Making Open Innovation a Reality Some Practical Approaches and Experiences

1. Making Open Innovation a Reality Some Practical Approaches and Experiences Mike Hield Chief Executive IXC UK Ltd

2. Connecting Innovation For Business Growth Some Challenges of OI The IXC approach Use of Intermediaries Some practical examples Improving Serendipity

3. Helping companies to • Decimate Collaboration times. • Accelerate innovation and product development. • Securely access external IP and find better ways to exploit their own. • Connect internal programs to external networks, whilst preserving anonymity. Knowledge Dating Agency Effective Serendipity

4. Barriers to Innovation Make Time for Serendipity

5. Innovation ? Considered imperative for competitive advantage 38% of UK enterprises engaged in it A contact sport in which collaboration is essential We don’t know what we don’t know “We will fight our battles not on the low road to commoditization, but on the high road of innovation.” Howard Stringer, Chairman and CEO, Sony “You can only win the ‘war’ with ideas, not with spending cuts.” Klaus Kleinfeld, President and CEO, Siemens AG4 Essential Serendipity

6. Innovation? • Connecting ideas with the right technologies and capabilities. Invention + Enterprise = Innovation

7. Innovation?The game has changed • Connecting ideas with the right technologies and capabilities. Invention + Collaboration = Innovation Thinking in Other People’s Boxes

8. The World is our Lab The Lab is our World

10. Open Innovation Constraints • Concerns about the protection of IP • Is it: • protected and at what cost? • worthwhile protecting? When do you know this? • adequately protectable? • Fear of IP Contamination • Difficulty in identifying suitable partners/networks • Lack of trust between external parties • Problems in managing relationships between potentially disparate cultures/scale of operation/clock-speed • Need to find appropriate doors and help in Interpretation .

11. The trusted Go-Between The InnovationXchange IXC UK Providing confidential links to extensive external networks around the globe Connecting the brightest and best Embedded Serendipity

12. The Prize • Something special happens when intermediaries are embedded: • Creativity - the spark of innovation - and a sharper edge to internal processes • Smart observation by, and a technical sounding board with, a commercially astute highly motivated go-between • Better Collaboration Faster

13. Business information

15. Important Features • International Network – Local Access • Embedded Go-Between • Confidentiality & Ethics • Commercial Neutrality • Proven Process • Potential for Client Anonymity Practical Serendipity

16. OI In Practice • £60m per annum new collaboration for £6k advice – accelerating product launch by 18 months – nutraceutical development • New product sector created from “unattainable” packaging technology solution – food-pharma link • Rail/Aerospace technology transferred into medical devices creating new products and re-engineering existing • “Mining industry” solution adapted to food manufacturing applications • Clever corrosion resistance ideas harnessed by oil/gas industry • Pharma Manufacturing technologies re-applied in food processing • Archaeology department linked to automotive manufacturer • “Old” Aerospace technology solves Railway problems • Healthcare trust finds new ways to reduce costs and “learn”. 4x impact of other innovation initiatives

17. OI Key Lessons OI is an innovation itself Role of effective and Trusted intermediaries Appropriate form of IP protection Realism in expectations of fortune generation Importance of SME sector – how to be open Speed to Market

18. OI Key Lessons OI is an innovation itself Role of effective and Trusted intermediaries Appropriate form of IP protection Realism in expectations of fortune generation Importance of SME sector – how to be open Speed to Money Create appropriate OI culture, skills, procedures and motivation

19. Intermediary Sources • Specialist Innovation consultants/brokers/networks • Virtual networks and data-bases/exchanges • Technical research associations and providers • University commercial exploitation managers • General management consultants • Incubator and science park managers • Business service providers – accountants, lawyers, etc. • Marketing services providers • Business Links - MAS • Old friends and friends-of-friends.

20. Problems with Intermediary Services Innovation is a contact sport Virtual networks – generally in ‘public domain’ Play in the right leagues – comfort/trust Who generates the creativity? How far can they really be trusted? Blend of technology understanding and business connections – how current is expertise?

21. Keys to Success What are your real expectations? Ensure Focus, Fit and Experience How do you measure success/failure? Use a proven process/network What happens when trust/confidentiality is challenged? Intermediation is only part of the solution Talk to me !

22. A Final Caution Why Innovate? “Those that live by the sword …. will be shot by those that don’t!” Gary Hamel Harness Serendipity