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What kind of collaboration is right for you? - Coggle Diagram
What kind of collaboration is right for you?
Open or closed network?
degree to which membership is open to anyone who want to join
Totally open (crowdsourcing) - everyone
eg. Linux, Apache, Mozilla
Closed (private clubs) - one or more parties selected deemed to have capabilities, assets crucial to sought-after innovation
identify knowledge domain from best solution
can pick the right collaborators
higher probability of solution selected (good for best parties)
eg. Alessi architecture design (Elite circle) need to anticipate market needs which could intially confuse customers
development of radically new product concepts or architectures in integral task - collaborators can closely interact
Advantage: receive solutions from the best expert in selected knowledge domain
Enablers: capability to find unspotted talent in relevant networks, capability to develop privileged relationships with the best parties
Challenge: Identify right knowledge domain, right parties
Higher searching, screening costs with larger networks, can be prohibitive
Open - sponsor makes problem public, seek support from unlimited number of problem solvers who contribute if believe have capabilities, assets
don't know where to find solutions
don't know who key players are (and no way to find out)
interesting ideas from unexpected people or organisation
large number of problem solvers, ideas
not need to identify best knowledge domains, most appropriate experts
eg. Threadless T-shirts designing (Innovation mall)
not as effective in identifying, attracting best players
small spread between ideal and average solution, low consequences of missing out on much better solution
small problems or large problems broken down
Advantage: Large number of solutions from domain that might be beyond experience or knowledge, usually broader range of interesting ideas
Challenge: Attracting, screening several ideas from variety of domains
Enablers: Capability to test, screen solutions at low cost, information platforms for easy contribution, small problems that can be solved with simple design tools or large problems that can be broken down into discrete parts for contributors to work autonomusly
Four ways to collaborate
Innovation mall
When it is appropriate?
limited consequences of missing better solution from elite players
easy participation in the network
small problem or large problem broken into modular parts
need ideas from many parties, best ideas from unexpected sources
can evaluate many proposed solutions cheaply
post problem -> anyone propose solution -> company chooses solution
Open participation, hierarchical governance
Innovation community
anyone propose problems, solutions, decide solution to use
when it is appropriate?
limited consequences of missing elite player solution
easy participation in the network
need many parties ideas, best ideas from unexpected sources
small problem or large problem broken into modular parts
don't need to own solution IP
don't know all possible user requirements, share innovation cost and risk with outsiders
Open participation, hierarchical governance
Elite circle
company select participants, define problems, chooses solutions
When it is appropriate?
capability to pick important best experts
ability to define problem, evaluate proposed solutions
have knowledge domain from best solution
Closed participation, hierarchical governancce
Consortium
operate like a private club, participants jointly select problems, decide how to conduct work, choose solutions
when it is appropriate?
large problem, cannot be broken into modular parts
capability to pick important best experts
know knowledge domain from which best solutions likely to emerge
contributors won't participate unless share power
Need expertise of all participants
Can share IP with other participants
Closed participation, flat governance
Flat or hierarchical governance
Who should decide which problems?
Which solutions will be adopted?
Hierarchical - solely 1 firm
Advantage: control direction of innovation efforts, capture more of innovation's value
possess capabilities, knowledge to define problem, evaluate proposed solutions
Challenge: choosing the right direction
Enabler: capability to understand user needs, capability to design systems for work to be divided, integrated among integrate
Flat: equal partners sharing power to decide key issues
(not always superior)
decentralized or joint decisions
Advantage: share costs, risks, technical challenges of innovating
no single organisation has necessary breath of perspectives or capabilities with strong voice in how technology is developed
eg. IBM;s microelectronics consortia - semiconductor companies other than IBM possessed critical knowledge, skills, assets
vested collaborators interest in particular solution, participate only if have some say
Challenge: getting contributions to converge on profitable solutions
Enabler: Processes, rules that drive parties to work in concert for common goals
A matter of strategy
weigh advantages against challenges, consider tradeoffs
organisation's capabilities, structure, assets
right mode of collaboration might change with strategy evolution
eg. Apple elite circle (integration) -> innovation community (third-party developers to create applications on IOS and provide to users through iPhone, 70% revenue to developers, 30% Apple)
can be supplemented with proprietary hardware features to counter Google's relative open-source advantage
eg. IBM (innovation community + consortia) - hardware differentiation + server -> commoditize operating systems with Linux and active participation in open-source community
New source of advantage
Company's strategy, business problem
Understand how to design collaboration networks and how to tap potential
Choices, complex trade-offs: Each approach can be highly effective under the right conditions
Designing incentives to attract external collaborators (all collaboration modes)
Financial
eg. Alessi sales royalties with elite circle designers
Nonfinancial (can replace financial)
Chance to use solutions in own business
High job market visibility
Psychological fulfillment with innovation communities
eg. Alessi includes name in product marketing, high degree of freedom in design process
Enhanced reputation among peer group