Open Innovation

tipos de inovação

imageThe Closed Innovation Model


In closed innovation, a company generates, develops and commercializes its own ideas. This philosophy of seif-reliance dominated the R&D operations of many leading industrial corporations for most of the 20th century

image The Open Innovation Mode


In the new model of open innovation, a company commercializes both its own ideas as well as innovations from other firms and seeks ways to bring its in-house ideas to market by deploying pathways outside its current businesses. Note that the boundary between the company and its surrounding environment is porous (represented by a dashed line), enabling innovations to move more easily between the two

EXEMPLOS


General Electric's famed Global Research Center in Niskayuna, New York. In the chemical industry, companies like DuPont established central research labs to identify and commercialize a stunning variety of now products, such as the synthetic fihers nylon, Kevlar and Lycra. Bell Labs researchers discovered amazing physical phenomena and harnessed those discoveries to create a host of revolutionary products, including transistors and lasers

VANTAGEM:


One maior difference between closed and open innovatiori lies in how companies screen their ideas. In any R&D process, researchers and their managers must separate the bad proposals from the good ones so that they can discard the former while pursuing and commercializing the latter. Both the closed and open models are adept at weeding out "false positives" (that is, bad ideas that initially look promising), but open innovation also incorporates the ability to rescue "false negatives" (projects that initially seem to lack promise but turn out to be surprisingly valuable).


The classic example is Xerox and its Palo Alto Research Center (PARC). Researchers there developed numerous computer hardware and software technologies — Ethernet and the graphical user interface (GUI) are two such examples. However, these inventions were not viewed as promising businesses for Xerox, which was focused on high-speed copiers and printers. In other words, the technologies were false negatives'


NEM TODAS INDUSTRIAS? EXEMPLO NUCLEAR...


This is not to argue that all industries have been (or will be) migrating to open innovation. At this point, different businesses can be located on a continuum, from essentially closed to completely open. An example of the former is the nuclearreactor industry, which depends mainly on internal ideas and has low labor mobility, little venture capital, few (and weak) startups and relatively little research being conducted at universities Whether this industry will ever migrate towards open innovation is questionable.




OUTRO EXTREMO, que já é "TOTALMENTE OPEN INNOVATION há temos: HOLLYWOOD:


The mobility of this workforce is legendary: Every waitress is a budding actress; every parking attendant has a screenplay he is working on.

The Different Modes of Innovation

Intrrodução


Although Lucent and Cisco competed directly in the same industry, the two companies were not innovating in the same manner. Lucent devoted enormous resources to exploring the world of new materials and state-of-the-art components and systems, seeking dindamental discoveries that could luel future generations of products and services. Cisco, on the other hand, deployed a very different strategy in its battle for innovation leadership. Whatever technology the company needed, it acquired from the outside, usually by partnering or investing in promising startups (some, ironically, founded by ex-Lucent veterans)

funding,

generating or

commercializing innova

innovation investors and


innovation investor was the corporate R&D budget but now a wide range of otber types has emerged, including venture capital (VC) firms, angel investors, corporate VC entities, private equity investors and the Small Business Investment Companies (SBICs), which provide VC to small, independent businesses and are licensed and regulated by the U.S. Small Business Administration

benefactors


provide new sources of research funding. Unlike investors, benefactors focus on the early stages ol research discovery. The classic example here is the National Science Foundation (NSF), an independent agency of the U.S.


The Defense Advanced Research Projects Agency (DARPA) has also been a key benefactor, particularly for the early work in much of the computer industry

EXEMPLOS:


P&G has recently changed its approach to innovation, extending its internal R&D to the outside world through the slogan "Connect & Develop."^ The company has created the position of director of external innovation and has set a goal of sourcing 50% of its innovations from outside the company in five years, up from an estimated 10% this year.^This approach is a long way from the "not invented here," or NIH, syndrome that afflicts many large, successful industrial organizations


P&G also tries to move its own innovations outside. Recently, the company instituted a policy stating that any idea that originates in its labs will be offered to outside firms, even direct competitors, if an internal business does not use the idea within three years.

innovation explorers,

merchants,

architects

and missionarie

specialize in performing the discovery research function that previously took place primarily within corporate R&D laboratories. Interestingly, a number of explorers evolved as spinoffs of laboratories that used to be a part of a larger organization.

In other words, innovation merchants will innovate but only with specific commercial goals in mind, whereas explorers tend to innovate for innovation's sake


provide a valuable service in complicated technology worlds. In order to create value for their customers, they develop architectures that partition this complexity, enabling numerous other companies to provide pieces of the system, all while ensuring that those parts fit together in a coherent way


Innovation architects work in areas that arc complex and fastmoving, which disfavors the "do-it-yourself" approach. To be successful, innovation architects must establish their systems solution, communicate it, persuade others to support it and develop it in the future.


Just a year ago, for example, PARC became a separate, independent entity from Xerox. Similarly, Telcordia Technologies was formed from the divestiture of the Bell System and is now home to about 400 researchers with a broad range of expertise, from software engineering to optical networking.


An interesting development with explorers has been taking place with the major govertiment labs, such as Sandia National Laboratories, Lawrence Livermore National Laboratory and the MIT Lincoln Laboratory. In the aftermath of the end of the Cold War, these organizations have been seeking new missions for their work and much of their basic research is finding applications in commercial markets.


Consider Lincoln Laboratory, which has conducted radar and other defense research since the 1950s. Technology developed there for missile detection has recently been adapted to cancer treatment, enabling microwave energy to be focused more effectively at tumors



One example of an innovation merchant is Qualcomm, which conducts extensive internal research on telecommunications, including code division multiple access (CDMA), a standard for wireless technology. Originally, Qualcomm manufactured cellular phones and software products such as the Eudora e-mail program, but today it focuses on licensing its CDMA technology and producing the associated chipsets for use by other cell-phone manufacturers



Boeing, for example, will engineer the overall design of an aircraft like the 747, after which companies like GE can then develop and manufacture the jet engines and other constituent parts


For example, the dramatic rise of Nokia in wireless communications has been due, in part, to the strong lead it took in establishing the global system for mobile communication (GSM) technology as a standard for cellular phones. Accomplishing that required working closely with a number of other companies, as well as the governments of many European countries. Specifically, Nokia research helped define the now-accepted standards for moving GSM from a narrow- to broad-bandwidth spectrum and the company pushed hard to establish that technology:

Consist of people and organizations that create and advance technologies to serve a cause. Unlike the innovation merchants and architects, they do not seek financial profits from their work. Instead, the mission is what motivates them


This is characteristic of many community-based nonprofits and religious groups but also occurs in the software industry

LINUX

innovation marketers and

one-stop centers

often perform at least some of the functions of the other types of organization, but their defining attribute is their keen ability to profitably market ideas, both their own as well as others'. To do so, marketers focus on developing a deep understanding of the current and potential needs in the market and this helps them to identify which outside ideas to bring in-house.

Most of the drugs that are currently in Pfizer's pipeline,
for instance, originated outside the company


Another example of an innovation marketer is Intuit, which sells personal financial software products such as the popular Quicken program. For a number of years. Intuit has been able to keep Microsoft at bay
In keeping with the innovation marketer's role. Intuit has become adept at identifying and adapting outside technologies to satisfy those needs. In this way, the company has consistently been able to profit from innovations it did not discover. For example, it acquired two of its popular products — TurboTax (a tax-preparation program) and QuickBooks (small-business accounting software) — from the outside and enhanced both programs to meet its customers' needs

provide comprehensive products and services. They take the best ideas (from whatever source) anddeliver those offerings to their customers at competitive prices.

For example, the Web site for Yahoo! enables people to shop, send e-mail, manage their personal finances, hunt for jobs and keep up-to-date on current event. other one-stop centers are focused on business-to-business interactions. IBM's GlobalServices division, for instance, sells IT solutions to other companies, and interestingly, will install and service hardware and software from any vendor, including IBM's competitors. In other words, it will provide the best solution to its customers, regardless of the origin of those products.