Andy Zynga, Ph.D., CEO, NineSIgma

TOP 5 MYTHS OF OPEN
INNOVATION DEBUNKED
2016 Innovation & IP Business Summit | Wild Dunes Resort, Isle of Palms, SC
Andy Zynga, Ph.D., CEO, NineSigma
© Copyright, NineSigma
04.20.2016
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NINESIGMA OVERVIEW
OUR EXPERIENCE
DIVERSE CLIENTS
Innovation
Challenges
OVER 700 CLIENTS
3,500+
Multinationals
Middle Market
FROM 32 Industries
2+ MILLION
SOLUTION
PROVIDERS
Non-Profit
Government
HEADQUARTERS & PARTNER OFFICES
U.S.
Belgium
Japan
Korea
Australia
South Africa
Brazil
Canada
Netherlands
NINESIGMA NETWORK
52% Business
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34% Universities
14%
Government
Consultants
Inventors
Non-profit
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A SAMPLE OF OUR GLOBAL CLIENTS
OSAKA
GAS
The Coca-Cola Company
DENSO
OLYMPUS
SUMITOMO
HITACHI
CONSTRUCTION
MITSUBISHI MATERIALS
NEC
IDEMITSU
suntory
SHISEIDO
SHOWA
DENKO
ISUZU MOTORS
TOSHIBA
OMRON
DENKA
KIRIN HOLDINGS
SUMCO
TEIJIN
ASAHI BREWERIES
KOMATSU
PROGRAM DELIVERY IN:
North America
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Brazil
South Africa
Europe
Japan
Korea
Australia
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DIFFERENT KINDS OF OPEN &
COLLABORATIVE INNOVATION
GLOBAL INNOVATION COMMUNITY / “THE GLOBAL BRAIN”
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HOW PEOPLE ENGAGE WITH THE GLOBAL BRAIN
The Global Brain
7-10M Scientists &
Engineers
IDEAS
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SOLUTIONS
INSIGHTS
CO-DEVELOPMENT
5
HOW DOES THE TECHNOLOGY SEARCH
PROCESS WORK?
Networks
> 2M Innovators
TYPICALLY 6-8 WEEKS
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NON-CONFIDENTIAL NEEDS BRIEF
A PROBLEM WELL STATED IS A PROBLEM HALF SOLVED
CLEAR
Is written so that researchers in other
industries can understand what is needed
CONCISE
Provides the critical information for
potential Solution Providers to
understand what is needed for the
technology to be evaluated and acquired
COMPELLING
Has a financial reward that is
commensurate with the proposed project
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EXAMPLE OF TECHNICAL NEED STATEMENT:
CHEMICAL (BEFORE)
“
We’d like to find a
substitute for a white
pigment in paint.
”
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EXAMPLE OF TECHNICAL NEED STATEMENT:
CHEMICAL (AFTER)
“
Our Client is looking for
novel optical materials
with strong light
scattering properties.
”
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EXAMPLE OF TECHNICAL NEED STATEMENT:
MEDICAL (BEFORE)
“
We’d like to prevent
proteins in AIDS vaccine
from deteriorating.
”
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EXAMPLE OF TECHNICAL NEED STATEMENT:
MEDICAL (AFTER)
“
Our Client is looking for
solutions to engineer
stable proteins.
”
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EXAMPLE OF TECHNICAL NEED STATEMENT:
CONSUMER PRODUCTS (BEFORE)
“
We’d like to reduce
the wrinkled look in
shirts when they
come out of the dryer.
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”
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EXAMPLE OF TECHNICAL NEED STATEMENT:
CONSUMER PRODUCTS (AFTER)
“
Our Client is looking for
a way to reduce the
surface tension of an
organic material.
”
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EXPANDING YOUR REACH THROUGH
UNEXPECTED CONNECTIONS
PACKAGE LEAK
DETECTION
DISPENSER
TECHNOLOGY
MICROWAVE
EVEN HEATING
SENSORS
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MYTH #1
OPEN INNOVATION MEANS ALWAYS BEING OPEN
IDEATION
RESEARCH
DEVELOPMENT
ENGINEERING/MFG
LAUNCH
Projects at any step of the technology value chain
•
Practitioners of Open Innovation do protect their Intellectual Property
•
It’s about need, timing/staging, and process
•
The innovations sought are typically part of a larger whole (see next myth)
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MYTH #1 - OPEN INNOVATION REPLACES INTERNAL
R&D

SHAPE

SURFACE

DURABILITY
•
OI Enhances /
Accelerates, does not
replace
•
Tech Searches or
Expert Services
TENSILE
STRENGTH

RIGIDITY
COST

NON-METAL
PART
ADDITION
Need experts to
understand solutions &
to integrate in overall
part design



•
MACHINABILITY
CORROSION
RESISTANCE
COATING?
DIFFERENT
ALLOY?
PLATING?
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HEAT
TREATMENT?
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MYTH #2 - I.P. WILL BE COMPROMISED WHEN
PRACTICING OPEN INNOVATION
NINESIGMA PH.D. TEAM
2. SOLUTION PROVIDERS
Universities
1. CLIENT
4.
5.
Proposed
IP Solution
2.
NON-CONFIDENTIAL
“Technology Brief”
summarizing the
need (RFP)
NON-CONFIDENTIAL
Industry
Proposed
IP Solution
NON-CONFIDENTIAL
Proposed
IP Solution
Labs
NON-CONFIDENTIAL
NineSigma Proprietary Search Methodology & Database
BROADCAST SEARCH
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MYTH #4
FINDING MARKET READY PRODUCTS THROUGH OI
IDEATION
RESEARCH
DEVELOPMENT
ENGINEERING/MFG
LAUNCH
• OI
≠ Sourcing,
but it can be
used for it?
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MYTH #5
OI REQUIRES HUGE RESOURCES & INVESTMENTS
•
Open Innovation can be started with a part time resource
» Key Success Factors
•
•
OI Champion
•
Leadership Support
•
Meaningful Projects/Needs
Investments (= Rewards, Intermediary Fee) relative to
“impact” of solution!
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CASE STUDY: INNOVATION CONTEST
GE 3D PRINTING PRODUCTION QUEST
OVERVIEW
• The 3D Printing Production Quest was a public Innovation Contest hosted
on NineSights to identify cutting edge technology that can produce
complex parts with high precision by additive manufacturing processes,
using high density, refractory metals.
PHASES
• Phase 1: Mapping the Ecosystem: 22 proposals were received. The top 10
respondents each received a $5K cash prize and advanced to participate
in Phase 2 of the Quest.
• Phase 2: Producing Test Coupons: Groups had 90 days to manufacture
test coupons from GE supplied materials that were then evaluated for
geometric precision, overall mass, and overall volume.
• GE selected three fabricators with capabilities to produce complex medical
imaging device parts with high precisions based on statistical analysis as
well as several qualitative aspects.
KEY TAKEAWAYS
• The Quest pushed the limits of additive technologies, and
identified production leaders that are operating at the forefront
of 3D printing.
• Identified technologies will drive greater product performance,
quality and cost savings for healthcare customers.
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SUCCESS STORY
GLOBAL PACKAGING TREND ADVISORY BOARD
OVERVIEW & CHALLENGES
• Hershey was seeking consumer insights from outside the food and
confectionary industry to advise them on future packaging trends.
• Hershey’s leaders recognized they needed access to a full range of
consumer packaging insights including aesthetics, regulatory issues,
materials trends and international culture differences.
• An external advisory board was deemed essential to validate as well
as redirect internal efforts.
RESULTS
• Ninety-four candidates from a range of industries and regions of the
world expressed interest in the advisory board.
• None of the selected Board members were known to Hershey
previously, and none were from the food industry.
KEY TAKEAWAYS
• Hershey was able to address multiple needs with this
Board and gain new insights from technical experts as
well as creative professionals with a deep understanding
of consumer preferences.
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CASE STUDY: GRAND CHALLENGE
NEW CARBON-BASED PRODUCTS & MARKETS
OVERVIEW & CHALLENGES
• Climate Change and Emissions Management (CCEMC) Corporation had
been actively running challenges to address incremental advances.
• CCEMC wanted to ‘elevate the discussion’ and search for breakthrough
innovation; the Grand Challenge allowed them to do that.
• Grand Challenge is expected to identify multiple technologies that will
provide significant reductions in greenhouse gas emissions by
transforming carbon from a liability into an asset.
APPROACH
• NineSigma worked with CCEMC and its Board to define goals, hone in
on the need, and align all stakeholders around a common vision.
• NineSigma coordinated all aspects of Grand Challenge messaging, PR,
and outreach, coordinating with CCEMC and its marketing agency
partner.
KEY TAKEAWAYS
• Working with an organization that does not have in-house
technical leadership requires a different approach,
particularly in the discovery & strategy phase.
• Alignment around issues like prize strategy, confidentiality
and PR is critical when multiple stakeholders are involved.
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CASE STUDY: TECHNOLOGY SEARCH
FRITO-LAY/PEPSICO DESIGNER SALT
OVERVIEW & CHALLENGES
• Consumers demanded better ingredients and reduced sodium in
food products without sacrificing taste.
• PepsiCo was looking for ways to reduce sodium in Frito-Lay brand
of chips without loosing the salty flavor.
• They sought new formulation technologies for creating nano and
micro-sized particles, suspending for transportation, and application
and drying techniques for halide salts.
RESULTS
• A new approach was identified from a Swiss research lab that
was testing a relevant pharma application for osteoporosis.
• Designer salt was created by increasing the salt’s surface area;
decreasing sodium levels while retaining a salty punch.
KEY TAKEAWAYS
“There are a lot of productive connections out
there waiting to happen. What turned out to be a
great connection for Pepsico could have never been
predicted.”
— CARLOS J. BARASSO
SENIOR VICE PRESIDENT OF R&D (FORMER)
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• A food need was translated into a pure science question.
• Actual need was not revealed in the Technology Search
(RFP), thus protecting IP.
• Solution identified was cross-industry (pharma).
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CASE STUDY
GLOBAL PHARMA COMPANY DEVELOPS OI
STRATEGY THAT SHIFTS COMPANY CULTURE
OVERVIEW & CHALLENGES
• Global Pharmaceutical Company needed to increase project capacity after
staff reductions.
• As is the case in many global organizations, the technical staff was adverse to
the concept of OI. Not Invented Here Syndrome.
• Sr. VP of R&D sponsored initial 5 topic program and chose topics.
• Assigned individual to “OI Champion” role. Responsible for facilitating process
and letting technical project leads focus on their core responsibilities.
RESULTS
• Initial program yielded 77 responses from 20 countries.
• Group uncovered 4 solutions to key strategic challenges that led to 3
contractual partnerships.
• Same group executed 5 more projects the following year with similar rates
of success.
• Technical leads are now identifying challenges that fit NineSigma approach
and requesting the resources to execute.
KEY TAKEAWAYS
• Culture shift is gradual, but can be expedited with a strong strategy.
• Defining roles within the program.
• Decreasing financial risk to technical leads, but increasing
accountability drives adoption and positive results.
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OUR EFFECTIVENESS IS CONFIRMED BY FEEDBACK
FROM OUR CLIENTS
“The NineSigma Intelligence Program has
proven to be an outstanding tool for us in
our exploration of emerging technology.
The quality, organization, and delivery of
information, especially NineSigma’s
assessment and recommendations, will help
us make strategic decisions. “ Kent Young,
Director of Technology, Sherwin-Williams
“We are extremely pleased with the results
from NineSigma. The companies and
individuals NineSigma connected us to
provided us with ready solutions to a
materials need that we have been unable to
address with our internal expertise.
NineSigma delivered fast and significant
value to our program.” Robert Finocchiaro,
Ph.D., Technical Director, 3M
Source: Authorized attributable comments.
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“We use NineSigma when we are looking
for alternative approaches to solve problems
or where a solution from a different industry
may help.” Todd Abraham, VP of Global
Research and Technology Strategy, Kraft
“We’ve distributed technology briefs to more
than 700,000 people through NineSigma
and have as a result completed over 100
projects, with 45% of them leading to
agreements for further collaboration.” Larry
Huston, Nabil Sakkab, Procter & Gamble in
Harvard Business Review, March 2006
“We found the NineSigma Intelligence
program particularly helpful in getting us
quickly up to speed on our internal
knowledge on geothermal energy. We have
some strategic decisions ahead of us, but
the NineSigma program helped get us to
the point where we can make the best
decisions possible.”
Rod Nelson, Vice
President, Schlumberger
“Innovation and technical excellence are
critical to Air Products’ continued success in
the market. We believe that working with
NineSigma will amplify our internal R&D
efforts and will expand our ability to access
external resources and capabilities globally”
Miles Drake, Vice President and Chief
Technology Officer, Air Products
“Innovation is the lifeblood of our company. If
we don’t innovate, we won’t grow, or even
survive, in today’s fast moving world and highly
competitive business environment. We have
chosen to partner with NineSigma to establish
our Networked Innovation Program because
they have an impressive track record of
making open innovation work for companies
like ours,” Graeme Armstrong, Corporate
Director of Research, Development and
Innovation at AkzoNobel.
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THANK YOU
CONTACT
Andy Zynga, Ph.D.
[email protected]
Twitter: @NineSigmaCEO
(216) 295-7876
STAY
STAYCONNECTED
CONNECTED
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www.NineSigma.com
@NineSigma
www.ninesigma.com/blog
www.NineSigma.com
@NineSights
www.ninesigma.com/blog
@NineSigma
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APPENDIX
HBR Blog Post: The Innovator who Knew Too Much
By Andy Zynga | April 29, 2013
http://blogs.hbr.org/cs/2013/04/the_innovator_who_knew_too_muc.html
HBR Blog Post: The Cognitive Bias Keeping Us from Innovating
By Andy Zynga | June 13, 2013
http://blogs.hbr.org/cs/2013/06/the_cognitive_bias_keeping_us_from.html#disqus_thread
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