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“Beyond Open Innovation: Leveraging Social Capital”. Transforming Lives & Services - Challenges of Living in a Digital World. Mark Dames - BT Design David Robson - Scottish Enterprise Madeline Smith - Scottish Enterprise Tom Tumilty - Scottish Government. Contents. Open innovation
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“Beyond Open Innovation: Leveraging Social Capital” Transforming Lives & Services - Challenges of Living in a Digital World Mark Dames - BT DesignDavid Robson - Scottish EnterpriseMadeline Smith - Scottish EnterpriseTom Tumilty - Scottish Government
Contents Open innovation The role of technology in enabling open innovation Organising models for open innovation Policy implications for government, business & society Conclusions
Collaborate to Innovate “. . . innovation is no longer individuals toiling in a laboratory, coming up with some great invention. It’s not an individual … … It’s individuals... It’s multidisciplinary… It’s global… It’s collaborative.” Sam Palmisano, Chairman and CEO, IBM
Technology Tools Social bookmarks combine individual bookmarks, making it possible to identify common interests that drive recommendations or relevancy. Examples: Yahoo/del.icio.us, digg, connotea.org, BlinkList, Outfoxed. Social tagging (folksonomies) lets users add metadata or labels to create more useful and natural classification schemes. Examples: Flickr, LibraryThing, del.icio.us, Last.fm. Content rating and reputation management lets participants rate other participants or content. Examples: Amazon, eBay, Epinions, Slashdot. Likes/dislikes (taste sharing) aggregate opinions that can also drive recommendations, relevancy and quality. Examples: StumbleUpon and Last.fm. Prediction markets reward individuals who bet correctly on future outcomes. Examples: consensuspoint, longbets. Conversational interactions using blogs and wikis to encourage contribution, unplanned contact, feedback and continuous refinement.
Evolving Organisations – Building Capacity • Less familiar, less comfortable • Strategic conversation, self-organising • Knowledge-creation, dilemmas, openness • Organic, fluid systems, porous boundaries • Value webs, relationship oriented Uncertainty Complexity “Webs” Command & ControlHierarchy Empowered Networks “Citadels” • Familiar and comfortable • Experts, right answers, closure • Clarity of structures/roles • Advocacy; directives; power; control • Value chains; asset-oriented Relative Certainty Predictability Reference: Global Business Network
The Policy Challenge Realising new value to customers and citizens – e.g. Emerging technical and social trends Effective support to ‘new’ innovation communities e.g. Policy ‘Gap’ Peer 2 Peer Del.icio.us You– tube • What are effective business models? • How to interface with networks and communities? • How to monetise open relationships? • How to harvest commercial value? • How to harvest social value? • What new skills are needed? ‘excluded’ groups . . . more opportunities Innovation Lead users Wiki- nomics ‘Lead users’ Innovation . . . better products Open Innov’n User content Patients groups . . . better heath Innovation ‘Long-tail’ Web 2.0 SemanticWeb . . . better information Peer 2 Peer groups Innovation Non R&D Innov’n Web Com’ities Un-used Talents . . . better communities Innovation Social entrep’eurs Democ- ratisation Hidden Innov’n ‘Eco-concerned’ Innovation . . . better future Crowd- sourcing Folk- sonomies
Conclusions • Technical skills are a given. The challenge is to nurture behaviours and business models that enable collective innovation. - focus on cognitive barriers not just intellectual. • Innovation and growth require an ability to collaborate that must be deeply embedded in the mindset, skillset and toolset of every organisation. - firms that rise to the challenge will thrive. Those that ignore it, or fail to grasp its implications, risk marginalisation and eventual extinction. • Accelerated by globalisation, innovation is increasingly an open, collaborative process involving users, suppliers & organisations of all size. - business and government need to develop new open innovation business models that leverage emerging social and technological trends to harvest the resources of competitors, suppliers, lead users, customers and citizens.
Thank You mark.dames@bt.com