MOOI Theme 2:

Top management in
open innovation
Prof. Henry Chesbrough, University of California, Berkeley &
ESADE
Prof. Wim Vanhaverbeke, asselt University, ESADE &
!ational University of Sin"a#ore
Dr. Nadine Roijakkers, asselt University
January 7, 2013
Top Management in Open Innovation:
Overview Innovation: Overview

Findings
1.Support from top management is important
2.Needs the right skills
.OI managed top!down or "ottom!up#

Implications
1. Top management has to "e $ommitted
2. Top management has to empower the OI Team
. %reate OI strateg& aligned with $orporate strateg&
'ave a %(O mandate
2
$I!DI!%S
Top Management in Open Innovation:
Overview Innovation: Overview

Findings
1. Support from top management is important
2. Needs the right skills
. OI managed from the Top or )ottom up#

Implications
1. Top management has to "e $ommitted
2. Top management has to empower the OI Team
. %reate OI strateg& aligned with $orporate strateg&
'ave a %(O mandate
&
Top Management * +inding 1:
Support from top management is important
ovation: Overview

Findings
Senior management support of an OI initiative is $ru$ial to allo$ate resour$es and ensure
there is "oth motivation and a mandate for $ulture $hange ,-utledge '.. 2/120
* The support of top management is a"solutel& essential and we have it on a dail& "asis
,Thoen. 2/110
* Senior leaders must understand and appl& open innovation ,Slowinski 1Sagal. 2/1/0
* (2e$utive!level leadership is re3uired. as is $onstant fo$us to reinfor$ing the message. and
a $lear understanding of the stakes ,)ingham 1Spradlin. 2/110
* Top management support is instrumental in a$hieving OI rollout a$ross the whole
organisation ,Mortara et al.. 2//40
* (2e$utive sponsorship needed 5remove road"lo$ks and mandate parti$ipation6 ,Sloane.
2/120
* 7ink with Culture
'
Top Management in Open Innovation
Innovation: Overview

Findings
1.Support from top management is important
2.Needs the right skills
.OI managed top!down or "ottom!up#

Implications
1. Top management has to "e $ommitted
2. Top management has to empower the OI Team
. %reate OI strateg& aligned with $orporate strateg&
'ave a %(O mandate
(
Top Management * +inding 2:
Needs the right skills ovation: Overview

Findings
Senior leaders must develop and support the ne$essar& skills ,Slowinski 1 Sagal. 2/1/0
7ink with skills development
)
Top Management in Open Innovation
Innovation: Overview

Findings
1.Support from top management is important
2.Needs the right skills
3.OI managed top-down or bottom-up?

Implications
1. Top management has to "e $ommitted
2. Top management has to empower the OI Team
. %reate OI strateg& aligned with $orporate strateg&
'ave a %(O mandate
*
Top Management * +inding :
OI managed top!down or "ottom!up
vation: Overview

Findings (1/5)
-eal $hange is possi"le when managed from the top ,)ingham 1 Spradlin. 2/110
Onl& %(O and "oard of dire$tor $an drive the $hange needed to "e$ome a %hallenge
8riven (nterprise ,)ingham 1 Spradlin. 2/110
O$$asionall&. senior management sees the need for OI. "ut mostl& it is laun$hed at the
department level ,Sloane. 2/120
9
+
Top Management * +inding :
OI managed top!down or "ottom!up
vation: Overview

Findings (2/5)
T): 5O6 approa$h ,7indegaard. 2/110

Top down: get e2e$utives on "oard and re3uire personal $ommitment

)ottom up: ;alue $reation "egins with people. Involve and engage emplo&ees

:: a$ross: middle management has fo$us on their own profit!and!loss responsi"ilit&

Outsiders: e2ternal partners will "ring knowledge. skills. e2perien$e...

< =a&s to Open innovation ,Mortara et al.. 2//40

Top!down. strategi$all&!driven. $entralised a$tivities 5mature6

Top!down. strategi$all&!driven. distri"uted a$tivities

)ottom!up. evolutionar&. distri"uted a$tivities 5mature6

)ottom up. evolutionar&. $entralised a$tivities

9
,-
Top Management * +inding :
OI managed top!down or "ottom!up
vation: Overview

Findings (3/5)
T! "O# approa$h ,7indegaard. 2/110: >ou need to work with ? 1 organi@ational
approa$hes.

Top down:

Aet e2e$utives on "oard and make them personall& $ommited to the

innovation a$tivities. =ithout e2e$utive support. no $hange o$$urs

)ottom up:

;alue $reation "egins with people. one "& one. team "& team. Nothing happens unless
&ou get emplo&ees engaged and involved.

:: a$ross:

The "iggest $hallenges will $ome from middle management pla$ed a$ross e
organiation due to a narrow fo$us their own profit!and!loss responsi"ilit&

Outsiders:

(2ternal partners will "ring knowledge. skills. e2perien$e. In$lude e2ternal resour$es as
&ou move towards OI
,,
Top Management * +inding :
OI managed top!down or "ottom!up
vation: Overview

Findings (4/5)
< =a&s to Open innovation ,Mortara et al.. 2//40

Top!down. strategi$all&!driven. $entralised a$tivities

Top!down. strategi$all&!driven. distri"uted a$tivities

)ottom!up. evolutionar&. distri"uted a$tivities

)ottom up. evolutionar&. $entralised a$tivities

,2
Intera.tive #oll ,

/hat are the three most difficut roles of to#

mana"ement in im#lementin" OI0
*
Allo.ate reso1r.es for OI initiatives
*
Ens1re there are in.entives for a .1lt1ral .han"e
*
Contin1o1s s1##ort from to# mana"ement
*
To# mana"ement sho1l2 1n2erstan2 OI
*
To# mana"ement3s role in a.hievin" OI rollo1t a.ross the
or"ani4ation
*
E5e.1tive s#onsorshi# 6remove or"ani4ational roa27lo.ks8
*
E5e.1tive s1##ort for the 2evelo#ment of the ne.essary
skills
,9
im#li.ations
,&
Top Management in Open Innovation
Innovation: Overview

Findings
1.Support from top management is important
2.Needs the right skills
.OI managed top!down or "ottom!up#

Implications
1. Top management has to be $ommitted
2. Top management has to empower the OITeam
. %reate OI strateg& aligned with $orporate strateg&
'ave a %(O mandate
,'
Top Management * Impli$ation 1:
%ommitment
vation: Overview
%(O must "e deepl& $ommitted ,7indegaard. 2/110
Top of organi@ation must "e $ommitted in no un$ertain terms and see it through to the end
,)ingham 1 Spradlin. 2/110
8emonstrating $ommitment and support. top management holds the ke& to swa& the
opinion of those who feel less in$lined to a$$ept the new approa$h to innovation ,Mortara et
al.. 2//40
(2e$utives must not onl& understand "ut also "u& into the value proposition ,Sloane. 2/120
%ommitment from the top down helps "uilding the $ulture for OI ,Sloane. 2/120
7eaders must promote innovation and an entrepreneurial $ulture a$ross the organi@ation "&
"eing personall& involved in esta"lishing and implementing $lear and relevant wa&s to
support innovation ,Igartua 2/1/0
,(
Top Management in Open Innovation
Innovation: Overview

Findings
1.Support from top management is important
2.Needs the right skills
.OI managed top!down or "ottom!up#

Implications
1. Top management has to "e $ommitted
2. Top management has to empower the OI Team
. %reate OI strateg& aligned with $orporate strateg&
'ave a %(O mandate
,)
Top Management * Impli$ation 2:
Top Management has to empower the OI Teamvation:
Overview
Top management gives the fundamental push to esta"lish an OI
implementation team ,Mortara et al.. 2//40
%reate and empower the %8( task for$e ,)ingham 1 Spradlin. 2/110
The innovation mandate should la& out the resour$es and authorit& given to
the innovation team ,7indegaard. 2/1/0
Innovation leaders must feel full support from e2e$utives ,7indegaard. 2/1/0
7ink with OI team
,*
Top Management in Open Innovation
Innovation: Overview

Findings
1.Support from top management is important
2.Needs the right skills
.OI managed top!down or "ottom!up#

Implications
1. Top management has to "e $ommitted
2. Top management has to empower the OI Team
3. %reate OI strateg& aligned with $orporate strateg&
'ave a %(O mandate
,+
Top Management * Impli$ation :
Blign OI strateg& with $orporate strateg&:
Overview

Top management should understand and "u& into the $reation of a

tight link "etween innovation strateg& and the overall $orporate
strateg& ,7indegaard. 2/1/0

(sta"lish the %(O mandate ,)ingham 1 Spradlin. 2/110

Su$$essful %(Os fo$us the organi@ation on a small num"er of ke&

initiatives and some $hoose a single theme or strateg& that defines their
administration

B %(O mandate makes that ever&one in the organi@ation will

understand the importan$e and $ommitment atta$hed to this program "&
the %(O

CNever laun$h without a mandate from the %(O. ,Open Innovation0

$annot su$$eed if itDs $ordoned off in -18. It must "e a top!down.
$ompan&wide strateg&E ,'uston 1 Sakka". 2//F0.
2-
:eferen.es
*
Bin"ham A & S#ra2lin D; 62-,,8: The O#en Innovation Market#la.e
*
I"art1a, <; I;, %arri"=s, <; A;, & ervas>Oliver, <; ?; 62-,-8; o@
innovation mana"ement te.hniA1es s1##ort an o#en innovation
strate"y; :esear.h Te.hnolo"y Mana"ement, &,>'2;
*
?in2e"aar2, S; 62--+8B

htt#:BB@@@;sli2eshare;netBStefan?in2e"aar2Bo#en>innovation>s1mmit>
stefan>lin2e"aar2>#resentation>2(&'+&(
*
?in2e"aar2, S; 62-,-8: The o#en innovation revol1tion
*
?in2e"aar2 S; 62-,,8: Makin" O#en Innovation /ork
*
Mortara, ?; et al; 62--+8: o@ to im#lement O#en Innovation
*
Intervie@ :1tle2"e 6ea2 of OI %SC8 62-,28
*
Sloane D 62-,28: A "1i2e to o#en innovation an2 .ro@2 so1r.in"
*
Slo@inski an2 Sa"al 62-,-8: Senior Mana"ement :oles in O#en
Innovation
*
Intervie@ Chris Thoen 6D&%8 7y Sha1"nessy 62-,,8
2,

Intera.tive #oll 2

/hat are the three most important actions for

to# mana"ement to maximize impact0
*
Commitment
*
$inan.ial s1##ort
*
S1##ort to 71il2 .1lt1re for OI
*
%oo2 1n2erstan2in" of OI
*
Esta7lishment of OI>team
*
?ink 7et@een 6o#en8 innovation strate"y an2
.or#orate strate"y
22
E&A
29