Open innovation strategy

17/3/20

Outline

HENRY LOPEZ -VEGA , PH .D. J Ö N K Ö P IN G

A S S IS TA N T P R O F E S S O R I N T E R N AT IO N A L B U S IN E S S S C H O O L H E N RY. L O P E Z @ JU . S E

1.

Why do we need open innovation?

2.

Where and how to search technologies?

3.

Playing chess or poker?

4.

Open strategy: transparency and inclusiveness

5.

Sleeping beauty: organizational rigidity

6.

Knowledge leakage in the automotive and manufacturing industries in Sweden

7.

Workshop

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BASICS OF OPEN INNOVATION Logic of open innovation

Why should I care about open innovation and/or collaborating with other companies?

Good ideas are widely distributed today.

No one has a monopoly on useful knowledge anymore.

Industrial innovation processes must play poker, as well as chess

increase number of innovations

Increase business value

We must manage IP in order to manage research:

­ need to access external IP to fuel our business model ­ need to profit from our own IP in others’ business model

Not all of the smart people in the world work for us.

Increase innovation speed

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CAN WE ESTABLISH A RELATION BETWEEN OPEN INNOVATION AND INNOVATION/MARKET SUCCESS?” OI

OI-types

Mechanism Å

Scientific knowledge (LP)

Effect

Latest technical knowledge

Å Å Volume

Assistance in Å knowledge transfer to the business

Open innovation Å Latest market knowledge

Market Knowledge (CI)

Å Assistance in market preparation Å

Success

Å Å

Å

Å

Å Successful

Speed

Innovation

Å

Å Å

Å

Å

Business Value Å

Application knowledge

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RESULTS FROM A STUDY AT PHILIPS RESEARCH CENTER Financial Impact vs. Transfer Volume

Transfer Speed vs. Transfer Volume

Financial Impact

Time to transfer

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4 30 3,8

25

Closed Innovation

Open W ith Both

Open W ith Both

3,6

20 15

Open W ith Upstream

3,4

Open W ith Upstream

10

Open W ith Downstream

3,2 Closed Innovation

5

Open W ith Downstream

0 0

0,5

1

1,5

3

0

2

Transfer Volume

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

2

Transfer Volume

Reference: Du, Vanhaverbeke, Leten and Lopez-Vega, 2014. Journal of Product Innov. Management. https://doi.org/10.1111/jpim.12249

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WHAT IS OPEN INNOVATION? 6

WHERE AND HOW TO SEARCH IN OPEN INNOVATION? Search space: where to search?

Local search involves looking for knowledge already in use or in the vicinity of already identified solutions Distant search occurs when problems cannot be solved using current routines and require knowledge recombination Boundary spanning helps identifying new ways to solve problems as it helps to understand the underlying search space

Search strategies: how to search?

Pragmatic (Experiential) search involves the “on-line� evaluation of alternatives without reflecting on their causes Hypothetical (Cognitive) search involves the use representations and abstractions in the search for solutions. For example, learning-before-doing and feed-forward of information into existing or nascent representations Problem framing helps interpreting the assumptions and expectations related to a specific problem and provides guidance to identify solutions

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Analogical paths

Scientific paths

Exam ples: Innovative packaging to minimize the melting of chocolate bars in warm climates (Kraft Foods) and packaging products from the military and oil industries (Ferrero Rocher); redefinition of a bed mattress (Sealy); problems with optics and photonics (Carl Zeiss); innovative methodology (BP)

Exam ples: A washing machine that does not require water (Arçelik A.Ş.), alternative sources of sodium for potato chips (PepsiCo), substitutes for formaldehyde in hair products (L’Oreal)

https://www.dailymail.co.uk/sciencetech/article-2548677/The-washingmachine-W ITHOUT-water-System-uses-tiny-plastic-beads-clean-clothesworks-better-detergent.html#v-3125705808001

Situated paths

Sophisticated paths

Exam ples: a natural-based sunscreen and aluminum-free deodorants (N atura Cosmetics), new membrane technologies for a tire and rubber company (Goodyear), technology efficiency improvements to cope with government regulations (Rheem M anufacturing), Efficient Chemical Storage of Energy for Stationary Applications

Exam ples: N ew technology to augment physical greeting cards with digital experiences (Hallmark Cards)

Local

Search space

Distant

WHERE AND HOW TO SEARCH IN OPEN INNOVATION?

https://youtu.be/ADOJVHEhGN0

Lopez-Vega, Tell, and Vanhaverbeke, 2016. https://doi.org/10.1016/j.respol.2015.08.003

Pragmatical (experiential)

Search strategies

Hypothetical (Cognitive)

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PLAYING CHESS VS. PLAYING POKER Poker: Type II errors (false negative) ØPay to play ØPay for new information ØYou discover what you’ve got, what other players have

Chess: Type I errors (false positive) vPlan several moves ahead vNo new information needed vYou know what you’ve got, what opponent has

Poker ØInvestments in new uncertain innov. projects ØCollaborate in research consortiums, ecosystems, platforms (coalitions) ØValue is co-created with other partners

Chess vOrganizations only rely on existing routines, process, and same employees vRisk is measured before an innov. project is initiated (not during the project) vCollaborations are formalized through contracts.

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PLAYING CHESS OR PLAYING POKER?

Assessment of uncertainty propagation

2 Phase I: Perceiving uncertainty

1 4 3 Phase II: Defining a strategic action to mitigate uncertainties

3 Phase III: Acting

Phase IV: Learning/effects

Uncertainty management in open innovation projects

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ASSESSMENT OF UNCERTAINTY PROPAGATION

Approach 1: Assessment of the causes of uncertainty propagation

Approach 2: Assessment of the effects of uncertainty propagation

Approach 3: Assessment of protection against uncertainty propagation

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The implementation of open innovation is a long-term process that is aligned to firms’ innovation strategy The shift from Closed to Open Innovation entails changes in formal and informal practices

Innovation capabilities and organizational boundaries

OPEN STRATEGY Building innovation capabilities depends not only on the search of distinct knowledge sources but also on the formulation of innovation strategies

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Open strategy refers to the involvement of external as well as internal actors to identify and respond to organizational, societal, and technological developments This strategy relies on a higher level of ­ Inclusion ­ Transparency

OPEN STRATEGY: WHEN, HOW AND WHO DO YOU INVOLVE IN THE STRATEGY FORMULATION PROCESS? 13

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UNDERLYING OPEN STRATEGY PROCESSES Overarching open strategy processes Senior strategic planning

Inclusion of other participants

Design collab. activities to acquire know. in new tech areas

Hierarchical strategic planning and initiating open innovation

Build an infrastructure and model for innov. in new tech. areas

Create an OI team, that establish int. and ext. collaborations

Moving towards external strategic participation and configurating open innovation

Implement, develop and strength int. and ext. relations

Foster collaborations across units and external actors

Enabling strategic planning in context and establishing open innovation

Promote sustainable growth with int. and ext. external actors

Improve collaboration to establish relations in other areas

Stimulating participative strategy and consolidating open innovation

Lopez-Vega and Lakemond (forthcoming), Global Strategy Journal

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“Every new era offers new possibilities for action and development.

Development never stands still.

Innovations in one field inevitably lead to innovations in others.

One must remain alert at all times, always ready to make the very best use of what emerges”

OVERCOMING ORGANIZATIONAL RIGIDITY THROUGH OPEN INNOVATION AND DYNAMIC AMBIDEXTERITY

Dąbrowska, J., Lopez-Vega, H. and Ritala, P. R&D Management (2019)

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WHAT IS ORGANIZATIONAL RIGIDITY Organizational rigidity is the outcome of decades of tinkering, development, and trial-and-error activity by dominant companies

What similar characteristics do these companies have?

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STRUCTURAL RIGIDITY q The main reasons for structural rigidity are market success and firm longevity. ­ As the years pass, successful companies tend to grow in size and complexity (e.g. reporting relationships, team members, management hierarchy). q Structural rigidity refers to how a company: ­ Coordinates its innovation activities using specialized R&D teams, well-honed innovation processes, and programmes to manage external alliances and partnerships ­ Protects its hierarchy and administrative issues (organizational form). ­ Sets its organizational boundaries to innovation activities – that is, which groups of actors are playing an active part in the innovation.

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CAPABILITY RIGIDITY Capability rigidity refers to how exploitation and exploration activities are conducted. ­ Capability rigidity also tends to lead to an exploitative orientation given the feedback on successful performance in perfecting and iterating current operations.

There is major and accumulated evidence that capability rigidity can be overcome via the pursuit of organizational ambidexterity ­ Structural ambidexterity (exploitation and exploration conducted in different units), ­ Temporal/sequential ambidexterity (exploitation and exploration sequential in time) ­ Contextual ambidexterity (exploitation and exploration conducted in the same place and at the same time)

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Open innovation and organizational ambidexterity provide feasible lenses through which to examine how companies can overcome the organizational ‘rigidity trap’ embedded in longstanding success.

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Swarovski’s open innovation journey Renewing crown jewels OPEN INNOVATION

Tilting the playfield ECOSYSTEM ENGAGEMENT

Boundary spanning Dedicated unit to increase knowledge inflows and outflows within defined search fields for structural spanning

Boundary expanding

Focus areas units to purposive knowledge inflows and outflows through permeable boundaries

Structural ambidexterity

Protecting crown jewels CLOSED INNOVATION Boundary preserving

Dynamic ambidexterity

Exploring and exploiting activities pursued in structurally separated units

Exploring and exploiting across organizational levels, and with external stakeholders

Proprietary core technologies kept secure within organizational boundaries

Static ambidexterity Perfecting exploitation mechanisms by focusing on excellence, quality, and refinement; well-planned explorative initiatives among limited set of actors

Formal unit Informal, empowered OI professionals Directions of knowledge flow Between exploitative and explorative technology domains

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* Sleeping Beauties ­ Have a long history of success, relatively little disruption, and competitive advantage based on core technologies and unique innovation capabilities and branding ­ Eventually receive a wake-up call in the form of new entrants, new customer demands, or changes to the institutional environment

DISCUSSION

* Organizational rigidity ­ Renders firms slow or hesitant to react to change, makes their organizational culture unresponsive to outside ideas, and directs management to focus on exploitative refinement rather than explorative search.

* Closed innovation may then be shown to be dysfunctional * We argue that the principles of open innovation and organizational ambidexterity will appear useful to achieve the necessary renewal.

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DISCUSSION Structural rigidity ­ Was unravelled by a change from in-house development to an open structure ­ Ownership of innovation being spread across specialized functions and the organizational boundaries being made permeable to allow open innovation and external ecosystem engagement

Capability rigidity ­ The company’s exploitation orientation and specialized R&D function for exploration were subjected to structured change programmes and, ultimately, dynamic ambidexterity involving various parts of the company.

Transformation phases ­ Closed innovation, open innovation and ecosystem engagement

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• Industrial R&D is today a distributed system • Many new challenges arise in this system

Drive Sweden

OPEN INNOVATION AS A COLLABORATION SYSTEM IN THE AUTONOMOUS VEHICLE SECTOR IN SWEDEN

• Knowledge Leakage (Collaboration and Contamination) • Intellectual Property • Integration is now a critical skill

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COMPUTATIONAL SOCIAL SCIENCE

SweA2S20

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NAMING AND CLUSTERING OF THE TOPICS Manufacturing Industry

17 March, 2020

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NAMING

GNSS technology

Image surveying technology

Control device technology

Detection sensor technology Automatic fuelling / paying technology

Antenna radiation technology

Location / Movement profile tracker

Electrical bolt technology Grid electrode system

Valve technology Pneumatic structure probe (voltage)

Sensing technology for glueing

Key technology device

Light weight cellulose processing technology Material composition technology

Server for user systems

Tool for engaging/ disengaging inter-terminal connection

Microfiber filter technology Barcode technology

Automatic reinforcement technology

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CLUSTERING

GNSS technology

Image surveying technology

Digital Manufacturing

Control device technology

Detection sensor technology Automatic fuelling / paying technology

Antenna radiation technology

Location / Movement profile tracker

Electrical bolt technology

Robotics Valve technology Pneumatic structure probe (voltage)

Grid electrode system

Key technology device

Light weight cellulose processing technology Material composition technology

Tool for engaging/ disengaging inter-terminal connection

Smart Manufacturing

Microfiber filter technology Automatic reinforcement technology

Server for user systems

Sensing technology for glueing

Barcode technology

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CLUSTER 1: ROBOTICS Electrical bolt technology

Valve technology Pneumatic structure probe (voltage)

Grid electrode system Sensing technology for glueing

Light weight cellulose processing technology Material composition technology Microfiber filter technology Automatic reinforcement technology

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CLUSTER 2: DIGITAL MANUFACTURING Image surveying technology

Control device technology

Antenna radiation technology

GNSS technology

Detection sensor technology Automatic fuelling / paying technology

Key technology device

Barcode technology

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CLUSTER 3: SMART MANUFACTURING Location / Movement profile tracker

Server for user systems

Tool for engaging/ disengaging inter-terminal connection

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NAMING AND CLUSTERING OF THE TOPICS 17 March, 2020

Automotive Industry

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INITIAL CLUSTERING RESULTS

Cluster 1: Driving Assistance Systems

Cluster 2: Routing, Positioning & Environmental Monitoring

Cluster 3: Data, Connectivity and Incar-technology file:///private/var/folders/86/8s8tq70n4pl1d4mx77sp5dlc0000gq/T/com.microsoft.Outlook/Outlook%20Temp/BubleVis_30T_5_1.0_new.html

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CLUSTER 1: DRIVER ASSISTANCE SYSTEMS Sensor technology for observing the road condition and obstacles Road friction analysis technology

Collision prevention assistant

Autonomous speed control assistant

Lane keeping/ overtake/ traffic assistant Distance control assistant

Electronical control system for parking

Steering and braking control system

Smart navigation system

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CLUSTER 2: ROUTING, POSITIONING & ENVIRONMENTAL MONITORING Smart navigation system

Fuel/energy consumption monitoring system

Connected system to transfer data about fleet mobility Range prediction route assistant

Positioning system for navigation incl. direction

Drive mode assistant Sensor to identify and detect objects in the air Environmental sensor technology

Jaw and pitch estimation sensor technology Camera sensor assistant for classifying environment

Failure detection system Communication module for platooning (of aircrafts)

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CLUSTER 3: DATA, CONNECTIVITY AND INCAR-TECHNOLOGY Display and control system for the positioning of the seat

Device connecting function for communication

Optical track detection device

Device to recognise light sources

Wireless entertainment and communication system in the vehicle (radio, music)

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Innovation is now a relay race, instead of a marathon Redefine the role of research and researchers: ­ knowledge discovery ­ connection ­ integration

TO CONCLUDE: OPEN INNOVATION AS A SYSTEM

Industrial Research Partners complement university technology development

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HENRY LOPEZ-VEGA, PH.D. ASSISTANT PROFESSOR JÖNKÖPING INTERNATIONAL BUSINESS SCHOOL HENRY.LOPEZ@JU.SE 38

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DISCUSSION QUESTIONS (10 MINUTES) What is my role in the innovation system?

Do we collaborate with external and internal actors to innovative?

Do we have processes to collaborate for new innovation opportunities (playing poker) vs. established/rigid routines (playing chess)

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Innovation = disciplined problem solving

THE BACKGROUND

Open = broad, free, undefined, distributed, shared, and unbiased

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ÂŤIf I had an hour to solve a problem, I'd spend 55 minutes thinking about the problem and five minutes thinking about solutions.Âť

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Round 1 (15 min): What is my company innovation challenge/problem and why does it need an answer?

Round 2 (15 min): What are new ideas that may help solve the problem?

What can we do ourselves and what could other actors help us with?

Final discussion (15 min).

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WHAT IS MY COMPANY INNOVATION CHALLENGE /PROBLEM AND WHY DOES IT NEED AN ANSWER? EACH PERSON PRESENTS A PROBLEM

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SELECT ONE OF THE PROBLEMS

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1) WHAT ARE NEW IDEAS THAT MAY HELP SOLVE THE PROBLEM? 2) WHAT CAN THEY DO THEMSELVES AND WHAT COULD OTHER ACTORS HELP THEM WITH?

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Jerker Moodysson and Henry Lopez Jรถnkรถping international Business School Jรถnkรถping University email: jerker.moodysson@ju.se and henry.lopez@ju.se

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SCHUMPETER BELIEVED IT NECESSARY TO DISTINGUISH BETWEEN AN A PHASE AND B PHASE IN ALL INNOVATION. WHENEVER AN ECONOMY OR A SECTOR OF AN ECONOMY ADAPTS ITSELF TO A CHANGE IN A WAY THAT TRADITIONAL THEORY DESCRIBES, WE MAY SPEAK OF THE DEVELOPMENT AS ADAPTIVE RESPONSE. AND WHENEVER THE ECONOMY OR AN INDUSTRY OR SOME FIRMS IN AN INDUSTRY DO SOMETHING ELSE, SOMETHING THAT IS OUTSIDE THE RANGE OF EXISTING PRACTICE, WE MAY SPEAK OF CREATIVE RESPONSE” J.A. SCHUMPETER IN JOURNAL OF ECONOMIC HISTORY, (1947).

The A phase is the bringing into being of the initial major discontinuity with the past, the jump in some positive form, so that the new thing can be seen for the first time in some substantially complete way

The B phase is the process, generally long drawn out, of exacting all the implications of the A phase

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2. LITERATURE REVIEW (CONT.) Situated search paths: Emphasize the development of routines through local trial-and-error refinements (Cyert and March, 1963; Nelson and Winter, 1982); operates on the basis of experimentation in the vicinity of previous solutions that lead to feedback on current actions Analogical search paths: Drawing upon experiential knowledge from distant domains to inform current actions. Applying the characteristics of solution that spans domains can provide new insights to solve current problems. Such search is enabled through the use of analogical reasoning (Gentner, 2002) that involves structural comparison between a base and a target domain (often with unrelated content.

Sophisticated search paths: Deductive reasoning generates predictions and hypotheses that evolve from general premises to specific applications of a more general set of scientific knowledge (Gavetti and Rivkin, 2007).

Scientific search paths: allow the discovery of theories and models which give rise to predictions that then feed forward into representations. These representations in turn make general claims regarding potential futures. Knowledge acquisition through exploratory or innovative search has been described as searching in science (March, 1991; Levinthal and March, 1981).

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WHERE AND HOW TO SEARCH IN OPEN INNOVATION?

Search space

Distant

Analogical paths

Scientific paths

Objective: Search for medium - to long-term solutions from technologically unrelated and previously unexplored domains Expected type of innovation: N ew processes or technologies to improve existing specifications Characteristics: Operational innovation Path selection criteria: M arket creation, timescale of one year, implementation in multiple products, involvement of multiple business units Exam ples: Processes for delaying the drying of water-based emulsions (Sherwin W illiams); innovative packaging to minimize the melting of chocolate bars in warm climates (Kraft Foods); redefinition of a bed mattress (Sealy); Alternative and more-efficient uses of copper, e.g., in healthcare (International Copper Association); packaging products from the military and oil industries (Ferrero Rocher); problems with optics and photonics (Carl Zeiss); innovative methodology (BP)

Local

Expected type of innovation: Disruptive technologies, new business models Characteristics: Strategic insights, ideation results Path selection criteria: Application in new markets, timescale in years, implementation over multiple business units Exam ples: A washing machine that does not require water (Arçelik A.Ş.), alternative sources of sodium for potato chips (PepsiCo), substitutes for formaldehyde in hair products (L’Oreal)

Situated paths

Sophisticated paths

Objective: Search for quickly implementable solutions to problems in familiar technological fields

Objective: Search for short-to-medium-term insights into visible market and industry trends

Expected type of innovation: Add-on technologies or information

Path selection criteria: Application in existing technology problems and markets, timescale of months, implementation in a single product

Expected type of innovation: Additional added-value technologies for existing products Characteristics: Solutions for a market-entry opportunity, proof of concept, pre-launch, consumer involvement Path selection criteria: Application in existing markets; timescale one year; implementation in multiple products

Exam ples: a natural-based sunscreen and aluminum-free deodorants (N atura Cosmetics), new membrane technologies for a tire and rubber company (Goodyear), technology efficiency improvements to cope with government regulations (Rheem M anufacturing), newly proven technologies for a healthcare manufacturer (Kimberley-Clark)

Exam ples: A foam component for electric shaving machines (Philips), alternative use of roofing granulates in asphalt shingles (3M ); alternative chemistry methods to increase the sustainability and reduce the toxicity of paints (Akzo N obel), new technology to augment physical greeting cards with digital experiences (Hallmark Cards)

Characteristics: Defensive innovation, quick win, operational tactics

Experiential Lopez-Vega, Tell, and Vanhaverbeke, 2016. https://doi.org/10.1016/j.respol.2015.08.003

Objective: Search for long-term breakthrough solutions in unrelated scientific fields to problems that require either the recombination of knowledge or the discovery of a distant scientific network

Search heuristics

Cognitive

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TABLE 1. HOW KNOWLEDGE SEARCH MECHANISMS INFLUENCE SEARCH PATHS Problem framing mechanism Objective: Separate the problem into decomposable parts, and craft a statement of the problem in language that balances the need for generality with that for context specificity Outcome: Specifies the technological or scientific problem as a technology need, and states this need in writing, i.e., an RFP

Search paths

Effect on the interpretation of assumptions and expectations related to a specific technology problem

Boundary conditions

Boundary spanning mechanism Objective: Match the search scope and a specific crowd of solution-providers to a specific search path Outcome: Establishes links with scientific groups in new technological domains or geographical areas

Effect on the balancing of the search space to identify short-term solutions or longterm breakthroughs

Boundary conditions

The level of abstraction and codification is determined to attract solvers of related technological fields

Criteria and specifications are flexible to avoid disappointment with received solutions

The identification of solution-providers in other geographical areas with implementable solutions becomes possible

Solution-providers have experience, i.e., they have already solved related problems. Idea generation is excluded

Analogical paths

The raison d’etre of the problem is understood and “translated” into a language other industries can understand

Domain-specific applications are understood in order to later identify opportunities for recombination

Technical terms that are common to industries and areas across knowledge-seeker boundaries are selected

Boundaries and potential misunderstandings are made clear to solution-providers

Sophisticated path

The scientific problem is written using a competing problem formulation to allow a scientific explanation of the problem

The proper filters are applied to receive reasonable responses and not miss out on opportunities—a difficult task

A small network of solution-providers in different scientific fields are targeted

A reduced number of solvers, i.e., an expert ecosystem, comes from diverse areas

Scientific paths

The generic scientific need is detailed and the particular expectations are specified using a competing problem formulation

Content involves corporate, technical and researcher perspectives

Academically rigorous scientists in broad scientific areas are targeted

Search includes solution-providers without off-the-shelf solutions

Situated paths

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EXAMPLE FROM A LARGE COSMETICS COMPANY Natura’s open innovation journey ­ The formation phase (2001 – 2009); The establishment phase (2011 – 2013); The consolidation phase (2014 – 2016) Governance and integration

Natura’s open innovation capability building process ­ Monitor technology and customer needs ­ Problem formulation and identification (Baer et al., 2013; Von Hippel and Von Krogh, 2015; Sieg et

al., 2010)

• Project management techniques • Knowledge integration

Monitoring technology and customer needs • Problem identification • Problem formulation

­ Search development tool ­ Boundary spanning: OI tools and knowledge sources (Fleming and Waguespack, 2007; Lopez-Vega et al., 2016) ­ Managing integration ­ Project management and Knowledge matching (Lakemond et al., 2016)

Search development tool • Employed Open innovation tools • Knowledge sources

Natura’s Technology outcomes ­

Intermediate tech., advanced tech. and World leading tech.

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Consolidation phase Establishment phase

DATA ANALYSIS: LINKAGES

Organizational goals and actions to transform and build innovation capabilities

Become the Brazilian leader in the management of open innovation

• Segmentation of strategic partners using a relationship plan • Select partnerships within the strategic planning

To establish a strong R&D base in areas such as: 1) well-being and 2) sustainability

• Projects focusing on sustainability, amazon to get more impact of the presence of Natura in the region and wellbeing science, assessment and promotion

Implement a network innovation strategy

• Extension of the strategic innovation management area to adopt a transversal and strategic role for innovation / Mapping external technology competences and identifying internal organizational needs

Innovation capability building Mechanisms: Hackaton, ecosystems, partnerships for startups OI unit facilitates the combination of external and internal for creating radical innovations

OI unit facilitates joint identification of technological opportunities including internal and external a actors

OI unit creates mechanisms to facility identification of solutions in collaboration with multiple actors

Technology outcomes World leading technology: Hackathon Natura Campus for personalized system of soaps

Mechanisms: Challenge based projects, call for projects, co-creation

Program for sociobiodiversity in the Amazon institutional strengthening of existing and new institutional relationships

• Activities about: science, technology and innovation; socio-biodiversity productive chain; and institutional strengthening

• R&D Hub in Boston and creation of an incubator (NINA) in the Amazon

OI unit links solutions to technology problems and an internal platform manages external partnerships

OI unit prepares a thematic call for proposals; a call for challenges; and initial cocreation initiatives

OI units creates a company’s proprietary OI platform and cocreation platform

Advanced technology: New insoluble ingredient in Water and oil

Formation phase

Main mechanism: Call for projects

• Create an open innovation team to collaborate Build an innovation model that with external partners, universities and funding agencies. leverages internal and • Formation of processes and skills to access external innovation knowledge outside Natura • Establishment of business area for new strategic Create an infrastructure in products Brazil with research satellite • Create external innovation hubs to access the offices to advance knowledge latest technological insights in new areas for local markets

OI unit is responsible to evaluate project proposals and set up guideline for partnerships

OI unit requests non-confidential scientific proposals from universities and research groups

OI unit uses a proprietary platform and university roadshows to receive external research proposals

Intermediate technology: New Ingredients from the Brazilian Biodiversity: The case of Ucuuba

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WAKING THE SLEEPING BEAUTY

’S OPEN INNOVATION JOURNEY

§ SUPPORTING TEACHING CASE SLIDES FOR ARTICLE by Dąbrowska, J., Lopez-Vega, H. and Ritala, P. R&D Management (2019) https://doi.org/10.1111/radm.12374

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