2 Degrees of Separation - Digital Marketing Show 2013 - Roland Harwood, 100%Open
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This document summarizes a presentation on open innovation and networking. It discusses the birthday paradox, how networks are becoming more important than companies, and proposes a 3-minute joint venture activity. Case studies on LEGO, P&G, and ARM Holdings are provided, showing how they benefit from open business models. The presentation emphasizes that generosity and peripheral connections are important for innovation, and concludes by providing contact information for the presenter.
2 Degrees of Separation - Digital Marketing Show 2013 - Roland Harwood, 100%Open
- 1. 27 November 2013 2 Degrees of Separation Digital Marketing Show 28/11/13 100%Open 2013 1
- 2. The Birthday Paradox 27 November 2013 100%Open 2013 What are the chances that two people in this room share the same birthday? 2
- 3. The Birthday Paradox 27 November 2013 The probability of 2 people sharing the same birthday is more likely than it is unlikely (i.e. over 50% probability) with just 23 people in a group, and virtually guaranteed (i.e. 99% probability) in a group of just 57 people. 100%Open 2013 3
- 4. 2 degrees of Separation 27 November 2013 100%Open 2013 “No matter who you are, most of the smartest people work for someone else.” Bill Joy, Sun Microsystems 4
- 5. It’s a small world… 27 November 2013 © 100%Open 2012 “The world isn’t getting smaller, the networks are getting bigger” Greg Hadfield 5
- 6. The Net Works 27 November 2013 100%Open 2013 “Networks are the new companies.” Nilofer Merchant 6
- 7. 3 Minute Joint Venture 27 November 2013 100%Open 2013 7
- 8. 100%Open 2013 3 Minute Joint Venture 1. Find somebody you don‟t know 2. Explain what you do. 3. Find out what your partner does. 4. Agree what you could do together. 5. Give your joint venture a name.
- 9. Connect the Dots 27 November 2013 © 100%Open 2012 “Connect on your similarities, and benefit from your differences.” Valdis Krebs 9
- 10. The Net Works 27 November 2013 © 100%Open 2012 “Networking is only a letter away from not working.” Chris Powell 10
- 11. Open Innovation 27 November 2013 100%Open 2013 Innovating with partners by sharing the risks and the rewards. 11
- 12. 100%Open 2013 Open Business Models Joint Ventures Revenue Share IP Acquisition Strategic Alliances Collaborative Open Ecosystem Strategic In-sourcing Co-Creative CrowdSourcing Peer to Peer Cooperative CoBranding Closed Open Source
- 13. Case Study – The LEGO Group 27 November 2013 100%Open 2013 13 The LEGO Cuusoo community (280,000+) is a design competition where qualifying ideas that attract 10,000 votes get produced, and 1% revenue shared with originators
- 14. LEGO Cuusoo Value/Model 27 November 2013 Superior Information Flow • • • Rather than relying on only obvious and famous sources of IP, the question „will anyone want this‟ is answered in advance of development investment Takes Lego into previously unknown niches in a low-risk manner, helps prevent the „gravitational pull‟ of past hits dominating the future. Additional barrier to entry to competitors– flow of “best” ideas coming to Lego Trust = Power to Influence • • 14 Customers/ Fans Design Ideas LEGO Promotion & Marketing Pre-formed community, grateful to Lego for producing set (potentially even accepting of design compromises) and evangelising for it Fitness 100%Open 2013 Cuusoo Community Platform 10,000 Votes 1% Revenue Share Superior cycle time New Product
- 15. Case Study 2 – P&G 27 November 2013 100%Open 2013 15 P&G have a target to source 50% of their new products and services from outside and to systematically gather needs and push out through networks and partners.
- 16. Superior Information Flow • • Internal R&D Helps avoid the „limits to inter-organisational knowledge acquisition‟ (Dushnitsky & Shaver 2009) In-house and existing designer relationships are based on past product successes– more diversity should result in more „appropriate‟ fit and knowledge from other cutting edge projects Product designers who know that their P&G relationship is ongoing will make choices about other projects to pursue partly based on prospective partnership opportunity. More transparency from P&G = better chance of designers making accurate investment choices 16 P&G Unmet Business Needs Units Insights IP Connect & Develop Trust = Power to Influence • 100%Open 2013 27 November 2013 P&G C&D Value/Model JV Brokers Unis Customers Fitness • Avoiding path dependence, building more flexible „docking points‟ for outside techs • Speeding „search‟ and creating a beacon Product Acquisition Brands SMEs
- 17. Case Study – ARM Holdings 27/11/2013 © 100%Open 2012 ARM Holdings' model for driving ecosystem co-operation gives a near monopolistic position by creating value up and down the value chain. 17
- 18. 27 November 2013 ARM Holdings Value/Model Superior Information Flow • • 100%Open 2013 18 Design Collaboration with Customers Creating flows of information up and down the supply chain, including end user information and client technology trajectories Being more aware of information than anyone else in the market and even more than divisions of their clients aware of each other Revenues Unmet Needs Trust = Power to Influence • • ARM philosophy– „we would never disadvantage a client‟ Focus on the non-core, „foundation‟ level of their customers‟ technology offerings allows trustful relationship/alliances, with clients giving up some autonomy ARM Product Ideas Partner A Partner B PR Data Fitness • • Synthesising multiple clients‟ requirements provides the best possible defence against competition-- appropriate product for market, with low cycle time Relationship management is superior to all others– “engineers with client-facing skills” Fast cycle speed with Suppliers = Smoother transitions
- 19. 100%Open 2013 Open Business Models Joint Ventures Revenue Share IP Acquisition Strategic Alliances Collaborative Open Ecosystem Strategic In-sourcing Co-Creative CrowdSourcing Peer to Peer Cooperative CoBranding Closed Open Source
- 20. The Net Works 27 November 2013 100%Open 2013 “Innovation is a by-product of engaged networks.” Verna Allee 20
- 21. Give > Get 27/11/2013 © 100%Open 2012 “Generosity is like compound interest, the sooner you get it in the bank the greater the dividends.” 21
- 22. 2 Degrees of Separation 1. Think of a project or problem you are working on right now where it would really help to be introduced to a specific person or organisation. 2. Introduce yourself briefly and share the name of who you are trying to reach and why they want the introduction. 3. Does anybody else know that person or organisation directly, or else might know how to reach them? 27/11/2013 © 100%Open 2012 22
- 23. 2 Degrees of Separation 27 November 2013 100%Open 2013 “The future reveals itself through the peripheral.” J.G. Ballard 23
- 24. 27 November 2013 Project contacts Roland Harwood Co-Founder & Networks Partner 100%Open | Somerset House | South Building | London | WC2R 1LA Phone: +44 (0)20 7759 1050| +44 (0)7811 761 435 Email: [email protected] Web: www.100Open.com Twitter: @100Open 100%Open 2013 24
Editor's Notes
- #3: The probability of 2 people sharing the same birthday is more likely than it is unlikely (i.e. over 50% probability) with just 23 people in a group, and virtually guaranteed (i.e. 99% probability) in a group of just 57 people.
- #8: As you triple the size of a company, profit per person is on average halved. Conversely when you double the size of an urban region the per capita productivity goes up by 130%.Bettencourt & West, Santa Fe InstituteNature MagazineInnovation thrives in cities due to the number of people a resident will interact with in person (social tie density) i.e. it's all about face-to-face.So Wei PanMIT Media Lab Human Dynamics Lab
- #11: Give > Get
- #15: ROLAND > LUCY
- #16: We are much more connected than we think we are