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[Date Added :
03/05/2010
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Stefan Lindegaard, author of the new book The Open Innovation Revolution, believes that only about 10% of all companies are adept enough at open innovation to get significant benefits. And, another 30% have seen the light and are scrambling to make open innovation work and provide results that are worth the effort. He calls them contenders.
The other 60% are pretenders - companies that don't really know what open innovation is and why or how it could be relevant for them. Some might figure out how to follow the leaders one day, but today they're mostly going through the motions.
When it comes to open innovation, Lindegaard says that Procter & Gamble is the undisputed champion. The company's well-documented efforts began in 2000 with a Web site called "Connect & Develop." It was designed as a two-way street, accessing externally developed intellectual capital in its own markets, while sharing its internally developed assets and know-how with others.
However, Connect & Develop is about much more than just technology transfer. It encompasses everything from trademarks to packaging, marketing models to engineering, and business services to design. This approach has already resulted in more than 1,000 active agreements with external partners.
Lindegaard believes that Intuit and General Mills are champions in the making. The reason he likes Intuit is its Entrepreneur Day, first held in October 2009 for 40 selected start-ups. It exemplifies a great display of setting clear goals, establishing a filter process, and showing strong commitment to creating new partnerships. All are important aspects for open innovation.
According to Lindegaard, at a first glance the portal for General Mills Worldwide Innovation Network (G-WIN) might be mistaken for other open innovation portals that are popping up right now - where hosts seek new business-boosting ideas and technologies.
However, General Mills is making the linkage between outside and inside resources as smooth as possible. One of its tools for this is an "external speed team," a cross-functional group that meets biweekly to discuss projects, share insights, and make sure the external partners are talking with the right people.
In addition, General Mills recently launched an innovation entrepreneur program. These individuals have a number of responsibilities, including ensuring that outside ideas make their way into the company's innovation pipeline.
These efforts by General Mills are highly relevant because they position the company to become a preferred partner, which means getting the first peek at new technologies and ideas and, in turn, a competitive edge.
While Lindegaard cites P&G, Intuit and General Mills as exemplars, he notes that other companies are failing to implement true open innovation. He indicates that Campbell Soup falls into this category. The company started an open innovation program through its "Ideas for Innovation" portal which was launched in 2009.
However, Lindegaard believes that it is more like a gimmick than a serious attempt to engage customers and business partners. He notes that like many other companies, Campbell Soup's attempt is:
- too vague and unfocused.
- should be turning innovators on, not away (it takes Campbell 3-6 months to respond to a suggestion).
- the whole thing reads like an ego trip (the focus is on Campbell Soup, not how collaboration can benefit its would-be partners).
In the company's defense, Lindegaard reports that Campbell Soup considers the site to be only an initial step. He adds that management has been pleased that it has received over 5,000 submissions, but acknowledges that the effort has not been perfect and Campbell is working on future enhancements to the site.
According to Lindegaard, here are issues that you need to deal with early in the open innovation process.
- open innovation works only if it aligns with the overall corporate strategy. Many companies simply do not have an innovation strategy.
- The next step is defining what open innovation is. Organizations need to know what they're after.
- A paradigm shift like this requires that employees change their mindset and obtain new skills. The key things here are the ability to view innovation in more holistic terms and to become better networkers.
(extract from "Open Innovation's Champs and Also-Rans," by Stefan Lindegaard, Bloomberg BusinessWeek, November 30, 2009. Copyright 2010 Bloomberg L.P.) |
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