Open Innovation 2.0 & User Centricity
Francesco Niglia
Studio Francesco Niglia International Networking
Disclaimer / thanks to The author is grateful to • Bror Salmelin (EC Directorate General CONNECT) and • Martin Curley (Intel Labs Europe ) for sharing their insights on the Open Innovation 2.0 This presentation, with the courtesy of the OISPG Open Innovation Strategy and Policy Group, includes text, pictures and schemes from the White Paper ‘Open Innovation 2.O: A New Paradigm’ (2013), in particular: Slide # [8-10], [12-19], 21, [32-42], 44 are easily recognisable by the OISPG logo in the upper-left side OI2 & UC for Living Labs - Francesco Niglia (2014)
topics
• The role of innovation • The open innovation 2.0 - OI2 • The living labs • The user centricity approach – How to implement in Living Labs – How to engage users OI2 & UC for Living Labs - Francesco Niglia (2014)
The Innovation • What is innovation? • (One of) the most complete definition: Innovation is the result of a complex intertwines of intuition, application of scientific discoveries as well as an instituted process that accompanies the intuition from research to the early development to the final application (and exploitation), in this process, institutions as well as the intermediaries and the final beneficiaries do have different characteristics, roles, positions and behaviours in the innovation system. • …the missing words? OI2 & UC for Living Labs - Francesco Niglia (2014)
Let’s try to think wider… • ‘RADICAL OPENNESS’ by Jason Silva http://www.youtube.com/watch?v=WEWaBlSSUgw
• New words
Evolution Human imagination • …other…? OI2 & UC for Living Labs - Francesco Niglia (2014)
Radical openness • “We need better maps and metaphors, better ways of connecting with that feeling that there is something larger than ourselves.” • “We want to be transformed. We
want
spaces where ideas can accelerate the evolution process. We want to be able to contemplate space and time on a scale just short of the infinite.” OI2 & UC for Living Labs - Francesco Niglia (2014)
Some considerations • We innovate ourselves because we die • We can easily add the words:
technology scalability awareness Collective awareness networking Mental approach OI2 & UC for Living Labs - Francesco Niglia (2014)
The Open Innovation 2.0 • New, bigger, more complex challenges • A new paradigm approaching big societal challenges: healthcare, transportation, climate change, youth unemployment, financial stability, prosperity, sustainability, and growth. – (Global System Science)
• An endorsement coming from the ‘past’ – Creative destruction model (Joseph Schumpeter 1942) where the failure of old approaches fuels the motivation for change and shapes the future.
• The quadruple helix model (+ civil society) – drive changes far beyond the scope of single organisations OI2 & UC for Living Labs - Francesco Niglia (2014)
The evolution of innovation
INDIVIDUAL INNOVATION VISIONING, INVENTING, VALIDATING AND VENTURING OI2 & UC for Living Labs - Francesco Niglia (2014)
Open Innovation: an evolutionary vision - 1 • The Open Innovation 2.0 is continuously evolving and changing so rapidly (prof. David Teece, Haas School, University of Berkley), and this suggests to adopt an evolutionary vision of the whole issue. • the target is to formalise and validate the model approached by “Ecology of Innovation” that takes the ecology to mean the science of the interrelationships of organisms and their environment to discuss and validate the OI2. OI2 & UC for Living Labs - Francesco Niglia (2014)
Open Innovation: an evolutionary vision - 2 • Individuals, the education system, university W and research laboratories, firms and the government are the constituent elements H which constitute an innovation ecology but O they do not constitute an innovation system. • The ecology of innovation become a proper H system only through the emergence of system-making connections and these O connections typically flow form the need to W solve specific innovation problems. OI2 & UC for Living Labs - Francesco Niglia (2014)
Some statements (Michael Schrage) • Innovation is not innovators innovating, but customers adopting. • Innovation happens when a customer becomes a co-creator of value, an active subject of the innovation process, and is not merely a passive object. invention + adoption = innovation. • OI2 is not the panacea, but it adds an essential component to the traditional innovation approaches and it accelerates collective learning and value creation. OI2 & UC for Living Labs - Francesco Niglia (2014)
Innovation is ruled by an ecosystem an innovation model based on extensive networking and cocreative collaboration between all actors in society, spanning organizational boundaries well beyond normal licensing and collaboration schemes. OI2 & UC for Living Labs - Francesco Niglia (2014)
New VS traditional models
OI2 & UC for Living Labs - Francesco Niglia (2014)
Added-value in the innovation cycle • Innovation can be defined as the “adoption of something new which creates value for the individual or organization that adopts it” (Baldwin and Curley, 2OO7) so it is the user or citizen who is often at the fulcrum of where value gets realized from an innovation. Who better to determine what value an innovation should deliver than an intended user
OI2 & UC for Living Labs - Francesco Niglia (2014)
Industrial Perspective on OI2 • create mechanisms that are able to span the so-called valley of death that lies between research and product adoption and thus enable much higher returns on research investments • Example. Intel Labs Joint Pathfinding process – research laboratories and business groups share resources, risks, and decisions jointly. – Team working together to build product roadmaps that identify the pathways from research to results. OI2 & UC for Living Labs - Francesco Niglia (2014)
Citizen / User Perspective on OI2 • Instead of the user or citizen being seen as a research object and innovation “being done” to the citizen, the citizen and user becomes an integral part of the innovation process. • mass collaboration as a dominant mega trend • As connectivity and awareness builds more and more individuals will aspire to become high expectations entrepreneurs
OI2 & UC for Living Labs - Francesco Niglia (2014)
Government perspectives on OI2 The role of the public sector is to • accelerate the creation of both business and societal value through innovation. • create the environments for OI2 where the mash-up of the needed components can happen in a frictionless environment. • Bring-in the fuel for the innovation processes, for example, by procuring innovative products and sharing RD&I risk. OI2 & UC for Living Labs - Francesco Niglia (2014)
The Living Labs in OI2 • Create in 2006 by the EC as innovation ecosystem • LL create attractive innovation ecosystems following the quadruple helix innovation model, where the innovation trials and scaleup can happen more successfully due to strong engagement of the citizens in the regions. • Since founded as a modest start-up, the Living Labs has developed into a network of regional innovation ecosystems on all continents. OI2 & UC for Living Labs - Francesco Niglia (2014)
What is a Living Lab • A Living Lab is both a methodology for User Driven Innovation (UDI) and the organizations that primarily use it. A Living Lab is about experimentation and co-creation with real users in real life environments, where users together with researchers, firms and public institutions look together for new solutions, new products, new services or new business models. But also Living Labs are about societal involvement, about promoting innovation in a societal basis, involving academia, SMEs, public institutions and large companies in an Open Innovation process that because happens in real environments has an immediate impact • Public-Private-People Partnerships (PPPP) for user-driven open innovation. • It’s innovation to market • It’s sustainability linked to a territory OI2 & UC for Living Labs - Francesco Niglia (2014)
Aalto University
OI2 & UC for Living Labs - Francesco Niglia (2014)
Why a living lab? • Because innovation occurs in ecosystems • The ‘test-bed’ for the a lot of ICT innovation as outlined in the Digital Agenda and by DGConnect – Smart Services at all the levels – Application of innovation OI2 & UC for Living Labs - Francesco Niglia (2014)
An example: ENoLL • ENoLL is the European Network of Living Labs • Thousands companies, hundreds universities research centres, thousands on people. • Fixed procedures…already a process of ‘labelling’ for becoming a living lab – Procedures, outcomes, business, sustainability, territorial impact
• Ensuring a minimum quality of performances http://www.openlivinglabs.eu OI2 & UC for Living Labs - Francesco Niglia (2014)
Distribution of living lab in ENoLL Spain France Italy 344 LL UK Finland Portugal Germany Sweden Other… Other World
0
50
100
•Energy Efficiency. Sustainable Energy. Climate change •Well Being and Health •Smart Cities. Future Internet. Internet of things. •Social Innovation. Social Inclusion •e-Government. e-Participation •Creative Media. User driven contents. Social Networks. Web 2.0 •Thematic Tourism. Culture Services •Regional, territorial and rural development of Smart Regions •Sustainable Mobility •Industrial and logistics development •Security
OI2 & UC for Living Labs - Francesco Niglia (2014)
5 Key elements to define added-value 5 key elements in the new innovation process: • Networking. • Collaboration involving partners, competitors, universities, and users. • Corporate Entrepreneurship, enhancing corporate venturing, start-ups and spin-offs. • Proactive Intellectual Property Management: to create markets for technology. • Research and Development (R&D): to achieve competitive advantages in the market. OI2 & UC for Living Labs - Francesco Niglia (2014)
how to define and visualise the added-value • • • • •
List the targets of the Living Lab List and define the actors Exactly check the role of each actor within the LL Dynamics and weights: connections, the ‘cost’ Exactly define the I/O flow of a-v for each actor – What can be useful to that actor? MONEY, SERVICES, – What can be provided by the actor? GOODS, IN KIND
• Balance the I/O – For each actor GAIN MUST – For the whole system – Sankey or similar diagrams might be used
BE > 0!!
• 2-3 round checks, what is missing? – New dynamics, New services, etc., A new (unexpected) actor, Other… OI2 & UC for Living Labs - Francesco Niglia (2014)
Example: Sankey
OI2 & UC for Living Labs - Francesco Niglia (2014)
Example: free scheme
I≠O MONEY
ACTOR
MONEY
SERVICES
OWN CAPABILITIES / KNOWLEDGE
SERVICES
GOODS IN-KIND
GOODS ELABORATION CREATION OF ADDED -VALUE
IN-KIND
M+S+G+IK = VALUE OI2 & UC for Living Labs - Francesco Niglia (2014)
Cartogram map it shows the world from the data’s point of view. The cartogram, created by (Bryan Boyer on behalf of the Institute of Large Scale Innovation) sizes countries according to several factors related to their innovation efforts: • R&D spending, • the number of postsecondary degrees awarded, • the number of patents issued. OI2 & UC for Living Labs - Francesco Niglia (2014)
Innovation world - 2011
OI2 & UC for Living Labs - Francesco Niglia (2014)
…let’s try to make your own map! • Mapping the single actors and try to establish a whole infographic vision LL €’s
Actor #1
Actor #2
LL KB
LL S-P
Actor #3
Actor #k
Actor #N
OI2 & UC for Living Labs - Francesco Niglia (2014)
Formulating an Ecosystem Strategy
Often managers revise their performance expectations and rethink their initial plan: lower performance targets, reassigning responsibility , changing the target market, lobbying the government, acquiring a competitor or partner OI2 & UC for Living Labs - Francesco Niglia (2014)
Apple: the first mover …at a time when Apple had its back to the wall… • an independent product design consultant approached the company to propose an innovation consisting of an easy-to-use MP3 player and music-management and purchase software. • This external idea was then taken up by Apple – a 35-member team hired from Philips, Ideo, Connectix and WebTV developed the design and user interface – a partner, Portal Player developed the technical design. – The final product was then produced together with Wolfson, Toshiba and Texas Instruments. OI2 & UC for Living Labs - Francesco Niglia (2014)
OI2 ecosystem in Deutsche Telekom
Problem: liberalization of the TELCO industry in 1995, former small scale SMEs [Skype] entering with VOIP, shift from network to services providers OI2 & UC for Living Labs - Francesco Niglia (2014)
OI2 ecosystem in Institute Telecom - France
OI2 & UC for Living Labs - Francesco Niglia (2014)
Twenty Snapshots of Open Innovation 2.0
OI2 & UC for Living Labs - Francesco Niglia (2014)
Quadruple Helix Innovation
Industry, government, academia, and citizens work together to co-create and drive structural changes far beyond the scope of what organizations can do on their own. There is much deeper networking among all participants, including societal capital, creative commons, and communities. OI2 & UC for Living Labs - Francesco Niglia (2014)
Co-creation and Engagement Platforms
Co-creation includes all stakeholders, including citizens, users, or customers, in the development of innovative solutions. An engagement platform provides the necessary environment, including people and resources, for cocreation. OI2 & UC for Living Labs - Francesco Niglia (2014)
User Involvement, U-Centricity, U-Experience
The role of the user has changed from being a research object, to being a research contributor, and on to being a co-innovator. The locus of innovation has shifted from guessing about product and service features users may want to user experience design to guarantee that features are desirable. OI2 & UC for Living Labs - Francesco Niglia (2014)
Business Model Innovation
Business model innovation is about defining and designing new models for capturing business value. Osterwalder & Pigneur’s (2O1O) business model canvas is a good tool for visualizing and prototyping business models and incorporates techniques such as visual thinking, design thinking, patterns, and platforms. OI2 & UC for Living Labs - Francesco Niglia (2014)
Management of Innovation Process/Capability
OI2 recommends explicitly setting up management systems for innovation and systematically improving innovation capability in individual organizations as well as across members of innovative ecosystems.
OI2 & UC for Living Labs - Francesco Niglia (2014)
Social Innovation
“Innovative activities and services that are motivated by the goal of meeting a social need and that are predominantly developed and diffused through organisations whose primary purposes are social.� Mulgan et al (2OO7)
OI2 & UC for Living Labs - Francesco Niglia (2014)
An upper-view scheme OPEN INNOVATION 2.0 GLOBAL SYSTEM SCIENCE
USER CENTRICITY ECOLOGY OF INNOVATION SMART COMMUNITIES LIVING LABS SMART TERRITORIES
FET OI2 & UC for Living Labs - Francesco Niglia (2014)
User Centricity: link to OI2 CO-CREATION USER SATISFACTION
SOCIAL IMPACT
CODEPLOYMENT
OI2 & UC for Living Labs - Francesco Niglia (2014)
User Centricity: what exactly • It’s the “human-centred” aspect of Global System Science / Open Innovation 2.0, including user/citizen participation and clearly concerned with reasoning. • Here, the ‘smartness’ shall not be referred uniquely to the technologies, but includes a broader view of ensuring a minimum QoS for public and private services, the direct contact and management of the resources in the territory, the coopetition among citizens and the other actors (government, industry, academia) working together to co-drive structural changes. • It’s the application of the 4xHelix model in OI2 OI2 & UC for Living Labs - Francesco Niglia (2014)
User Centricity for services • ‘The users are meant as persons, citizens and the whole concept of service is based on “putting the user at the center of innovative services/products” starting from the enablement of a specific procedure: users will be involved in the service/product development that will be driven by what users want and operate on a scale that is relevant to them’. [NET-EUCEN]
OI2 & UC for Living Labs - Francesco Niglia (2014)
Some key issues What is user-centricity? • It’s thinking about
participation
Matter of technology
Answer to user needs
awareness
new solutions with the user • It’s adaptation. • a multi-level user/citizen empowerment • In order to have smart cities we need smart ci9zens″
OI2 & UC for Living Labs - Francesco Niglia (2014)
Involvement in: Co-design stage
• this means the engagement and involvement of users in the stage of the development of new ideas and concepts, i.e. the definition of the service/product shall be made with users by starting from the users’ needs, wishes and requirements without any technological constraint. OI2 & UC for Living Labs - Francesco Niglia (2014)
Development and implementation stage
• this means the engagement of a sample/group of users in the first implementation of the services/products in order to evaluate its features and continuously discuss with developers how to optimise the outcomes and suggest improvements and/or changes before the final running of the service; OI2 & UC for Living Labs - Francesco Niglia (2014)
Deployment and running stage
• this refers to the possibility to validate the service/product through an, even wider, user-test campaign. This test shall imply a check of the flexibility of the service from the technological perspective and the interoperability of the applications, thus to give the possibility to customise it following the changes in the political, economic or social environment and, furthermore, to enable business exchanges with the users OI2 & UC for Living Labs - Francesco Niglia (2014)
The user engagement • be interactive and include active user/citizen participation through discussion, dialogue and debate, possibly supported by social networks and platforms. • Use of techniques such as narratives, games or even art may be important vehicles for expressing evidence and forming opinion. • The whole approach can be actualised through very different ways and using very different tools, often not only ICT-based; public workshops and consultation are still a powerful instrument to create a co-operative debate OI2 & UC for Living Labs - Francesco Niglia (2014)
...and ICTs? • ICT is only a tool, both for information gathering and information delivering, as we can elicit useful information through face-to-face discussions. …but… • ICT opens the door to the development of new ways of citizens’ engagement in the design and planning. Enabling new scenarios in which active users can help gathering sensible data through participatory sensing and social computation activities: – stimulating individual+collective awareness+learning; – providing relevant inputs for data analysis, modelling and decision making. OI2 & UC for Living Labs - Francesco Niglia (2014)
Open Innovation VS User-Driven Innovation • In user-driven innovation: you listen to customers or partners in the early phases of the innovation process, or later, as feedback is generated. But this is not really business transformation as you still go through your own internal innovation and development process. • It becomes open innovation: when you not only get ideas from external sources, but also let external sources become key players in the process of turning ideas into a business. OI2 & UC for Living Labs - Francesco Niglia (2014)
New business models with user-centricity • We consider that the Internet, and the tools and services offered through Internet, are the computing platform on which to build userdriven innovation and new business models. When the user is provided with the appropriate tools, which they have the freedom to use as they wish, they can remodel and combine them to create services tailored to their needs.
OI2 & UC for Living Labs - Francesco Niglia (2014)
User-centricity for smart communities / LL • The user-centricity will be the basis for adopting a shared approach: people living in a smart multimodal environment which maximizes the economies of scope and scale across its multiple infrastructure layers. • The target is to understand how to shift the user-centric paradigm in the engagement of citizens and users for fostering the innovation and research in the industrial sectors closer to the people. OI2 & UC for Living Labs - Francesco Niglia (2014)
How to engage? • The first challenge is to define the addedvalue we think we might offer to the user/citizen • After that we need to understand the most suitable interface and tool we shall use to empower the user/citizen to interact (workshops, Scenario building, Mail, Round tables, Consultations, Etc…) • Finally, we must ensure a continuous feedback mechanism to user to maintain the expectations on the added-value. OI2 & UC for Living Labs - Francesco Niglia (2014)
Method of involvement • • • • • • •
Deliberative polling Focus groups Citizens’ juries Consensus conferences Stakeholder dialogues Internet dialogues Deliberative mapping
OI2 & UC for Living Labs - Francesco Niglia (2014)
Deliberative polling • In a deliberative poll, a large, demographically representative group of perhaps several hundred people conducts a debate, usually including the opportunity to cross-examine key players. The group is polled on the issue before and after the debate. Es. The PERIPHERIA project http://www.peripheria.eu/
OI2 & UC for Living Labs - Francesco Niglia (2014)
Focus groups • A focus group is a qualitative method used widely in commercial market research and increasingly in academic social research. Typically, a group of eight to ten people, broadly representative of the population being studied, is invited to discuss the issue under review, usually guided by a trained facilitator working to a designed protocol. The group is not required to reach any conclusions, but the contents of the discussion are studied for what they may reveal about shared understandings, attitudes and values. Focus groups may also help to identify the factors (which large-scale surveys rarely do) that shape attitudes and responses, including trust or mistrust. They also help in the design and interpretation of quantitative public opinion surveys. OI2 & UC for Living Labs - Francesco Niglia (2014)
Citizens’ juries • A citizens’ jury (or panel) involves a small group of lay participants(usually 12–20) receiving, questioning and evaluating presentations by experts on a particular issue, often over three to four days. At the end, the group is invited to make recommendations. • Used by local authorities, government agencies, policy researchers and consultants on a wide range of policy issues.
OI2 & UC for Living Labs - Francesco Niglia (2014)
Consensus conferences • By convention, a group of volunteers is selected for a consensus conference according to socioeconomic and demographic characteristics. The members meet first in private, to decide the key questions they wish to raise. There is then a public phase, lasting perhaps three days, during which the group hears and interrogates expert witnesses, and draws up a report. The main differences between a consensus conference and a citizens’ jury or focus group are the greater opportunity for the participants to become more familiar with the technicalities of the subject, the greater initiative allowed to the panel, the admission of the press and the public, and the higher cost. OI2 & UC for Living Labs - Francesco Niglia (2014)
Stakeholder dialogues • This is a generic term applied to processes that bring together affected and interested parties (stakeholders) to deliberate and negotiate on a particular issue. Stakeholders can range from individuals and local residents to employees and representatives of interest groups.
OI2 & UC for Living Labs - Francesco Niglia (2014)
Internet dialogues • This term is applied to any form of interactive discussion that takes place through the internet. It may be restricted to selected participants, or open to anyone with internet access. The advantages of internet dialogue include the ability to collect many responses quickly and to analyse them using search engines. Similarly, they can combine the benefits of rapid exchange of ideas (brainstorming) with a complete record. On the other hand, participation may be self-selecting and unrepresentative, and the anonymity of the internet may encourage impulsive rather than considered responses. Anonymity may make it difficult to investigate the provenance of information provided.
OI2 & UC for Living Labs - Francesco Niglia (2014)
Deliberative mapping • This is a process in which expert and citizen assessments are integrated. In a deliberative mapping exercise, citizens’ panels and specialist panels are convened and interact with each other, allowing participants to interrogate each others’ views and knowledge, and exposing framing assumptions made by both sides. Deliberative mapping seeks to bring together the views of ‘experts’ and ‘public’, through face-to-face deliberation between these two groups. OI2 & UC for Living Labs - Francesco Niglia (2014)
A method to elicit and assess innovation USERS
DEVELOPERS
GATHERING COLLATION
INNOVATORS
ASSESSMENT SERVICE / PRODUCT OI2 & UC for Living Labs - Francesco Niglia (2014)
Some biblio and refs • Put User in the Centre for Services A reference model. Myriam Corral http://ec.europa.eu/information_society/newsroom/cf/dae/document.cfm?doc_id=2188
• The Open Innovation Strategy and Policy Group https://ec.europa.eu/digital-agenda/en/open-innovation-strategy-and-policy-group
• ENoLL. http://www.openlivinglabs.eu/ • Open Innovation 2.O: A New Paradigm. Curley, Salmelin (2013) http://ec.europa.eu/information_society/newsroom/cf/dae/document.cfm?doc_id=2182
• Unlocking the Digital Future through Open Innovation - An Intellectual Capital Approach A critical analysis of open innovation as structural capital http://ec.europa.eu/information_society/newsroom/cf/dae/document.cfm?doc_id=2185
• RADICAL OPENNESS for TEDGlobal by @JasonSilva http://www.youtube.com/watch?v=WEWaBlSSUgw
• User-centric approach in NET-EUCEN http://www.net-eucen.org/usercentric.php OI2 & UC for Living Labs - Francesco Niglia (2014)
thank you!
Happy to discuss! Any question? Contacts Francesco Niglia francesco@fnstudio.net tel: +393493947146 Studio Francesco Niglia http://www.fnstudio.net Social skype: effennebis twitter: fnpolicy linkedin: http://www.linkedin.com/in/francesconiglia OI2 & UC for Living Labs - Francesco Niglia (2014)