VALUE CO-CREATION: STRATEGIC PARTNERSHIPS AROUND OPEN INNOVATION. Marko Javornik Director - Services Europe
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1 VALUE CO-CREATION: STRATEGIC PARTNERSHIPS AROUND OPEN INNOVATION Marko Javornik Director - Services Europe
2
3 INTRODUCTION Agile movement changes our view on modern technology oriented organization One part of this change is a new view on how organizations interact with their ecosystem How can companies open up and use the knowledge that resides outside of the company?
4 MY PERSONAL INTRODUCTION
5 TECHNOLOGY TO MARKET GAP IS SHRINKING As technology advances it becomes more and more closely embedded in our business and private lives. Technology Innovation needs to connect directly to the market needs, market trends and business issues.
6 OUR WORLD IS CHANGING: EXTERNAL AND INTERNAL Disruptive Technologies: Mobility Cloud IoT Big data Buying behaviours: Global buyers, global sellers Buy it when you need it Personalization Velocity of Change / Dynamics: Design and development Logistics Meshed network Value chain disruptions: Platform Economics Two-sided markets PROFOUND CHANGES IN Management Systems Processes Business Models
7 CHANGE IN BUSINESS Not the big fish eats the small fish but the fast one eats the slow one Small and agile start-ups turn out to be the real threat for big corporations It s a battle of business models more than a battle of products No room for the middleman: Supplier and (end)customer get closer
8 PRESSURE TO SPECIALIZE WINNER TAKES IT ALL Concentrate on core developments Tier 2 Tier 1 Keep what you must keep But: Share what you can share Tier 3
9 OPEN INNOVATION Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. (Source: Henry Chesbrough)
10 MODELS OF OPEN INNOVATION Product Platforming Collaborative Design and Development Idea Competitions Customer Immersion Innovation Networks
11 PRODUCT PLATFORMING Open up the system so that others can contribute Create a framework around your core product with defined interfaces Benefit: other contributors add value to your product/platform
12 THE POWER OF PLATFORMS NOKIA VS. APPLE/ANDROID Nokia CEO (Stephen Elop) Memo To Employees, 2011 We are standing on a burning platform. Apple disrupted the market by redefining the smartphone and attracting developers to a closed, but very powerful ecosystem. And then, there is Android. Google has become a gravitational force, drawing much of the industry's innovation to its core
13 CASE STUDY: HP AUTONOMY (ENTERPRISE DATA PROTECTION) Move from classical outsourcing towards open innovation based on Product Platforming model Background: Leading product for enterprise backup & recovery enterprise customers Cooperation with Comtrade for over 20 years
14 CASE STUDY: HP AUTONOMY Challenges: Increasing complexity of the solution outgrows the capacities of development team Strong competition (start-ups) with niche products taking over significant parts of the market Inefficiencies of a large team
15 CASE STUDY: HP AUTONOMY Tier 1 Tier 3 Tier 2
16 CASE STUDY: HP AUTONOMY STEPS Product interfaces defined to open up for 3 rd party innovation Change in: Product / technology Development process Business model BENEFITS Weakness from Gartner reports changed into a competitive advantage Much higher added value (innovation) Win-win sustainable business model (value based)
17 CASE STUDY: HP David Jones, GM Enterprise Data Protection, HP Autonomy: Comtrade is not just a supplier to HP but rather a very trusted partner we feel they are a part of the family. It is a company that shares the same values as HP, combined with the energy, expertise and creativity and we rely on them to deliver true innovation in the software technology. With such a model we are improving our time-to-market and really get the maximum value out of the partnership.
18 CASE STUDY: SKRILL Leading global payment services company 36 million users 200 countries, 40 currencies merchants 600 banks Yearly transactions over 15 billion EUR
19 CASE STUDY: SKRILL CHALLENGE: Accelerating development in fast changing environment MODEL: Collaborative Product Design and Development STEPS: Joint planning of engagement model Step-by-step on-boarding Collaborative approach in product marketing, business analysis, architecture, development, testing, documentation
20 WHY ESTABLISH A COLLABORATIVE MODEL? Complexity of technology is hard to handle Many disciplines have to be integrated Flexible model, easy to manage Higher value add than classical outsourcing Identify new revenue streams Concentrate on core developments
21 FINDING MATCHING COMPETENCES Domain Usability Cloud
22 CHALLENGES Agile IP-Strategy has to be in place -> partnering along the value chain Getting real partnership in place takes time: Knowledge & Trust, Communication Human/social challenges: From control to trust Change has to be managed Find the right business model
23 WHAT DO YOU GET IN THE END? More and faster innovation Improved value/cost ratio An agile, adaptive, open organization
24 Unlimited company: Turning your customers, suppliers, competitors etc. into true partners
25 Think about it, do you have walls that could be torn down so new partnerships can be built?
26 THANK YOU! Copyright 2014 Comtrade. All rights reserved. The content of this presentation is copyright protected. Any reproduction, distribution, or modification is not allowed. The information, solutions, and opinions contained in this presentation are of informative nature only and are not intended to be a comprehensive study, nor should they be relied on or treated as a means to provide a complete solution or advice, since we may not be aware of all specific circumstances of the case. We try to provide quality information, but we make no claims, promises, or guaranties about the accuracy, completeness, or adequacy of the information contained herein.
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