Product development

Product Development and Management Association

Insights from PDMA Essentials: Open Innovation Tools for New Product Development

Charles Noble Serdar Durmusoglu Abbie Griffin


Closed Innovation (Innovation often Top Secret until revealed to the world focus on internal

development!)

2

?


Open Innovation: Porous Firm Boundaries Regarding Innovation!

3


Why this book?

Demystifying this fundamentally different approach to innovation

Clear & Implementable tools

Expert, first hand insights

Tales from the front

A focus on keys to success and challenges

4


Ge

ne

rate

Evaluate Develop

Deliver Design

6

3

7

11

8

2 4

5

10 9 12

1

Organizing the Work


Major Sections

Open Innovation

in the Fuzzy Front End

in the Development Stage

with Universities

for really big initiatives

Best Practices and Advice for Open Innovation

6


Highlighting Some Great Contributions

Keeping up with the Virtual Voice of the Customer Social Media Applications in Product Innovation

Dubiel, Brexendorf & Glockner

7


On to the Experts!

User Collaboration Through Private Online Communities Troch & De Ruyck

Thomas Troch is Senior Research Innovation Manager at InSites Consulting. With a background in product and service design and a passion for understanding people, Thomas connects global brands like Heineken, Unilever, Vodafone, and Philips with their consumers through new technologies like private online communities.

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Catalyzing Tacit Knowledge Exchange with Visual Thinking Techniques to Achieve Productive Open Innovation Collaborations Kreutz & Benz

Karen Kreutz is a chemical engineer and product development professional who is passionate about innovating how we innovate. She spent 28 years at P&G in Open Innovation capability development and in the design of consumer-inspired products and marketing messaging. She is aspiring to make a difference in how the world collaborates for innovation by offering knowledge modeling services via ILUMINOV, LLC.

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How to Work with Small Companies to Expand Your Open Innovation Capabilities Rainone, Rainone & Musial

Louise Musial is Vice President of Business Development at PCDworks, where she continues to build the company brand and connect the dots between engineering, open innovation and industry trends. She has authored numerous articles for technical magazines, is a regular contributor to Product Design and Development (PD&D) magazine, and recently hosted a 20-episode web series on up-and-coming innovative companies. Rainone also lectures regularly on the topics of Innovation, Open Innovation and business trends in R&D. In addition, she sits on the board of PCDworks and Backcountry Medical Guides.

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Thanks!

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PDMA PIM 2014 Conference

Denver, CO

October 2014


I made it

myself


The IKEA effect Labor enhances affection for its results, when it is fruitful.


A world of

Crowd-Everything


Broadcasting Oliver records songs in his home studio and publishes them on his YouTube channel.


Improving Kalifa improves the engine of his 1972 Citron SM and uses online instructions to do so.


Crowdfunding Ian raises money to produce the film hes featuring in.


Presumers Consumer involvement before launch.


The crowds got talent User-generated Muji products outperform their designer-generated counterparts.


Watch out for a

parallel universe


Be Agile

Be Open


From Crowd-everything

to Co-everything


Open Innovation New Product Development Essentials from the PDMA


USER COLLABORATION

THROUGH PRIVATE

ONLINE COMMUNITIES


Uncover new insights


On a quest for universal insights Mobilizing urban parents around the world for Quinny


120 urban parents, 7 cities Mobilizing urban parents around the world for Quinny


Suddenly mobility in the city becomes limited Mobilizing urban parents around the world for Quinny


Generate and craft ideas and concepts


Creating a branded innovation playground Heineken Open Design Explorations


EXPERT

ROOM

YOUR LOUNGE

JOURNEY

THE

CHALLENGE

LETS GET SOCIAL

From insight to idea Heineken Open Design Explorations


High involvement

Low involvement

Social indepen- dence

Inter- personal influence

Independent innovators

Social influencers

Laggards Followers


Up to 40% sales increase Heineken Designed for the Night program


Prototype and prelaunch the proposition


Vodafone smartphone applications Users get access to beta versions of Vodafone services to fine-tune them together.


Uncover new insights Prototype and prelaunch the proposition

Generate and craft ideas and concepts

Structural collaboration. Match the iterative cycles of the NPD process


Session Date:

Tuesday, October 21st, 2014

Session Time:

2:00 pm to 5:00 pm

Session Room:

Mount Columbia


Meet Karen & Kim


Innovation

Whats Needed

Whats Possible

Consumer Centric

Solution Space

!


Innovation

is a

human activity

that occurs as a

heuristic process

in a

social context.

Insight


Tacit Knowledge Exchange Challenges

Got Trust?

1 1

1

1 1


Two Branches of Visual Thinking

Kreutz/Benz Copyright 2014

Architecture of

knowledge

organization

emerges

organically from

the themes and

patterns in the

elicited

knowledge

Knowledge Modeling Graphic Group Processes

Architecture of

knowledge display

is

determined by

templates

or

by the flow of

captured

conversations


Choice


Engage


Fulfillment


Your Next Steps

Choose to be

proactive

about catalyzing

Tacit

Knowledge

Exchange


OPEN INNOVATION TOOLBOOK: Working with Small Business in Open Innovation

Presented by Louise Rainone- Musial


A lot of people in our industry haven't had very diverse experiences. So they don't have enough dots to connect, and they end up with very linear solutions without a broad perspective on the problem. The broader one's understanding of the human experience, the better design we will have. Steve Jobs


Director of Strategy and Business Development PCDworks I am not an Innovator - I am a connector I am a people champion! I believe that anything is possible if you put

the right group together. What is PCDworks? NPD and Innovation Firm - Immersive Innovation in house

methodology Specialize in highly technical problem solving We works across industries Oil and Gas, Medical, Consumer, Industrial,

Military, etc. 2 successful spin off companies 1 acquisition working on 3rd launch

Q2 2015 We dont claim to have the answers but we are trained to dig for them Our campus is imperative to our success in Innovation.

WHO IS THIS WOMAN AND WHY IS SHE HERE?


Open Innovation- The use of external ideas, individuals, and companies, along with ideas, tools, and opportunities internal to the corporation, to advance technology development to create value. What OI can include: Crowdsourcing NineSigma, Innocentive Portals P&G Connect and Develop, Clorox Universities Technology Transfer Offices Consulting Companies

Definitions

Why do we have to define our terminology? Unique perspectives Different Experiences Same words different meaning


Challenges with Corporate Innovation Today Reactive Not Proactive about Innovation Near sighted in NPD Beholden to Shareholders Risk Adverse Fear of Failure Innovation is Gray Corporate Accountants Do NOT like Gray


Agility Quick Decision Making Ability Less Bureaucracy Less Red Tape Entrepreneurial by Nature so they

have to Adapt Quickly Decisions are made daily due to the

speed that Innovation happens Do or Die Mentality Motivated Leaders A must do

attitude Comfortable with Risk Typically run

by Entrepreneurs so they understand how to handle risk

Freedom to Execute on Vision

No internal R&D group can possibly predict, evaluate or

cover all the possible designs or competitive

positions James Brian Quinn,

Outsourcing Innovation: The New Engine of Growth

Why Small Companies are Great Open Innovation Partners

A PASSION FOR THE WORK Onward through the fog

All things yield to persistence


Employee Retention Everyone plays an important role in small organizations

Creates Ownership Collaborative by necessity Innovators in small companies typically get to have a hands

on experience. A lot to gain by the successes.

Fresh Perspective See a spectrum of industries New Eyes from outside can help open your eyes to the

possibilities

Practice Makes Perfect well not exactly Practice is the key to being good at anything from sports to

music to innovation An Environment in which Innovation and Smart Failure is

Celebrated is KEY to Innovation.

Cost Effective Not necessarily cheap but what does it cost you to hire

someone internally? What is the output? What does a 500K budget get you

these day?

Why Small Companies are Great Open Innovation Partners


Google X -


PLEASE Remember: OI is a tool not a Magic Bullet for

your Innovation Define your needs for Innovation

and Open Innovation This will help you find the right

partner OI is NOT A ZERO SUM GAME


Keep in mind people create innovations not companies

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