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Chapter 8 New issues in • 1. Co-creation from customers
• 2. Open Innovation
• 3. Social Creation
innovation management • 4. Teams and networks
1 2
1. Co-creation from customers • Fewer suppliers, longer-term
relations
• Greater equity – real ‘cost
transparency’
• Focus on value flows – the
relationship, not the contract
Characteristics • Vendor assessment, plus
of partnership development
models • Two-way or third-party
assessment
• Mutual learning – share experience,
expertise, knowledge and
investment
•
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Options in engaging users
2. Open innovation
5 6
Open innovation
Core principles of open innovation
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• conditions and context, e.g.
environmental uncertainty
and project complexity
• Orchestra
• Creative bazaar • control and ownership of
Models for Challenges resources
• Jam Central
open • Mod station
in open
innovation innovation • coordination of knowledge
• Infusion flows
• creation and capture of
value.
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Challenges in open innovation Challenges in open innovation
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Strategies to support open
innovation • Fewer suppliers, longer-term
relations
• Greater equity – real ‘cost
transparency’
• Focus on value flows – the
relationship, not the contract
Characteristics • Vendor assessment, plus
of partnership development
models • Two-way or third-party
assessment
• Mutual learning – share
experience, expertise, knowledge
and investment
•
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Options in engaging users
Tools for working with open connected
innovation
• Innovation markets –
e.g. [Link]
• Innovation contests
• Innovation
communities
• Innovation toolkits
• Innovation
technologies
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Social innovation
3. Social creation
Using innovation to create Innovation for the greater good
social value
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Why social innovation? • Social innovations are
usually new combinations
or hybrids of existing
‘Social entrepreneurs are not content just to give a fish or elements, rather than
teach how to fish. They will not rest until they have being wholly new in
revolutionized the fishing industry’. Characteristics themselves.
of social
— Bill Drayton, CEO, chair and founder of Ashoka, a innovations
• Implementing them
global non-profit organization devoted to developing the
involves cutting across
profession of social entrepreneurship
organizational, sectoral or
disciplinary boundaries.
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• They create new social • Motives and aims – less concerned
relationships between with independence and wealth, and
previously separate individuals more concerned with social means
and groups, contributing to the and ends
diffusion and embedding of the • Timeframe – less emphasis on
innovation, and increasing short-term growth and longer-term
potential for further harvesting of the venture, and more
Characteristics
innovations. Social concern on long-term change and
of social enduring heritage
innovations • Social innovation is also seen as innovators….
• Resources – less reliance on the
building on the inherent firm and management team to
capacities of individuals and execute the venture, and greater
communities, which makes the reliance on a network of
notion of open innovation stakeholders and resources to
especially relevant. develop and deliver change
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Mapping social innovation to
Challenges in social innovation core model
Challenge area
Search Recognising and connecting opportunity rather than focusing on
urgent need areas. Need passion, vision and ability to bridge
different worlds
Selection Need to build networks of support across multiple stakeholders –
but may also need to manage conflicts of different aims and
interests amongst those stakeholders
Implementation Need for agility and ingenuity to access resources
Capture value Challenge of moving beyond pilots – need for complementary
assets and partnerships
Strategy Need to balance passion with realism in reconciling aims of
different stakeholders
Organization Moving to scale will require extensive external networking and
different internal organization, risk of conflicts of values
Context ‘Lumpy’ and irregular funding, risk aversion amongst donors
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Social identity matters • social innovation as
securing a ‘licence to
operate’
Corporate • • social innovation as
social
aligning values
responsibility
• • social innovation as a
learning laboratory
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• The WWF reports regularly
Sustainability on the challenges to
sustainability and their data
suggests that we are
consuming resources
equivalent to more than One
The Planet….
threat…. •
• [Link]
we_do/how_we_work/conse
rvation/one_planet_living/
•
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Some data on reports suggesting big market
and growth potential Scope for innovation
• PricewaterhouseCoopers report
estimate significant market potential in
the provision of green goods and
services, as high as 3% of global GDP
… and the • [Link]
e-market-potential-for-ecofriendly-
opportunity products-and-services-is-over-$40-
bn/1/[Link]
• [Link]
marketplace
• [Link]
vey-shows-huge-potential-for-eco-
friendly-growth-in-new-zealand
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Options in sustainability-led
The NBS framework
innovation
• The Network for Business Sustainability regularly
reports on sustainability-led innovation
• This is a link to their website
[Link]
• Amongst other resources there’s a webinar and
downloadable report describing a major research
study and framework for sustainability-led innovation
which is also available here:
[Link]
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Overview of NBS model Level 1: Operational optimization
33 34
Examples of operational Level 2: Organizational
optimization transformation
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Examples of organizational
Level 3: Systems change
transformation
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Examples of systems change A typology of sustainable innovations
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Mapping sustainability to the innovation process Challenges in managing sustainability-led innovation
Stage Challenge
Search Peripheral vision, searching in unfamiliar fields
Reframing
Finding, forming and performing in novel networks
Select Resource allocation under high uncertainty
Cognitive dissonance
Not-invented-here
Implement Mobilizing new internal skills, structures, etc.
Capture value Crossing the chasm and the diffusion process
Innovation strategy Need for clear roadmap for the future which embeds
sustainability vision
New paradigm based on people, profit, planet types of model
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• “Responsible innovation
means taking care of the 4. Teams and network
future through collective
stewardship of science and
innovation in the present.”
Responsible • Four key dimensions:
innovation – Anticipation
– Inclusiveness
– Reflexivity
– Responsiveness
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How innovation happens? How it really happens
Process Success (?)
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Different network perspectives on innovation
• Collective efficiency
Why • Collective learning
networks? • Collective risk-taking
• Knowledge intersection
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• Standards groups
• Entrepreneur-based • Supply chain learning
• Internal project teams • Learning networks
• Internal entrepreneur • Recombinant innovation
networks Types of networks
Types of
• Communities of practice
innovation • Managed open innovation
innovation networks
network
network • Spatial clusters • User networks
(continued)
• Sectoral networks • Innovation markets
• Development consortia • Crowdsourcing and funding
networks
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• In shared learning there is the potential for challenge and
structured critical reflection from different perspectives .
Examples of learning networks
• Different perspectives can bring in new concepts (or old
concepts which are new to the learner).
• Shared experimentation can reduce perceived and actual
Benefits •
costs or risks in trying new things.
Shared experiences can provide support and open new lines
of •
of inquiry or exploration.
Shared learning helps explicate the systems principles,
learning seeing the patterns (separating the wood from the trees).
• Shared learning provides an environment for surfacing
networks assumptions and exploring mental models outside of the
normal experience of individual organizations (helps
prevent ‘not invented here’ and other effects).
• Shared learning can reduce costs (e.g. in drawing on
consultancy services and learning about external markets)
which can be particularly useful for small/medium-sized
enterprises (SMEs) and for developing country firms.
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• how to manage something Types of innovation networks
we don’t own or control
• how to see system-level
effects not narrow self-
Challenges interests
in building • how to build trust and
innovation shared risk taking without
tying the process up in
networks contractual red tape
• how to avoid ‘free riders’
and information ‘spillovers’
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Barriers to new network formation
A framework for thinking about new networks
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Types of innovation networks • Network boundary management. How the
membership of the network is defined and
maintained.
• Decision making. How (where, when, who)
decisions get taken at the network level.
• Conflict resolution. How conflicts are resolved
effectively.
Managing • Information processing. How information flows
among members and is managed.
innovation • Knowledge management. How knowledge is
created, captured, shared and used across the
networks network.
• Motivation. How members are motivated to
join/remain within the network.
• Risk/benefit sharing. How the risks and rewards
are allocated across members of the network.
• Coordination. How the operations of the network
are integrated and coordinated.
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