Thursday, March 26, 2009

MTC - Creating Business out of Industrial Offerings based on Services

MTC held a seminar yesterday on the topic "Business out of Industrial Offerings based on Services" in the Volvo Trucks' premises on Lindholmen, Gothenburg. The main purpose was to share learning and experiences from a VINNOVA-funded project "Developing Industrial Offerings". Several industry companies, such as Volvo, AGA, SAAB and ESAB, gave thoughts on their journey toward being more service focused in their offerings. The keynote speaker was Tony Helsham, SVP and head of Volvo Soft Products.

It was an interesting afternoon, where many of the companies highlighted the organizational and cultuarl challenges in the movement toward service offerings. The need to visualize the changes internally as well as externally was put up as one key-take-away.

From an Open Innovation perspective, the seminar was interrelated but not highly overlapping. The discussions were mainly held on services developed and controlled within each firm. Even bigger challenges (and perhaps potentials) arise when the innovation processes involve many actors - from the organizational-, intellectual property- and (information) technology perspective.

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VINNOVA meeting

Last week, the research project participated in a workshop in Stockholm together with the other 11 projects funded in the VINNOVA call "Open and distributed innovation processes". It was interesting to listen to the status in the other projects, and it was obvious that we will find good linkages with at least some of them in the future.

The fact that so many research projects are run on the same topic in Sweden (for three years) makes it a wonderful opportunity to build lasting infrastructural relations. The projects are located in Gothenburg, Stockholm, Linköping, Jönköping, Umeå and Luleå.

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Wednesday, March 18, 2009

CIP Forum 2009

Now, the homepage of CIP FORUM 2009 is up. Continously during the spring, it will be updated with content and more information about speakers and workshops.

One of the tracks is Open Innovation, where our platform is very much involved in setting the agenda. We have extremely interesting ideas of diverse speakers and participants from various industries and geographical locations. Noreen Krall (SUN microsystems), Bo Heiden (Qatar Science & Technology Park), me (Björn Remneland) and Jens Bördin (CIP Professional Services) is the main coordinators for the Open Innovation track.

CIP Forum 2009 will be held in the Swedish Convention Center in Gothenburg 6th-9th of september. Marshall Phelps, Corporate Vice President, Microsoft will be the Chairman of the event. Over 600 persons from around the world are planned to attend.

"CIP FORUM 2009 focuses on the Future of Innovation as an engine to drive wealth and welfare creation in the 21st century. Central to the discussion is the changing nature of innovation from an industrial to a knowledge-based process where the management of intellectual assets, property, and capital takes center stage. The event will explore new innovation paradigms such as Early Innovation and Open Innovation where development and collaboration are dependent on packaging knowledge as transactions of technology."

Read more on: http://www.cipforum.org

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Tuesday, March 17, 2009

Open Innovation Speaker Series

Open Innovation is presented from various perspectives on the Open Innovation Speaker Series at Berkley University, California. They have had, and will have, very distinguished guests, where for instance Henry Chesbrough himself has had a session, as well as my friend Linus Dahlander, who now is a postdoc at Stanford. Glancing through the presentations (they are available on http://openinnovation.haas.berkeley.edu/speaker_series/index.html), the one that caught my eyes and ears most was the presentation made by Alpheus Bingham, founder and former CEO of InnoCentive.

Bingham brings forward three core areas where Open Innovation has a potential to really excel business innovation; 1) acting as spot capacity, 2) risk management and 3) enhancing diversity.

The first point (acting as spot markets for innovation work) is bringing forward the Nobel Prize winner Ronald Coase´s theories on transaction costs, suggesting that platforms such as InnoCentive can reduce these transaction costs immensely, giving opportunities for companies to work with geniuses outside of the company without much red tape.

The second point (risk management) is based on that Bingham argues that most innovation work leads to failure, suggesting that companies “waste” lots of internal resources on things that never in the end reach the market. While working with outside experts, risk of failure is shared with the crowd, making it possible for companies to bring in innovations while not necessarily paying for the failures.

The third point (diversity) implies that ideas and solutions often arrive from unusual suspects. Harvesting creativity from a diverse crowd will therefore lead to better solutions, faster. This is of course in line with Jeff Howe´s Crowdsourcing, and James Suroviecki’s Wisdom of Crowds.

Bingham also says that today most of the companies arguing that they are applying Open Innovation, are not really utilizing these three potentials much. Even if organizations apply collaborations with outside actors, they still have extremely much work laid down on long-term contractual arrangements and control mechanisms, they are still keeping much of the risk internally, and they are mostly looking for formations within their already established network/industry. Thus, they are not using the open innovation approach to its full potential.

See the whole presentation on Youtube here!

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Wednesday, March 11, 2009

Homepage www.handels.gu.se/openinnovation

A project homepage has been set up for the Open Innovation platform on the website of the School of Business, Economics and Law. Visit it at: http://www.handels.gu.se/openinnovation

Shortly, a mirroring webpage will be set up also at the IT University website.

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annual report

The School of Business, Economics and Law at Gothenburg University is preparing the annual report of 2008. The Open Innovation Platform has been one of the most sucessful applicants of research grants during the year. The project "Open innovation in theory and practice" (funded by Vinnova with 4,8 MSEK) was the second biggest research project grant given to the school, and the project Open Innovation in Society (funded by Swedish Research Counsil with 3,6 MSEK) was among the top six. Both projects are cross-disciplinary, involving also the IT-University at Gothenburg University.

Linked to our platform is also a donation from Sten A Olsson (25 MSEK) which will support the formation of a new Department of Innovation and Entrepreneurship at the School of Business, Economics and Law. Head of this department is professor Ulf Petrusson, who also is participating in the open innovation projects.

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Thursday, March 5, 2009

Top 50 List of Researchers in the Technology Innovation Management Field

In the latest issue of the research journal Technovation (Volume 29, Issue 4, April 2009, Pages 235-236), a Top 50 list of researchers within the Innovation&Management field was presented.

Among them were (connected to Open Innovation);

Bierly,P.E. James Madison University, USA
Chen, C.J. National Cheng Kung University, Taiwan
Chesbrough, H., University of California Berkeley, USA
Gassmann, O., University of St.Gallen, Switzerland
Park,Y. Seoul National University, Korea
Probert,D. University of Cambridge, UK
Salter, A. Imperial College London, UK
Von Hippel,E. Massachusetts Institute of Technology, USA

The award was created by the International Association for the Management of Technology (IAMOT) to identify the established and "hot" researchers in the field. The approach is built on the number of publications they have done the last five years in prestegiouos peer-reviewd innovation journals (eg. Research Policy, Journal of Product Innovation Managment, Tecnovation, etc).

Congratulations!

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Monday, March 2, 2009

The Pirate Bay Case - some thoughts as the first round comes to a close

At a glance the Pirate Bay (TPB) case unfolding now in the Stockholm district court seems to be simple enough. Will the administration of an Internet service through which users can meet and share files be deemed to be an accessory to the principal act of copyright infringement committed by the users themselves? For starters, the fit is not particularly good, since the accessory situation traditionally only included those who had an awareness of the particular crime in question and who somehow aided or abetted the perpetrators. Extending the accessory concept to also include multi-use technology platforms is of course not a desirable situation, so the argument has largely been about if it is possible to interpret it wide enough to include those who call themselves pirates and display a bad attitude toward copyright while at the same time excluding more legitimate actors such as Google. As said, the fit is hardly perfect and the court will eventually have to be brave and take a stand on how to make a new interpretation of the accessory concept in the digital arena.

But, will this really matter? Pirate Bay is already past its technical prime and there are plenty of alternatives waiting to scoop up the TPB users. In any event, the generic search engines that are for most users a much more effective tool to track the downpour of available material on the net. If you are not a dedicated filesharer who is in on what sites are the flavor of the month, then a simple Google-search or a net-search through your filesharing software client will be much more useful than visiting dedicated sites. The days of centralized nodes for filesharers are numbered.

But the outcome of the TPB case could still be important. Not principally for the filesharers, but for the record industry's internal incentives and for its self-image.

The record industry has a problem with facing the fact that the heydays of physical distribution are gone. Sure, there will always be a substantial market for those that seek to possess well-crafted physical editions. But this will be a niche-market compared to the wider audience that just wants access to the audio and video, and for whom the physical edition is just a cumbersome detour to their personal media-player. Seen from a pure distribution perspective, the CD record has no long-term future. The same argument can be made for the movie theater, or the dvd.

Now, it is a common mistake to see the industry as monolithic. It is not. There are plenty of efforts made and good ideas hatched on how to create palatable value offerings that can attract the modern audience, both within music and movies. Good initiatives abound both inside the labels and studios as well as among their partners in technology firms. But inertia holds every organization to larger or lesser extent, and without outside pressure the progressive projects will be less likely to succeed.

The kind of uncontrolled filesharing that services like TPB lends itself to actually has an important role to play in pushing forward new modes of distribution. The iTunes store wasn't very exciting or new as a concept, but its revolutionary contribution was that it managed to combine the catalogues of several big labels under one umbrella. The CEO of Apple Computer, Steve Jobs, has described how he only managed to seal the deal by threatening the rights owners with the future of uncontrolled filesharing. The same thing goes for more modern initiatives such as Spotify, Just as iTunes was driven forward by the storms of Napster, so was Spotify born with the flag of the Pirate Bay looming on the horizon. While iTunes was basically an online adoption of the record store, Spotify is a service that is much better at leveraging the interactive potential of the net and the contributions of their own users.

As a force for bringing about new and exciting services in distribution, services that speak to the needs of the consumer, TPB should not be underestimated. This force is a healthy influence into any old industry that should welcome this prodding. Maybe not in the short-, but in the long run.

Currently, the inability to properly clear the copyrights is still holding back the movie section of European iTunes, an important feature that has existed since January 2008 in the US. And just two weeks ago, the content of Spotify was reduced when parts of the catalogue was removed, leaving users with several unwelcome ?-marks in their playlists. This has prompted many users to leave the service. Spotify, which was hailed only a month ago as the great white hope of the industry, has gone from hot to not. A winning verdict against TPB would likely make the conservative elements within the industry feel that they have scored one against the progressive forces and settle back with a feeling of contentment. This is a feeling they can ill afford. Constant innovation in availability, speed and depth of catalogue is the name of the game today. Resting on your laurels will mean death.

A loss in the Pirate Bay case may be exactly the push that is needed to deliver those services that will once more captivate the mainstream public and, perhaps in time, reduce such things as the Pirate Bay to mere fringe phenomena: not threatening, but irritating and inspiring.

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CIP FORUM 2009

Today (perhaps this afternoon), the new version of www.cipforum.org will open.

The conference, held in Gothenburg 6th-9th of September, will discuss the Future of Innovation - the fundamental changes of the rapidly growing knowledge economy.

CIP FORUM is aiming to become the leading arena for discussing issues related to the knowledge economy, where Gothenburg will be a hub for interactions between university, business, healthcare and policy actors.

This year, Open Innovation will be one of the main tracks, and we work much for the moment to fill the content with interesting topics, speakers, workshops and participants.

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