From Ideas to Innovation Open Innovation and the Ecosystem

Javed Mohammed Innovation and Marketing Consultant

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alchemyofinnovation.wordpress.com A K2Vista Production

What is Creativity?

• Using the imagination to come up with new ideas or combine existing ones in unique or usual ways

What is Innovation

• The process of taking a new idea and making it useful

So what is an idea?

• A thought or a group of thoughts that develop in the mind.

How does an invention factor in?

• It’s basically how a new idea comes into being

The invention then has to spread

Called Diffusion or S-curve of adoption

Terms originates from Everett M. Rogers' Diffusion of Innovations

The invention has to be faster, smaller, cheaper, or differentiated from what

exists

The Adoption Curve of new technologies

Adoption curve players

• Innovators open to new ideas and like to tinker

• Early adopters are the trendsetters and opinion leaders

• Early majority are above average but still followers

• Late majority adopt after “it” has become the norm.

• Laggards are the die-hards and only adopt when they are forced to.

Terms originates from Everett M. Rogers' Diffusion of Innovations

Majority of innovations not able to cross the Chasm

An Innovation can be a new

• Product (can be goods or service)

• Process (eg online banking)

• Business Model: way a firm delivers value and secures profits

• Technology (eg GPS)

• Social

• Market or – new way of organizing the business, business practices – new sources of supply or external relations.

Reference: Schumpeter, The Oslo Manual

Not every innovation is revolutionary

Type of Innovation

Can vary in newness and impact

• Incremental: Organic, the next logical step

• Radical (or breakthrough): a quantum leap forward

• Transformational ( or disruptive)

Reference: http://www.innovation-management.org/types-of-innovation.html

Every act of creation is first of all an act of

destruction. Pablo Picasso

We Know Innovation is Important

Innovation distinguishes between a leader and a follower.

Steve Jobs

Innovation: Are we there yet?

In the past most innovation was created internally

• R&D Centers, Employees across divisions, locations, functions

But the rate of innovation isn’t enough

• "When the rate of change outside an organization is greater than the change inside, the end is near”

Jack Welch

Innovation needs diversity of thought

Economist Intelligence Unit and Grant Thornton survey of Business Exec, June 2010

"Innovation: The Key to Future Success?" Global results shown here.

Global

U.S. only

This is where we have to look outside

• Customers/Consumers

• Partners/Suppliers

• Universities & research institutes

• Media, Analysts, Fortune-tellers

• Anyone with a passion or vested interest

• That’s OPEN INNOVATION

Open Innovation

• Use both internal and external ideas, and innovation to grow and remain competitive in the market.

Chesbrough, H., “Open Innovation”, Harvard Business School Publishing, Boston MA, 2003

Innovation relies on a good Ecosystem

Ideas & Commerci- alization

Capital

Human Resources

Laws/ Regulation

Basic Research

And funnels & filters Idea

Best Ideas

Idea

Idea Idea

Idea

Ideas are a commodity, it’s the execution that counts

Idea Generation

Selection

Execution

Launch to Market

Ideas are a commodity, it’s the execution that counts

Idea Generation

Selection

Execution

Launch to Market

Ideation: develop new ideas

Select the best ones through Crowdsourcing

Test it, Alpha sites, prototypes

Launch to Market

Creating incentives

• To get people to participate in innovation, requires different incentives.

1. Recognition: A mention in the newsletter, lunch with an executive, Leaderboard

2. Competition: Leaderboard

3. Economic incentives: A financial or other type of gift

4. Altruistic reasons: if self motivated no need for rewards

Can apply Crowdsourcing and Gamification to address

innovation Idea Generation

Enterprise Collaboration

Idea Markets

Prediction Markets

Jams

Challenge Events

Parting thoughts on Innovation

• Innovation is multi-faceted

• There is no one way to do it

• No simple formulas

• Make it safe, make it transparent, make it fun, make it rewarding for people to participate.

• Make it open, make it easy, get everyone internal and external involved.

Parting thoughts on Innovation

• Get management on board, it needs sponsors, it needs a budget to implement the best ideas.

• Recognize and reward not only winners but participation.

• It takes time for people and culture to change. Expect resistance, but learn, adapt and be persistent.

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