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1. open innov framing

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Michele Missikoff
Michele Missikoff

This document discusses open innovation and the need for innovation in enterprises. It defines open innovation as integrated collaboration and co-creation of shared value through cultivated innovation ecosystems and rapid adoption of exponential technologies. The document outlines three steps to innovation: digital transformation towards digital enterprises, knowledge transformation towards knowledge enterprises, and meta-innovation transformation towards open innovation ecosystems. It emphasizes that innovation requires cultural shifts and new forms of organization, management, and working styles with a focus on people and communities.

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1 ICT-based Creativity and Innovation --oo--oo-- 1. Framing M.Missikoff Institute of Sciences and Technologies of Cognition ISTC-CNR, Rome (michele.missikoff@cnr.it) Institute of Cognitive Sciences and Technologies
Summary 1. Why we need (Open) Innovation? 2. What is (Open) Innovation? 3. People-centric Innovation: New forms of organization, management, working styles 4. The core issue: Enterprise Innovation Lifecycle (guidance without reducing freedom) 5. ICT Architectures and Platforms for Open Innovation 6. Conclusions and Lessons Learned 2
Why we need Open Innovation • Innovation makes the difference: We are at a turn point. We need to innovate firstly our Life Style • The success of an enterprise in the ability to quickly grasp the accelerated technology changes, adopting them to produce value • “Innovation is vital to European competitiveness in the global economy” (European Commission) • 79% of companies that introduced at least one innovation since 2011 experienced an increase of their turnover by more than 25% by 2014 (InnoBarometer) 3
An Ever Changing Scenario ... We reached the end of the Industrial Revolution Era ... 1st IR. Warm Energy: mechanization, steam engine (‘700- ’800) 2d IR. Cold Energy: Electrification of industries, cities, homes (‘800-’900) 3d IR. First Digitization: the advent of computers (1960s- 1990s). Industrial / office automation 4th IR. Smart Digitization: ‘Smart’ society. Smart Energy, Smart Industry 4.0, Smart Cities, Smart Objects, ... (2000- 2020). Big Data/Knowledge. Continuous Innovation. 5th IR. Socio-digital Revolution. New socio-economic paradigms. The Era of Access (J. Rifkin), Sharing / Circular Economy, from Ownership to Usage (2020+) 4
5
Enterprise Attitude to Innovation Firstly, Cultural Transformation: • Corporate value • ‘inherent’ attitude • Managers’ endorsement 6 ... against the ‘Budget Tyranny’
What is innovation? “Innovation does not just change our lives, it is how we make a living.” (B. Obama, 2013) The Innovation ‘cocktail’: • Fantasy & Creativity (with a pragmatic attitude) • New ideas that create value • People, communication, collaboration, social behaviour, communities • Risk with a vision • Knowledge 7
Open Innovation Strategy and Policy Group (OISPG) According to OISPG From an Art to a Systematic Discipline, based on: • integrated collaboration, • co-creation of shared value, • cultivated innovation ecosystems, • unleashed exponential technologies, and • extraordinarily rapid adoption (absorption) 8
Digital Open Innovation What can we expect to see in the next coming years? 9
Service vs Product Innovation • The Age of Access (J. Rifkin) – From ownership to use – New business models base on Usage Value – But it requires a radical Cultural Shift, e.g., in terms of Social Values (e.g., I own a Ferrari, therefore I am a success man) • The blurring frontier between • goods and services (e.g., the Internet Fridge) • Inside and outside of the company Servitization and Openness 10
New Business Models No fixed resources or infrastructure ownership • Uber • Airbnb, SabbaticalHome No content ownership • Facebook • Instagram Predecessors in Old Economy • Scientific Journals. The workers (scientists) work for free and then pay to buy the outcome of their work ... against the ‘Platform Tyranny’ 11
ICT & Innovation The articulated relationship between ICT and Innovation • Innovation IN ICT • Innovation WITH ICT • Innovation BY means of ICT 12
Innovation IN ICT • Aims at producing new digital solutions, systems, equipment, ... (e.g., Oled display, ... to Quantum Computing) • Today, ICT represent among the most forward moving research and industrial areas. • It is the most relevant technology in terms of pervasiveness and impact on the rest of the socio-economic systems. • However, here we will not focus on this topic, since our main interest is the other points that follow. 13
Innovation WITH ICT • Embedding advanced ICT solutions in an innovative product, process, or service is the most relevant frontier of innovation today. • Same for new business models based on shared platforms and knowledge systems. • Airbnb or Uber could not be even conceived 10 years ago, when internet, the Web and the smartphones where not systematically used. 14
Innovation BY using ICT • To produce an innovative solution (product, service, etc.) by using ICT means. E.g., a new chair designed with CAD and 3D Printed (but not embedding ICT) • An instrumental perspective concerning the innovation in any possible industrial sector • ICT solutions adopted as a means, for the design, engineering, production, distribution, of goods and services. • The final product can be ‘traditional’ (e.g., a chair) and low- tech (no technology is embedded), but could not exist in absence of advanced ICT solutions. • On another level, this line includes the support & management of innovation projects: Innovation support and mangement Platforms 15
3 Steps to Innovation Human-centric Innovation • Digital Transformation  towards Digital Enterprise • Knowledge Transformation  towards Knowledge Enterprise • Meta-Innovation Transformation  towards Open Innovation Ecosystem All three Transformations are based on advanced ICT technologies, but interpreted keeping people at the center, then people’s minds need to change synergically. 16
Digital Transformation • Full Digitalization of enterprise and society • The only possibility to cope with the need of speed, required by globalization and new markets • This is not simply automation Towards ... • Fully Digital Enterprise • Unified Digital Socio-Economic System • Servitization. From goods (atoms): slow, to services (bits): fast 17
Digital Disruption Big Impact on Enterprise organization, business models, working and management styles, marketing strategies, ... 18
Digital Enterprise RealEnterpriseDigitalEnterprise 19
Knowledge Transformation Knowledge and Semantic Technologies • Digital representation of the Enterprise needs Semantic Enrichment, to tame complexity • Enriching with meta-data, conceptual level: Ontologies • Adopting methods and tools from Semantic Technologies • Beyond ‘business as usual’: Open Innovation requires Open Knowledge Semantic Web & Linked Open Data Innovation as a Knowledge Artefact 20
Knowledge EnterpriseRealEnterpriseDigitalEnterprise Rules & Best Practices Semantic Tags & Annot Ontology Federations Knowledge Layer 21
‘Meta-Innovation’ Transformation • Assuming the two previous levels: Digital & Knowledge Enterprise • The next Enterprise Evolution requires: – Socio-organizational Transformation – Higher digital tools integration – Cultural Shift • People empowerment – Via digital culture: Open Learning Lab – Dynamic Organization Models, Strong delegation – From management to orchestration – Open co-creation, co-design • Education, in collaborative settings • Beyond Human Capital, towards Relational Capital 22
Innovation Ready Enterprise Open Innovation Framework 23 It is NOT an individual characteristic, it is a relational one, achievable only in an Ecosystem Next: 2/6. OpenInnov-WhatIsIt

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1. open innov framing

  • 1. 1 ICT-based Creativity and Innovation --oo--oo-- 1. Framing M.Missikoff Institute of Sciences and Technologies of Cognition ISTC-CNR, Rome (michele.missikoff@cnr.it) Institute of Cognitive Sciences and Technologies
  • 2. Summary 1. Why we need (Open) Innovation? 2. What is (Open) Innovation? 3. People-centric Innovation: New forms of organization, management, working styles 4. The core issue: Enterprise Innovation Lifecycle (guidance without reducing freedom) 5. ICT Architectures and Platforms for Open Innovation 6. Conclusions and Lessons Learned 2
  • 3. Why we need Open Innovation • Innovation makes the difference: We are at a turn point. We need to innovate firstly our Life Style • The success of an enterprise in the ability to quickly grasp the accelerated technology changes, adopting them to produce value • “Innovation is vital to European competitiveness in the global economy” (European Commission) • 79% of companies that introduced at least one innovation since 2011 experienced an increase of their turnover by more than 25% by 2014 (InnoBarometer) 3
  • 4. An Ever Changing Scenario ... We reached the end of the Industrial Revolution Era ... 1st IR. Warm Energy: mechanization, steam engine (‘700- ’800) 2d IR. Cold Energy: Electrification of industries, cities, homes (‘800-’900) 3d IR. First Digitization: the advent of computers (1960s- 1990s). Industrial / office automation 4th IR. Smart Digitization: ‘Smart’ society. Smart Energy, Smart Industry 4.0, Smart Cities, Smart Objects, ... (2000- 2020). Big Data/Knowledge. Continuous Innovation. 5th IR. Socio-digital Revolution. New socio-economic paradigms. The Era of Access (J. Rifkin), Sharing / Circular Economy, from Ownership to Usage (2020+) 4
  • 5. 5
  • 6. Enterprise Attitude to Innovation Firstly, Cultural Transformation: • Corporate value • ‘inherent’ attitude • Managers’ endorsement 6 ... against the ‘Budget Tyranny’
  • 7. What is innovation? “Innovation does not just change our lives, it is how we make a living.” (B. Obama, 2013) The Innovation ‘cocktail’: • Fantasy & Creativity (with a pragmatic attitude) • New ideas that create value • People, communication, collaboration, social behaviour, communities • Risk with a vision • Knowledge 7
  • 8. Open Innovation Strategy and Policy Group (OISPG) According to OISPG From an Art to a Systematic Discipline, based on: • integrated collaboration, • co-creation of shared value, • cultivated innovation ecosystems, • unleashed exponential technologies, and • extraordinarily rapid adoption (absorption) 8
  • 9. Digital Open Innovation What can we expect to see in the next coming years? 9
  • 10. Service vs Product Innovation • The Age of Access (J. Rifkin) – From ownership to use – New business models base on Usage Value – But it requires a radical Cultural Shift, e.g., in terms of Social Values (e.g., I own a Ferrari, therefore I am a success man) • The blurring frontier between • goods and services (e.g., the Internet Fridge) • Inside and outside of the company Servitization and Openness 10
  • 11. New Business Models No fixed resources or infrastructure ownership • Uber • Airbnb, SabbaticalHome No content ownership • Facebook • Instagram Predecessors in Old Economy • Scientific Journals. The workers (scientists) work for free and then pay to buy the outcome of their work ... against the ‘Platform Tyranny’ 11
  • 12. ICT & Innovation The articulated relationship between ICT and Innovation • Innovation IN ICT • Innovation WITH ICT • Innovation BY means of ICT 12
  • 13. Innovation IN ICT • Aims at producing new digital solutions, systems, equipment, ... (e.g., Oled display, ... to Quantum Computing) • Today, ICT represent among the most forward moving research and industrial areas. • It is the most relevant technology in terms of pervasiveness and impact on the rest of the socio-economic systems. • However, here we will not focus on this topic, since our main interest is the other points that follow. 13
  • 14. Innovation WITH ICT • Embedding advanced ICT solutions in an innovative product, process, or service is the most relevant frontier of innovation today. • Same for new business models based on shared platforms and knowledge systems. • Airbnb or Uber could not be even conceived 10 years ago, when internet, the Web and the smartphones where not systematically used. 14
  • 15. Innovation BY using ICT • To produce an innovative solution (product, service, etc.) by using ICT means. E.g., a new chair designed with CAD and 3D Printed (but not embedding ICT) • An instrumental perspective concerning the innovation in any possible industrial sector • ICT solutions adopted as a means, for the design, engineering, production, distribution, of goods and services. • The final product can be ‘traditional’ (e.g., a chair) and low- tech (no technology is embedded), but could not exist in absence of advanced ICT solutions. • On another level, this line includes the support & management of innovation projects: Innovation support and mangement Platforms 15
  • 16. 3 Steps to Innovation Human-centric Innovation • Digital Transformation  towards Digital Enterprise • Knowledge Transformation  towards Knowledge Enterprise • Meta-Innovation Transformation  towards Open Innovation Ecosystem All three Transformations are based on advanced ICT technologies, but interpreted keeping people at the center, then people’s minds need to change synergically. 16
  • 17. Digital Transformation • Full Digitalization of enterprise and society • The only possibility to cope with the need of speed, required by globalization and new markets • This is not simply automation Towards ... • Fully Digital Enterprise • Unified Digital Socio-Economic System • Servitization. From goods (atoms): slow, to services (bits): fast 17
  • 18. Digital Disruption Big Impact on Enterprise organization, business models, working and management styles, marketing strategies, ... 18
  • 20. Knowledge Transformation Knowledge and Semantic Technologies • Digital representation of the Enterprise needs Semantic Enrichment, to tame complexity • Enriching with meta-data, conceptual level: Ontologies • Adopting methods and tools from Semantic Technologies • Beyond ‘business as usual’: Open Innovation requires Open Knowledge Semantic Web & Linked Open Data Innovation as a Knowledge Artefact 20
  • 21. Knowledge EnterpriseRealEnterpriseDigitalEnterprise Rules & Best Practices Semantic Tags & Annot Ontology Federations Knowledge Layer 21
  • 22. ‘Meta-Innovation’ Transformation • Assuming the two previous levels: Digital & Knowledge Enterprise • The next Enterprise Evolution requires: – Socio-organizational Transformation – Higher digital tools integration – Cultural Shift • People empowerment – Via digital culture: Open Learning Lab – Dynamic Organization Models, Strong delegation – From management to orchestration – Open co-creation, co-design • Education, in collaborative settings • Beyond Human Capital, towards Relational Capital 22
  • 23. Innovation Ready Enterprise Open Innovation Framework 23 It is NOT an individual characteristic, it is a relational one, achievable only in an Ecosystem Next: 2/6. OpenInnov-WhatIsIt