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Presentatie Jan Bosch over innovatie tijdens #studytripus
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Introducing Open Innovation at Intuit: Harnessing the Power of the Crowd
Jan Bosch, VP Open Innovation
Intuit Proprietary & Confidential
Overview
• Introducing
• How Intuit grows
• Internal innovation
• Open innovation
• Lessons learned
2
Intuit Proprietary & Confidential
From Research to Industry
Head of research lab (Nokia, Finland)
Industrial research
Engineering Process (Intuit, USA)
Industrial development
Professor of software engineering (RuG, Netherlands) (BIT, Sweden)
Academia (+ consulting)
Open Innovation (Intuit, USA)
Innovation
Intuit Proprietary & Confidential
A Leading Provider of Business and Financial Management Solutions
Intuit at a Glance
• Founded in 1983
• FY 2009 revenue of $3.1 billion
• Traded on the Nasdaq: INTU
• Employs more than 7,800 people
• Offices across the U.S., Canada, India and U.K.
• Nearly 50 million people use our QuickBooks, Payroll, Payments, TurboTax, financial institution solutions and Quicken products and services
Intuit Proprietary & Confidential
Revolutionizing People’s Lives… Solving Their Important Problems…
Creating Innovative Products and Services
Intuit Proprietary & Confidential
Our Ecosystem: Millions of Customers and Developers
250,000 Accountants
1,600 Financial Institutions
serving
9 million End Customers
7 million Small Business
Users
12 million Consumer
Quicken Users
75,000 Developers
19 million TurboTax
Users
Intuit Proprietary & Confidential
Markets and Opportunities
7
Small Business: QuickBooks
Plus Payroll & Payments
Tax Health Care
Global
Financial Institutions
Intuit Proprietary & Confidential
Fortune Top 100 Places to Work
Intuit Proprietary & Confidential
Most Admired: Software Industry
2004 2005 2006 2007 2008 2009 2010
7 Years in a row
Intuit Proprietary & Confidential
Game Plan to Win: Connected Services Intuit’s focus is…
And capitalizing on three significant market trends…
By creating and acquiring…
Intuit Proprietary & Confidential
Overview
• Introducing
• How Intuit grows
• Internal innovation
• Open innovation
• Lessons learned
11
Intuit Proprietary & Confidential
Intuit’s 3-Legged Growth
12
Mergers & Acquisitions
Internal innovation
Open Innovation
Intuit Proprietary & Confidential Page 13
Internal Innovation
New organic source revenue
(runs scored)
Quantity of ideas
(at bats)
Quality of ideas
(right pitch)
Execution against ideas
(mechanics)
ƒ
New organic revenues…
… which are outputs from how we innovate
1
… are driven by 3 factors…
Ideas
Approach
People
Priorities
ƒ
Intuit Proprietary & Confidential Page 14
The Intuit innovation system
Intuit Proprietary & Confidential
Internal Innovation Mechanisms
• Unstructured time • Idea jams • Tool: Brainstorm • Intuit Labs • Horizon planning
15
Intuit Proprietary & Confidential Page 16
Unstructured Time
• Block and protect 10% of employees time – Recognize in project schedules – Aggregate into bigger blocks – Establish a “no meeting day”
• Innovation events every 4-6 months – Focused time and competition drive energy & results – VP (and up) engagement…and customers are there, too – Tracks for ‘prior work,’ ‘same day sprint,’ and ‘business challenges’
• Recognition, rewards and celebration of UT successes – For teams (best award = more time) – And for managers who enable teams – Start with organizations with passion and drive…create & celebrate success
• Fun tools and clear, lightweight processes – Idea visibility…enabling collaboration to improve ideas (Brainstorm) – Matchmaking to get x-functional teams to critical mass (Brainstorm) – Clear the obstacles to getting working code out fast (IntuitLabs.com) – Review groups and mentors in each business
10% time
Intuit Proprietary & Confidential
• 35% engagement across Intuit; 50% at some customers
• 6x new releases with 60% reduction in TTM
– Viewmypaycheck: idea to in-market release in 3 months, it now has 90,000 active users and a 4.5 rating
• Fits naturally into existing workflows, e.g. email, and helps connect people with relevant skills and interests
• Recommended as the platform of choice by Bain & Co, etc.
– Innovation tournament at a 45,000 employee services company and saw a 5x increase in participation from the previous year
17
Intuit Proprietary & Confidential Page 18
IntuitLabs.com…removing obstacles
• Step-by-step release checklist
• Covers IP, security, privacy, legal, branding, hosting, etc.
Intuit Proprietary & Confidential
Horizon planning
Page 19
Breakdown of our businesses & investment into 3 stages
Extend & Defend Core Businesses
Build Emerging Businesses
Create Viable Options
Intuit Proprietary & Confidential
Overview
• Introducing
• How Intuit grows
• Internal innovation
• Open innovation
• Lessons learned
20
Intuit Proprietary & Confidential
Intuit’s Engagement with the Outside • What Intuit has to offer – Brand – Customer base – Products capable of acting as platforms for innovation – Developer ecosystem – Technology and market due diligence – Marketing and distribution channels – Infrastructure – Equity
• What Intuit may receive – The usual – M&A opportunities – Access to complimentary technologies, products, services, business models
and channels – resources to support Intuit-funded development – new applications and increased demand for Intuit products & services – favorable terms on future development and commercialization agreements – options to increase ownership in future
21
Intuit Proprietary & Confidential
Phase 1: Establish Current State
22
Open innovation A huge opportunity that we are exploiting to less than 30% of its potential; successes exist, though
Structure of study 28 innovation leaders across the company interviewed More than 100 years of Intuit experience
Proposed key initiatives • Awareness: Open Innovation event • Desire: quantitative Open Innovation objectives for BUs • Capability: focus OI efforts on academia, VCs/startups, suppliers and crowdsourcing
Several key inhibitors need to be addressed • Mindset and Culture: Not Invented Here syndrome • Organizational: Lack of executive attention; Intuit is insulated and inward focused • Skills: Traditional open innovation core competencies eroding
Intuit Proprietary & Confidential
For Each “Dimension” – Self Assessment*
23
0%
10%
20%
30%
40%
50%
60%
70%
* Average of self assessment by innovation leaders on how effective their BU is in exploiting each “dimension” of Open Innovation on scale from 1-5 (5 being best), converted to percentage points.
Several interviewees included CDI in their assessment of Open Innovation with the
customer. The author respectfully disagrees with that assessment
Intuit Proprietary & Confidential
Proposed Key Initiatives
24
Institutionalize Open Innovation • Attention in Operating reviews • Celebrate successes
Build Awareness • Organize Open Innovation event (external and internal successes)
Create Desire • Quantitative (metrics-based) Open Innovation objectives for BUs • Long term BU scenario planning workshops with external partners
Develop Knowledge and Capability • Focus Open Innovation efforts on:
• Academic partners – to break myopia • VCs & startups – for non-M&A partnerships • Suppliers – to drive growth by reducing Intuit investment in context
• Adopt crowdsourcing • For ideas and challenges: external Brainstorm
Intuit Proprietary & Confidential
Phase 2: Undirected Open Innovation
• Academic partnerships: MIT Media Lab (Center for Future Banking) – Future of Payments workshop – Future of Personal Financial Management workshop – Broad attendance of sponsor weeks – Individual meetings between innovation leaders and research
groups – Graduate students as summer interns at Intuit
Results: Great at ideation – Intuit staff came away feeling energized and full
of new ideas Technology transfer from Media Lab to Intuit Summer intern initiated 3 valuable innovations at BU
25
Stanford Technology Venture Partners - Global Innovation Tournament
Intuit Proprietary & Confidential
Entrepreneur Day #2 What: • Half day session with selected entrepreneurs and startup companies
to explore partnerships Why: • Find new business opportunities • Source leading edge technologies How • Broad call for proposals to several communities • Involve BUs to select ~60 companies to attend • Give each company speed dates and demo opportunity • Provide feedback within 48 hours Results • Business partnerships in place, several trials ongoing now • Entrepreneur day #1: 10% success rate; #2: > 25% • Very positive feedback from participating companies • Great exposure in (social) media
26
Intuit Proprietary & Confidential 27 www.entrepreneur-day.com
Intuit Proprietary & Confidential
Strategic Supplier Innovation Contest
What: • Contest for strategic suppliers to submit innovative proposals for
collaborative growth efforts Why: • Drive growth with already established partners • Offer venue for strategic suppliers to differentiate and engage
beyond current relationship How • Announced at Strategic Supplier Summit • Involve BUs to evaluate 60+ proposals from 30 suppliers (alliances) • Selected a winner, two runner-ups and 38 ideas were followed up on Results • Around 5 of the ideas taken forward by the BUs with strategic
suppliers • Very positive feedback from participating companies
28
Intuit Proprietary & Confidential
Phase 3: Directed Open Innovation
Transition to: • Asking for technologies and solutions that we want to source from the outside • Continuous interaction with communities and partners around innovation (instead of periodic events)
• Specifically: Crowdsourcing
29
Intuit Proprietary & Confidential
Crowdsourcing Approaches
30
Intuit Proprietary & Confidential 31
www.intuitcollaboratory.com
Intuit Proprietary & Confidential 32
Intuit Proprietary & Confidential
Four Use Cases …
33
Share your best idea with us
Send us your best collaboration proposal
Look at our technology needs and solve them
Participate in a challenge and win!
Intuit Proprietary & Confidential
Phase 4: Integrating Open Innovation
• Up to now Open Innovation is still viewed as separate of “business as usual” • Final stage is to embed open innovation as an integral part of innovation and development processes
34
Intuit Proprietary & Confidential
Lessons Learned
• Even in a very innovative organization, opening up the innovation process to the outside is difficult • In order to get early wins, focus initially on the late stages of the innovation process – revenue (even a little) is a great motivator • InnoCentive/Hypios/NineSigma-style challenge formulation not successful internally (yet) – not sure if it fits Intuit or software companies in general • Even if a topic is a strategic priority, a specific opportunity may still fail if it’s not on the internal top-3 or top-5 list • Transition to undirected to directed open innovation (getting a shopping list) proved to be difficult • Implementation at Intuit had to be adopted to our specific needs and particularities
35
Intuit Proprietary & Confidential
Conclusion
36
Phase 1: Build awareness
Phase 2: Undirected OI
Phase 3: Directed OI
Phase 4: Integrate OI
YOU already know the answer, but the organization does not
Events build awareness and create the first early successes Limited effort required from organization
Getting a CDI driven company to express what it needs before it needs it Software companies are different …
Open innovation is an integral part of the innovation and R&D processes
Intuit Proprietary & Confidential Page 37