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Friday, May 29, 2009
How I See It
Transforming innovation into a sustainable model
MHT's Efrain Viscarolasaga: Tech companies may have to wait for stimulus funds
MHT's Efrain Viscarolasaga: How social networking is changing business
How is the economic crisis affecting tech companies?
Does innovation continue to be a top priority for executives during a recession? Is there a new paradigm after “open innovation?” Does the growing consumer awareness around sustainability provide a source of inspiration for new products or services? All these questions were debated during an event organized by swissnex Boston, Consulate of Switzerland. The two-day conference was designed to offer broad perspectives on innovation, so there is no surprise that the speakers’ list included experts from large companies (Novartis, Nestlé), academia (MIT’s Sloan School), design and consulting (Continuum) and investors (Flagship Ventures).
It is clear that different models of innovation co-exist in large companies. No consensus emerged on a definition and on whether the current buzz around “open innovation” was beneficial. While everyone seemed to agree that innovation is a key engine of survival and growth for all organizations, no one offered a clear metric for its quantification or a vision of what’s emerging beyond open innovation.
The first line of thought focused on partnerships, the key ingredient to a successful innovation strategy. Companies have always worked with partners, but there is a ever-growing need to be more strategic and work not only with universities and startups that can accelerate the development cycle, but also with suppliers, individuals or organizations (and sometimes even with competitors), which can help detect demand and technologies, reduce upfront resources and investments, and significantly speed up the time to market. “Sharing is winning” is the true meaning of an innovative partnership.
Another perspective sees the need for a new “mechanism” at the boundary between companies and outside partners, particularly universities. Traditional tech transfer or shared development agreements have shown their limits. The focus should be on a new organizational model that cuts across the established lines of communication between partners. For large companies, a related need will be to develop new currencies and metrics for describing activities and quantifying innovation. Too often, organizations still look within a well-defined territory. Innovation calls for reaching out across boundaries and entering into unknown territories. Academia should play a leading role in providing both the direction and developing the necessary tolls and metrics to quantify innovation, and to be the beacon projecting new directions beyond the horizon of open innovation.
What did the discussions mean for an innovative region like Boston? The focus on collaboration seems to be paramount. While companies and universities have had common projects for decades, the realm of possible partnerships should be broadened and extended. One part that often seems to be missing is the consumer. Sequencing the genome of the consumer’s mind will unveil new and innovative opportunities leading to successes in the marketplace. The second important point for this region is to continue to nurture a culture of experimentation. Trying new ideas often and in a fast way allows for learning and improvement.
Boston seems to be well placed in the emerging field of sustainability innovation. Geopolitical forces are creating opportunities for new companies in alternative energy, fuel substitutes and energy efficiency. At the same time, consumers and customers are demanding more accountability from companies when it comes to societal and environmental behavior. Systemic change in this area means early leaders should rework internal operations and work with external partners such as governments to adapt to transformational change in the corporate environment.
The debate and the different views expressed at the two-day meeting provide the seeds for reinventing the innovation ecosystem and are a part of the learning process.
Pascal Marmier is director, Consul, at swissnex Boston, the Swiss science and technology consulate in Cambridge. He can be reached at pascal@swissnexboston.org.
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