The Open Innovation Marketplace: Creating Value in the Challenge Driven Enterprise

Contents......Page 10
Foreword......Page 14
Acknowledgments......Page 19
About the Authors......Page 20
Preface......Page 22
Placing Bets......Page 26
Managing the Innovation Process......Page 28
Balancing a Portfolio......Page 30
False Positives Versus False Negatives......Page 33
Rationalizing Innovation Failure......Page 35
Portfolio Management and Open Innovation......Page 36
Meta-Innovation......Page 40
Prize Philanthropy......Page 41
Problem Solving Versus Question Asking......Page 42
PART I: Challenge Driven Innovation: How a Marketplace of Innovation Allows Us to Reframe the Innovation Model, Improve Performance, and Manage Risk......Page 44
Overview......Page 46
Transaction Costs and Vertical Integration......Page 47
Vertical Disintegration......Page 48
Globalization and Competition......Page 50
Lead Users......Page 51
Open Source Software......Page 52
Problem Solving in Chat Rooms......Page 53
Not by Bread Alone: Diverse Utilities......Page 55
Count What Counts......Page 56
All of a Sudden......Page 58
Case Study: How Orchestration Creates Value for Li and Fung......Page 60
Overview......Page 64
Open Innovation’s Unique Potential......Page 65
A Rational Compromise......Page 67
Exploring Problem-Solving Diversity......Page 68
Risk Sharing......Page 69
Innovation Marketplaces......Page 71
Historical Stage-Gate Processes......Page 72
Seven Stages of Challenge Driven Innovation......Page 74
The Future of Work and the Workplace......Page 77
Innovation Tasks: Internal and External......Page 79
Not-for-Profit Organizations......Page 82
Open Medicines Development: Early Steps......Page 83
Case Study: How NASA Expanded Its Innovation Framework to Find New Solutions to Old Problems......Page 87
Overview......Page 92
Defining and Hiring Experts......Page 94
The Untapped Potential......Page 97
Tackling the Long Tail......Page 99
Diversity, Marginality, and Serendipity......Page 102
The Tear Gas Connection......Page 106
Eureka! The Right Question at the Right Time......Page 107
Case Study: How the Oil Spill Recovery Institute Tapped the Crowd to Be Better Prepared for Arctic Spills......Page 111
Overview......Page 116
A Channel Decision-Making Tool......Page 119
Innovation Channels......Page 120
Terms Used in Defining Archetypess......Page 125
Project Module Archetypes......Page 127
The Challenge Driven Enterprise......Page 134
Case Study: How Eli Lilly and Company Is Changing from a Closed Company to an Open Network to Provide Medicines for the Twenty-First Century......Page 135
PART II: The Challenge Driven Enterprise: Virtualizing the Business Model to Innovation, Agility, and Value Creation......Page 140
Overview......Page 142
What Is a Challenge?......Page 144
Hallmarks of the Challenge Driven Enterprise......Page 153
The Real Challenge......Page 159
Case Study: How Procter & Gamble Is Innovating Through Connect + Develop......Page 160
Overview......Page 164
Organizational Forms and the Emergence of a New Paradigm......Page 166
The Challenge Driven Enterprise as Business Strategy......Page 169
Remaking a Culture......Page 172
Talent Management 2.0......Page 176
The Changing Nature of Work......Page 177
The Role of Senior Leadership Is to Lead......Page 178
The CEO Conundrum......Page 180
Make This Your Mission......Page 182
Case Study: Virtual Software Development: How TopCoder Is Rewriting the Code......Page 183
Overview......Page 188
The Playbook......Page 189
I. Board of Directors and C-Level Commitment......Page 190
II. Promote Early Trial and Adoption......Page 194
III. Virtualize the Business Strategy......Page 197
IV. Establish the CEO Mandate......Page 200
V. Create and Empower the CDE Task Force......Page 203
VI. Align and “Ready” the Organization......Page 208
VII. Select Enablers and Enroll Partners......Page 214
Timelines and the Institutionalization of the CDE......Page 216
Use the Playbook, Adapt as Needed, and Play to Win......Page 217
Case Study: How the Prize4Life Foundation Is Crowdsourcing ALS Research......Page 218
Overview......Page 224
Key Points of the Book......Page 225
Darwin, Adaptation, and the New Normal......Page 228
Joseph Campbell and The Hero’s Journey......Page 229
The CEOs Journey: Five Essential Waypoints......Page 231
The CEO as the Hero......Page 233
A Marathon, Not a Sprint......Page 235
The CDE, Innovation, and Competing in the Twenty-First Century......Page 236
This Will Be Your Legacy......Page 238
Case Study: How President Obama’s Open Government Initiative Is Reinventing Government and Changing Culture......Page 239
Afterword......Page 244
Endnotes......Page 246
Supplemental Reading......Page 252
B......Page 254
C......Page 255
E......Page 258
G......Page 259
I......Page 260
L......Page 261
O......Page 262
P......Page 263
Q–R......Page 264
S......Page 265
U–V......Page 266
W–Z......Page 267