1. Common Issues in Open Innovation and how to resolve them FDIN Open Innovation Conference 26 th November 2009 John Cooke - CoCatalyst Limited

2. CoCatalyst Limited Set up 18 months ago We have a unique approach = Targeted Open Innovation We help our clients to solve difficult technology problems by targeted connection to experts in parallel industries who already have the solution!

3. Agenda Defining the "right" problem Tackling "yes, buts....“ Exposing and applying tacit knowledge Keeping control of IP Building and sustaining trust

4. Typical Open Innovation Model Request For Proposal (RFP) Request For Proposal (RFP) On-line Idea Marketplace Seeker Solvers

5. Some time later… Proposals On-line Idea Marketplace

6. 5 common issues in Open Innovation 1.The initial problem posed to the open innovation community is the ‘wrong problem’. 2.Failure to adequately solve the ‘yes, but’ problems 3.Failure to adequately transfer the surrounding tacit knowledge from domain to domain 4.Failure to protect IP 5.Failure to build trust between the solver and seeker

7. Abstract World Real World Model of Problem Situation Model of Desired Solution Problem Open Innovation Research

8. “Separating overlapping slices - This Challenge is looking for a way to mechanically separate food slices that are slightly oily, sticky and very floppy. The slices naturally stick together in overlapped clumps of 2 to 5 slices and have to be manually separated today. “* *INNOCENTIVE challenge number 8924850 posted 30 th October 2009

9. Some key questions Am I solving the problem at the right system level and at the right time? What is the required function to be delivered? What is stopping us from achieving the required function? Which parameters need to change to deliver the required function? What type of solution would be optimal to deliver the required function and parameter changes? Who, in a parallel industry, might already have developed this solution?

10. Separation of thin flexible objects... Viscosity modification...

11. 5 common issues in Open Innovation 1.The initial problem posed to the open innovation community is the ‘wrong problem’. 2.Failure to adequately solve the inevitable ‘yes, but’ problems 3.Failure to adequately transfer the surrounding tacit knowledge from domain to domain 4.Failure to protect IP 5.Failure to build trust between the solver and seeker

12. Tackling “yes, buts..” “Yes, buts…” are secondary issues which come to light when you bring new ideas or technologies into your existing system When “yes, buts...” happen it can be tempting to give up on the new idea or technology “Yes, buts…” are inevitable, so you should expect them and plan for them If necessary, they can be solved by the same process you used to find solutions to your initial problem New technology Existing system components

13. 5 common issues in Open Innovation 1.The initial problem posed to the open innovation community is the ‘wrong problem’. 2.Failure to adequately solve the inevitable ‘yes, but’ problems 3.Failure to adequately transfer the surrounding tacit knowledge from domain to domain 4.Failure to protect IP 5.Failure to build trust between the solver and seeker

14. Exposing and applying tacit knowledge Establishing Dialogue Deliberately exposing assumptions Bringing in subject matter experts Using models of the technologies

15. 5 common issues in Open Innovation 1.The initial problem posed to the open innovation community is the ‘wrong problem’. 2.Failure to adequately solve the inevitable ‘yes, but’ problems 3.Failure to adequately transfer the surrounding tacit knowledge from domain to domain 4.Failure to protect IP 5.Failure to build trust between the solver and seeker

16. Keeping control of IP Don’t show your hand too soon – Avoid describing your business initially – Consider if you wish to restrict research to outside of your industry (e.g. only look at non-food solutions) – Search for generic functional solutions rather than industry specific (abstract problem) Adopt a step by step approach

17. 5 common issues in Open Innovation 1.The initial problem posed to the open innovation community is the ‘wrong problem’. 2.Failure to adequately solve the inevitable ‘yes, but’ problems 3.Failure to adequately transfer the surrounding tacit knowledge from domain to domain 4.Failure to protect IP 5.Failure to build trust between the solver and seeker

18. I want to engage all the worlds knowledge to solve my problem I want to avoid wasting my time money and effort I want to get relevant, credible solutions I want to share my problem with lots of solvers I want to stay in control I want to avoid loss of IP or business intelligence Seeker Needs Solver Needs The seeker wants to get relevant, credible solutions but the solver wants to avoid loss of control of their business.

19. Credibility High Low Commitment HighLow Seeker Perspective Solver Perspective IP Give Away Idiots and Time wasters

20. Building and sustaining trust 1.Act with integrity Put in place, (possibly) publish and enforce an Open Innovation code of conduct or charter for your organisation Recognise the needs of the other parties in the Open Innovation process and be sensitive 2.Keep up an active dialogue and communicate your status clearly (either directly or through a conscientious and honourable intermediary)

21. Key Open Innovation issues Defining the "right" problem Tackling "yes, buts....“ Exposing and applying tacit knowledge Keeping control of IP Building and sustaining trust

22. Thank You