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Collaborative Innovation

Collaborative Innovation. From Action to Knowledge. Blade.org: A Collaborative Community. Launched by IBM and Intel in February 2006 Purpose is to find market applications for IBM’s new bladecenter technology

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Collaborative Innovation

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  1. Collaborative Innovation From Action to Knowledge

  2. Blade.org: A Collaborative Community • Launched by IBM and Intel in February 2006 • Purpose is to find market applications for IBM’s new bladecenter technology • Currently has more than 100 member firms (mostly U.S. firms and some international) • Blade.org is a non-profit organization that helps its members make money • Blade.org’s performance is measured by ‘solutions’ generated, member firm sales, etc. • We are currently studying areas where Blade.org is the most entrepreneurial.

  3. The Knowledge Economy Demands Innovation • The ability to innovate is the primary determinant of a firm’s success and a country’s economic development. • Most firms have far more capacity to innovate than they are currently using. • Even the most innovative firm does not innovate well outside of its existing industry (or industries). • Many innovative ideas and opportunities come from outside the firm. • The development of organizational capabilities precedes the management of knowledge.

  4. Capabilities of Existing Organizational Forms Functional Organization (U Form) • Ability to innovate (new products, services, and process technologies) within a single industry Divisional Organization (M Form) • Ability to tailor product/service innovation to market segments within an industry • Ability to enter related industries through synergies Matrix Organization • Ability to operate existing businesses efficiently and to innovate within those businesses • Ability to enter and efficiently operate new businesses if they can be integrated into the matrix Multi-Firm Network Organization • Ability to adapt quickly – develop a new product, enter a new business, etc. – by focusing on core capabilities and outsourcing non-core capabilities

  5. Overall Design Challenge Posed by the Knowledge Economy How to Achieve Continuous Innovation Across Industries Can This Be Accomplished by a Multi-Firm Collaborative Community (or ‘Collaborative Innovation Network’)?

  6. Process of Collaboration Collaboration is a multi-party process characterized by • general and specialized competence • intrinsic motivation based on shared interest • values of openness and honesty • trust among the parties… and, most importantly, • a concern for the other party’s interests equal to that of your own. Collaboration is different from, and arguably more demanding than, cooperation.

  7. Organizational Capabilities Teece (Strategic Management Journal, 2007) • Required Overall Capabilities: Sensing Opportunities, Seizing Opportunities, Reconfiguring Capacities • Capabilities Are Composed of Skills, Processes, Procedures, Structures, Decision Rules, and Disciplines • Responsibility of, and Largely Performed by, the Top Management Team Grewal & Slotegraaf (Decision Sciences, 2007) • ‘Capability Embeddedness’ Has an Incremental Effect on Firm Performance Beyond the Effects of Resources and Capabilities

  8. The Configurational Perspective Organizations are goal-directed, boundary- maintaining, activity systems. Their main building blocks are: Management Philosophies Strategies Capabilities Structures Processes

  9. Lessons Learned about Collaborative Communities 1.The multi-firm collaborative community is the newest form of organizing. The research literature is growing, and there are real-life examples. 2.The main design features (strategies, capabilities, structures, processes) are known. Now we need hypothesis-testing research. 3.Collaborative communities can be strong competitors and collaborators simultaneously – true co-opetition.

  10. Concluding Questions Is a multi-firm collaborative community, such as that of Blade.org, a new organizational form? Can you anticipate the next organizational form?

  11. Further Reading Bryan, L.L. & Joyce, C.I. 2007. Mobilizing Minds: Creating Wealth from Talent in the 21st-Century Organization. New York: McGraw-Hill. Chesbrough, H.2003. Open Innovation: The New Imperative for Creating and Profiting from Technology. Boston: Harvard Business School Press. Florida, R. 2002. The Rise of the Creative Class: And How It’s Transforming Work, Leisure, Community and Everyday Life. New York: Basic Books. Helfat, et al. (Eds.). 2007. Dynamic Capabilities: Understanding Strategic Change in Organizations. Oxford, UK: Blackwell. Link, A.N. & Siegel, D.S. Innovation, Entrepreneurship, and Technological Change. Oxford, UK: Oxford University Press. Miles, R.E., Miles, G., & Snow, C.C. 2005. Collaborative Entrepreneurship: How Communities of Networked Firms Use Continuous Innovation to Create Economic Wealth. Stanford, CA: Stanford University Press.

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