Open Collaboration: The Power of “We”

1. Open Collaboration: The Power of “We” Tamra Hall, Ph.D. Vice President, Executive Partner Gartner Executive Programs

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6. We Know Innovation is Important "The most successful organizations co-create products and services with customers, and integrate customers into core processes."IBM CEO Survey "We need diversity of thought in the world to face the new challenges,"Tim Berners-Lee "When the rate of change outside an organization is greater than the change inside, the end is near”Jack Welch 6

7. Open Innovation How do we harness the power of the crowd? 7

8. The Crowd Wants to Contribute “People are inherently creative and want to engage with organizations; they don’t want to have products and processes imposed on them.” Venkat Ramaswamy & Fancis Gouillart HBR, October 2010 8

9. Build an Innovation Network Focus Areas Resources Employees Business Objectives Innovation Programs Customers Boundary Conditions Partners/Supplies 1 2 Market/Trend Watchers & Experts Strategic Platforms 3 Etc. Marketplaces Wicked Problems Tech/Business Media, Analytics 9

10. The Targets of Innovation Are Expanding … …. and success is dependent on explicit goals Products & Services Greater customer value Operations New ways of working Management Oversight & decision making structures & competencies 10

11. Open Innovation Focus Business Focus BusinessModelInnovation Yes – engage key participants and mine the social Web. Avoid – not for the average organization Avoid – not for novices. Products,Services,& Markets Yes – include all targets, & participants. Mine the social Web. Yes – start with one target. Yes – include multiple targets. Avoid – will draw little interest or results Avoid – will draw little interest or results Yes – if potential savings are high; engage experts and key partners. ProcessInnovation Novice Competent Expert Expertise in Open Innovation 11

12. Innovation Networks can Contribute to Every Stage of an Enterprise's Innovation Process 12

13. Know the Sources of Innovation Global U.S. only Economist Intelligence Unit and Grant Thornton survey of Business Exec, June 2010 "Innovation: The Key to Future Success?" Global results shown here. 13

14. Engaging Customers "You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new.“ Steve Jobs 14

15. Lead Customers 15

16. Business simulations Exercises to envision the "company of the future" Focus groups with lead customers Expert conferences or networking events focused on future trends Engaging Business Unit Leaders 16

17. Building the Co-Creative Enterprise “Stakeholders won’t wholeheartedly participate in co-creation unless it produces value for them” “Generating new experiences for end customers often requires designing better experiences for internal players” Venkat Ramaswamy & Fancis Gouillart HBR, October 2010 17

18. Open Innovation Enabled by Social Apps Scope of Participation Social Applications • Idea Generation • Crowdsourcing • Idea Markets • Prediction Markets • Challenge Events • Co-Design • Co-Development • Open Innovation Networks • … more Develop Evaluate/Select(comment, rank & vote) Contribute Ideas Internal Experts External Participants 18

19. Direct and compelling Competitive commercial organizations Monopoly organizations Impetus for Change Governments IT Leadership challenge:To initiate and lead innovative change in an unreceptive environment Limited or diffused Risk averse Risk taking Attitude to Risk In the "Landscape" of Innovation,Governments are not Well-placed Some Flowers Bloom Fertile Fields for Innovation Barren Ground for Innovation Many Seedlings 19

20. Usual Range for Government IT Organizations Does your Innovation Approach Matchthe IT Organization's Positioning? Business: Leader/Risk Taker/Change The Butler The Entrepreneur Serve the business Co-own the future "IT provides support services but is not strategically important" "IT is a vital component of our business model" Expected IT Role: Tactical/Utility Expected IT Role: Strategic/Transform The Team Player The Grinder Do as the business says Formally collaborate "We depend on IT systems in ourbusiness, so we giveit as much time aswe can afford" "IT is a cost of doing business" Business: Follower/Risk-Averse/Mature 20

21. Open Innovation Defined by Cultural Shift 21

22. Ability to Execute is Critical to Maintain Participation • Management • Key Managers capable of launching new business endeavors • Strong innovation portfolio governance • Market Awareness • Real-time market awareness • Active ability to sense, analyze and respond to trends Organizational Integration Processes • High performing workplace • High project execution capabilities • Mass collaboration and social networking literacy • Rapid prototyping and experimentation to support fail or succeed fast 22

23. Leadership creates clear imperatives for the need to change; Focus on all dimensions of innovation; Cultivator: Build out/on ideas; Evaluate both evolution ideas and revolution ideas; Dot on the horizon: Constantly on the lookout for changes. Leadership fails to set the stage for the need to change; Limit efforts to R&D (new Products & Services); Gunslinger: settle on the first good idea; Neglect new opportunities by selecting evolution ideas only; Tunnel vision: Ignore internal or external changes Ideation: Best Practices and Pitfalls 23

24. Innovation Maturity Curve 24

25. How is NASA Doing? What’s Next? 25