Open Innovation: Technology Leadership Through Collaboration February 2008
Dr. Erich Ruetsche Business Development & Relations IBM Research
IBM Research Worldwide
Open Innovation
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Zurich Research Major Accomplishments Science
Business Impact
Scanning tunneling microscope Atomic force microscope High-Tc superconductivity Trellis-coded modulation PRML & NPML Nanoscience / nanoengineering Cryptographic protocols Computational biochemistry & materials science
High-speed modems IBM Token Ring LAN PRIZMA switch Read channels for disk and tape drives Chip I/O JCOP (smart cards) Tivoli Risk Manager Secure solutions Business optimization
NPML detector
Open Innovation
© 2008 IBM
What is innovation? “The effort to create purposeful, focused change in an enterprise’s economic or social potential…the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth.” Peter Drucker, professor and author of “Innovation and Entrepreneurship, Management Challenges for the 21st Century,”
“The creation of impact, value and differentiation in novel and unique ways, utilizing the many capabilities available to businesses today. Innovation occurs at the intersection of invention and insight. It’s about application of inventions to solve problems.“ Sam Palmisano, IBM Chairman of the Board of Directors and Co-Chair of the National Innovation Initiative
“Innovation requires not only that we are first to discover new knowledge and invent new technology, but also that we are first to develop new ideas and ways to put that knowledge and technology to work to solve problems and create opportunities.” Wayne Clough, President, Georgia Institute of Technology Open Innovation
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The World is……..spiky (by Richard Florida)
Open Innovation
© 2008 IBM
A Global “Nervous System” as enabling Infrastructure for Open Systems in an Open World • Pervasive Network – More than 1 Billion People online – By 2011 – 2 Billion
• Convergence progressing – Networks, Media, Content – Broadband & Multimedia
• Interactive Capabilities increasing exponentially – Web 2.0 – Social Networking – Virtual Worlds Open Innovation
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Innovation moving out of the Lab
Centralized inward looking innovation Closed Innovation
Externally focused, collaborative innovation Open Innovation
Ecosystem centric, crossorganizational innovation Innovation Networks
Sources: Chesbrough 2003, Forrester 2004, von Hippel 2005 Open Innovation
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Where are the Sources of Ideas and Innovation ? Sources of Idea Generation External
Internal Business partners
Employees (general population)
Customers
Sales or service units
Consultants
R&D (internal)
Competitors
Other
Assoc’s, trade groups, conference boards Academia 45% 40 35 30 25 20 15 10 5
0
Think tanks Internet, blogs, bulletin boards
0
5 10 15 20 25 30 35 40 45%
Source: The IBM Global CEO Study 2006
Open Innovation
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“Jamming” – What is a Jam? A Collaborative Innovation Tool:
Developed to accelerate innovation – both idea discovery and implementation Structured as a multiple-day, web-based forum where participants brainstorm and propose ideas
Format: Participants post ideas regarding specific topics and collaborate on those contributed by others Moderators highlight key discussion ideas and facilitate collaboration Contribution level at the discretion of each individual participant
Open Innovation
In December 2005, the Canadian government, IBM and UN-HABITAT hosted a 72-hour ‘Habitat Jam’ to stimulate ideas in preparation for the World Urban Forum III conference in Vancouver in June 2006.
© 2008 IBM
Over 140,000 people have participated in Innovation Jam activities – with a record 4.2 million page views of Jam related materials. A record 37,000 ideas – from more than 75 32,662 countries and 67 companies – were posted posts during the first phase of the Jam
46,000 posts
3,000,000+ views
2,378,992 views
6,046 posts
1,016,763 9,337 views posts
268,233 views
WorldJam2001 a new collaborative medium to capture best practices on 10 urgent IBM issues. Open Innovation
ValuesJam an in-depth exploration of IBM’s values and beliefs by employees
WorldJam2004 focused on pragmatic solutions around growth, innovation and bringing the company’s values to life
InnovationJam2006 IBMers, family, clients and partners discuss how to combine new technologies and real world insights to create market opportunities © 2008 IBM
Outcomes Real-time Translation Services
Simplified Business Engines
Intelligent Utility Networks
3D Internet
“Digital Me”
IBM 2007 Innovation Investments Big Green Innovations
Branchless Banking for the Masses
Open Innovation
Smart Healthcare Payment Systems
Intelligent Transportation Systems
Electronic Health Record System
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An Open Innovation Example: Searching and Navigating Medical Records Collaboration in a First of a Kind Project Partners: Medical Graphics Provider; Medical Records Specialist IBM driving core concept Hospital in Denmark as test user
Open Innovation
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Open Collaboration and IP policy
15 Years of IBM Patent Leadership
Support of Open Standards and Open Source
4,000 3,621 3,411
3,500
3,415 3,288
3,248
3,000 2,658
3,125 2,941
2,886 2,756
2,500 1,867
2,000
1,724
1,500
1,298
1,383
1,085
Free access to Patents
1,000 500 0 1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
The Eco-Patent Commons - January 14th, 2008 IBM and the World Business Council for Sustainable Development, together with Nokia, Pitney Bowes, and Sony, are announcing the creation of “The Eco-Patent Commons,” a new collaborative effort focused on shared use of intellectual property to help the environment. Together these companies are pledging dozens of patents in what we hope will be an expanding effort. As the industry moves to have greater openness and collaboration as part of their balanced intellectual property strategy, the Commons can help companies ensure that “green” is an essential part of that strategy. Open Innovation
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IBM’s Innovation Model A Shared Foundation of Proprietary and Open Proprietary Innovation
Open Innovation Collaboration
Advantages: Product / offering uniqueness
Advantages: Cost / value scale Option value / scope
Speed-to-Market
Differentiation
Open Innovation
IBM Leadership
Standardization
© 2008 IBM
Open Innovation
© 2008 IBM
