Success in Open Innovation

A Global Approach to Discovering
New Sources of Innovation
Dr. Ir. Jos Cenens
Engagement Manager Europe
The logic behind Open Innovation
Innovation can come from anywhere
 Being first to invent is neither sufficient or necessary for commercial success
 IP is a perishable asset – customers and markets do not wait

The Case for Expanding External Networks at
Kraft Foods
• For Kraft, 5% growth is the
100
equivalent to creating a $1.7B
80
business every year
Kraft
• Cost of innovation is growing
60
• Speed to market needs to
All
40
improve
Others
• Venture capital leading to
20
widely distributed innovation
0
• Additional internal R&D
Kraft estimates they have only
investment difficult to secure
2.2% of the world’s food related IP.
Source:
Expanding Innovation Networks, CoDev 2007
Nanako Mura, Associate Director
External Development and Technology Sourcing
Adding Open Innovation to Conventional Innovation
Develop
Research
Commercialize
Need
Idea
Acquire
Assess
Innovation: Not just for R&D
Manufacturing
Upstream Research
Design & Development
New Markets/Applications
Process Improvement
Ready-Products
NineSigma’s and Our Customers’ evolving leadership role in the creation of the
processes and culture to access the innovation ecosystem
Internet
Explosion
Dr. Henry
Chesbrough,
Linux & open
source software
emerge.
Harvard Business
School, coins
“Open Innovation”
1990’S
2000
2003
HBR Article
Outlines P&G Connect and
Develop strategy including use
of NineSigma as an “open
network” intermediary
2005
2006
NineSigma
Japan Subsidiary
Formed
NineSigma
Founded
FOOD
ENERGY
AUTOMOTIVE
2008
2009
NineSigma Opens
Europe Office
Innovation
Process
& Training
Deal
Facilitation
Intelligence
Knowledge Solution
Searches (RFP’s)
CPG/
CHEMICAL/
INDUSTRIAL
2007
LIFE SCIENCES
Industry
Consortia
Strategic
Advisory Support
Innovation
Program
Management
ELECTRONICS
Software &
web-based
solutions
Custom
Networks
NineSigma works with Clients
NineSigma profile
. . . to discover innovative ideas, technologies, products
and capabilities from outside their organizations

Offices in USA, Europe and Japan

Over 1,700 Open Innovation projects completed

More than 2 million solution providers contacted

25,000+ proposals received from over 100 countries

The largest open global network
. . . to coach and develop Networked Innovation
Champions across business units and regions
. . . to create inter-company collaborations with other
companies from across industries
. . . and to transform their innovation processes through
access to NineSigma’s systems architecture
N I N E S I G M A I S T H E L E A D E R I N O P E N I N N O VAT I O N S E R V I C E S
Some of our many global clients
Our Services

Request Services (RFP)

NineSigma Intelligence

Linked Innovation

OI Office & Custom Innovation Programs
What makes us different?
The Power to make Unobvious Connections
Terms and Definitions
•
RFP
Request for Proposal; the public document that describes the need
and opportunity
•
Solution Providers
a.k.a. responders/respondents; people, companies, organizations or
other entities that submit a proposal against the RFP
•
Proposal Abstract
The document submitted in response to the RFP; is a brief , nonconfidential description of the proposed solution
•
Exclusions
A list of entities that the client is currently working with regarding
the “need” or competitors.
•
RFP approval
A one page legal document allowing the final RFP draft to be
released to the public
So what is a RFP?
Request for Proposals
• A clear, concise and compelling
statement of a business need
• A document for communicating
with the global research and
innovation community
• A tool for screening potential
respondents
• An outline of a proposed project in
terms of timing, investment and
evaluation criteria
Managing Intellectual Property and Confidentiality
• RFP provides a non-confidential platform for information exchange
– RFPs contain no confidential or competitive information
– RFPs can be issued anonymously
– Responders are coached and required to submit only non-confidential proposal
briefs (avoids IP contamination and protects Responders)
• The Client executes confidentiality agreements, negotiates intellectual property
and establish business terms directly with respondent as needed
• NineSigma may use methods of misdirection to mask sensitive issues related to
underlying requirement or application area
WE COACH WRITING THE REQUEST AS IF IT WOULD GO TO A COMPETITOR
NineSigma DB
Over 2MM Solution
Providers contacted
since 2000
Proactive Search
• Average of 10,000 innovators
reached per project
• Global reach / cross industry
• Each project refreshes and
updates our solution provider
database
Affiliate
GlobalNetwork
Affiliates
Another 1MM
plus contacts
Viral Distribution
30% of proposals
come from people
alerted by friends,
colleagues, ..
Our Network is OPEN – there are NO barriers to participation
A Typical Project Timeline
Tasks
RFP Kick-off
Create RFP
NineSigma RFP
release process
RFP Release
RFP Response
period
Expand Evaluation
Criteria / send out
reminders
Report Delivery
Client initial
proposal review w/
NineSigma
Short list
Client detailed
proposal evaluation
Contract
negotiation
Contract
Week
0
4
8
12
16
20
24
Typical Statistics:
•
•
•
•
On average 15 proposals per RFP
60% Industrial/40% Academic
North America/Europe are primary sources
Growing Asian and South America sources
Reporting and Evaluating Results …
• NineSigma collects all responses and reviews them for
confidentiality issues
• Responses are presented to the client for evaluation
• Responders of interest are contacted for further discussions
• Contracts are negotiated between the client and responder(s)
of interest
• NineSigma can help facilitate the engagement phase if needed
Slide 15
How to respond to a RFP?
• NineSigma provides a template with guidelines
• Be crisp, compelling and concise
• Only use non-confidential and non-enabling information
• Tell WHAT your technology can do, not HOW you do it
• e.g. Show data without telling how you measured them
• e.g. Compare your results with those of the commonly used
techniques
• e.g. Show pictures of what you have achieved
• ...
• NineSigma will check all incoming proposals and ask for
corrections if needed
NineSigma Europe Contact Information
Dr. Ir. Jos Cenens
Engagement Manager Europe
+32-472- 65 08 78 (mobile)
+32-16-24 42 83 (direct)
e-mail: [email protected]
Chris H.M. De Smedt.
Director Business Development
+32-473-48 70 90 (mobile)
+32-26-57 08 84 (direct)
e-mail: [email protected]
www.ninesigma.com