TOP 5 MYTHS OF OPEN INNOVATION DEBUNKEDipconference.sc.edu/2016slides/five myths of open innovation.pdf · our Networked Innovation Program because they have an impressive track record

© Copyright, NineSigma 1

Andy Zynga, Ph.D., CEO, NineSigma 04.20.2016

TOP 5 MYTHS OF OPENINNOVATION DEBUNKED2016 Innovation & IP Business Summit | Wild Dunes Resort, Isle of Palms, SC


NINESIGMA OVERVIEW

2+ MILLION

SOLUTION

PROVIDERS HEADQUARTERS & PARTNER OFFICES

U.S.

Belgium

Japan

Korea

Australia

South Africa

Brazil

Canada

OUR EXPERIENCE

3,500+

DIVERSE CLIENTS

Multinationals

Middle Market

Non-Profit

Government

OVER 700 CLIENTS

52% Business 34% Universities 14%

Government

Inventors

Consultants

Non-profit

Netherlands

NINESIGMA NETWORK

FROM 32

InnovationChallenges

Industries


A SAMPLE OF OUR GLOBAL CLIENTS

PROGRAM DELIVERY IN:

North America Brazil South Africa Europe Japan Korea Australia

MITSUBISHI MATERIALSNEC

suntory

TOSHIBAISUZU MOTORS

KOMATSU

HITACHICONSTRUCTION

SUMITOMO

OSAKAGAS

ASAHI BREWERIES

The Coca-Cola Company DENSO

OMRON

SHISEIDO

TEIJIN

SHOWA DENKO

SUMCOKIRIN HOLDINGS

OLYMPUSIDEMITSU

DENKA

http://www.generalmills.com/corporate/index.aspx

http://www.generalmills.com/corporate/index.aspx

http://www.johnsoncontrols.com/publish/us/en.html

http://www.johnsoncontrols.com/publish/us/en.html

http://www.kimberly-clark.com/

http://www.kimberly-clark.com/

http://www.eastman.com/

http://www.eastman.com/

http://www.akzonobel.com/


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Kri4oPhxZEMPKM&tbnid=N7uSeOeGZOEnpM:&ved=0CAUQjRw&url=http://www.ghgreductionsummit.com/About/AboutTheCCEMC/tabid/95/Default.aspx&ei=E7VQUZjZOsmx0AGa5YGwAQ&bvm=bv.44158598,d.dmg&psig=AFQjCNE_XP9tH83VGB_HqGGrDtGiEZ38Fg&ust=1364330129727635


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=JHPslcNP9Bf-vM&tbnid=L9e_1ZaSbW5q_M:&ved=0CAUQjRw&url=http://secondmuse.com/portfolio.html&ei=jbdQUeatOunZ0QGEmYDADA&bvm=bv.44158598,d.dmg&psig=AFQjCNHqwybAO4Qb8C5OgiWJOJojXTQqXA&ust=1364330760841537

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=JHPslcNP9Bf-vM&tbnid=L9e_1ZaSbW5q_M:&ved=0CAUQjRw&url=http://secondmuse.com/portfolio.html&ei=jbdQUeatOunZ0QGEmYDADA&bvm=bv.44158598,d.dmg&psig=AFQjCNHqwybAO4Qb8C5OgiWJOJojXTQqXA&ust=1364330760841537


DIFFERENT KINDS OF OPEN &

COLLABORATIVE INNOVATION

GLOBAL INNOVATION COMMUNITY / “THE GLOBAL BRAIN”


The Global Brain

7-10M Scientists &

Engineers

IDEAS SOLUTIONS INSIGHTS CO-DEVELOPMENT

HOW PEOPLE ENGAGE WITH THE GLOBAL BRAIN


HOW DOES THE TECHNOLOGY SEARCH

PROCESS WORK?

TYPICALLY 6-8 WEEKS

Networks

> 2M Innovators


NON-CONFIDENTIAL NEEDS BRIEFA PROBLEM WELL STATED IS A PROBLEM HALF SOLVED

CLEARIs written so that researchers in other

industries can understand what is needed

CONCISEProvides the critical information for

potential Solution Providers to

understand what is needed for the

technology to be evaluated and acquired

COMPELLINGHas a financial reward that is

commensurate with the proposed project


EXAMPLE OF TECHNICAL NEED STATEMENT:

CHEMICAL (BEFORE)

We’d like to find a

substitute for a white

pigment in paint.

“

”



CHEMICAL (AFTER)

Our Client is looking for

novel optical materials

with strong light

scattering properties.

“

”



MEDICAL (BEFORE)

We’d like to prevent

proteins in AIDS vaccine

from deteriorating.

“

”



MEDICAL (AFTER)


solutions to engineer

stable proteins.

“

”



CONSUMER PRODUCTS (BEFORE)

We’d like to reduce

the wrinkled look in

shirts when they

come out of the dryer.

“

”



CONSUMER PRODUCTS (AFTER)


a way to reduce the

surface tension of an

organic material.

“

”


PACKAGE LEAK DETECTION

DISPENSER TECHNOLOGY

MICROWAVE EVEN HEATING

SENSORS

EXPANDING YOUR REACH THROUGH

UNEXPECTED CONNECTIONS


MYTH #1

OPEN INNOVATION MEANS ALWAYS BEING OPEN

IDEATION RESEARCH DEVELOPMENT ENGINEERING/MFG LAUNCH

Projects at any step of the technology value chain

• Practitioners of Open Innovation do protect their Intellectual Property

• It’s about need, timing/staging, and process

• The innovations sought are typically part of a larger whole (see next myth)


MYTH #1 - OPEN INNOVATION REPLACES INTERNAL

R&D

• Need experts to

understand solutions &

to integrate in overall

part design

• OI Enhances /

Accelerates, does not

replace

• Tech Searches or

Expert Services

SHAPE DURABILITYTENSILE

STRENGTH

SURFACE RIGIDITY COST

NON-METAL

PART

ADDITION

MACHINABILITY

CORROSION

RESISTANCE

COATING? DIFFERENT

ALLOY?PLATING? HEAT

TREATMENT?


MYTH #2 - I.P. WILL BE COMPROMISED WHEN

PRACTICING OPEN INNOVATION

Universities

Industry

Labs

NINESIGMA PH.D. TEAM 2. SOLUTION PROVIDERS

1. CLIENT

NineSigma Proprietary Search Methodology & Database

5.

2.

4.

“Technology Brief”

summarizing the

need (RFP)

Proposed

IP Solution

Proposed

IP Solution

Proposed

IP Solution

NON-CONFIDENTIAL

NON-CONFIDENTIAL

NON-CONFIDENTIAL

NON-CONFIDENTIAL

BROADCAST SEARCH


MYTH #4

FINDING MARKET READY PRODUCTS THROUGH OI

IDEATION RESEARCH DEVELOPMENT ENGINEERING/MFG LAUNCH

• OI ≠ Sourcing,

but it can be

used for it?


MYTH #5

OI REQUIRES HUGE RESOURCES & INVESTMENTS

• Open Innovation can be started with a part time resource

» Key Success Factors

• OI Champion

• Leadership Support

• Meaningful Projects/Needs

• Investments (= Rewards, Intermediary Fee) relative to

“impact” of solution!


• The 3D Printing Production Quest was a public Innovation Contest hosted

on NineSights to identify cutting edge technology that can produce

complex parts with high precision by additive manufacturing processes,

using high density, refractory metals.

• Phase 1: Mapping the Ecosystem: 22 proposals were received. The top 10

respondents each received a $5K cash prize and advanced to participate

in Phase 2 of the Quest.

• Phase 2: Producing Test Coupons: Groups had 90 days to manufacture

test coupons from GE supplied materials that were then evaluated for

geometric precision, overall mass, and overall volume.

• GE selected three fabricators with capabilities to produce complex medical

imaging device parts with high precisions based on statistical analysis as

well as several qualitative aspects.

PHASES

OVERVIEW

KEY TAKEAWAYS

• The Quest pushed the limits of additive technologies, and

identified production leaders that are operating at the forefront

of 3D printing.

• Identified technologies will drive greater product performance,

quality and cost savings for healthcare customers.

GE 3D PRINTING PRODUCTION QUEST

CASE STUDY: INNOVATION CONTEST


• Hershey was seeking consumer insights from outside the food and

confectionary industry to advise them on future packaging trends.

• Hershey’s leaders recognized they needed access to a full range of

consumer packaging insights including aesthetics, regulatory issues,

materials trends and international culture differences.

• An external advisory board was deemed essential to validate as well

as redirect internal efforts.

• Ninety-four candidates from a range of industries and regions of the

world expressed interest in the advisory board.

• None of the selected Board members were known to Hershey

previously, and none were from the food industry.

RESULTS

OVERVIEW & CHALLENGES

KEY TAKEAWAYS

• Hershey was able to address multiple needs with this

Board and gain new insights from technical experts as

well as creative professionals with a deep understanding

of consumer preferences.

SUCCESS STORY

GLOBAL PACKAGING TREND ADVISORY BOARD


• Climate Change and Emissions Management (CCEMC) Corporation had

been actively running challenges to address incremental advances.

• CCEMC wanted to ‘elevate the discussion’ and search for breakthrough

innovation; the Grand Challenge allowed them to do that.

• Grand Challenge is expected to identify multiple technologies that will

provide significant reductions in greenhouse gas emissions by

transforming carbon from a liability into an asset.

• NineSigma worked with CCEMC and its Board to define goals, hone in

on the need, and align all stakeholders around a common vision.

• NineSigma coordinated all aspects of Grand Challenge messaging, PR,

and outreach, coordinating with CCEMC and its marketing agency

partner.

APPROACH


KEY TAKEAWAYS

• Working with an organization that does not have in-house

technical leadership requires a different approach,

particularly in the discovery & strategy phase.

• Alignment around issues like prize strategy, confidentiality

and PR is critical when multiple stakeholders are involved.

NEW CARBON-BASED PRODUCTS & MARKETS

CASE STUDY: GRAND CHALLENGE




“There are a lot of productive connections out there waiting to happen. What turned out to be a great connection for Pepsico could have never been predicted.”

— CARLOS J. BARASSO

SENIOR VICE PRESIDENT OF R&D (FORMER)

• Consumers demanded better ingredients and reduced sodium in

food products without sacrificing taste.

• PepsiCo was looking for ways to reduce sodium in Frito-Lay brand

of chips without loosing the salty flavor.

• They sought new formulation technologies for creating nano and

micro-sized particles, suspending for transportation, and application

and drying techniques for halide salts.

• A new approach was identified from a Swiss research lab that

was testing a relevant pharma application for osteoporosis.

• Designer salt was created by increasing the salt’s surface area;

decreasing sodium levels while retaining a salty punch.

RESULTS


KEY TAKEAWAYS

• A food need was translated into a pure science question.

• Actual need was not revealed in the Technology Search

(RFP), thus protecting IP.

• Solution identified was cross-industry (pharma).

CASE STUDY: TECHNOLOGY SEARCH

FRITO-LAY/PEPSICO DESIGNER SALT


• Global Pharmaceutical Company needed to increase project capacity after

staff reductions.

• As is the case in many global organizations, the technical staff was adverse to

the concept of OI. Not Invented Here Syndrome.

• Sr. VP of R&D sponsored initial 5 topic program and chose topics.

• Assigned individual to “OI Champion” role. Responsible for facilitating process

and letting technical project leads focus on their core responsibilities.

• Initial program yielded 77 responses from 20 countries.

• Group uncovered 4 solutions to key strategic challenges that led to 3

contractual partnerships.

• Same group executed 5 more projects the following year with similar rates

of success.

• Technical leads are now identifying challenges that fit NineSigma approach

and requesting the resources to execute.

RESULTS


KEY TAKEAWAYS

• Culture shift is gradual, but can be expedited with a strong strategy.

• Defining roles within the program.

• Decreasing financial risk to technical leads, but increasing

accountability drives adoption and positive results.

CASE STUDY

GLOBAL PHARMA COMPANY DEVELOPS OI STRATEGY THAT SHIFTS COMPANY CULTURE


“Innovation and technical excellence are

critical to Air Products’ continued success in

the market. We believe that working with

NineSigma will amplify our internal R&D

efforts and will expand our ability to access

external resources and capabilities globally”

Miles Drake, Vice President and Chief

Technology Officer, Air Products

Source: Authorized attributable comments.

“Innovation is the lifeblood of our company. If

we don’t innovate, we won’t grow, or even

survive, in today’s fast moving world and highly

competitive business environment. We have

chosen to partner with NineSigma to establish

our Networked Innovation Program because

they have an impressive track record of

making open innovation work for companies

like ours,” Graeme Armstrong, Corporate

Director of Research, Development and

Innovation at AkzoNobel.

“We use NineSigma when we are looking

for alternative approaches to solve problems

or where a solution from a different industry

may help.” Todd Abraham, VP of Global

Research and Technology Strategy, Kraft

“We found the NineSigma Intelligence

program particularly helpful in getting us

quickly up to speed on our internal

knowledge on geothermal energy. We have

some strategic decisions ahead of us, but

the NineSigma program helped get us to

the point where we can make the best

decisions possible.” Rod Nelson, Vice

President, Schlumberger

OUR EFFECTIVENESS IS CONFIRMED BY FEEDBACK

FROM OUR CLIENTS

“The NineSigma Intelligence Program has

proven to be an outstanding tool for us in

our exploration of emerging technology.

The quality, organization, and delivery of

information, especially NineSigma’s

assessment and recommendations, will help

us make strategic decisions. “ Kent Young,

Director of Technology, Sherwin-Williams

“We are extremely pleased with the resultsfrom NineSigma. The companies andindividuals NineSigma connected us toprovided us with ready solutions to amaterials need that we have been unable toaddress with our internal expertise.NineSigma delivered fast and significantvalue to our program.” Robert Finocchiaro,Ph.D., Technical Director, 3M

“We’ve distributed technology briefs to more

than 700,000 people through NineSigma

and have as a result completed over 100

projects, with 45% of them leading to

agreements for further collaboration.” Larry

Huston, Nabil Sakkab, Procter & Gamble in

Harvard Business Review, March 2006

http://www.kraftfoodscompany.com/home/index.aspx

http://www.kraftfoodscompany.com/home/index.aspx



http://www.sherwin-williams.com/

http://www.sherwin-williams.com/


STAYCONNECTED

www.NineSigma.com

www.ninesigma.com/blog

@NineSigma

@NineSights

STAYCONNECTED www.NineSigma.com www.ninesigma.com/blog @NineSigma

CONTACT

STAYCONNECTED www.NineSigma.com www.ninesigma.com/blog @NineSigma

CONTACT

THANK YOU

Andy Zynga, Ph.D.

[email protected]

Twitter: @NineSigmaCEO

(216) 295-7876

mailto:[email protected]


APPENDIX

http://blogs.hbr.org/cs/2013/04/the_innovator_who_knew_too_muc.html

HBR Blog Post: The Innovator who Knew Too Much

By Andy Zynga | April 29, 2013

http://blogs.hbr.org/cs/2013/06/the_cognitive_bias_keeping_us_from.html#disqus_thread

HBR Blog Post: The Cognitive Bias Keeping Us from Innovating

By Andy Zynga | June 13, 2013

http://blogs.hbr.org/cs/2013/04/the_innovator_who_knew_too_muc.html

http://blogs.hbr.org/cs/2013/06/the_cognitive_bias_keeping_us_from.html#disqus_thread

Documents

TOP 5 MYTHS OF OPEN INNOVATION DEBUNKEDipconference.sc.edu/2016slides/five myths of open innovation.pdf · our Networked Innovation Program because they have an impressive track record