Three Circles for Open Innovation
The more I work on the intersection of social media tools and open innovation, it becomes clearer to me that companies need a multi-target approach on efforts in this intersection.
One reason is that most open innovation efforts lie in three different circles. There is often a significant overlap, but we still need to look at each of them separately. These circles are:
The innovation community: Here we have thought leaders, academics, consultants, service providers and corporate voices on innovation. This community can bring credibility to the innovation capabilities of a company and this credibility can turn out to be very important in the next circle, the innovation ecosystem.
The innovation ecosystem: This is the most important circle for companies serious about open innovation as this is where things actually happen. The ecosystem includes the partners (primarily other companies, institutions and universities) that help create the innovation output. It is very much about business-to-business.
Today, very few companies are limited to just one choice when it comes to picking which partners to innovate with. This takes us back to the credibility that can be earned in the innovation community. Let’s say that a potential partner googles your company and discovers that your company is mentioned in blogs, articles and that you or your colleagues talk at conferences. This will put you in a better position than other potential partners not having this credibility. Of course, this goes both ways…
Customers and users: Some companies and industries more than others need to pay serious attention to the third circle, which is their own customers and users as well as those of their partners in the innovation ecosystem. This is more about business-to-consumer than the business-to-business focus we see in the innovation ecosystem.
The importance of each circle varies from company to company and so does the overlap between the circles. Companies need to find out how this works for them and since the circles are different, they also need to apply different social media tools to them.
Comments are highly appreciated.
NineSigma is a sponsor of 15inno. They do great work on open innovation. Check them out : – )
Hi stefan,
I work in a company that the thrid circle, in this case, works better in the innovation ecosystem. We use some of the social media tools like Facebook and Twitter, providing a link between what is perceptive and what is tangible on our content. Our perspective is to embrace an approach with our visitors trought the education and the brand experience. So i think that is a way to improve innovation and credibility with others ecosystems and further more with new partners.
I came to your site thanks to Paul McConaughy (@minutrition on Twitter) and I'm happy I did!
After having spent the morning crafting a response to The Telegraph Inflammatory post,about gender balance, women, diversity, I was wondering what approach it would take to deal with such a complex issue.
Your idea of the three circles is brilliant.
I can see how it could be applied to innovation in the Corporate culture and Gender Balance.
I like your "muti-target approach" with overlapping , still different, circles.
Let me brain storm about it, write it down, share in on social media, ruminate, forget and come back to you!
Glad you like the site! I am trying to develop some kind of matrix or model (or several) on this. There will be more posts on this and your comments are highly appreciated.
I'd make the observation, without Customers within your eco system there is no point. I think these might lend themselves to intersections where ideas, concepts and the different cultures come together. This was the work of Frans Johansson and valuable to relook at.
Customer/consumer input is definitely a key input for innovation (more important in some industries than others). My focus on the intersection of social media tools and open innovation is primarily on the business-to-business aspect rather than the interaction with customers/consumers. However, I fully acknowledge your point and will look into ways of finding the right balance here.
The Wonders of Innovation {and this is very innovative}…BUT
Some time back, The German Government wanted to help Trucking Companies which were in a slump. At the same time The Italian Government wanted to lower the unemployment in the Southern part of the country and offered subsidies for work brought there.
In North Germany, potato growers needed larger storage facilities, but did not wish to invest in the facilities.
Solution: The Trucking Companies offered to transport the potatoes – which needed washing to bring them to market – a distance of more than 4000km (down to Sunny Sicily and return) for next to nothing (because of Government subsidies), the washing in Sicily was very inexpensive again (because of Government subsidies), the potato growers did not (now) need the larger storage facilities (because the trucks on the road acted as storage facilities) – and enhanced their profit margins as a result
The EU taxpayers got stuck with the bill and people living near the roadways got extra diesel fumes!