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Technologietransfer und Open Innovation, Unterstützende Portale ( nicht nur ) für TT Büros

Saarbrucken, 06.02.2014. Technologietransfer und Open Innovation, Unterstützende Portale ( nicht nur ) für TT Büros INTRASOFT Intl S.A. Research & Innovation Unit Dr. Raimund Bröchler. 2. Content. INTRASOFT International S.A. at a glance Introduction to Innovation

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Technologietransfer und Open Innovation, Unterstützende Portale ( nicht nur ) für TT Büros

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  1. Saarbrucken, 06.02.2014 Technologietransfer und Open Innovation, UnterstützendePortale (nichtnur) für TT Büros INTRASOFT Intl S.A. Research & Innovation Unit Dr. Raimund Bröchler 2

  2. Content • INTRASOFT International S.A. at a glance • Introduction to Innovation • Open Innovation for SMEs and Universities • What? • Why? • How? • Methods • Open Innovation Service Segmentation • The future of Open Innovation 3

  3. INTRASOFT: WHO WE ARE • Leading European company in IT services since 1996. • Key player in E.U. Institutions and Agencies for more than 15 years. • Major multinational IT solutions integrator, serving governments, large public institutions and private enterprises in more than 70 countries around the globe. • Headquarters in Luxemburg, established in 12 countries. • About 1.500 professionals from 20 different nationalities. 4

  4. WHAT WE DO • Deliver seamless business systems through software development and IT systems integration. • Offer vertical IT solutions in specific business domains and industries. • Offer a wide portfolio of managed IT services, infrastructure and application outsourcing. • Provide highly-skilled professionals through consulting and IT capacity services. 5

  5. WHAT WE DO • Highly-skilled personnel • 1.500 professionals • 20 nationalities • Distributed around the globe 6

  6. GEOGRAPHICAL FOOTPRINT IN EUROPE Office Location Athens / Bucharest / Brussels /Luxembourg / Sofia / Copenhaguen /Nicosie / Amman / Riyadh / Manilla Activity Lulea Malta Minsk Moscow Nicosia Oslo Podgorica Riga Scopje Tirana Tbilisi Vilnius Warsaw Zagreb Alicante Ankara Apeldoom Astana Belgrade Bern Budapest Dublin The Hague Helsinki Kiev Kishinev Lisboa Ljubljana London 7

  7. GLOBAL PRESENCE Activity Executing over 100 Projects in more than 68 countries 8

  8. SUCCESSES & HIGHLIGHTS • Two massive applicationrollouts in 5.000 customs offices delivered successfully in 2004 & 2010, under a strict timeframe & 5 new rollouts in June 2013. • Managed IT services (desktop, network and data-center support) for 40.000 users in various European Institutions, using cutting edge tools and methodologies. • Mission-critical systems for the European Medicines Agency • Over 100 critical applications for the European Trademarks & Designs Registration Office (OHIM). 9

  9. SUCCESSES & HIGHLIGHTS • The Risk & Compliance platform (ESKORT) has been installedin 25 countries on 5 continents. • One of the leading providers worldwide of Tax Compliance Solutions for Government Revenue Agencies according to Gartner. • Software labs and development centers in 5 countries. • INTRASOFT International is included in the first 500 companies worldwide that hold an ISO 20000 certificate. 10

  10. Innovation is… How would you describe innovation?

  11. Innovation is… • “The successful exploitation of new ideas” (UK Department of Trade and Industry. 2004) • “A tool by which entrepreneurs exploit change as an opportunity for a different business or service.” (Drucker, P. 1985) • “Not just coming up with good ideas but the process of growing them into practical use. ” • “ Not the same as invention. Invention is turning cash into ideas and innovation is turning ideas into cash.” (Hacklin and Wallin, 2012) • “A new good, new quality of a good, new method of production, entering a new market, finding a new source of supply, a new organization of industry or a new combination of recourses.” (Schumpeter) • Needs to be actionableto create sustainable value. • Innovation is not a linear process but it is dynamic and constantly needs to be evaluated and changed. 12

  12. Question What is the difference between invention and innovation according to you?

  13. Innovation versus invention Invention is creating ideas out of money while innovation is creating money out of ideas. Example: Thomas Edison and the light bulb. (Bessant, J. & Tidd, J., 2009)

  14. Open Innovation is… How would you describe Open Innovation?

  15. Open Innovation is… • Astrategic tool to explore new growth opportunities at lower risk1 • A managerial answer to globalisation.2 • More about increasing R&D options than replacing existing ones. External technological collaboration is complementary to internal R&D investments.1 • Open technology sourcing offers higher flexibility and responsiveness without necessarily incurring huge costs1 • A mix of approaches: technologies purchased from other companies, acquired through licenses, partnerships and alliances or developed internally1 • Large companies are four times more likely to collaborate for innovation activities than SMEs1 • There are 4 types of openness of innovation: revealing, selling (from inside the firm to outside), sourcing and acquiring(from outside the firm to inside). Example: P&G is developing 50% of innovations with external partners3 1Open Innovation in Global Networks, OECD 2008 2Living Labs and Open Innovation, E. Almirrall, eJOV-Volume 10 3OpenInnovation.de/523-Procter-Gamble-P-G 16

  16. One picture says more than... Source: University o f Cambridge, Institute for Manufacturing, 2009 PS: Open Innovation does NOT mean free like i.e. in open source

  17. Open Innovation is…? Open Innovation can be best characterized as a …1 OI is rapidly changing and there is a growing gap between theory and practice. 1exnovate, newsletter, June 20, 2013 18

  18. Why being open? • Basically this is a synergetic way for companies to share their once guarded ideas with organizations and individuals outside the company to accelerate the innovation process*. • Open innovation allows companies to talk with other companies or customers during an earlier stage of development and to even include them in the product or service formation stage*. • This allows the companies to afford the ability of not only innovating faster but also saving resources on guesswork so that they can make the improvements that will matter most to their customers*. *www.InnovationGrow.com

  19. Why Open Innovation? Closed Innovation is focussed too much on who solves the problem rather than how the problem is solved, while OI makes use of the talent everywhere inside and outside the organization. OI makes use of the diversity these different perspectives offer. Example: Oil problem solved by concrete industry 20

  20. Why Open Innovation? • 450 articles 136 scientific journals show an intensive discussion of OI • “The ability to innovate and launch successful products is critical for competitiveness.” (Chesbrough, 2003) • “As the emphasis for many firms is on the inbound OI process, new methods have been emerged and are being tested for the acquisitions of ideas and technology” (Mortara, L. 2011) • “Current research on OI in SMEs is limited and is not revealing the creative use of OI that SMEs are implementing” (Vanhaverbeke, 2012) • 77% of the survey respondents (229 OI decision makers) believe that OI is an essential mandate and key to long-term success. (Forrester Report by InnoCentive, 2012) 21

  21. Why Open Innovation? Open Innovation is an approach for Innovation Management1. Open Innovation… • allows to acquire, integrate and process external information more efficiently and effectively. • supports organizations to overcome local search bias, acquire precise information needs and innovate more successful and cost efficiently. • creates new forms of interacting and collaborating with the external environment including potential actors (beyond suppliers, customers, universities etc.). • requires working with external parties, because not all talent and knowledge is in your company. Boundaries between firm and environment are broken down so the company can develop both its own ideas and those of external parties  more input and thus higher chance on success. 1The Market for Open Innovation, F. Piller, K. Diener, 2010 22

  22. How to apply Open Innovation? OI requires a system to formulate problems and opportunities into concrete challenges and then bring them to the right audience. OI is managing and reducing of uncertainties by accessing and transferring different types of information: • Customer and market needs: Builds on in-depth understanding of customers’ requirements, operations and systems. • Technological solutions: Solution information addresses the efficiency of the innovation process and enables product developers to engage in more directed problem-solving. Question? Which approach is more successful; Push or Pull? 1The Market for Open Innovation, F. Piller, K. Diener, 2010 23

  23. Top 5 OI companies* • GE, Philips, Lego, Unilever, General Mills • >Lego: • The household building company has a strong open innovation program, including their partnership with Cuusoo. • Cuusoo itself is a platform for open innovation and LEGO integrate this crowdsourcing platform with great success. • With the current program for the creation of a product it requires 10,000 votes. * www.InnovationGrow.com

  24. Challenge Driven Innovation? What do you think Challenge Driven Innovation is? Can you give examples? 1The Market for Open Innovation, F. Piller, K. Diener, 2010 25

  25. Challenge Driven Innovation • The company publishes a challenge that everyone can try to solve • Challenges are more concrete than ideas. • The company pays per performance rather than for trial and error, which saves money. • CDI is time saving • CDI proves that not all talent has to work for you, as long as they want to work with you. • Allows for applying solutions of other industries (i.e. cheese cutting techniques for cutting tires) • Better problem solving with the same amount of staff or less staff 1The Market for Open Innovation, F. Piller, K. Diener, 2010 26

  26. How to apply CDI? • External talent gets involved for fun, purpose or passion, so these motivations need to be addressed • CDI requires an external talent strategy to attract the right “problem solvers” • The company needs to create a “common language” between internal and external talent • The company needs to build an external “talent community” 1The Market for Open Innovation, F. Piller, K. Diener, 2010 27

  27. Innovation Contests CDI often results in Innovation Contests (IC); the generation of input for all stages of innovation process, usually done via searches for innovative approaches to a technical problem within a wide range of problem solvers Examples • EENwww.enterprise-europe-network.ec.europa.eu • NineSigmawww.ninesigma.com • InnoCentive (Eli Lilly spin-out) www.innocentive.com • I-Prize (CISCO Systems, 2 rounds, 2000 ideas collected, price: 250k$) • AUTOHARVESTwww.autoharvest.org focus on automotive and manufacturing 28 L. Mortara et al, 2011

  28. Innovation Contests • ICs are idea competitions that source and exploit technologies. • Large companies have the capacity to organise ICs independently, SMEs more often use Intermediaries like EEN, NineSigma, InnoCentive, yet2.com, etc. • ICs are need driven! This is more successful than a push approach. • ICs are not new, they are known and used since 18th century1 • Most OI services are based on online crowdsourcing. Example: www.Threadless.com 29 1von Sippel, 1988, 2005

  29. Toolkits Instruments supporting organizations by transferring information needs into new product concepts. • Mash up/ convergence/ fusion: A new combination of "resources"; connecting things from different industries into a new product. • Mind Mapping Software: A brainstorming tool that creates a digital word web. • Creative innovation sessions • Benchmarking • Innovation audit Examples: • EEN (Enterprise Europe Network) • Yet2.com www.yet2.com 30 L. Mortara et al, 2011

  30. Open Innovation Services 1 - Innovation Management Source: University o f Cambridge, Institute for Manufacturing, 2009 2 - Market Intelligence 3 - Landscape Analysis Technology Fusion 4 -Technology Scouting 5 - IPLicensing 6 - Partnership Development “7” – Technology Fusion Services? 31

  31. The driving force • SMEs participate sooner, move faster and adapt more readily to opportunities1. • Increased R&D activities of SMEs make them attractive as technology receiver and solution provider. • Being a partner of choice in your industry is increasingly important and innovation can help to achieve this 1H. Chesbrough, 2010 32

  32. OI in academia To evaluate the importance of OI for acedamia1 participant of a survey were asked to determine the importance of OI within Innovation Management. 1Dr. A. Braun, K. Hoelze, “exnovate”, June 2013 33

  33. US-EU-match - Technology Matching Supply Demand University, Federal lab, SMEs, Research Centers Technology Push Market Pull Partnerships Large Corporations “Technology Requests” “Technology Offers” US-EU-MATCH SERVICES • Business support services • How to set up a business in the US? • Commercial partners searches • Trade missions organization • Technology Partnerships • Technology Scouting • Technology brokerage • Horizontal Services • Web Site • Collaborative research projects • Prior Art 24

  34. US-EU-match - a couple of cases Solution Benefits Problem • Cleaning sponge to USA • New product introduction • Environmental focus • Reusability versus simplicity • Sponge on a roll found in Europe • Consumer samples found with two companies • Go to market time reduced • Clarified that EDTA is not banned in Europe • Identified replacements for EDTA • Avoided project and saved money and HR • costs Avoided project and saved money and HR costs • US Exporter of Dairy Products • EDTA for cleaning Production process • Possible replacement because EDTA in Europe • Research Project 25

  35. Win-win deal EEN and EU-US-match • EEN • Average Success Rate 9% (~1000 agreements per ~11.000 Technological, Business, and Research profiles ) • EU-US-MATCH • Average Success Rate 14% (32 agreements per ~ 230 profiles) • NINESIGMA (EU-US-MATCH partner) • Average Success Rate 50% 26

  36. Industry examples • Five large enterprise (17k-287k employees) Idea Contests and one OI agency were analysed from the USA, UK and France, covering ICT, Telecomm, Consumer Goods and Conglomerate. • Three examples are in-house and three by external Intermediaries, all addressed SMEs as participant targets beside start-ups and students. • Between 700 to 72,000 participants were attracted and between 72 and 3,844 ideas submitted. In three cases, 0 to 12 technologies were acquired after the second round. • IC organisers list as main target: Technologies acquired, market intelligence, technology intelligence, competitor intelligence, publicity (PR), access to people and testing opportunity. 37 L. Mortara et al, 2011, Idea Competition under scrutiny as a mechanism for acquisition

  37. IC Study Results Deals 1 1 1 1 0 5 12 38 L. Mortara et al, 2011

  38. Facilitator: InnoCentive Supports Challenge Driven Innovation and bridges the gap between ideas and solutions to drive measureable results • Registered solvers:~250,000 from nearly 200 countries (stable since 2010) • Solver reach: More than 12 million • Challenges posted: More than 1,420 • Project rooms: 409,000 • Solution submissions: 30,000 (4.7% awarded) • Award dollars posted: $35+ million • Range of awards: $500 to $1 million based on the complexity of the problem • Total awards given: 1,140+ • Average success rate for seekers: 50%+ InnoCentive, April 2012 39

  39. Facilitator: NineSigma • A leading innovation partner which helps companies across industry sectors to engage with the global innovation community to find knowledge and solutions that accelerate the time to market. • 500+ clients on projects including knowledge searches, technology landscaping and enterprise-wide open innovation programs. • More than 2,200 open innovation projects since inception in 2000. • Distributed innovation requests to more than 2 million solution providers globally. • Received 35,000+ innovation proposals from solution providers in 135 countries. • 90% identifying viable solutions. • NineSigma, May 2012 40

  40. Conclusions • IC is a great tool for SMEs if possible (dis)advantages are known from the start. • IC sources technologies and ideas at several levels of maturity to be used by current and new businesses. • The efficiency of new inputs compared to the number of ideas posted is sometimes questionable. • Engagement of intermediaries helps SMEs to outsource work to experienced players, but solutions may be limited by the imagination of the intermediary. • ICs improve the pace and smoothness of the acquisition process significantly and reduce part of the acquisition risk i.e. lawsuits. • To keep OI momentum going, rapidly proving value through quick (i.e. 6 month) trials/pilots is essential. • The role beyond acquisition is often forgotten but can be successfully used, especially by large companies. • Costs benefit calculation cannot be easily given, since secondary outcomes can outnumber original targets. 41

  41. What will the future bring? ...stay interested! 42

  42. What will future OI research bring? ...stay interested! 43

  43. THANK YOU FOR YOUR ATTENTION

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