It was my privilege to speak about the use of community in open innovation at this week’s 3rd Annual Open Innovation conference held in Las Vegas. Unlike other events I’ve attended, the delegates spoke candidly about how they had achieved their successes and where they’re trying to improve.
The good news is that OI practitioners seem to be making progress when it comes to overcoming internal resistance to looking outside for ideas and capabilities. Companies such as P&G, General Mills, and Kodak continue to forge productive partnerships with other firms and universities, thus setting examples and establishing models for others to follow.
There are still obstacles to overcome, key of which is finding meaningful and relevant measures of OI ROI. Embarq shared its approach based on Monte Carlo simulation in which the viability of an idea is assessed using potential sell scenarios and associated cash flows. And Kodak presented a six-question evaluative framework it uses to jointly define success with its partners.
But what I observed is that the companies present at this conference appear to have moved beyond the issues associated with the early stages of OI. They weren’t debating whether open innovation was a worthwhile effort, or the kinds of partners they should pursue. Instead, they were concerned with establishing relationships that would result in long-term, mutually beneficial collaboration. Jeff Bellairs, G-Win Director for General Mills, stated, “Open Innovation is not about being external. It’s about being connected.” Jason Husk, Group Manager Technology Brokerage for Clorox, presented a symbiotic relationship between technology, consumers, and business results as a model for connection. And Chris Thoen announced P&G’s launch of Connect + Develop 2.0 OI model through which the company will focus on collaborating with partners for mutual value creation.
In 2004 I saw Hank Chesbrough present his OI model at an international conference in Lisbon, and I remember the puzzled looks and blank stares of the audience. It’s gratifying to see how much progress has taken place in just a few years.