Cover image for The open innovation marketplace : creating value in the challenge driven enterprise
Title:
The open innovation marketplace : creating value in the challenge driven enterprise
Personal Author:
Publication Information:
Upper Saddle River, N.J. : FT Press, c2011.
Physical Description:
xxiii, 242 p. : ill. ; 24 cm.
ISBN:
9780132311830

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30000010281017 HD45 B525 2011 Open Access Book Book
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30000010297313 HD45 B525 2011 Open Access Book Book
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Summary

Summary

Many technical obstacles to effective innovation no longer exist: today, companies possess global networks that can connect with knowledge from virtually any source. Today's challenge is to collaboratively transformthat knowledge into higher-value innovation. The Open Innovation Marketplace introduces groundbreaking strategies and models for consistently achieving this goal.

Authors Alpheus Bingham and Dwayne Spradlin draw on their own experience building InnoCentive, the pioneering global platform for open innovation (a.k.a. "crowdsourcing"). Writing for business executives, R&D leaders, and innovation strategists, Bingham and Spradlin demonstrate how to dramatically increase the flow of high-value ideas and innovative solutions both within enterprises and beyond their boundaries. They show:

Why open innovation works so well. How to use open innovation to become more agile and entrepreneurial. How to access Idea Markets more quickly, and get more value from them. How to overcome new forms of "Not Invented Here" syndrome. How to implement cultural, organizational, and management changes that lead to greater innovation. New trends in open innovation-and the opportunities they present. The authors present many new open innovation case studies, from P&G and Eli Lilly to NASA and the City of Chicago.


Author Notes

Alpheus Bingham is a pioneer in the field of open innovation and an advocate of collaborative approaches to research and development. He is co-founder and former president and chief executive officer of InnoCentive.

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Alpheus spent more than 25 years with Eli Lilly and Company; he retired as vice president of e.Lilly and vice president of Research Strategy. He had formerly been the vice president of Sourcing Innovation. He served on both the R&D Policy Committee and the corporate Operations Committee. He has deep experience in pharmaceutical research and development, research acquisitions and collaborations, and R&D strategic planning. During his career, he was instrumental in creating and developing Lilly''s portfolio management process and establishing the divisions of Research Acquisitions, the Office of Alliance Management, and e.Lilly, a business innovation unit, from which was launched various other ventures that create the advantages of open and networked organizational structures, including InnoCentive, YourEncore, Inc., Coalesix, Inc., Maaguzi, Inc., Indigo Biosystems, Seriosity, Chorus, and Collaborative Drug Discovery, Inc.

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He currently serves on the Board of Directors of InnoCentive and Collaborative Drug Discovery, Inc.; the advisory boards of the Center for Collective Intelligence at MIT and the Business Innovation Factory, and as a member of the board of trustees of the Bankinter Foundation for Innovation in Madrid.

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He has lectured extensively at both national and international events and serves as a Visiting Scholar at the National Center for Supercomputing Application at the University of Illinois at Champaign-Urbana. He is also the former chairman of the Board of Editors of the Research Technology Management Journal . Alpheus was the recipient of The Economist''s Fourth Annual Innovation Summit "Business Process Award" for InnoCentive. He was also named as one of Project Management Institute''s "Power 50" leaders in October 2005.

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Alpheus received a B.S. degree in chemistry from Brigham Young University and a Ph.D. degree in organic chemistry from Stanford University.

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Dwayne Spradlin has been on the forefront of business innovation and leadership for more than 20 years. He is intensely focused on two areas: finding new ways to unleash and focus human potential using technology and defining the role of leadership in driving change in our businesses and culture.

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Dwayne serves as president and chief executive officer at InnoCentive, the global leader in Open Innovation. Previous positions have included president of Hoovers Online, president and COO of StarCite, senior vice president of Corporate Development VerticalNet, and director at PriceWaterhouseCoopers, where he spent ten years delivering Technology and Strategy solutions to Fortune 500 clients including Intel, Compaq, Caremark, and United Airlines.

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Dwayne currently sits on the Board of Directors of both InnoCentive and Cortera.

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Considered an authority on crowdsourcing, Open Innovation, and the role of Innovation in Philanthropy, Dwayne has been a keynote speaker at events on five continents, He is frequently interviewed and has been featured on CNBC, ABC, NPR, and BBC and quoted in the Economist , BusinessWeek , The New York Times , and many other journals and periodicals.

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Dwayne holds a B.A. degree in applied mathematics and an M.B.A. degree from the University of Chicago. He lives in Southlake, TX, with his wife and three children.

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Table of Contents

Christopher Meyer
Forewordp. xiii
Acknowledgmentsp. xviii
About the Authorsp. xix
Prefacep. xxi
Chapter 1 Introductionp. 1
Placing Betsp. 1
Managing the Innovation Processp. 3
Balancing a Portfoliop. 5
False Positives Versus False Negativesp. 8
Rationalizing Innovation Failurep. 10
Portfolio Management and Open Innovationp. 11
Meta-Innovationp. 15
Prize Philanthropyp. 16
Problem Solving Versus Question Askingp. 17
Part I Challenge Driven Innovation: How a Marketplace of Innovation Allows Us to Reframe the Innovation Model, Improve Performance, and Manage Risk
Chapter 2 The Future of Value Creationp. 21
Overviewp. 21
Transaction Costs and Vertical Integrationp. 22
Vertical Disintegrationp. 23
Globalization and Competitionp. 25
Lead Usersp. 26
Open Source Softwarep. 27
Problem Solving in Chat Roomsp. 28
Not by Bread Alone: Diverse Utilitiesp. 30
Count What Countsp. 31
All of a Suddenp. 33
Case Study: How Orchestration Creates Value for Li and Fungp. 35
Chapter 3 A New Innovation Frameworkp. 39
Overviewp. 39
Open Innovation's Unique Potentialp. 40
A Rational Compromisep. 42
Exploring Problem-Solving Diversityp. 43
Risk Sharingp. 44
Innovation Marketplacesp. 46
Historical Stage-Gate Processesp. 47
Seven Stages of Challenge Driven Innovationp. 49
The Future of Work and the Workplacep. 52
Innovation Tasks: Internal and Externalp. 54
Not-for-Profit Organizationsp. 57
Open Medicines Development: Early Stepsp. 58
Case Study: How NASA Expanded Its Innovation Framework to Find New Solutions to Old Problemsp. 62
Chapter 4 The Long Tail of Expertisep. 67
Overviewp. 67
Defining and Hiring Expertsp. 69
The Untapped Potentialp. 72
Tackling the Long Tailp. 74
Diversity, Marginality, and Serendipityp. 77
The Tear Gas Connectionp. 81
Eureka! The Right Question at the Right Timep. 82
Case Study: How the Oil Spill Recovery Institute Tapped the Crowd to Be Better Prepared for Arctic Spillsp. 86
Chapter 5 The Selection of Appropriate Innovation Channelsp. 91
Overviewp. 91
A Channel Decision-Making Toolp. 94
Innovation Channelsp. 95
Terms Used in Defining Archetypessp. 100
Project Module Archetypesp. 102
The Challenge Driven Enterprisep. 109
Case Study: How Eli Lilly and Company Is Changing from a Closed Company to an Open Network to Provide Medicines for the Twenty-First Centuryp. 110
Part II The Challenge Driven Enterprise: Virtualizing the Business Model to Drive Innovation, Agility, and Value Creation
Chapter 6 The Challenge Driven Enterprisep. 117
Overviewp. 117
What Is a Challenge?p. 119
Hallmarks of the Challenge Driven Enterprisep. 128
The Real Challengep. 134
Case Study: How Procter & Gamble Is Innovating Through Connect + Developp. 135
Chapter 7 Transformationp. 139
Overviewp. 139
Organizational Forms and the Emergence of a New Paradigmp. 141
The Challenge Driven Enterprise as Business Strategyp. 144
Remaking a Culturep. 147
Talent Management 2.0p. 151
The Changing Nature of Workp. 152
The Role of Senior Leadership Is to Leadp. 153
The CEO Conundrump. 155
Make This Your Missionp. 157
Case Study: Virtual Software Development: How TopCoder Is Rewriting the Codep. 158
Chapter 8 The Challenge Driven Enterprise Playbookp. 163
Overviewp. 163
The Playbookp. 164
I Board of Directors and C-Level Commitmentp. 165
II Promote Early Trial and Adoptionp. 169
III Virtualize the Business Strategyp. 172
IV Establish the CEO Mandatep. 175
V Create and Empower the CDE Task Forcep. 178
VI Align and ôReadyö the Organizationp. 183
VII Select Enablers and Enroll Partnersp. 189
Timelines and the Institutionalization of the CDEp. 191
Use the Playbook, Adapt as Needed, and Play to Winp. 192
Case Study: How the Prize4Life Foundation Is Crowdsourcing ALS Researchp. 193
Chapter 9 Leadershipp. 199
Overviewp. 199
Key Points of the Bookp. 200
Darwin, Adaptation, and the New Normalp. 203
Joseph Campbell and The Hero's Journeyp. 204
The CEOs Journey: Five Essential Waypointsp. 206
The CEO as the Herop. 208
A Marathon, Not a Sprintp. 210
The CDE, Innovation, and Competing in the Twenty-First Centuryp. 211
This Will Be Your Legacyp. 213
Case Study: How President Obama's Open Government Initiative Is Reinventing Government and Changing Culturep. 214
Afterwordp. 219
Endnotesp. 221
Supplemental Readingp. 227
Indexp. 229