The Open Innovation Methods Matrix (Part 2)
In the previous post, we gave an overview of the Open Innovation Methods Matrix below, and defined the varying degrees of openness (the X-axis) and the different stages of open innovation (the Y-axis). In this post we describe the range of methods, together with examples, and how they can be applied.
Within the Open Innovation Methods Matrix above there are nine methods that are most commonly used to innovate openly, as follow:
- Colleague Crowd (Explore/Internal) — An employee based programme consisting of an online platform and offline events to share ideas and develop insights into new innovation requirements e.g. Oxfam Future Shapers
- Innovation Incubator (Extract/Internal) — A laboratory where new projects have space, time and investment to be developed and tested, away from day-to-day requirements of the current business — e.g. Lockhead Martin Skunkworks
- Intrapreneurship Programme (Exploit/Internal) — A programme that allows and incentivises internal entrepreneurs to implement and launch new business propositions e.g. Google 20% Time
- Social Listening (Explore/Outside In) — A research technique to observe external conversations or experiences through social media analysis or ethnographic research to uncover new innovation insights e.g. P&G House Proud Crowd
- Co-Creation Community (Extract/Outside In) — An online community with offline events to create and and develop new products and services with a network of customers, suppliers or partners e.g. Ford Innovate Mobility
- Corporate Venture Fund (Exploit/Outside In) — An investment arm to invest in or acquire external talent, technology or organisations that can enhance existing capability or create new market opportunities e.g. Intel Capital
- Open Innovation Challenge (Explore/Inside Out) — A competition with customers, start-ups or scale-ups to source new ideas, talent and technology that could tackle current and future business needs e.g. UBS Future of Finance Challenge
- Accelerator Programme (Extract/Inside Out) — A time-limited programme with space, mentoring and funding provided to test and grow new products, services and businesses in exchange for equity e.g. Telefónica Wayra
- Open Innovation Ecosystem (Exploit/Inside Out) — A perpetual network of customers, suppliers and partners around the organisation, who create new value with, and for, each other via a range of online and offline activities e.g. LEGO Ideas
Broadly speaking, we would advocate starting in the bottom left hand corner and expanding out, ultimately arriving in the top right hand corner. However, there is no right or wrong path through this matrix and not all boxes will necessarily be relevant depending on a wide range of factors. Increasingly though, mature and sophisticated organisations will need to build their capabilities in most, if not all, of these areas to remain competitive.
We hope this tool is helpful in thinking about where you could start or go next with your open innovation strategy. As ever, we would appreciate your feedback on this open innovation methods matrix, as we know that “none of us are as smart as all of us”.