Comments on: If You Can’t Innovate Across Silos, Don’t Expect To Succeed With Open Innovation http://www.15inno.com/2009/12/16/silosandoi/ Open innovation, social media tools and intrapreneurship Wed, 08 Feb 2012 08:07:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: George http://www.15inno.com/2009/12/16/silosandoi/comment-page-1/#comment-1021 George Fri, 12 Mar 2010 17:27:52 +0000 http://www.15inno.com/?p=1033#comment-1021 One of the biggest reasons Toyota innovates so well is because they do not have silos. TPS, or better displayed as the "House of Lean", puts people at the center. Their system of respect, people development and continuous improvement ensure that everyone in the organization is engaged and actively participating in the achievement of the companies strategic goals (of which technological innovation is one). I have not seen them take their innovation process to the 'public', however they have a very good innovation process with the suppliers. One of the biggest reasons Toyota innovates so well is because they do not have silos. TPS, or better displayed as the "House of Lean", puts people at the center. Their system of respect, people development and continuous improvement ensure that everyone in the organization is engaged and actively participating in the achievement of the companies strategic goals (of which technological innovation is one).

I have not seen them take their innovation process to the 'public', however they have a very good innovation process with the suppliers.

]]> By: FredericBaud http://www.15inno.com/2009/12/16/silosandoi/comment-page-1/#comment-659 FredericBaud Fri, 18 Dec 2009 10:13:40 +0000 http://www.15inno.com/?p=1033#comment-659 Interesting thoughts and kudos for stating something that looks so obvious with retrospect: Why so many firms start talking about Open Innovation when they haven't even achieved anything meaningful in making their internal silos collaborate. A lot of companies seem to forget the notion of "Absorptive Capacity", i.e. the ability to integrate ideas coming from outside your team. If you believe that your employees are more open to ideas coming from outside of your company than from other silos, then you have a bigger problem than just trying to get more innovative. Interesting thoughts and kudos for stating something that looks so obvious with retrospect: Why so many firms start talking about Open Innovation when they haven't even achieved anything meaningful in making their internal silos collaborate.

A lot of companies seem to forget the notion of "Absorptive Capacity", i.e. the ability to integrate ideas coming from outside your team. If you believe that your employees are more open to ideas coming from outside of your company than from other silos, then you have a bigger problem than just trying to get more innovative.

]]> By: Sergei http://www.15inno.com/2009/12/16/silosandoi/comment-page-1/#comment-658 Sergei Thu, 17 Dec 2009 02:30:38 +0000 http://www.15inno.com/?p=1033#comment-658 The idea of vertical integration is as old as the Industrial Revolution. Remember, Ford had its own rubber plantations in Brazil! Later people got infatuated with the idea of "core competency" and the outsourcing started. Globalization accelerated things as it become possible to spread the work around the globe. As a result the US lost many industries to Asia. Dell sold its lean factories to the Chinese last year. But long supply chain come with many dangers and do require better management. Think of Boeing. This is why finding innovating ways to get things done in global markets is top priority. Silos don't help. Global companies will need to find ways to manage their operations in systemic fashion. The idea of vertical integration is as old as the Industrial Revolution. Remember, Ford had its own rubber plantations in Brazil!

Later people got infatuated with the idea of "core competency" and the outsourcing started. Globalization accelerated things as it become possible to spread the work around the globe. As a result the US lost many industries to Asia. Dell sold its lean factories to the Chinese last year.

But long supply chain come with many dangers and do require better management. Think of Boeing.

This is why finding innovating ways to get things done in global markets is top priority. Silos don't help. Global companies will need to find ways to manage their operations in systemic fashion.

]]> By: Ellen http://www.15inno.com/2009/12/16/silosandoi/comment-page-1/#comment-657 Ellen Wed, 16 Dec 2009 20:12:41 +0000 http://www.15inno.com/?p=1033#comment-657 I'm glad you pointed this out. I think this is yet another example of why companies shouldn't expect that everyone can do everything. Silos exist for a reason, and innovating isn't their forte. They can support innovation efforts be being open and sharing their capabilities, ideas, and goals, but I've found it best to have different people and process to focus on innovation efforts. To Stefan's point, the "height" of innovation can help to determine how separate the work should be. I'm glad you pointed this out. I think this is yet another example of why companies shouldn't expect that everyone can do everything. Silos exist for a reason, and innovating isn't their forte. They can support innovation efforts be being open and sharing their capabilities, ideas, and goals, but I've found it best to have different people and process to focus on innovation efforts. To Stefan's point, the "height" of innovation can help to determine how separate the work should be.

]]> By: Hutch Carpenter http://www.15inno.com/2009/12/16/silosandoi/comment-page-1/#comment-656 Hutch Carpenter Wed, 16 Dec 2009 19:42:26 +0000 http://www.15inno.com/?p=1033#comment-656 I like your point on this Stefan. Driving cross-silo improvements on internal innovation is a great basis for figuring out the right process: - Cultural issues - Roles and responsibilities - Basis of evaluation of innovation projects - Where bottlenecks lie Of course, external open innovation has its own dynamics as well (e.g. management of IP issues). But it shares a number of those issues described above. I like your point on this Stefan. Driving cross-silo improvements on internal innovation is a great basis for figuring out the right process:

- Cultural issues
- Roles and responsibilities
- Basis of evaluation of innovation projects
- Where bottlenecks lie

Of course, external open innovation has its own dynamics as well (e.g. management of IP issues). But it shares a number of those issues described above.

]]> By: Paul Hobcraft http://www.15inno.com/2009/12/16/silosandoi/comment-page-1/#comment-655 Paul Hobcraft Wed, 16 Dec 2009 17:44:08 +0000 http://www.15inno.com/?p=1033#comment-655 How about a vertical front end where you need to have all the customer touch points under one governance and the back-end that feeds this front end as being a horizontal' catch all' open funnel of R&D that pushes down the internal chain all the parts that need expertise for those touch points. Visibility comes from managing this complex beast! How about a vertical front end where you need to have all the customer touch points under one governance and the back-end that feeds this front end as being a horizontal' catch all' open funnel of R&D that pushes down the internal chain all the parts that need expertise for those touch points. Visibility comes from managing this complex beast!

]]> By: Marc http://www.15inno.com/2009/12/16/silosandoi/comment-page-1/#comment-654 Marc Wed, 16 Dec 2009 16:48:57 +0000 http://www.15inno.com/?p=1033#comment-654 Another great read is John Hagel's "The Only Sustainable Edge." His idea of process networks is a great way to combine innovative capability with a more open version of vertical integration. He calls it "loose coupling." Another great read is John Hagel's "The Only Sustainable Edge." His idea of process networks is a great way to combine innovative capability with a more open version of vertical integration. He calls it "loose coupling."

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