Personal Blog
Creating employee networks that deliver open innovation by Eoin Whelan, Salvatore Parise, Jasper de Valk & Rick Aalbers is (recently) published in MITSloan Management Review and got my attention via a Twitter message of Jasper de Valk.
In this article I will have a look at the Idea Scout and Idea Connector roles, their position in Employee Networks and the impact on Open Innovation results.
Some time ago I attended the event “Innovatie management op het Microsoft-platform” where I could experience a cool intersection of open innovation and information technology.
CXS B.V., a joint venture between Campana & Schott and Corporate Project Solutions, shared a case study at a marketleading pharmaceutical company, where they’ve build an innovation management solution build up-on Microsoft Project Server 2010.
Let’s start with a quick look at the term innovation (and some of its context). 🙂
A formal definition of open innovation is discussed in the article “What is open innovation“. I’ve argued there that the term open innovation has innovated itself, with a more recent view on services focused innovation.
The open innovation funnel is a visual model that describes the inflows and outflows of knowledge. The starting point on the left is the ideation phase, with lots of different ideas and knowledge sources. These ideas travel different routes through the funnel, however the result is going to market in an actual product or service.
Keep the open innovation funnel in mind, because it will help you understand the different building blocks of the innovation management solution build by CXS B.V.
The PowerPoint slide above describes the initial situation and context of the case study. You can see the different IT system building blocks:
The most interesting part for me was the connection of different IT systems (like the pieces of the puzzle) including the SAP ERP systems with financial databases.
In this PowerPoint slide you can see each of the IT system building blocks as modules in a Microsoft SharePoint environment.
The open innovation funnel has stage-gated characteristics given the different building blocks of IT systems. A highly interesting scientific paper about stage gated innovation funnels is How companies are reinventing their idea-to-launch methodologies (Cooper, 2009).
The formal system architecture is shown in the PowerPoint slide above.
First a core platform of Windows Server 2008 and Microsoft SQL Server.
The second layer on top of the core platform consists of Microsoft Project Server 2010 and Microsoft SharePoint 2010. The ability to create (custom) SharePoint workflows suits the stage gated model perfectly.
The third layer is the front-end to the end-user and consists of Microsoft Project 2010, a SharePoint Portal and a Microsoft Project Web App. Web Apps are known from Microsoft Office 2010, where the Word-, Excel-, PowerPoint- and OneNote Web Apps allow you to create documents from your browser onto your SkyDrive cloud storage (and edit them).
In the first PowerPoint slide you could see the innovation management solution also consists of a connection with financial databases within SAP. Remark that a lot of large international firms use SAP technology for Enterprise Resource Planning (ERP).
Perhaps less known is the fact that Microsoft and SAP have a strong partnership for more than 20 years with one common goal: Create customer value.
[…] close collaboration has led to the development of joint solutions, such as Duet Enterprise™, and the continued optimization of Windows™ and SQL Server™ platforms for SAP. Today, thousands of companies around the world depend on these SAP and Microsoft solutions to effectively run their businesses.”
However in the solution architecture you can see that CS Connect facilitates the integration of the Innovation Management solution based on Microosft Project Server 2010 with the (financial) databases in SAP. You can read more about CS Connect and its features in the following CS Connect Brochure.
CXS B.V. has added extra reporting modules to Microsoft Project Server in order to provide the neccesary management tools for Project Managers and Portfolio Managers. The whitepaper Reporting with Microsoft Project Server 2010 is a must-read when you want to learn more about this aspect of Microsoft Project Server.
It is really cool to see an innovation management solution that is based on Microsoft Project Server 2010, that supports the complete life cycle of a pharmaceutical product (from idea to realization).
According to the CSX team has this innovation management solution shortened time to market of pharmaceutical products and lowered the corresponding costs. The innovation management solution has helped to increase interaction and transparency between the different departments that each add their piece of value to the end product.
Personally I do see similarities with the open innovation funnel, so I could see scientific theory and practice coming together in a single solution. Furthermore there was a great and open discussion with the different project managers and innovation managers who visited this TechNet Masterclass and the people from CSX B.V. who actually build this innovation management solution.
Overall it was highly interesting to see an end-to-end innovation management solution build with Microsoft Project Server 2012, Microsoft SharePoint 2010 and other technologies from the Microsoft Platform.
In this short article I would like to bring Exnovate, the highly interesting Network of Excellence on Open & Collaborative Innovation, to your attention.
Back in 2008 I was fortunate to attend the fith European Masterclass on Corporate Entrepeneurship & Open Innovation with Henry Chesbrough & Kenneth Morse, where I first experienced the importance of the “business model”.
During the this Masterclass I was able to meet, experience and work with both professor VanHaverbeke and professor Henry Chesbrough. Both are the co-founders of Exnovate, as you can read in the about us section of the Exnovate website:
“Exnovate, the European Network of Excellence on Open & Collaborative Innovation, originated from the pioneering work of prof.dr. Wim Vanhaverbeke together with prof. Henry Chesbrough and other domain experts.”
The picture above shows an overview the Exnovate website, with the section “Exnovate in a nutshell” that provides a little more extensive description:
“Exnovate is a platform for companies and knowledge intensive organizations that are practicing open innovation. In particular, Exnovate serves as a clearinghouse and network platform, linking together the international community of companies, academia, governments and service providers. Since most knowledge and best practices on open & collaborative innovation are scattered around in different organizations, the platform can significantly speed up the learning process of the partners involved. In addition, Exnovate can help create and valorize knowledge on open & collaborative innovation, hence bridging the gap between theory and practice.”
On the left side of the website, below the Exnovate logo you can see a number of arrows, that provide additional information for a specific group of actors in the Open & Collaborative Innovation field:
While VentureLab Twente is aimed at entrepreneurs in “assisting high-technology, high potential start-ups to develop and reach their full potential”, I can see similar concepts of connecting practitioners, researchers, experts and even venture capitalists. Exnovate however is focussed on the Open & Collaborative Innovation expertise.
Professor Frank Piller, who I was fortunate to meet during a masterclass @ Webster University in Amsterdam, wrote in the article “Exnovate and Open Innovation Forum: Two New Open Innovation Community Sites” on his Mass Customization & Open Innovation News blog:
I found three features especially useful:
- A list of case studies on open innovation for teaching;
- A list of academic papers on open innovation, most with a link to download
- A list of people working in the field;
Despite the fact that the list of academic papers isn’t completed yet (assumption since download links are missing), I really like this section and downloaded some papers that interested me. If you are interested in Open Innovation I can certainly recommend the academic paper list.
I would like to recommend you to read the Exnovate vision, mission and strategy.
Such a European Network of Excellence on Open & Collaborative Innovation is highly valuable no matter if you are from a company, university, government, service provider or a venture captital firm. The amount of knowledge and experience on Open & Collaborative Innovation in such a Network of Excellence is tremendous !
I was able to meet and experience professor VanHaverbeke and professor Henry Chesbrough. Combining their drive and passion for Open & Collaborative Innovation with the high quality of the European Masterclass on Corporate Entrepeneurship & Open Innovation with Henry Chesbrough & Kenneth Morse, I can only conclude that the Exnovate Network of Excellence will be game-changing for many people out there !!
A little more than a week ago, from November 24th – November 28th, I attended the much anticipated fifth European Masterclass on Corporate Entrepeneurship and Open Innovation organized by Ronald Wolf (Philips) and Wim Vanhaverbeke (Hasselt University).
The beautiful main location was the Conference Hotel Willibrordhaeghe in Deurne (Netherlands), while some sessions took place at the Philips High Tech Campus (Eindhoven).
The two worldclass experts and keynote speakers of the fifth European Masterclass on Corporate Entrepeneurship and Open Innovation, Henry Chesbrough (UC Berkeley) and Kenneth Morse (MIT), are the leading experts in the professional fields innovation and entrepreneurship.
I was fortunate to attend a keynote session with Henry Chesbrough during a symposium, open innovation and creativity in management and governance. Combined with the fact that I’m currently completing a master program Innovationa and Entrepreneurship at the University of Twente, the fifth European Masterclass on Corporate Entrepreneurship and Open Innovation, was a unique opportunity to meet both experts and learn from them.
Overview of the group working on a business case, fortunate to stand left next to Kenneth Morse. On the right event organizers Ronald Wolf and Wim Vanhaverbeke !
The subtitle of the fifth European Masterclass on Corporate Entrepeneurship and Open Innovation is “Open Innovation based New Business Creation for Corporate and Start-up Entrepreneurs”.
Despite both the title and subtile provide a rough idea of goal(s) and objectives of the Masterclass, you can read on the Corporate Entrepreneurship and Open Innovation website:
“This course focuses on entrepreneurship, intrapreneurship and corporate venturing with focus on new product/new market combinations including a finance, marketing, sales, technology and human capital framework relevant for start-up ventures. During the course, Open Innovation is introduced as a tool to create a meeting ground for corporate environments, universities and start-ups where resources, knowledge but especially new business options can jointly be developed.”
Most remarkable aspect from the first paragraph from the aim section is the cross functional approach, in which most relevant aspects of a modern business, venture or start-up are addressed. The open innovation theory is not only addressed as a tool, but it can futhermore be seen as a driver for value creation, entrepreneurship and and exploring new opportunities in the market.
“Led by two internationally renowned experts in innovation and entrepreneurial management, Henry W. Chesbrough from the UC Berkeley Haas School of Business and Kenneth P. Morse from the MIT Entrepreneurship Center, this Corporate entrepreneurship course teaches the fundamentals of Open Innovation as applied to develop new venturing options for global corporations. The participants will be given the opportunity to develop and refine their business case, which will be evaluated during the last day of the course by an objective and demanding team of experts“
In addition to the unique situation where two worldclass leading experts, and pioneers of their professional field are brought together in a Masterclass, you can see that there is also room for a realistic, more practical oriented business case. Via this way you learn to apply theory and work with in realistic real-life scenario’s !
“The combination of world-class teaching and business case development will strengthen each participant’s new business development and venturing skills. It will also provide the participants with an Open Innovation framework where through collaboration with a variety of partners, new ventures can be created with a perspective outside their current corporate or startup environment.”
Finally a great systematic overview of objectives is provided on the Masterclass Corporate Entrepreneurship and Open Innovation website, to give you an idea of the skillset and scientific theory that is developed during the Masterclass.
Since attendees will have to pay a “respectable” tuition fee for the Masterclass Corporate Entrepreneurship and Open Innovation, I will not provide any details on a session level (this wouldn’t be fare or professional towards the organizers), but I will provide an overview of the five day program on a more abstract general level. 🙂
“In this first day, we will examine the strengths and weaknesses of corporate innovation as it is practiced in advanced economies around the world. The traditional model is based upon a logic of internal vertical integration. As we shall discuss, the surrounding innovation environment no longer supports this internal logic, because the knowledge landscape has become too diverse and distributed for any one company to monopolize useful ideas in a given technology area. We will then present a new and different model of corporate innovation, called Open Innovation, and show how this model fits better with this more diverse and distributed environment.”
As you can read in the paragraph the start is at basic fundamental level of the traditional model, still available in a lot of companies.
In a good mix of both scientific theory, business cases and experiences of Henry Chesbrough a comparison between the traditional model and the open innovation model is discussed!
Furthermore a great session of Graham Cross, Collaborative Innovation Director at Unilever Foods, provides an idea of how open innovation is implemented within Unilever Foods. You might want to read an interview with Graham Cross on www.openinnovatie.nl !
“Day two focuses on methods to guide knowledge into and out of corporate environments. To develop a sustainable Open Innovation environment, it is necessary to create new business opportunities from new technology which in essence can be the result of any form of knowledge generating form of cooperation. In this context the role of start-up companies and venture capital providers will be discussed.”
Professor Chesbrough builds further on the knowledge about open innovation from the previous day. The central theme of the day is opening the business model for innovation.
It is not the pure technology itself that has a disruptive or radical character in the market (you might know the research of Professor Clayton Christensen), but it is the underlying innovative business model that causes the disruptive nature !!
An interesting book to read is “Open business models: how to thrive in the new innovation landscape” and not surprisingly written by professor Chesbrough !
“This day is devoted to the elementary aspects of starting a venturing activity. The focus will be on defining the business model and how to involve potential customers to sharpen the case. At the end of the day the course attendants will have the opportunity to test their business proposition in a Networking Exercise with Top Sales Executives and Potential “Customers”.”
Kenneth Morse has a different style but excellent way of teaching, and with help of a few business cases and his own experience the central theme of today -creating new ventures- is intensively discussed.
Within the creating new ventures theme a great deal of attention has been spent on the development of a business proposition, and the way of communicating the proposition in an elevator pitch !
In the evening event, it was time apply the knowledge of today in practice during a realistic scenario where you can meet protential customers, venture capitalists and sales executives. This practical excersise is really aimed at developing a skillset that only can be learned by training and doing !!
“Day four is devoted to sales in a series of lectures covering a wide variety of important aspects ranging from how to build a sales oriented venture activity to ‘how to close the deal’. In the afternoon, there will be a panel discussion with three experts on venturing, each representing a different perspective.”
As a student I wasn’t aware of the complex set of dynamics around the activity of closing a deal. In a multi perspective session Kenneth Morse was willing to share best practices, combined with practical examples, about how to close a deal.
A lot of the dynamics of closing the deal were completely new to me, but my compliments for the excellent step-by-step approach of Kenneth Morse that made this imporant step of building a business insightful !
In the afternoon program Kris Van der Velpen, Director Fortis Venturing, Fortis Brussels, Belgium, was willing to provide “a view in the kitchen of Fortis Venturing” around the topic of Open Innovation – an important driver for sustainable service innovation.
“In the morning, participants will have time to prepare their case presentations. In the afternoon, all business cases will be discussed in several groups consisting of your fellow students but also invited guests with expertise in the relevant areas knowing when but also when not to finance your venture plans.”
The final day of the Masterclass Corporate Entrepreneurship and Open Innovation, was completely aimed at presenting and selling the business case which we as a group have been developing in the past week. The business plans were presented to venture capitalists.
You can imagine that this has been a very rich experience, and the feedback & experiences from these kind of exercises will be valuable additions for the rest of my professional carreer !
I started this article with the following sentence about the European Masterclass on Corporate Entrepreneurship and Open Innovation:
” […] the fifth European Masterclass on Corporate Entrepreneurship and Open Innovation, was a unique opportunity to meet both experts (Henry Chesbrough & Kenneth Morse) and learn from them. “
Of course it was awesome and very valuable to meet, experience and learn from the worldclass experts and founder in their professional field Henry Chesbrough and Kenneth Morse. Both had a very different style of teaching, but it was a unique experience to learn from them and they really embedded the knowledge in my brain in such a short time. This illustrates their excellence and outstanding professional quality ! Furthermore both gentlemen have a background both in science and business practice, which came back in their lectures from the past week.
Not only meeting two worldclass experts was an unforgetable experience, but also the wide range of attendees from different companies, different educational backgrounds and different corporate levels was very valuable. Especially for me as a student it was a great challenge to keep up with the corporate talents, however in the end I gained a lot of value from the interaction with the group of attendees as well ! I hope to stay in touch with them in the upcoming future.
Finally I would like to congratulate the organizers Ronald Wolf (Philips), Wim Vanhaverbeke (Hassel University) and the rest of their team Margot Franken-Richelle and Anny Roelandts for the excellent organization of the fifth European Masterclass on Corporate Entrepreneurship and Open Innovation. I think you can be proud on such a great event !
I hope that I will look back on the fifth European Masterclass on Corporate Entrepreneurship and Open Innovation in a few years and conclude that this has really been a life-changing event for me both on a professional level as well as in my personal development !!
“Henry Chesbrough directs the Center for Open Innovation, focused on research and teaching on the impact of intangible assets and globally distributed knowledge on firm strategy and industrial innovation. He is doing research in innovation. More specifically he is interesting in Organizing, structuring and managing internal and external research and development. Furthermore, he is specialized in technology-based spin-offs, corporate venture capital and managing intellectual property. He is the author of “Open Innovation” (HBS Press, 2003) which was awarded Best Business Book of 2003 by Strategy & Business Magazine. He is also editor of a new, more academic oriented book “Open innovation: Researching a paradigm” (2006 – OUP, co-edited by Wim Vanhaverbeke and Joel West). Another book “Open Business Models” will be published in November 2006.”
“Ken Morse is a serial entrepreneur, having played a key role in launching several high-tech start-ups, including 3Com Corporation, Aspen Technology, Inc., a China Trade Company, a biotech venture, and an expert systems company.
As head of the MIT Entrepreneurship Center, he is responsible for inspiring, training, and coaching new generations of entrepreneurs from all parts of MIT. Ken has been profiled and quoted in numerous publications, including the Wall Street Journal, Financial Times, Economist, and Red Herring.
Since Ken joined the MIT Entrepreneurship Center in 1996, the number of students taking Entrepreneurship Courses has increased from 220 to 1.500 per year while the number of professors has grown from 3 to 30.
Ken is a member of the Board of Advisors of four early-stage Venture Capital Firms: PolyTechnos Venture-Partners (Munich), Rudyard Partners, LLC (Boston) SINTEF A/S (Trondheim, Norway) and The Entrepreneurs Fund III (Silicon Valley). Ken serves on the Board of Advisors of Ludesi AB in Sweden, iMotions Technologies A/S in Denmark, Naseeb Networks in Pakistan, and several MIT spin-offs, including Medical Isotopes Technologies and Terrafugia, Inc.”
“On Friday 24 and Saturday 25 October 2008 the IEEE Technology Management Councils of the IEEE Benelux and Germany Sections, the IEEE Benelux and Germany GOLD Affinity Groups and the IEEE Student Branch Eindhoven will organize an event on Open Innovation in the NH Conference Centre Koningshof in Veldhoven” [ref01]
My attention to this event was drawn by a mailing of Engineering Assosiation KIVI NIRIA, and although IEEE is originally an Electrical Engineering Assisiation, the topic Open Innovation is in-line with the Master I’m conducting at the University of Twente.
The line-up of the event had some interesting topics, presentations and workshops presented by people with a variety of backgrounds adn practices. Due to an overload of innovation related event in that week, the event was changed to a more informal character on Friday afternoon. Since I already scheduled time for the event anyhow, I was really excited to meet the presenters and other people active in the field of innovation management.
After the open discussion and looking forward to some IEEE Benelux Events in the upcomming future it was time for dinner and informal conversation. Actually it was an extention of the open discussion mixed with some personal topics.
Overall the event was a great succes to me. We had some good discussions, and a great interaction between the cross functional fields, students, business people and researchers. I will conclude with thanking Robert Bierwolff, and the rest of IEEE Benelux for the excellent organization of the event. Thanks !!
Reference list:
On 23rd of October 2008, the company called Dutch organized a masterclass on the topic of Open Innovation. Based on the resume and some smart and innovative questions, 25 students were selected to join the masterclass from professor Piller.
Luckily I survived the selection process, and I was really excited to see if the professor Piller looked from a different perspective at open innovation theory, since his other specialties are mass customization and customer co-creation. I hoped for a cross-pollination of the different topics, as well as for the backgrounds of the attendees of the masterclass.
Professor Frank Piller used two companies from practice as a steppingstone, for the highly interactive masterclass.
“InnoCentive is the open innovation and crowdsourcing pioneer that enables organizations to solve their key problems by connecting them to diverse sources of innovation including employees, customers, partners, and the world’s largest problem solving marketplace.”
Ruben Nieuwenhuis assisted professor Frank Piller with some interesting comments on the open innovation theories, both from a practical background as well as a theoretical perspective. I would like to share the most interesting topics in a brief summary:
Although the masterclass was scheduled from 13:00 – 15:00 it was almost 15:30 when we had to finish the Masterclass at the Webster University, WTC Building D, Amsterdam. “Time flies when you are having fun”, is what they say and this masterclass was really fun.
Both professor Piller and Ruben Nieuwenhuis had really good examples on innovation theory and combined theory and practice in a highly interactive appealing package.
Finally many thanks to the people from Dutch, who organized a great event on a top location. Please feel free to read some background information on the speakers / organizers and case studies.
