open source and open innovation - dr. sabine brunswicker - red hat summit 2016

Open Source and Open Innovation

Dr. Sabine Brunswicker

From Open Source Towards Open Innovation: Fostering Corporate Innovation with Open

Source Software (OSS) Communities

June 30th, 2016

About us

About the Director:

▪ Innovation scholar with a background in engineering and management

▪ Associate Professor for Innovation at Purdue

▪ Founder and Director of the Research Center for Open Digital Innovation

▪ Visiting Professor at ESADE Business School

▪ Adjunct Professor for Digital Economics, QUT, Australia

▪ Until 2013: Head of Open Innovation at Fraunhofer Institute for Industrial

Engineering, Stuttgart; before that, positions in Industry

Research Interests:

▪ Understanding emerging open models of innovation and value creation in

today’s global and digital economy

▪ Inspired by real world phenomena and inform both academics as well as

practitioners.

Thought Leadership:

Policy Advisor European Commission (DG Enterprise, Markets, Research),

Speaker at World Economic Forum, Speaker at European Parliament

I am into innovation: open and digital innovation…..

About Us

� Purdue is a top public research institution located in West Lafayette, Indiana

� Committed to student success, Purdue is changing the student experience with greater focus

on faculty-student interaction and creative use of technology

� Committed to pursuing scientific discoveries and engineered solutions, Purdue has

streamlined pathways for faculty and student innovators who have a vision for moving the

world forward.

Purdue University is a major research institution known for discoveries in science,

technology, engineering, math and beyond.

Photos: Andrew Hancock/Purdue University

Agenda

• The Role of Open Source in Open Innovation

• The Industrial Model of Open Source Software

• Driving Innovation through Collaboration in the OSS Community

• How to Facilitate Participation in Communities

• About us – Our Research and Educational Programs

This session will focus on …

About the Research Center for Open Digital Innovation

THE INNOVATION GAME HAS

CHANGED¹

THE INNOVATION GAME HAS

CHANGED¹

Source: 1) Chesbrough (2003)

� What is an innovation? In the end it is about solving a problem (technical or business) in a

novel way!

Innovation is often associated with special people...

The Role of Open Source in Open Innovation

But what is an innovation?

?

A New Product

A New ServiceA New Process

Innovation is about

finding a novel

solution for a

problem that is

useful for the user

CC Credit https://flic.kr/p/jFHBdv


The changing innovation landscape is reflected by the increased interest and adoption of

open innovation

Google Search Open Innovation:

10/2011 > 8 Mio Hits

05/2013 > 700 Mio Hits


The original model of open innovation takes a firm-level perspective; open innovation

represents a managerial framework for innovation

en Innovation: A New Innovation Paradigm

Open Model

existing market

new market

other firms

market

idea sourcing

running/successful innovation projectsdiscarded innovation projects

Closed Model

market+

+

+

new

product/

service

internal

innovation

resources

internal

innovation

resources

external

innovation

resources

technology

sourcing

co-development

partnerships

Free revealing

Source: Brunswicker (2011); see also Chesbrough (2003, 2006)

In our 2015 Global Open Innovation Executive Study we learned more about the adoption of

open innovation

� Study among the largest firms in

Europe and US

� Firm criteria: >1000

employees and >250 million

USD in sales

� Organizational & Project

level analysis

� Data collection: January 2015 to

August 2015

� Current responses: 121 firm-

level data, additional project

level data

Executive Study 2015 Purdue &

Berkeley

Adoption of

open innovation

Abandoning

open innovation

Financial

support

Expenditures

Human

resources


~78% of firms (94 firms) practice open

innovation today (n=121)

~ 2.5% of firms adopting open innovation

have abandoned it

~61 % have increased the financial

investment

~22 % have increased the financial

investment by more than 50%

~48% invest more than 10% of the total

expenditures for innovation in open

innovation

~53% allocate more than 5 full-time

employees to open innovation

Source: Global Open Innovation Executive Survey 2015; n=73/76 firms

Median = 5%

Free knowledge sharing with external partners

Free access to external knowledge

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

25 percentile: 0% 75 percentile: 20%

25 percentile: 5% 75 percentile: 50%

Share of projects completed within the last 2

years with free inflows/ free outflows


Firms are net takers; ‘free revealing’ to open source communities (or other forms of

communities that follow the OSS principles) is ‘hard’

“I think one of the challenges in

Open Innovation right now in our

organization or any other high tech

organization is to figure out how

they can communicate [and work]

with open source communities”.

(Senior VP at Leading High-tech

Company)

Median = 20%

SAMSUNG“ It is actually Open Source Software that

is ‘eating’ the world…”

(VentureBeat, Dec 7, 2015)

Image Credit: Maksym Darakchi / Shutterstock.com


There are an increasing number of examples where firms move to ‘open source’ and reveal

their technology without constraints


Ford creates a diverse open source community of makers, coders and urban planners to

develop and disseminate smart mobility solutions

Context of the project:

• Electronics and software as a strategic innovation

area

• Open innovation is strategy to implement this

project

Problem:

� Mobility as an ill-structured problem (not just

technical but also social factors play an important

role)

� Sources of know-how not known to sources

Open Innovation Mode: Community

� Open data movement: Release of machine

readable data (19 vehicle data streams)

� Establishment of own community with open

source and open hardware license and creative

commons scheme


Shifting towards an open innovation strategy and waiving intellectual property rights has

numerous advantages

Drive the adoption of a new platform

Network effects and market share

Resource efficiency for development and

maintenance activities (bug fixing)

Driving innovation that solves problems of

value to the customer??

…..

Reduced risk associated with a new technology

Why go

open?


Image credit from http://www.innovationmanagement.se/2011/09/09/social-product-innovation-real-challenges-and-real-solutions/

Open source is not just about hackers and techies anymore

Is an OSS community able to do that?

Focus on customer value?

The Industrial Model of Open Source Software

18

So

doing innovation the open source

way sounds just right,

right?


Open Source Software projects have matured; a new industrial mode of OSS projects involves

multiple vendors and also customers/ firms

Unique communities motivated one

of my research fellows to study this

new model in more detail

Crowdsourced Discussions Open Source Software


Computational Social-Technical Scientist

linkedin.com/in/armisen

Albert Armisen is a Research Fellow focused on Open Stack

PhD CandidateProduct & Project ManagerTelecommunication Engineer

We focus on OpenStack; the leading OSS community in cloud computing


In the industrial model we have three types of actors

Vendors

(Hann et al. 2013)

End Users

(Fayard and Metiu 2014)

Customers

(Fitzgerald 2006)



These actors represent the business ecosystems

Vendors Customers

CustomersEnd UsersVendors

• Participates in open

collaboration to

make use of the

outcome

• Aim to create

commercial benefits

from services or

products related to

the outcomes of the

community

• Participate in OSS to

create independent

user benefits by

using the software

developed in the

open collaboration

Business

Ecosystem

layer

OSS

community

layer

Driving Innovation through Collaboration in the

OSS Community

Driving Innovation through Collaboration in the OSS Community

The question: Who is proposing which innovation problems should be solved? And how are

they implemented?

Image credit to http://www.everydayinterviewtips.com/3-problem-solving-strategies-you-need-to-be-aware-of/


The problems to be solved vary in terms of the degree of novelty

“Live migration fails when the instance has a config_drive_format=iso9660”

Improvement

(bug)

“Store consoleauth tokens to the database”

New feature

(blueprint feature)


Blueprint feature are important to make sure that openstack offerings remain competitive;

however, bug fixing is just as important to ensure customer satisfaction

• Bug

• Seek to achieve incremental innovation

• Mundane tasks (Lakhani and von Hippel 2003)

• Highly dependent on existing features or characteristics

• Blueprint feature

• Moving beyond what is known; Not dependent upon prior knowledge (Garud et al. 2010)

• Require new knowledge to be created


So what are some new features that are currently hot in Open Stack? The Community

developed roadmap provides an indication

Source: Open Stack Community


For example, on-demand and technology-agnostic network abstraction is the topic of 22

blueprints

Source: Open Stack Community


To provide insights into the question of who solves whose problem, we ‘pulled’ data from

OpenStack

� Data from one of the oldest repositories: Nova (network)

� Scraped data using GIT and Se

7.470 proposed features

2-year dataset of

Nova 5.018 proposed features

Removed collaboration not following community guidelines


Customers increasingly engage not just in identifying bugs but also in proposing new

blueprint features

Contribution of bugs & blueprints per actor (total numbers)

Vendors Customers

End users

Working the open source way, allows very individual and independent work

Working the open source way allows very individual

and independent work

• Task modularity

• Independent and individual work

CC credit https://flic.kr/p/xLe1C


So why and how should the different actors collaborate?

How are the participants collaborating?

Image credit to https://www.stickyminds.com/article/using-silo-effect-your-advantage


Is there actually collaboration happening? Can customers expect support for their proposed

features that focus on innovation in OpenStack?

Image credit to https://www.stickyminds.com/article/using-silo-effect-your-advantage

Problem

Solution Solution Solution Solution

Problem Problem Problem

The distributors take different strategies; we find different patterns of contribution

Total number of features proposed by distributors

Number of blueprints proposed by distributors

Number of bugs proposed by distributors


Is there any kind of collaboration among the distributors?

Collaboration is assesed using a Teachman measure

Distributors‘ collaboration with the Community (overall)

Distributors‘ collaboration with other Distributors



Indeed, we find that actors focus their attention on their own novel problems; however, there

is collaboration with other community problems

Problem revealed by

Solution

revealed by

Vendors Customers End User

Vendors Low collaboration Blueprints Blueprints

Customers Low collaboration Blueprints Blueprints

End User Low collaboration Blueprints & Bugs Low collaboration


40

Since the industrial model becomes mainstream, collaboration is essential

How to Facilitate Participation in Communities

Fostering Effective and Efficient

Participation

Access to Tools (API,

DevOps, etc)Participation Metrics

(Leaderboards)

OSS metrics help contributors to show their contribution efforts; and they should be

recognized inside the organization


In our research, we learn that sharing information about the top performers (leaders) is not

necessarily helpful; focusing on amount of contribution is not enough

Increased design complexityIncreased design complexity

Source : Brunswicker, Almirall, Majchrzak (2016)

API

Toolkits

Best

practices

DevOps

….but what for?

Continuous

integration

systems


How can participants collaborate efficiently in the OSS community?

Image credit from Lisa Conference (https://twitter.com/unpixie/status/665423798385180672)


Communication is a key element in collaboration, yet it is given in many forms!

Image credit from http://www.wsj.com/articles/SB10001424052702303725404579461351615271292

Image credit from http://www.qu.tu-

berlin.de/menue/forschung/laufende_projekte/joyofuse/joy_of_use/joy_of_use/measurement_methods/sam/

Image credit from http://hexdef101.deviantart.com/art/Abstract-Wallpaper-464271680

Verification of Solution Likability of the communication

Amount of General FeedbackAmount of Specific Feedback


Continuous integration system helps to do this process more efficiently


However, what happens to the collaboration when it detects a failure?

Image credit from https://www.cloudbees.com/blog/need-jenkins-pipeline


Developers may get stressed out…at least a little

Image credit from http://metro.co.uk/2016/03/04/warning-these-photos-might-leave-you-feeling-ridiculously-anxious-and-on-edge-5733316/


How does it change under anxious situation

Image credit from http://www.wsj.com/articles/SB10001424052702303725404579461351615271292

Image credit from http://www.qu.tu-

berlin.de/menue/forschung/laufende_projekte/joyofuse/joy_of_use/joy_of_use/measurement_methods/sam/

Image credit from http://hexdef101.deviantart.com/art/Abstract-Wallpaper-464271680

Verification of Solution Likability of the communication

Amount of General FeedbackAmount of Specific Feedback

Open innovation requires a

new way of innovating…

..through participating and

collaborating in communities

About us – Our Research and Educational

Programs

About us – Our Research and Educational Programs

To shape the emerging landscape of innovation, we launched RCODI in 2014 as a university-

wide center

Connected

everything


Our work is motivated by two emerging phenomena: open and digital innovation

Analytics/

Big Data

Cloud

Convergence

• New value propositions

• Platforms and new

business models

• New forms of organizing

innovation

Innovation

Simplification

DiversificationImmersion

Social

media

Mobile

Open innovationOpen innovation Digital innovationDigital innovation


Advisory Board

Center Director

Core Faculty

Affiliated Faculty Purdue

Affiliated Faculty in the

US, Europe, and Asia

Members (donations and

data transfer)

Academic, research

members

Performance metrics

• Intellectual contributions in

terms of high-impact

publications in ISI or financial

times ranked journals in

different disciplines

• Students in the area of open

digital innovation

• Research grant applications

and research expenditures

• International relationships

with academia and industry

• Endowments

• Real world impact and

advocacy

The center works in a global context; our performance metrics aim to generate new

knowledge

Information Systems

Electrical Engineering

Computer Science/Data

Science

Communications & Liberal

Arts

Research Center

for Open Digital

Innovation

(RCODI)

Sociology

Information Science

Management & Strategy

Economics


The research center brings together a range of disciplines


The power of openness: our research portfolio tackles power of openness in various aspects

Open data & open government & open

standardization

Open science and scientific communities

Open platforms and platform-based ecosystems

Open innovation (firm-level strategy)

Open source software, open source hardware

Open collaboration and extra-organizational

communities (technology, user)

The

Phenomenon

of Open

innovation

and value

creation

NanoHub Research

Ecosystem

Students

Tool

developers

Educators

Digital platforms

Publication

network

More than 400,000 users


NanoHub represents a novel form of virtual collective science production; our models predict

that code contributions have a positive scientific impact in terms of citations

Open Science


Source: Baldwin (2011)

How to sustain a high performing crowd of third-party developers?

A problem of openness: Accessibility and transparency

Transparency design: An important but often undervalued design choice when designing a

digital platform

Open platforms


The program integrates three capability areas: Innovation, Information Technology, and Data

Science

Information Technology & Software Eng(Foundations)

Open and Digital

Innovation

Innovation (Foundations)

Data Science & Analytics

(Foundations)


The program has been approved and we are accepting students starting this fall 2016

Information Technology & Software Eng(Foundations)

Open and Digital

Innovation

Innovation (Foundations)

Research Methods &

Data Science (Foundations)

Coursework (27 credits) Course work to pursue M.Sc. In Innovation with Concentration in Open and Digital

Innovation

TLI Core (3 Courses, 9 Credits) • Measurement and Evaluation in Industry and Technology (IT 507, 3)

• Analysis of Research in Industry & Technology (TECH 646,3 )

• Quality and Productivity in Industry and Technology (IT 508, 3)

Concentration Core (3 required Courses,

9 Credits)

• Foundations of Innovation Studies (TLI520, 3)

• Digital Innovation & Transformation (TLI526, 3)

• Research in Open Innovation I (TLI620, 3)

Concentration Selective 1 (Cognate or

Core) (select 2, 3 Credits)

• Technological Innovation (Purdue Polytechnic, 3, TECH 621)

• Technology Entrepreneurship & Lean Startups (Krannert, 4, MGMT 590)

• Data warehousing (CNIT 559, 3)

• Information Technology Economics (CNIT 55100, 3)

• Information Technology Project Management (CNIT 55200, 3)

• Online Communities, Special Topics in Communications (Communications, COM

49700, 3)

• Open Source Software Development (CNIT 581, 3)

• Open data hacking (TECH590)

Concentration Selective 2 (Selective –

Methodology Area, select 1, 3 Credits)

• Business Analytics (3 Credits)

• Statistical Methods (Statistics, STAT511, 3)

• Design of Experiments (Statistics, STAT 514, 3)

• Applied Multivariate Analysis (Statistics, STAT 524, 3)

• Large Scale Data Analysis (Statistics, STAT 695O, 3

Thesis (6 credit) Thesis to be performed with the Research Center for Open Digital Innovation


� Objective: Developer future leaders, system

designers, and scientists that shape innovation in

open digital innovation environments

� Basic principles:

• Interdisciplinary education (beyond

entrepreneurship and strategy)

• Foundational understanding of digital drivers

(and not just single tools)

• Being equipped for the big data age and the

role of digital technologies for decisions and

actions in innovation

• Understanding of open source and open

innovation models

The objective of the Master’s degree is to develop future leaders, system

designers and scientists in the open and digital innovation age

Master of Science in Technology Leadership & Innovation

Concentration in Open Digital Innovation


We also just launched a dual degree program with China’s Tsinghua University

Bridging ProgramPurdue M.S. with a focus on

Global Digital Innovation

Tsinghua Master of Engineering

Management

• Multiple

locations in

China

• 6 months full time

• Learn

foundations for

both programs

6 months 12 to 18 months 12 to 15 months

• Study at Purdue

University

• Apply new skills and

knowledge in hands-on

projects with companies

• Work with leading

companies to solve

business challenges

• Study at Tsinghua

University

• Learn unique applications

of digital technologies

and new innovation

methods

• Gain skills to help

revolutionize the global

economy

INNOVATE WITH OPEN DATA: Create a

solve their problem

INNOVATE WITH OPEN DATA: Create a

novel, cool, and performative mash-up

embedded in a website that helps users to

solve their problem

OUTPERFORM OTHERS AND LEARN

learn from others’ work

OUTPERFORM OTHERS AND LEARN

FROM OTHERS: IronHacks is about

competition but you also get feedback and

learn from others’ work

HACK VIRTUALLY BUT ALSO MEET

about the programming tools.

HACK VIRTUALLY BUT ALSO MEET

PHYSICALLY: We offer a training on open

data, using the required API, and learning

about the programming tools.

GAIN FAME IN MULTIPLE WAYS: Improve

prize

GAIN FAME IN MULTIPLE WAYS: Improve

your score on the way, gain reputation,

learn (GitHub, JSSFIDDLE, etc.) and win a

prize

The Ironhack operates in 4 cycles for hackers: hack, breathe, learn, and iterate


Training

session &

Survey

Hacking

phase 1

Evaluation

phase 1

Hacking

phase 2

Evaluation

phase 2

Hacking

phase 3

Evaluation

phase 3

21 days

March

10

Mar 28-30 ,

done by 8 pm

Mar 24(9am) –

submission by Mar

27 at Midnight

Mar 31 (9am) –Apr 3

Submission by Apr 3 at

Midnight

Apr 3-6, done by

8pm

Apr 7- 10, final

submission by Apr

10. Midnight

Apr 11-14 done by

8pm

Work hard,

be creative

Work hard, be

creative

Work hard, be

creative,

compete

Check out

scoresCheck out

scores

Wait…

Final

winner

Dev-

eloper

Expert/custo

mer panel

The

IRONHACK

PHASES

Milestones/m

etricsApril 19 in

class

Completing the

post survey for

credit (April 19)

The Ironhack in class is structured in three stages: it supports experimentation and

facilitates the developer to turn data into useful applications


Traditional ‘Hackathons’ The Purdue IronHacks

36 hrs of high energy; less creativity 3 weeks high-energy hacking/3 iterations; time

for creativity

Code: proprietary, no sharing of code with others Code: open access, shared with others, can build

on others’ code.

Mentorship during the 36 hrs and feedback on

final solution.

3 iterations of feedback; hackers get valuable

user, technical, market, and expert feedback for

constant guidance.

Constant physical presence and interaction Virtual presence and communication; hackers can

work on problems when they wish

Goal: Facilitating Entrepreneurial Individuals to Turn Open Data into Digital

Innovations (Mash-Ups) that Create Value for the User!

What are the IronHacks? Not your ordinary Hackathon!



Best Solution ($500 Amazon Gift Card):

The best solution was evaluated based on the submission submitted in the

final round. 4 equally weighted criteria (Technology, User Requirements,

Usability, and Novelty) applied The highest aggregate score won.

Greatest Improvement ($250 Amazon Gift Card):

changes (changes related to all categories).

Greatest Improvement ($250 Amazon Gift Card):

Those who were among the top 20 percent in each of the three hacking

phases qualified for this award: Among those who met these criterion we

ranked them in terms of number of GitHub submissions with significant

changes (changes related to all categories).

Greatest Community Spirit ($150 Amazon Gift Card):

Those who made the most valuable contributions to the discussion qualified

for this award (number of posts, number of other people that found that

comment useful, and expert judgment).

Photo Credit: Anthony/inspiredimages (2010)

There are three winning categories


“Find a safe place to rent”

Which neighborhoods are considered ‘safe’ and ‘green’? Incoming residents, especially students, have little

knowledge about the communities and neighborhoods in a new town. Many students only look at campus

apartments because it can be difficult to find out information about safety and they are unsure of where to

live.

Imagine you were moving to West Lafayette/Lafayette as a new resident and had no idea where to move

but knew that you wanted a safe or green area to live in

TASK:

• Develop a website with a mashup that uses local climate and societal data to visualize where it would be

best to move in Lafayette/West Lafayette based on how ‘green’ or ‘safe’ an area is.

• The website should optimize the value for the consumer in saving money by giving more alternatives

• Examples of features: parks and recreation, how many services, schools, alternative modes of

transportation if you do not have a car, street lighting, closeness to highway, crime rates and types of

crime, closeness to police/fire stations and education, real estate prices, criminal/offender registry,

scales that have the user describe preferences in terms of importance, and addresses etc.

The last hack in October was focused on the following problem; it followed the typical

hacking process


Winning App: Wei QingUsed and recombined

over 7 open data sets

(!!!)

These included: local

apartment websites to

determine rental prices

And flooding data

This generated novel

visualization features

such as crime

locations, PD & FD

locations, restaurants,

etc.

Insights from our last hacking activities

Questions & Answers

Contact Information

Sabine Brunswicker

Associate Professor for Innovation

Research Center for Open Digital Innovation

Purdue University, Indiana

[email protected]

www.purdue.edu/opendigital

www.twitter.com/SabineBrunswick

If you have ay further questions, please contact us…

Research from Project #3

How can participants make sure that OpenStack remains competitive? What is the

technologies are emerging and strategically relevant?