I-Open 2007

Revitalizing community and workforce development with Training, Coaching, and Building On-line
Communities

Property of The Institute for Open Economic Networks (I-Open)

4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
Page 1
The Institute for Open Economic Networks (I-Open)

I-Open accelerates innovation and economic transformation in local and regional economies. Our
approach is founded on open source development, an effective innovation engine developed in
the software industry. Open source development is based on voluntary communities of people
contributing to common (often complex) projects.

In economic development, Michael Porter of Harvard University has pointed to the importance of
"clusters" - open innovation systems - to generate innovation and productive investment. Regions
characterized by thick networks of trusted relationships learn faster, spot opportunities faster, and
align resources faster.

I-Open develops and deploys practical approaches to creating open innovation networks and
neighborhoods, counties, and regions. Open networks drive innovation, and I-Open is focused on
the disciplines, habits and practices that strengthen these networks in our "civic spaces".

Open Source Economic Development

Taken together, we call our approach Open Source Economic Development.

We believe that civic leaders in every region, every county, and every community needs to think
in terms of global competition. In today's world, our opportunities and challenges are taking place
on a global scale.

To seize sees opportunities, we need to focus on building world-class brainpower and translating
our brainpower in the wealth through flexible and adaptive innovation networks. We need to build
quality, connected places both to attract and retain our brainpower and innovative businesses. We
need effective branding to tell the deeper stories of our communities, but most important, we need
new civic habits of collaboration.

Open Source Economic Development is designed to quickly trigger new initiatives in each of these
areas. We are equipping civic leaders with the skills to launch and align these initiatives through
process of "strategic doing".

Understanding the Second Curve Economy

As the Council on Competitiveness notes, "There are no low tech industries̶only low technol-
ogy companies that fail to incorporate new ideas and methods into their products and processes.
Innovation opportunities are present today in virtually any industry."

Property of The Institute for Open Economic Networks (I-Open)

4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
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We explain the difference by referring to a First Curve or Second Curve economy. Our First Curve
economy is dominated by hierarchical organizations focused on managing costs. In the Second
Curve economy, business models focus on creating networks and value webs.

As Henry Chesbrough notes in his book Open Innovation, the old industrial model of innovation
has given way to a new approach based on building networks.

These developments carry profound implications for regional economies. Regions that have thick,
open networks will be more prosperous. They will learn faster, spot their opportunities faster,
align their resources faster, and act faster. The disciplines, habits and practices that I-Open is de-
veloping are designed to help regions compete in the Second Curve economy.

Strengthening Networks in Our Civic Spaces

One of the core disciplines now involves weaving networks in our "civic spaces". Economic de-
velopment takes place in the civic space outside the four walls of any one organization. One of
the key insights of the second paragraph becomes an understanding that we need to organize our
civic spaces more effectively.

Many of the challenges and opportunities we face today require us to innovate in new and differ-
ent ways. Yet, most communities have no common practice to generate or test new ideas. Even
worse, in some communities the practices of civility have deteriorated dramatically.

Working with our colleagues, Valdis Krebs, June Holley and Jack Ricchiutto, we have developed
training to teach civic leaders the new skills of weaving open networks in their communities.

Developing Appreciative Leadership Skills

People move in the direction of their conversations. So, for example, when people come together
to discuss common issues, it matters how we frame the conversation. Some years ago, David
Cooperrider at Case Western Reserve University, developed the practice of appreciative inquiry to
guide large-scale change in organizations.

Our Theory of Transformation

The term, "open innovation" has moved center stage in our drive to stimulate innovation.

I-Open believes that regional civic leaders can nurture innovation through conversations. As Will-
liam Page, founder of Verifone has said, "Most really useful information comes from conversa-
tions."

Property of The Institute for Open Economic Networks (I-Open)

4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
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But these conversations are not haphazard or disjointed. Nurturing regional innovation takes pro-
active and reliable civic processes that involve both open participation and leadership direction.
Civic leaders need to guide conversations quickly into action, because it is through action that we
build trust. And it is through higher levels of trust that we build speed.

Our Process for Building Open Innovation

I-Open focuses on three core components to create the open innovation networks citizens need to
accelerate enterprise development and workforce competitiveness in communities and regions:

I. Open Source Economic Development (OSED), a 21st Century approach to economic

development,

II. Civic Forums, a disciplined process for civic engagement and,

III. I-Open.org. is an on-line knowledge management and enterprise development

community.

The I-Open Civic Forum process was developed by Betsey Merkel, Susan Altshuler and Ed
Morrison, at the Center for Regional Economic Issues, Case Western Reserve University from 2003
through 2005 and funded through a grant from the SBC Foundation. Weekly Civic Forums
engaged over 3000 people and yielded an accelerating number of initiatives, projects and new
businesses. From the first day of the first Civic Forum, a cycle of exponential business
development began that continues to reverberate today. Civic Forums take place in Northeast
Ohio, Charleston, South Carolina, and Indianapolis, Indiana.

Building open innovation networks for enterprise and workforce development requires a multi-
faceted approach that takes into consideration new practices in economics, social psychology,
visualization, business development and Web 2.0 technologies, This document takes you through
an overview of how these parts work together and the steps you will need to take to begin
building open innovation networks for exponential growth in your community.

Property of The Institute for Open Economic Networks (I-Open)

4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
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I. Open Source Economic Development is an iterative community and
team building process that moves faster than what we are accustomed to.

Communities and regions can easily grow entrepreneurial cultures, freely

contributing and continually revitalizing innovation networks for enterprise
development.

The basic building blocks of Open Source Economic Development are listed below:

I-Open Practices and Principles. We begin with simple rules that guide our motivations and
behaviors.
We are pursuing a simple vision: we will leave to future generations a regional
economy that is creative, innovative and sustainable with opportunities for any
individual prepared to grasp them.

We are pursuing a simple strategy: Brainpower matters. Our region will be transformed
by open networks of innovation and collaboration with colleges, universities, libraries
and schools as nodes in these networks.

We have a simple credo: We will prosper by treating each other in ways that build
respect and trust.

We have a simple purpose: I-Open will facilitate the transformation already underway in
our region. We will teach and share the best ideas we can find to build open innovation
networks in our region.

The Innovation Framework. This is a heuristic model for 21st Century prosperity building. We
look at five areas of economic development: Building Brainpower; Strengthening Innovation and
Entrepreneurial Networks; Building Quality, Connected Places; Guaranteeing opportunities for
Open Dialogue and Inclusion; and Marketing and Branding - telling our story. The first question to
begin with is, Where are you on the Innovation Framework?

Our Eleven Areas of Development. Next, we look at specifics to help us to focus our intentions,
the context in which we work and how we are connected to others. For example, if you are
working in Brainpower, what is it you are focused on? Are you engaged in: helping to develop a
regional approach to decision making; defining sustainable business; improving regional
innovation systems; building early childhood into high performance; defining the creative
industries; strengthening global networks; creating places by design; promoting Internet access
and exploration; expanding inner city competitiveness; defining health care systems; or,
strengthening faith-based economic development?

Property of The Institute for Open Economic Networks (I-Open)

4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
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Collaborative Leadership. People move in the direction of their conversations. So, for example,
when people come together to discuss common issues, it matters how we frame the conversation.
Some years ago, David Cooperrider at Case Western Reserve University, developed the practice of
appreciative inquiry to guide large-scale change in organizations.

Social Networks. Civic Forums begin to model and demonstrate the new behaviors required of
civic leaders to strengthen connectivity to anchor a local entrepreneurial culture. Forums help us
to re-establish a tone of civility, practice the new forms of participation, test and follow up on new
ideas with working groups and team projects.

Maps, Drawings and Interactive Visualizations. Maps provide a bigger picture of our activities
and how we connect to others. Simple drawing tools articulate different areas of working
knowledge, pathways of complex forces we are subject to but may not understand, patterns that
may exist but we cannot see, connections and how they apply to our every day lives. Interactive
visualizations offer alternate frames of reference and context, improving our ability to predict and
plan for the future. Social Network Maps, yet a different kind of map, offer a more technical
visualization of location, category and quality of individual and community social connectivity,
improving our ability to act as intermediaries in a therapeutic capacity.

Strategic Doing. This is an appreciative, sustainable process focusing individual attentions and
group strengths. The first step of strategic doing begins by exploring complex and transformational
ideas together, then focusing on doable next steps, evaluating our collective skills and assets to
achieve our objectives, and then coordinating what we can do together to quickly design next
steps for enterprise development.

Strategic Activities. We look at four strategic activities when we work in the Civic Space.
Strategic activities keep us on track to build the infrastructure an entrepreneurial community will
need to sustain open innovation. These are 1) Research: to create and grow a portfolio of
actionable hypotheses about open innovation systems in community and regional economies; 2)
Networks: develop collaborative networks in your industry and others you are interested in that
accelerate regional and community economic development; 3) Enterprise development: is an
evolutionary process of building, deploying, releasing, refining, and redeveloping enterprises to
generate revenues from emergent OSED initiatives; and 4) Education: host and lead advanced
workshops, skills training and curriculum activities about what is working in your community.

Property of The Institute for Open Economic Networks (I-Open)

4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
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Your Next Steps are to...

Attend an I-Open Workshop. In 2008, I-Open will offer monthly workshops, on the practices and
tools of Open Source Economic Development, civic forums, and how to build online communities.
For more information, send your contact information to info@i-open.org.

Start Networking. Begin by connecting with people you don t know. Ask acquaintances,
colleagues and friends to partner with you to host a Civic Forum. Present news and updates
about your profession or avocation. Build a networking database of who you are connected to and
expand the list by researching people, places and tools connected to new innovative activity on
the Internet. Be open to all areas of enterprise including all activity that is creative, innovative
and interesting. Introduce yourself; create Reply All e-mail introductions and host weekly coffee
discussion groups to expand your network.

Host a Civic Forum. I-Open Civic Forums provide the opportunity for leaders to create important
conversations to develop a community of peers. As a peer community co-evolves, it continuously
and incrementally improves transformational ideas for prosperity building. Begin building a
partnership with your local college, university or library. Ask for in-kind services for facility space,
parking and support for efforts to connect students and faculty to lead forums and participate in
weekly conversations. The emergent business networks you and your colleagues assemble will
immediately begin to build new opportunities for corporate sponsorship, action learning
internships and curriculum marketing. Initiate ways of connecting with other civic forums taking
place to expand opportunities and access to talent and resources.

Create a working group. Working groups can be organized with six to fourteen people focusing
on specific projects in interest areas. Working and project groups assemble to author heuristic
industry maps, white papers, proposals and advocate for civic, business, and government
leadership.

Build your online community. Begin by creating an account on the I-Open.org space and learn
how others are leveraging this sophisticated, easy-to-use integrated social software platform. Some
next steps include contributing your ideas and best practices to the I-Open.org community;
explore Freeware available on the web from reputable sources; ask friends for their
recommendations for new software programs; experiment and learn to use Web 2.0 tools such as
weblogs, wikis, widgets, multimedia, easily. Finally, keep in mind that online communities are an
extension of face-to-face interaction and will accelerate the formation of enterprise development.

Property of The Institute for Open Economic Networks (I-Open)

4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
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II. I-Open Civic Forums, a disciplined process for civic engagement

I-Open Civic forums strengthen entrepreneurship and innovation by,

• Creating new conversations and encouraging people to move in new directions

• Design remarkably effective, low-cost marketing campaigns to support
entrepreneurship and action-learning projects;
• Build open economic networks (sometimes called clusters ) among academic,
business, government and civic communities;
• Identify new economic opportunities by shifting people s thinking about what is
possible.

Weekly Civic Forums are open to anyone with initiative. By practicing OSED principles over time
and relentlessly building new connections to interesting people, the civic forum process builds
open innovation networks to support early stage enterprise development.

Reed's law is the assertion of David P. Reed that the utility of large networks,
particularly social networks, can scale exponentially with the size of the net-
work. - Wikipedia

III. I-Open.org. is an on-line community of leaders who contribute based

on their interests, skills and goals.

I-Open.org is a free Internet space for a self-organizing community of peers who contribute to
organic systems of information that are not centrally planned. Guided by simple rules of
participation and project standards, the community continuously re-defines best practices and re-
distributes examples of what s-working-now. This is different from traditional economic
development practice: it is new and different, not better or worse but faster forming, more
accessible and more lively.

I-Open.org will,
• Create a global peer community to advance the practice of economic development
• Build entrepreneurial communities participating in open innovation
• Post OSED standards and criteria for social and enterprise development
• Guarantee a neutral and accessible development space with the best Web 2.0 tools
• Model online and face-to-face behaviors to accelerate enterprise development

Properties of I-Open.org
• Organization: open source, categories, tags, filters

Property of The Institute for Open Economic Networks (I-Open)

4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
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• Contributors: business, government, academic, and civic leaders, individuals, students,
organizations, universities, libraries

• Content is organized by,

Five areas of strategic investment as outlined in the Innovation Framework
! Brainpower
! Innovation & Entrepreneurship Networks
! Quality, Connected Places
! Dialogue & Inclusion
! Marketing & Branding
Strategic Activities
! Research - design actionable hypotheses about open innovation
systems, community, economic, and workforce development
! Networks - collaborative networks as infrastructure to accelerate open
innovation
! Enterprise - develop and strengthen transformative initiatives, products
and services
! Education - distribute best practices, examples, workshops, and public
forums
Twelve Areas of Development
! Regional approach to decision making
! Define sustainable business
! Improve regional innovation systems
! Build early childhood into high performace
! Define the creative industries
! Strengthen global networks
! Create places by design
! Promote Internet access
! Expand inner city competitiveness
! Define health care systems
! Strengthen faith-based economic development
! Define renewable energy innovation
• Contributed information for I-Open.org is organized as,
User information - an individual s interests, capabilities and goals
Friend memberships - every contributor receives member invites
Contributing - simple ways for users to contribute to the knowledge base
Collaborating - simple rules for how to engage and build teams
Enterprise building - measurements and metrics, projects, examples

Property of The Institute for Open Economic Networks (I-Open)

4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
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I-Open.org is an open environment for citizens to build enterprise, guided by simple practices
and principles of Open Source Economic Development and strengthened by Web 2.0 tools to
accelerate economic and workforce development.

Summary

Open Source Economic Development is a nexus for best practices in economic and workforce
development.

By combining these best practices with Web 2.0 tools, a next generation of online and face-to-
face communities will result producing new approaches for enterprise development.

This process is proven, replicable and immediately transferable from individuals to

organizations to communities to regions.

Property of The Institute for Open Economic Networks (I-Open)

4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
Page 10
Property of The Institute for Open Economic Networks (I-Open)
4415 Euclid Ave Cleveland, OH 44113
P: 216-577-9957
Page 11