18 05, 2013

Just Released: Completely New 2013 Edition of Our Open Innovation Market Study

By | 2018-06-14T06:47:26+00:00 Mai 18th, 2013|Co-creation, OI Market Study, Open/User Innovation, Research Studies, Technologies & Enablers|

OIA_2013Fresh from the press! For the second time, our open innovation study explores that market of open innovation accelerators (OIA), organizations that help their clients to include external experts in all stages of an innovation project.

Open innovation today has become a core tool in innovation management. But which is the right method for open innovation? Which are the criteria to plan an open innovation project? Which intermediary or service provider has specific knowledge and expertise in, e.g., crowdsourcing, the lead user method, Netnography, idea contests, technology scouting, or broadcast search? This totally updated, 2013 edition report provides a comprehensive analysis of the providers and platforms for open innovation.

We take a detailed look on the methods, cost, project and community structures, and market size. Our purpose is to support strategic decisions when planning an open innovation venture. Managers will gain an overview of the intermediaries available for open innovation and will get advice how to identify partners for their project.

We invited more than 160 intermediaries to join our survey investigating
the OIA’s business model and environment, productivity, services offered, project specifics, and characteristics of their participant pool. In addition, we asked about estimates for the development of the open innovation market. Besides a lot of highly interresting findings about the market for open innovation in general and the intermediary's role in it, we were also able to compile 188 detailed accelerator profiles.

In the following weeks, we will post a series of articles with selected findings from the market study!

The study is available via Lulu.com in both a paperback and an ebook version.

A preview can be found here.

23 12, 2012

TIM in the MIX: Vote for Our Hack at the HBR M-Prize: Global solutions, local failure: Overcoming barriers in implementing open innovation

By | 2018-06-14T06:48:54+00:00 Dezember 23rd, 2012|Crowdsourcing, Featured Research, OI Market Study, Open/User Innovation|

Hbr-mck-mixOur group has been invited to participate at the HBR-McKinsey M-Prize . Now we need your support! If you want to see our proposal outlined below become a winning idea, please head over to the official website and "like" our idea: Global solutions, local failure – Overcoming barriers in implementing open innovation
For those not familiar with the M-Prize, here is a short summary from their official website:

The Management Innovation eXchange (MIX) is an open innovation project aimed at reinventing management for the 21st century. The MIX is based on the premise that management is nothing less than the technology of human accomplishment and that, after 100 years of incremental tweaks, it now needs to be reinvented for a new age.
The M-Prize is the MIX’s call to management innovators (and aspiring management innovators) around the world to make a real difference when it comes to improving management thinking and practice.

Here is a short summary of our submission:
Many companies today pilot open innovation (OI) and crowdsourcing, but only few are making it a permanent practice. A consortium of six German SMEs finds that OI can radically improve the productivity of technical problem solving, but demands strong internal promotors and dedicated processes to overcome resistance and barriers.
You can find the full proposal here! Thank you for your support!!

PS: The topic of implementing open innovation in an established firm also is the theme of our upcoming European Open Innovation Practicioner Program.

22 03, 2010

The Market for Open Innovation: First study to compare the offerings, methods, and competences of intermediaries, consultancies, and brokers for open innovation

By | 2018-06-14T09:46:55+00:00 März 22nd, 2010|Books, Co-creation, Crowdsourcing, General, OI Market Study, Open/User Innovation, Research Studies|

Our executive report on the market for open innovation finally has been published. It is the first study comparing the brokers and intermediaries in the open innovation domain. How do companies like NineSigma, InnoCentive, Yet2.com, IdeaCrossing, or Hyve work? When to contract which of these OI experts — or any of the other 45 intermediaries reviewed in the study?

The_Market_for_Open_Innovation_Cover_2010 The 2010 Open Innovation Accelerator Study, by Kathleen Diener and Frank Piller

Get the full report as an eBook (PDF) or order a hardcopy at http://www.lulu.com/product/6149440/  Or first download an extended extract of the report here (free PDF).

Behind the term open innovation is a powerful message: Successful innovation is often created in a cooperative mode with external actors.  But which is the right method for open innovation? Which are the criteria to plan an open innovation project? Which intermediary or service provider has specific knowledge and expertise in, e.g., crowdsourcing, the lead user method, Netnography, idea contests, technology scouting, or broadcast search?

For the first time, this report provides a comprehensive analysis of the service providers and platforms for open innovation. These intermediaries can help organizations to accelerate their open innovation initiative – this is why we call them Open Innovation Accelerators (OIA). We take a detailed look on their methods, cost, and project structures.

Our motivation to conduct the research for this report was to support a manager's decisions when planning an open innovation venture. Managers shall gain an overview of the intermediaries available for open innovation from a global perspective and will get advice how to identify partners for their project in a directed way.

The report is based on hundreds of interviews with experts and service providers, survey data and self reports from companies specialized in facilitating open innovation, and extensive secondary data. An extensive appendix provides detailed information about each particular open innovation service provider.

Our conclusions

The market space of Open Innovation Accelerators (OIA): We find that OIAs operate globally due to the virtual characteristic of the business. The broad distribution of open innovation application over industry sectors demonstrates that this approach is not limited to certain branches or sectors. However, most recent projects were targeted to the B-to-C market. Most OIAs focus their service on both B-to-B and B-to-C markets.

Methods of open innovation approaches OIAs offer: We distinguish three main service approaches for open innovation – managing communities, providing special (social) software, or operating as an open innovation consulting agency. The community approach is the predominant service offered among all surveyed OIAs (84%). Yet we find combinations. In 37% of the cases the accelerators tend to offer a minimum two different approaches. About 44% of the surveyed OIAs are mainly consultants and community managers. 43% of all OIAs run competitions (mostly idea contests). Nearly 34% of the accelerators apply workshops (mostly brainstorming), often of different workshop types. Most of the OIAs offer tools and methods from several categories to accomplish their services.

Average costs for OIA services: Most OIAs demonstrate a good level of experience when taking the average number of completed projects in relation to the time of business activities. In average, they execute 75-167 projects per year with an average duration of three month (up to 24 month).

We find five different approaches for structuring the OIAs’ profit models: Charging a product license fee, billing person days, a subscription based model, charging a service or success fee, or demanding a posting fee. Prices float within a wide range. The overall minimum stated in our survey is $15 for an account, the maximum $400,000 for a consulting project. In average, an open innovation accelerator asks $25,000 for one project.

The development of the OIA market: The market of intermediaries for open innovation is rather young. More than 80% of the OIAs have been founded later than 2000. Today, new providers of open innovation methods and services are constantly emerging. Others are going out of business at the same time. Some fields, like offering brainstorming platforms and access to user communities, are highly competitive. We find a few already well established accelerators like Hyve, Idea Crossing, InnoCentive, Nine Sigma, Your Encore, Yet2.com.

Yet in general, the entire market is still under development and far away from being consolidated. The future will show which OIA has the right business model and successful projects to survive on that market.

Publication details

The 2010 report "The Market of Open Innovation" provides decision makers strategic support when setting up an open innovation initiative in their organization:

  • Different methods for open innovation,
  • The dynamics and success factors of an open innovation initiative,
  • Typical project structures and project cost of an open innovation initiative facilitated by external service providers,
  • A comprehensive overview of 49 service providers specialized in open innovation.

The Market for Open Innovation: Increasing the Efficiency and Effectiveness of the Innovation Process. By Kathleen Diener and Frank Piller. RWTH-TIM Group 2010. 144 pages. Full Color. Published and distributed at lulu.com. €795* (discount available for academic institutions)*

Download the full report as an eBook (PDF) or order a hardcopy at http://www.lulu.com/product/6149440/  Or first download an extended extract of the report here (free PDF).

*Note: Why is this study so expensive? We invested about two person years in conducting the research underlying the study. So we believe this is a fair amount compared to the work a company would have to perform to get this kind of information. The proceeds from this report will support future research of our PhD students and sponsor their participation at international academic conferences. It will also support exchange visits of graduate students from and to Aachen. However, for students and academics interested in the report, there is a special discount. Please contact me for further information (piller@open-innovation.com).