGYOPPORTUNITIES
© Copyright Swarovski AG, 2016
Wearable Technologies in the area of
Energy Harvesting and Connected Mobility
Next Generation Manufacturing in the
Fashion Industry
Platforms for premium and luxury customers enablingvalue creation
Virtual & AugmentedReality
Robotics & Machine Learning
Big Data
Once a new technology rolls over you, if you‘re not part of the steamroller, you‘re part of the road.
Stewart Brand
Make it beautiful and versatile
Work
Sleep
Sports
Leisure
night
Leisure day
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NEW INNOVATIVE PRODUCTS
2016 COLOR CHANGING CRYSTALS
New Technology allows cycling of colors on
crystals. Together with the Designer Tory Burch
Swarovski integrated it’s color changing
technology first time into a garment. Shown at
the famous New York Met Gala Night in May
2016 and worn by actress Freida Pinto.
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THIS IS YOUR ADVANTAGE MORE KNOWLEDGE AND MORE BUSINESS
• Collaboration leading to additional
business for both sides
• Research & Development
Agreements
• Workshops for transforming your
expertise into the fashion industry
• Benefit from a strong brand
http://openinnovation.swarovski.com
FROM EMERGING TECHNOLOGY TO ON-TREND SOLUTIONS
VIA TECHNOLOGY PLATFORMS
Emerging Technology Areas
Materials
Application Technologies
Cutting & Polishing
Surface Refinement
Adhesives
Light & Optics
Digital & Embedded Systems
SWAROVSKI TECHNOLOGY PLATFORMS
Global Trends
• Sustainability
• Individualization
• Digitalization
• Globalization
Emerging Technology Areas
• Advanced Materials
• Big Data
• Coatings
• Wearable and Flexible
Electronics
SCION
OPPORTUNITY PROCESS
SCION (SWAROVSKI COLLABORATIVE INNOVATION & OPEN NETWORKING)
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• Why and how Open Innovation is Dramatically Disrupted by Hyperconnectivity and the Digital Revolution
• How Swarovski built a Structure for Utilization of Innovation Ecosystems
• Learnings from 3 years of Open Innovation Networks Management
OPEN INNOVATION IS LIKE A PARACHUTE
IT WORKS BETTER WHEN IT‘S OPEN
THE NEW LOGICS OF INNOVATION ECOSYSTEMS
INNOVATION
ECOSYSTEMS
Integrate exploration (knowledge)
and exploitation (business)
ecosystems
SCIENCE
ECOSYSTEMS
Focus on generating
new knowledge and
technologies
BUSINESS
ECOSYSTEMS
Focus on creating customer
value
http://www.open-jim.org/article/view/337
Hannes Erler in Journal of Innovation Management:
38
Combining Explorative and Exploitative Capabilities on different levels
• Organizational
• Contextual
• Sequential
Create Understanding and use Methods to make it happen.
AMBIDEXTIRITY
PREPARE & LAUNCHUNDERSTAND
Design Thinking & Stage Gate Sequential Ambidexterity
39
GO TO
DEVELOP
GO TO
LAUNCH
DEVELOP
POST LAUNCH
REVIEWGO TO
IDEATE
GO TO
REFINE
START
PROJECT
REFINEIDEATE
UNDERSTAND OBSERVE
POST
OF
VIEW
IDEATE PROTOTYPE TEST
Innovation Portfolio Management
• Lean Start-up
• Design Thinking
• Agile Stage Gate
• Business Model Canvas
• Business Model Navigator
CREATING WITHOUT CORPORATE LIMITS
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• Trust and Purpose
• Experimentation
• Collaboratio
A NEW CULTURE
Culture Eats Strategy for Breakfast (P. Drucker)
..... But Good Leadership Practices must take
care, that enough food is on the table!
Innovation Focus Areas
43 Innovation and Product Management
We are improving the world
by bringing sparkle to
peoples’ everyday lives!
B2C product
identification
Uniqueness
Color & shaping
possibilites Surface
solutions
Application
solutions
Usability
Diamond for
every woman
Crystal
production
Jewelry
production
Digital jewelry
platform
Platforms
Augmented reality
marketplace
Next generation
manufacturing
Application
platform
44
45
Versace, 2010
• OI enables exploration and integration of transformative
technologies
• In the digital age the number of oppportunities is exploding
• Cross-industry partnerships lead to new market opportunities
and top access points to innovation ecosystems
• Internal and external relationship management vital for
customer value creation
• Measuring success needs organizational and managerial
framework
• Transforming New Capabilities to the entire organization is
next step in evolution
LEARNINGS
46
WE ADD SPARKLE TO PEOPLE’S
EVERYDAY LIVES.
BACKUPS
Strategic TransformationFrom Search Fields to Focus Areas
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© Copyright Swarovski AG, 2017
SP Innovation Search Fields (2013 – 2016)
SCB InnoVision Focus Areas (2016 & Beyond)