1. technology and computing
2. technological innovation

Saarbrucken, 06.02.2014
Technologietransfer und Open Innovation,
Unterstützende Portale (nicht nur) für TT Büros
INTRASOFT Intl S.A.
Research & Innovation Unit
Dr. Raimund Bröchler
2
Content
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INTRASOFT International S.A. at a glance
Introduction to Innovation
Open Innovation for SMEs and Universities
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What?
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Why?
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How?
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Methods
Open Innovation Service Segmentation
The future of Open Innovation
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INTRASOFT: WHO WE ARE
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Leading European company in IT services since 1996.
Key player in E.U. Institutions and Agencies for more than 15 years.
Major multinational IT solutions integrator, serving governments, large
public institutions and private enterprises in more than 70 countries
around the globe.
Headquarters in Luxemburg, established in 12 countries.
About 1.500 professionals from 20 different nationalities.
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WHAT WE DO
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Deliver seamless business systems through software
development and IT systems integration.
Offer vertical IT solutions in specific business domains and
industries.
Offer a wide portfolio of managed IT services, infrastructure and
application outsourcing.
Provide highly-skilled professionals through consulting and IT
capacity services.
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WHAT WE DO
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Highly-skilled
personnel
1.500 professionals
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20 nationalities
Distributed around
the globe
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GEOGRAPHICAL FOOTPRINT IN EUROPE
Office Location
Athens / Bucharest / Brussels
/Luxembourg / Sofia / Copenhaguen
/Nicosie / Amman / Riyadh / Manilla
Activity
Alicante
Ankara
Apeldoom
Astana
Belgrade
Bern
Budapest
Dublin
The Hague
Helsinki
Kiev
Kishinev
Lisboa
Ljubljana
London
Lulea
Malta
Minsk
Moscow
Nicosia
Oslo
Podgorica
Riga
Scopje
Tirana
Tbilisi
Vilnius
Warsaw
Zagreb
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GLOBAL PRESENCE
Activity
Executing over 100 Projects in more than 68 countries
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SUCCESSES & HIGHLIGHTS
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Two massive application rollouts in 5.000 customs offices delivered
successfully in 2004 & 2010, under a strict timeframe & 5 new rollouts in
June 2013.
Managed IT services (desktop, network and data-center support) for
40.000 users in various European Institutions, using cutting edge tools
and methodologies.
Mission-critical systems for the European Medicines Agency
Over 100 critical applications for the European Trademarks & Designs
Registration Office (OHIM).
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SUCCESSES & HIGHLIGHTS
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The Risk & Compliance platform (ESKORT) has been installed
in 25 countries on 5 continents.
One of the leading providers worldwide of Tax Compliance Solutions
for Government Revenue Agencies according to Gartner.
Software labs and development centers in 5 countries.
INTRASOFT International is included in the first 500 companies
worldwide that hold an ISO 20000 certificate.
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Innovation is…
How would you describe innovation?
Innovation is…
• “The successful exploitation of new ideas” (UK Department of Trade and Industry. 2004)
• “A tool by which entrepreneurs exploit change as an opportunity for a
different business or service.” (Drucker, P. 1985)
• “Not just coming up with good ideas but the process of growing them
into practical use. ”
• “ Not the same as invention. Invention is turning cash into ideas
and innovation is turning ideas into cash.” (Hacklin and Wallin, 2012)
• “A new good, new quality of a good, new method of production,
entering a new market, finding a new source of supply, a new
organization of industry or a new combination of recourses.” (Schumpeter)
• Needs to be actionable to create sustainable value.
 Innovation is not a linear process but it is dynamic and constantly
needs to be evaluated and changed.
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Question
What is the difference between invention
and innovation according to you?
Innovation versus invention
Invention is creating ideas out of money while
innovation is creating money out of ideas.
Example: Thomas Edison and the light bulb.
(Bessant, J. & Tidd, J., 2009)
Open Innovation is…
How would you describe Open Innovation?
Open Innovation is…
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A strategic tool to explore new growth opportunities at lower risk1
A managerial answer to globalisation.2
More about increasing R&D options than replacing existing ones. External
technological collaboration is complementary to internal R&D investments.1
Open technology sourcing offers higher flexibility and responsiveness without
necessarily incurring huge costs1
A mix of approaches: technologies purchased from other companies,
acquired through licenses, partnerships and alliances or developed internally1
Large companies are four times more likely to collaborate for innovation
activities than SMEs1
There are 4 types of openness of innovation: revealing, selling (from
inside the firm to outside), sourcing and acquiring(from outside the firm
to inside).
Example: P&G is developing 50% of innovations with external partners3
1Open
Innovation in Global Networks, OECD 2008
Labs and Open Innovation, E. Almirrall, eJOV-Volume 10
3OpenInnovation.de/523-Procter-Gamble-P-G
2Living
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One picture says more than...
PS: Open Innovation does NOT mean free like i.e. in open source
Open Innovation is…?
Open Innovation can be best
characterized as a …1
OI is rapidly changing
and there is a growing
gap between theory
and practice.
1exnovate,
newsletter, June 20, 2013
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Why being open?
• Basically this is a synergetic way for companies to share
their once guarded ideas with organizations and
individuals outside the company to accelerate the
innovation process*.
• Open innovation allows companies to talk with other
companies or customers during an earlier stage of
development and to even include them in the product or
service formation stage*.
• This allows the companies to afford the ability of not
only innovating faster but also saving resources on
guesswork so that they can make the improvements
that will matter most to their customers*.
*www.InnovationGrow.com
Why Open Innovation?
Closed Innovation is focussed too much on who
solves the problem rather than how the problem is
solved, while OI makes use of the talent everywhere
inside and outside the organization.
OI makes use of the diversity these different
perspectives offer.
Example: Oil problem solved by concrete industry
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Why Open Innovation?
 450 articles 136 scientific journals show an intensive discussion of OI
 “The ability to innovate and launch successful products is critical for
competitiveness.” (Chesbrough, 2003)
 “As the emphasis for many firms is on the inbound OI process, new
methods have been emerged and are being tested for the acquisitions
of ideas and technology” (Mortara, L. 2011)
 “Current research on OI in SMEs is limited and is not revealing the
creative use of OI that SMEs are implementing” (Vanhaverbeke, 2012)
 77% of the survey respondents (229 OI decision makers) believe that
OI is an essential mandate and key to long-term success. (Forrester Report by
InnoCentive, 2012)
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Why Open Innovation?
Open Innovation is an approach for Innovation Management1.
Open Innovation…
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allows to acquire, integrate and process external information more efficiently
and effectively.
supports organizations to overcome local search bias, acquire precise
information needs and innovate more successful and cost efficiently.
creates new forms of interacting and collaborating with the external
environment including potential actors (beyond suppliers, customers,
universities etc.).
requires working with external parties, because not all talent and knowledge
is in your company. Boundaries between firm and environment are broken
down so the company can develop both its own ideas and those of external
parties  more input and thus higher chance on success.
1The
Market for Open Innovation, F. Piller, K. Diener, 2010
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How to apply Open Innovation?
OI requires a system to formulate problems and opportunities into
concrete challenges and then bring them to the right audience.
OI is managing and reducing of uncertainties by accessing and
transferring different types of information:
 Customer and market needs: Builds on in-depth understanding of
customers’ requirements, operations and systems.
 Technological solutions: Solution information addresses the
efficiency of the innovation process and enables product developers
to engage in more directed problem-solving.
Question? Which approach is more successful; Push or Pull?
1The
Market for Open Innovation, F. Piller, K. Diener, 2010
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Top 5 OI companies*
• GE, Philips, Lego, Unilever, General Mills
• >Lego:
– The household building company has a strong open
innovation program, including their partnership with
Cuusoo.
– Cuusoo itself is a platform for open innovation and
LEGO integrate this crowdsourcing platform with
great success.
– With the current program for the creation of a product
it requires 10,000 votes.
* www.InnovationGrow.com
Challenge Driven Innovation?
What do you think Challenge Driven Innovation is?
Can you give examples?
1The
Market for Open Innovation, F. Piller, K. Diener, 2010
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Challenge Driven Innovation
• The company publishes a challenge that everyone can try
to solve
• Challenges are more concrete than ideas.
• The company pays per performance rather than for trial
and error, which saves money.
• CDI is time saving
• CDI proves that not all talent has to work for you, as long
as they want to work with you.
• Allows for applying solutions of other industries (i.e. cheese
cutting techniques for cutting tires)
• Better problem solving with the same amount of staff or
less staff
1The
Market for Open Innovation, F. Piller, K. Diener, 2010
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How to apply CDI?
• External talent gets involved for fun, purpose or
passion, so these motivations need to be addressed
• CDI requires an external talent strategy to attract the
right “problem solvers”
• The company needs to create a “common language”
between internal and external talent
• The company needs to build an external “talent
community”
1The
Market for Open Innovation, F. Piller, K. Diener, 2010
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Innovation Contests
CDI often results in Innovation Contests (IC); the generation of input for
all stages of innovation process, usually done via searches for
innovative approaches to a technical problem within a wide range of
problem solvers
Examples
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EEN www.enterprise-europe-network.ec.europa.eu
NineSigma www.ninesigma.com
InnoCentive (Eli Lilly spin-out) www.innocentive.com
I-Prize (CISCO Systems, 2 rounds, 2000 ideas collected, price:
250k$)
 AUTOHARVEST www.autoharvest.org focus on automotive and
manufacturing
L. Mortara et al, 2011
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Innovation Contests
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ICs are idea competitions that source and exploit technologies.
Large companies have the capacity to organise ICs
independently, SMEs more often use Intermediaries like EEN,
NineSigma, InnoCentive, yet2.com, etc.
ICs are need driven! This is more successful than a push
approach.
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1von
ICs are not new, they are known and used since 18th century1
Most OI services are based on online crowdsourcing. Example:
www.Threadless.com
Sippel, 1988, 2005
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Toolkits
Instruments supporting organizations by transferring information needs into
new product concepts.
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Mash up/ convergence/ fusion: A new combination of "resources";
connecting things from different industries into a new product.
Mind Mapping Software: A brainstorming tool that creates a digital word
web.
Creative innovation sessions
Benchmarking
Innovation audit
Examples:
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EEN (Enterprise Europe Network)
Yet2.com www.yet2.com
L. Mortara et al, 2011
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Open Innovation Services
1 - Innovation
Management
2 - Market
Intelligence
3 - Landscape
Analysis
Technology Fusion
“7” – Technology
Fusion Services?
4 -Technology
Scouting
5 - IP
Licensing
6 - Partnership
Development
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The driving force
 SMEs participate sooner, move faster and adapt more readily to
opportunities1.
 Increased R&D activities of SMEs make them attractive as technology
receiver and solution provider.
 Being a partner of choice in your industry is increasingly important and
innovation can help to achieve this
1H.
Chesbrough, 2010
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OI in academia
To evaluate the importance of OI for acedamia1 participant of a survey were
asked to determine the importance of OI within Innovation Management.
1Dr.
A. Braun, K. Hoelze, “exnovate”, June 2013
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US-EU-match - Technology Matching
Supply
Demand
Large
Corporations
Market
Pull
Partnerships
“Technology
Requests”
Technology
Push
“Technology
Offers”
University,
Federal lab,
SMEs,
Research
Centers
US-EU-MATCH SERVICES
Business support
services
Technology
Partnerships
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 Technology
Scouting
 Technology
brokerage
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How to set up a
business in the US?
Commercial
partners searches
Trade missions
organization
Horizontal Services
 Web Site
 Collaborative
research projects
 Prior Art
INTRASOFT International is ISO 9001 2000, ISO 9001, ISO 14001 and EN 15038 certified Member of INTRACOM HOLDINGS
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US-EU-match - a couple of cases
Solution
Problem
Cleaning sponge to
USA
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New product
introduction
Environmental
focus
Reusability versus
simplicity
US Exporter of
Dairy Products
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EDTA for cleaning
Production
process
Possible
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replacement
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because EDTA in
Europe
Research Project
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Benefits
Sponge on a roll
found in Europe
Consumer
samples found
with two
companies
Go to market
time reduced
Clarified that
EDTA is not
banned in Europe
Identified
replacements for
EDTA
Avoided project
and saved money
and HR
costs
Avoided
project and
saved money
and HR costs
INTRASOFT International is ISO 9001 2000, ISO 9001, ISO 14001 and EN 15038 certified Member of INTRACOM HOLDINGS
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Win-win deal EEN and EU-US-match
EEN
Average Success Rate 9%
(~1000 agreements per ~11.000
Technological, Business, and
Research profiles )
EU-US-MATCH
Average Success Rate 14%
(32 agreements per ~ 230
profiles)
NINESIGMA (EU-US-MATCH
partner)
Average Success Rate 50%
INTRASOFT International is ISO 9001 2000, ISO 9001, ISO 14001 and EN 15038 certified Member of INTRACOM HOLDINGS
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Industry examples
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Five large enterprise (17k-287k employees) Idea Contests and one OI
agency were analysed from the USA, UK and France, covering ICT,
Telecomm, Consumer Goods and Conglomerate.
Three examples are in-house and three by external Intermediaries, all
addressed SMEs as participant targets beside start-ups and students.
Between 700 to 72,000 participants were attracted and between 72
and 3,844 ideas submitted. In three cases, 0 to 12 technologies were
acquired after the second round.
IC organisers list as main target: Technologies acquired, market
intelligence, technology intelligence, competitor intelligence, publicity
(PR), access to people and testing opportunity.
L. Mortara et al, 2011, Idea Competition under scrutiny as a mechanism for acquisition
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IC Study Results
Deals
1
1
1
1
0
5
12
L. Mortara et al, 2011
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Facilitator: InnoCentive
Supports Challenge Driven Innovation and bridges the gap between ideas and
solutions to drive measureable results
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Registered solvers:~250,000 from nearly 200 countries (stable since 2010)
Solver reach: More than 12 million
Challenges posted: More than 1,420
Project rooms: 409,000
Solution submissions: 30,000 (4.7% awarded)
Award dollars posted: $35+ million
Range of awards: $500 to $1 million based on the complexity of the problem
Total awards given: 1,140+
Average success rate for seekers: 50%+
InnoCentive, April 2012
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Facilitator: NineSigma
A leading innovation partner which helps companies across industry sectors to
engage with the global innovation community to find knowledge and solutions
that accelerate the time to market.
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500+ clients on projects including knowledge searches, technology
landscaping and enterprise-wide open innovation programs.
More than 2,200 open innovation projects since inception in 2000.
Distributed innovation requests to more than 2 million solution providers
globally.
Received 35,000+ innovation proposals from solution providers in 135
countries.
90% identifying viable solutions.
NineSigma, May 2012
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Conclusions
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IC is a great tool for SMEs if possible (dis)advantages are known from the start.
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The efficiency of new inputs compared to the number of ideas posted is
sometimes questionable.
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Engagement of intermediaries helps SMEs to outsource work to experienced
players, but solutions may be limited by the imagination of the intermediary.
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ICs improve the pace and smoothness of the acquisition process significantly
and reduce part of the acquisition risk i.e. lawsuits.
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To keep OI momentum going, rapidly proving value through quick (i.e. 6 month)
trials/pilots is essential.
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The role beyond acquisition is often forgotten but can be successfully used,
especially by large companies.
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Costs benefit calculation cannot be easily given, since secondary outcomes
can outnumber original targets.
IC sources technologies and ideas at several levels of maturity to be used by
current and new businesses.
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What will the future bring?
...stay interested!
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What will future OI research bring?
...stay interested!
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THANK YOU FOR YOUR ATTENTION