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The Next Evolution of Open Innovation – What’s Next?

20 04 2011

[tweetmeme]
This last week I was at the Marcus Evans Open Innovation Conference giving a presentation on “The Next Evolution of Openness” – Getting back on the speaking circuit finally gave me a little thinking time away from building a rapidly growing consulting practice at my new company Spigit and I wanted to share with you some of the key points of that talk over the next few blog posts.

Things change quickly in the Innovation world – and as I was writing the title of the presentation I was struggling whether the word “evolution” was quite the right one – maybe “Revolution” would’ve been a better word to use in the circumstances.

There’s supposed to be an ancient Chinese curse that goes along the lines of “May you live in interesting times” – and I don’t think that times get any more interesting than the business environment we currently find ourselves in.

We live in a time of massive change – both in terms of the size of changes we’re asked to take on, and the frequency with which change now happens.

The recent financial depression has had profound consequences on the businesses that survived. We’ve come out the other end to a world that demands greater accountability, greater participation, and greater transparency than ever before. We’re in the middle of a social revolution where the strength is slowly moving away from corporations and moving into to the hands of the consumer. Where power is moving from the Core of a company to its “Edges”.

As a result, businesses are waking up (rudely in some cases) to a new way of working, a new way of organizing, and a new brand of leadership. Innovation, as a corporate discipline is no different.

Indeed, if we look at the history of Innovation over the years, there are definite trends to be seen:

We started with the lone inventor, working alone to build an advantage that no one else could copy.

If one bright person could achieve an advantage, it didn’t take rocket science to realize that maybe we could put several bright people in the same room and multiply the effect – so we built R&D labs to take advantage of that.

R&D labs worked well, so we started wondering if anyone else in the company had useful input too – so we invented the suggestion box as a corporate tool.

The advent of technology brought with it the ability to ask a broader range of employees than ever before – reaching out across business silos and traditional geographic boundaries to grab ideas wherever they lay. We started putting effective processes around the use of the technology and Idea Management came about.

Innovation Management came along when we then figured out that ideas without execution were worthless – so we changed to focus on an end to end process that drove the ideas we were collecting all the way through a formal pipeline to execution and thus started creating an engine for creating new value for corporations.

Collaborative Innovation brought in the concept that people could add value even if they didn’t have an idea themselves. We started using leading edge social technologies to allow people to work together on building ideas together and driving new levels of value creation.

Open Innovation brought in the idea that the best ideas didn’t necessarily (and probably didn’t) reside solely within the corporate four walls.  So we started to look at sourcing ideas from anywhere and everywhere outside of our  own organizations.

We then reevaluated the innovation process – realizing what was really at the heart of our activities was a robust problem solving process and so collaborative problem solving became the big focus.

When we started considering Innovation as a problem solving process we also then realized that the applicability of what we were doing became broader – we could now push a flow of new ideas across the entire enterprise, building a cultural shift of not just reacting to, but actively driving massive continuous change at all times – We created Enterprise-wide Social Innovation.

So, what’s the next step I hear you ask? For me – it’s realizing that maybe even problems aren’t the right focus – that maybe, just maybe, we need to embrace the larger social revolution and realize that we’re on the brink of a new future for business as a whole.

That future sees companies using Innovation as the gateway drug on their route to incorporating broad level social feedback and input across every aspect of the enterprise.

That future sees us bringing in and co-creating with the masses to create the ultimate engagement model with would-be customers – that of a conspirator or co-owner in the very business they helped to create.

Maybe then, it’s not Innovation that should be Open – but rather Business as a whole.

If  we just follow the trends from the timeline above, we see that there has always been value in building our companies outwards. That there has always been value in continuously increasing the number of people in “the room”, in increasing the transparency of the organization, in pulling the outside in, and ultimately in the engaging, at scale, the broader world around us.

That the leaders amongst us are those who are continuously exploring the boundaries of their companies and learning how to embrace the fringes and edges to drive value at the core.  

Could this be the Open Business revolution at last?

I look forward to reading your thoughts 🙂

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The 4 Laws of Enduring Innovation Success

7 04 2010

[tweetmeme]Always an avid reader of the Financial Times, (one of the few decent news sources in an otherwise barren information landscape here in the US)  I came across a great commentary/review by the FT’s always fabulous Lucy Kellaway on the “Money-Honey’s” (CNBC’s Maria Bartiromo) recent book “The Ten Laws of Enduring Success”.

Lucy does amusingly short work of debunking the 10 laws that Maria came up with, and proposes a few laws of her own instead.

Lucy’s Laws were so much better formulated (in my opinion) that it got me thinking about the “Laws” of successful Innovation programs – not least of which because I think the first couple would be the same as the ones Lucy came up with.

So, here are my 4 Laws of Enduring Innovation Success:

1) Be Lucky – no matter how many different ways you squeeze it, Innovation is about luck.With your typical long term program “failing” 75% of the time, there can be no doubt that it takes a certain amount of luck to be successful – especially over the longer term.

You are in essence, shooting into the dark with most innovation programs – trying products and processes that haven’t been tried before in your company, your industry, or sometimes even the world.

That’s not to say you can’t improve your chances of getting lucky though. Unlike with the Las Vegas casinos, no one will kick you out of the game for learning the innovation equivalent of card counting techniques. Indeed, in this game, cheating of any form is encouraged; and banding together in casino-busting style innovation teams with other individuals and companies is heavily rewarded.

By setting up and executing robust innovation strategies and processes you are in essence increasing the predictability of the Lucky Breaks you get – And in Innovation, Luckier is most definitely Better.

2)  Be Ambitious – There’s an old saying: “Fortune Favors the Brave” – and nowhere else is that truer than in the Innovation game. To score big, you have to aim big.  If you only look for incremental ideas, then that’s all you’ll get.

During my time at Imaginatik, we used to make the bold claim of being able to consistently achieve “a 10x ROI on your investment”.  How did we make sure that happened? By making sure that the problems being targeted by the client’s innovation strategy were big enough to achieve at least that. And you know what? It worked.

3)  Stay Focused – Running an Innovation program at a big company is kind of like a subscription to a “Shiny-New-Toy-Of-The-Month” Club.  It’s easy to get distracted by the current toy sent to you. It’s easy to forget to go to the mailbox for the following month’s toy because you’re having too much fun with this month’s toy still. And after a while, it’s easy to forget the reason you shelled out so much money to get the subscription in the first place.

To that end, maintaining a laser-like focus on what you’re trying to achieve is imperative for an innovation program.  Your Innovation strategy needs to be revisited constantly and attacked with the same brutality for embracing change as you’re demanding from the organization with the innovations that you are introducing.  Your strategy needs to be a fluid structure with one constant– “How can I best drive significant business results and organic growth for my organization?” – and you should make sure that your processes and actions are targeted at achieving that goal.

4)  Embrace Everyone – not in a “creepy guy who keeps looking at me funny” way – but rather in a “let’s talk to, and get input from, as many different people as possible” in your quest to solve your corporations problems.

Innovation, more so than any other business discipline is leading the way in the upcoming socialized business revolution. That revolution will herald a new era where a company’s potential knowledge-base of solutions is no longer limited to the company walls, nor even close collaborators, but will instead embrace a global audience of potential participants.

To do this, you’ll need to begin to develop new skill sets that will involve learning how to identify which communities of people provide you with specific types of input; learning to set up and drive Social Teams to turn subsets of those communities into useable and active groups that will help you achieve your goals; and learning how to make those groups self sustainable so as to make sure they’re constantly available to you as a resource.

That’s it – 4 simple laws for ensuring that you not only become successful, but also stay successful. Keep these 4 on a post-it on your desk, on a poster on your wall, or as the screensaver on your laptop – whatever works for you – just do them!

Do you have any other Laws to Enduring Innovation Success?[tweetmeme]






You – Yeah you – you gonna help me or what?

15 08 2008

It’s interesting how companies nowadays have taken to Open Innovation nowadays. Even more interesting is the reckless abandon with which they seem to implementing it without real thought as to why people would want to take part in their programs to help them. 

I mean – why, for the most part, should people outside your company bother to help you solve your problems? What’s in it for them?  Sure you’ll get some replies from fanatics in your user base because that’s just what they do – but very few companies are like Apple who have legions of fanatics ready to help at a moment’s notice (be honest with yourselves – no matter how good your services are, and how useful your product is to your end users – how many people are seriously enthusiastic out there about what you do? Especially if you’re not a consumer products company). 

So many companies fail to take into account that people outside your company need to be motivated to take part in any kind of idea/knowledge sharing process.  People will take part only if a) it’s easy to do so and b) they are motivated to do so by either social/monetary reasons.  Before you go out to people outside your company – make sure you put some thought into understanding the value proposition you’re putting out to people – what are you giving THEM in exchange for their ideas? If the answer is “not much” don’t be surprised when that’s also what you get – “not much”. 








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