This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Open Innovation Management) is a 26-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.
Open Innovation, also referred to as Outside Innovation, can be an incredible source of Innovation and Growth for an organization. The fundamental idea of Open Innovation is to rely on outsiders for both:
1. A source of ideas
2. A means to commercialize those ideas
In pursuing Open Innovation, there are 3 key considerations to evaluate, which are discussed in this framework presentation:
1. Consideration of Innovation
2. Consideration of Motivation
3. Consideration of Platform Business Model
Additional topics discussed include Markets vs. Communities, Extrinsic vs. Intrinsic Motivations, Knowledge Accumulation vs. Experimentation, the 3 types of Platform Business Models, among other topics.
This deck also includes slide templates for you to utilize in your own business presentations.
This presentation delves into the critical decision-making process between competitive markets and collaborative communities. It contrasts the dynamics of each, highlighting the formal governance and profit motives of competitive markets versus the cooperative relationships and technology sharing in collaborative communities. This comparison aids in understanding which approach aligns best with your organization's innovation strategy.
The PPT also explores the spectrum of motivations driving external innovators, from extrinsic to intrinsic. It emphasizes the importance of aligning these motivations with your innovation goals to ensure active participation. By examining extrinsic rewards and intrinsic challenges, you can tailor your approach to attract the right external talent.
Finally, the presentation provides a detailed analysis of three types of platform business models: Integrator, Product, and Multisided Platforms. Each model is dissected to show how control and autonomy are balanced between the platform and external innovators. This section is crucial for organizations looking to implement a platform strategy that maximizes innovation while maintaining strategic control.
This PPT slide outlines 3 critical considerations for selecting the appropriate approach to Open Innovation, emphasizing the need to evaluate Innovation, Motivations, and Business Model.
The first section, "Consideration of Innovation," highlights the importance of determining the type of innovation that will be directed towards external innovators. This suggests a strategic assessment of how innovation can be leveraged externally, which is vital for organizations looking to enhance their innovation capabilities through external partnerships or crowdsourcing.
Next, "Consideration of Motivation" focuses on understanding the incentives that drive external innovators. This is crucial for attracting participants to the innovation platform. It implies that organizations must not only recognize what motivates these innovators, but also align their strategies to effectively engage and retain them. This could involve creating value propositions that resonate with potential contributors.
The final section, "Consideration of Platform Business Model," indicates that there are 3 distinct types of business models to consider. This suggests a need for careful evaluation to identify which model best fits the organization's objectives and operational framework. The choice of business model can significantly impact how innovation is sourced, managed, and monetized.
The concluding statement reinforces the idea that a thorough analysis of these considerations is essential for making informed decisions regarding market versus community approaches. This slide serves as a guide for executives contemplating how to structure their Open Innovation strategies effectively. Each consideration is interconnected, and neglecting any could lead to suboptimal outcomes in innovation initiatives.
This PPT slide presents a framework for understanding motivations categorized into 2 primary groups: extrinsic and intrinsic. The visual representation employs a Venn diagram to illustrate the overlap and distinctions between these motivations.
On the left side, extrinsic motivations are highlighted, with key elements such as money, user need, signaling and career concerns, and learning and skills development. These factors typically drive individuals to pursue external rewards and recognition. The emphasis on money suggests a focus on tangible benefits, while user need indicates a responsiveness to market demands. Signaling and career concerns point to the importance of reputation in professional settings.
Conversely, intrinsic motivations are positioned on the right side of the diagram. This section includes factors like fun and enjoyment, autonomy, and intellectual challenge. These motivations are more internally driven and relate to personal satisfaction and fulfillment. The inclusion of professional and personal identity suggests that individuals seek alignment between their work and personal values.
The intersection of the 2 categories reveals shared motivations, such as status, reputation, and reciprocity. This indicates that while some motivations are primarily extrinsic, they can also have intrinsic elements, highlighting the complexity of human motivation.
The horizontal axis at the bottom distinguishes between open markets and open communities. It suggests that while markets tend to favor extrinsic motivations, communities are more inclined towards intrinsic motivations. This insight can inform strategies for engaging stakeholders, whether in a market-driven or community-oriented context. Understanding this spectrum of motivations is crucial for organizations aiming to foster collaboration and drive engagement effectively.
This PPT slide presents a comparative analysis of 3 distinct platform business models: Integrator, Product, and Multi-sided. Each model illustrates the relationships among external innovators, platform owners, and customers, highlighting how these interactions vary across models.
The left section details the Integrator Platform, characterized by a high level of control exerted by the platform owner. Here, external innovators contribute to the platform,, but the owner maintains significant authority over the customer interactions. This model is beneficial for organizations seeking to tightly manage the user experience and ensure consistency in service delivery.
In the center, the Product Platform is depicted. This model still involves external innovators, but offers a more balanced approach compared to the Integrator. The platform facilitates interactions between external innovators and customers, allowing for some level of autonomy while still retaining control over the core product. This structure can be advantageous for companies looking to leverage external innovation without relinquishing too much oversight.
On the right, the Multi-sided Platform is shown. This model grants the highest autonomy to external innovators, allowing them to interact directly with customers. The platform owner plays a more passive role, focusing on providing the infrastructure that enables these interactions. This approach can foster innovation and flexibility, appealing to businesses that prioritize rapid adaptation and responsiveness to market demands.
The horizontal axis indicates the spectrum of control, from high control by the platform to high autonomy for external parties. Understanding these distinctions is crucial for executives considering which model aligns best with their strategic objectives and operational capabilities.
This PPT slide presents a comparative analysis of 2 distinct approaches to open innovation: competitive markets and collaborative communities. It outlines the fundamental differences in how external innovators interact and contribute within these frameworks.
In competitive markets, external innovators provide variations of products, focusing on substitutable components. The governance structure is formal, emphasizing contractual relationships and market dynamics. Innovators in this space tend to have competitive relationships, with profit motives driving their contributions. Value capture for platform owners typically occurs through direct contracts and licensing agreements with these innovators.
Conversely, collaborative communities foster a more informal governance model, where interactions are socially embedded and based on norms rather than strict contracts. Here, external innovators engage in cooperative relationships, sharing technology and knowledge freely. The motivations for participation are varied, encompassing both extrinsic rewards and intrinsic satisfaction. Value capture in this context is less direct, often relying on increased platform demand generated by innovations from the community.
The slide also provides examples to illustrate these concepts. Competitive markets are exemplified by the Nintendo Wii and the Apple App Store, where third-party developers are encouraged to create competing products. In contrast, open-source communities like Linux and Ethereum showcase collaborative innovation, where contributions are made freely and collectively.
The concluding statement emphasizes the importance of selecting the right approach based on the significant differences between these 2 models. This insight is crucial for organizations looking to align their innovation strategies with their overall objectives.
This PPT slide presents a framework for understanding the foundational considerations of Open Innovation Management. It emphasizes the critical decision point of whether to engage external innovators as part of a collaborative community or within a competitive market. This decision is pivotal and hinges on the nature of the innovation challenge at hand.
The overview section outlines that Open Innovation is particularly beneficial in scenarios where innovation, technology, and design methodologies are still developing. It also highlights the complexity of customer needs, which can often be varied and not fully understood. This context sets the stage for leveraging external knowledge and ideas through Open Innovation.
The details section elaborates on 2 distinct approaches to Open Innovation. The first approach focuses on knowledge accumulation, which is best suited for situations where historical learnings can be built upon through collaborative communities. This method encourages ongoing learning and sharing among participants. The second approach emphasizes broad experimentation, which is more effective when addressing innovation problems that require input from diverse customer groups or technical perspectives. This method allows for a wider range of ideas and solutions to emerge from a competitive market setting.
The slide concludes with a note on the effectiveness of Open Innovation as a tool when distinct components of the innovation process can be delineated for external collaboration. This insight is crucial for organizations looking to optimize their innovation strategies by understanding when to leverage community-based versus market-based approaches.
This PPT slide presents an overview of platform business models, focusing on the decision-making process for transforming a product into a platform. It outlines 3 distinct types of platform business models that organizations can evaluate to determine the most suitable approach for their needs.
The first model discussed is the Integrator Platform. This model positions the platform owner as a mediator between external innovators and customers, allowing the owner to maintain a high degree of control over the customer relationship. The example provided is the Apple App Store, where app developers must sell their products through the platform, enabling Apple to moderate transactions and collect a commission on sales.
The second model is the Product Platform. Here, external innovators build on a foundational technology provided by the platform. The control shifts somewhat, as the platform owner no longer directly manages customer relationships. The slide cites Google’s Android operating system as an example, where various manufacturers can customize the platform and sell devices directly to customers.
Each model has its implications for how businesses interact with innovators and customers. The choice of model affects not only operational control, but also revenue generation and customer engagement strategies. The slide emphasizes the importance of evaluating these models carefully, as the right choice can significantly influence the success of the platform initiative. Understanding these distinctions is crucial for executives considering a shift to a platform-based approach.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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