Going on, some days later:

– Erosion of knowledge:
Mobile trained workers
More capable universities
US hegemony is decreasing
Oligopoly market positions are decreasing
Venture Capital is increasing (focused on Development, instead of R+D)

– Open Innovation is playing poker, but you shouldn’t forget playing chess

– What’s innovation?
Before:

  • Invention, product
  • Tech-driven
  • Internal
  • Engineering job

After:

  • Commercialization
  • Business (process & business model)
  • Business value -driven
  • Internal integration of internal & external stuff
  • Everyone’s job

– Most of the patents are idle in most of the companies

– Open Innovation is not about firing your R+D dept., but encouraging their collaborative skills

– Tips outside – in
1. Open internal first
2. Know what you are looking for
3. Think about how a solution looks like (collaboration)
4. Understand relation with external source
5. (Sometimes) more is not better when it comes to maintain external connections
6. Invest in key relationships. Time is more valuable than money in many cases
7. Win-win relationships
8. Develop & deploy T-shaped tech staff
9. Be clear on definition of who owns what…

– Tips inside-out
1. Be open to new business models
2. Be open to share
3. Fight lazy thinking
4. Let customer decide when and where to buy your technology
5. Let your business units share revenues for esxternal use of their assets

– RyanAir business model is to get money from airports (more than from customers)

-What is a business model?
Identifies a market segment
Articulate the value of the proposed offering
Focus on the key attributes of the offering
Defines the value chain to deliver that offering
Creates a way for getting paid
Establishes the value network needed to sustain the model

– Business Model becomes a “cognitive” trap …
Implications
A successful business model is a double-edged sword
Make use of external ideas in your business model
Make use of your ideas in other’s business models
Startups can be sources of learning
Established companies should interact with startups (even fund them occasionally)

– “Disruptive Technology is a misnomer. What it really is, is trivial technology that disrupts your business model.” -AndyGrove

– Managing Busines Models: VCs vs. Corporations

VCs

  • Clear financial goals 
  • Staged financing 
  • Independent Board & oversight 
  • Outside CEO 
  • Selecting and changing the Business Model 
Corporations

  • Financial and Strategic goals 
  • Annual budget process 
  • Internal Bd & oversight 
  • InsideCEO 
  • Tendency to utilize parent company Model 

– What are your organization designed to do well?

– Venturing DOs and DON’Ts
DO
  • Use your existing organization to innovate your current businesses 
  • Leverage some of your existing organization’s resources 
  • Borrow 
  • But also Forget 

DON’Ts

  • Use your existing organization to create a new business in a different area 
  • Try to leverage all of your existing organization’s resources in a new business in a different area
– Be careful with “breaking” bonus of sales people …
– Metric for startups says: until 20 people you can avoid HR
– Deal with disruption
– Net Present Value: cost, risk, expectations
– Windows IP management:
Enforce in US (as it’s a “de facto” standard)
Do not enforce in China (as each illegal Windows is one Linux less)