From Idea driven innovation to Need Driven Innovation

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1 European Technology Transfer Office Circle From Idea driven innovation to Need Driven Innovation Rick Wielens Vice President NineSigma Europe Page NineSigma, Inc.

2 Agenda Open Innovation NineSigma Need Driven Innovation Business model & IP Future of TTO? Page 2

3 We believe In challenging companies on how they innovate and grow R&D S&D /Collaborate & Integrate Ownership Access Chess Poker Risk Opportunity Idea driven Need driven Enable and engage organizations to use open innovation and develop the right capabilities Page 3

4 Innovation is shifting outside the large entreprise Company size in # employees Page 4

5 It is not about ownership it is about Access e.g. Car share (not rental!) ZipCar: a fleet of 1,000 cars in 2 years for rental WhipCar: no fleet but within 6 months over 1,000 cars available to rent Page 5

6 Definition of OI Professor Frank Piller (MIT smart customization & RWTH Aachen): Open Innovation is the formal discipline and practice of leveraging the discoveries of unobvious others as input for the innovation process through formal and informal relationships Page 6

7 Some history on NineSigma Internet Explosion Linux & open source software emerge. Dr. Henry Chesbrough, Harvard Business School, coins Open Innovation HBR Article Outlines P&G Connect and Develop strategy including use of NineSigma as an open network intermediary NineSigma Benchmarks companies using OI NineSigma s 2011 OI Leadership Summit Jeff Howe Coins term crowdsourcing NineSigma Inaugural OI Leadership Summit NineSigma Launches OI Scorecard NineSigma Founded st OI Project Expand broadly across multiple industries NineSigma Japan Subsidiary Forms 1,000th OI Project NineSigma Europe Office Opens 1,500th OI Project 2,000th OI Project 1990 S Page 7

8 Our holistic approach to collaborative innovation DISCOVERY & SOLUTIONS INNOVATION PROCESS & COACHING Collaborative Innovation INTELLIGENCE & PROTOTYPING COLLABORATIVE LEADERSHIP MANAGING TECHNICAL CROWDS Page 8

9 Need driven innovation The significant problems we have, cannot be solved at the same level of thinking with which we created them Albert Einstein If I had an hour to solve a problem I'd spend 55 minutes thinking about the problem and 5 minutes thinking about solutions Albert Einstein Page 9

10 Request for proposal A Straight forward Process supported by Proven Services Innovation Sourcing (RFP) Service SuccessMAP* Project Selection Need Translation Connecting Evaluation/ Selection Acquisition Request for Proposal (RFP) Report *MAP=Method to Assess Providers Page 10

11 New solutions and ideas come from internal and external networks Your Innovation Ecosystem NonNon-profits Small entrepreneurial companies Private Laboratories Consultants Large Corporates Universities Business Development Suppliers Other Business Units Universities National Labs Research Center Retirees University Technology Transfer Offices Others NineSigma Affiliates Individuals Page 11 Research Institutes

12 Leveraging the Global Network Over 2 million solution providers Industry Academia Labs & Institutes Inventors Continually expanding network Providers in virtually every country Viral networking extends our reach further Page 12

13 Unexpected connections Page 13

14 With non confidential Information exchange The non confidential exchange: -Of your needs to the global innovation community -Of solution characteristics to you -Preventing IP leakage -Allowing IP development and transfer to your own domain Page 14

15 Request services: The RFP The connector to the global innovation community A vehicle enabling the exchange of nonconfidential information with the global research and innovation community A clear, concise and compelling statement of a technical / business need in terms of Business opportunity Technical specifications Project timing Evaluation criteria Circulated broadly to a customized network Page 15 Global responses from universities, companies, research labs, inventors Typically receive ~10-15 proposals per RFP

16 Our People- They make the process work! The NineSigma Program Managers -Seasoned professionals with deep technical backgrounds (Ph.D. level) who can work with your technical team, the world technical community and your business leaders as equals Team approach The shared experience of many of similar people brought to bear on your projects Specialty Support Dedicated Respondent Search, Help Desk and Deal Facilitation Resources Page 16

17 VDMA Study / FVA (drivetrain / machine building federation Germany) Institution Solution Technology RFP: ID and topic* new known new known more info required 66198: Durable, non-lubricated gear materials 66204: Extraordinary fine particle removal from lubricated mechanisms 66207: Translational research in biosimilar particle capture : Low-friction hard surfaces 33 2 n.a. n.a. n.a. Page 17

18 Traditional pattern of university-firm technology transfer University Wissenschaftler scientists Unternehmen Companies stellen document Wissen results ein Transfer- Datenbank database Suche Search nach for Bestandteilen interesting technologies der Lösung Motivation Incentives durch: for transfer - Externe Part of grant Zwänge contract - Erwartungswert Expected value einer of potential potentiellen Abfrage der demand Informationen of knowledge durch by ein a Unternehmen firm - Reputationserhöhung Increasing reputation Search Annahme for research über einen in Lösungsweg: universities etc. - Screening Zugriff nur of auf usual bekannte suspects Wissensbasis - Using Unterliegt existing local networks search bias bei Suche / Evaluation - Local search bias Motivation durch Not Invented Here - Transfer begrenzt often stopped by "Not-invented-here" Page 18 From Frank Piller

19 Using Open Innovation for Technology Transfer University scientists Wissenschaftler Unternehmen Companies screening Broadcast of of problems search Übermittelt Lösungsvorschlag transfer of possible solution Plattform Open für innovation Open Innovation platform Broadcasting der problems Probleme Activities Wissenschaftler on research screenen site: Probleme - Screening Reaktion nur of problems wenn Lösung bekannt oder Lösungsweg einfach - Reaction only when problems seems to be known Übermittlung and cost konkreter to answer Lösungen affordable - Transfer of solution idea - Transfer of suggestion for contract research Page 19 Unternehmen Activities on übermitteln company Fragestellung site: an Plattform - Transfer of problems Screening und Bewertung der Lösungen - Screening and evaluation of problems Belohnung - Transfer des of "best" besten solution Beitragenden - Contracting of further directed research From Frank Piller

20 A sample of our clients OSAKA GAS NEC The Coca-Cola Company OLYMPUS MITSUBISHI MATERIALS suntory IDEMITSU DENSO SUMITOMO TOSHIBA SHISEIDO HITACHI CONSTRUCTION SHOWA DENKO KOMATSU ISUZU MOTORS DENKA TEIJIN ASAHI BREWERIES SUMCO OMRON KIRIN HOLDINGS Program delivery in: Page 20 North America Brazil South Africa Europe Japan Korea Australia

21 THANK YOU Rick Wielens Vice President NineSigma Europe Page 21 STAY CONNECTED:

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