Hi there. In our last video, I introduced the subject of open innovation. But how do organizations actually use external knowledge to create new solutions? In this video, I will show some illustrative examples of how open innovations using practice. Let's gets you it. There are some organizations that do not require that introduction. NASA, the American Space Agency is one of them. Known around the world for the impressive accomplishments, NASA is a synonym for innovation competence. To work at NASA, you need to be a very accomplished scientist or engineer. Rocket science is not after all in these subject. But sometimes even NASA struggles of innovation. In 2005, after facing some budget cuts, the Space Agency had to rethink how they approached innovation. The space exploration was in the past and the public was wondering, the continuous investments were actually worth it. As any organization dealing with radical innovation, NASA had long-term, uncertain, and expensive projects to manage. Exciting results, such as landing a man on the moon no matter the occurrence. Facing the situation, and if last money to invest in their projects, some managers decided to leverage NASA's legitimacy as an innovator and claim that opening up page in Situ learned from outsiders, was a very good way to advance space exploration. A formal opening innovation program was started, headed by Jeff Davis, the Director of the Space Life Sciences Directorate at NASA. A department responsible for research on how human beings can live and work in space. They're responsible for some remarkable innovations, such as memory form and scratch resistant lenses. The idea was to use online platforms to enable the general public to work on some technical challenges that the department was facing. They created an incentive system, awarding the best solutions, cash prizes. The results were the parent success. A retired engineer, that never work the nozzle or any other aerospace organization, won one of the challenges. He created a better algorithm to predict solar flares, a problem that had failed to be solved by NASA's own staff. However, not everyone was happy with this approach. Many NASA employees saw the program has insulting. They had studied and worked their whole lives to be where they were, and now some managers are telling them that random people across the world could do their job better than them. It took some time and a lot of meetings, but eventually NASA decided to continue for their opening innovation programs. Today, there are continuous competitions hosted online with winners coming up with different solutions to several problems in different terrors of interest. Just last year, Tubers in your startups won the space apps challenge, developing novel solutions for ocean cleanup and identification of oil spills. What NASA is doing is a type of open innovation. They already have the ideas, the problems that need solving, but the development stage is not closed. They host competitions and challenges, giving out awards and cash prizes to other organizations and individuals that can help them solve the development issues. NASA today has six different open innovation initiatives. They have different types of challenges on price bulls. Some are focused on developing software solutions, such as the space apps programs. Others are aimed at radical innovations to further at space exploration, such as the Centennial Challenges. In 2019, for example, a New York-based design agency called AI Space Factory won the prize after presenting the best designed for 3D printed habitats to be used in other planets. NASA is not alone, however. Many other organizations have embraced open innovation. Procter and Gamble, a conglomerate for a diverse portfolio of products, has a robust, award-winning open innovation program. It is called Connect and Develop. At Procter and Gamble, they realized that a verticalized are indeed is often took costly and choose low. Scientists and engineers end up trying to reinvent the wheel more often than not, creating solutions that already exist in the market. When Procter and Gamble wanted to quickly develop a new lip balm for a rapidly expanding market, they choose not to do it alone. Running the development through the traditional stage-gate process would be too time-consuming. Procter and Gamble needed to enter the market quickly and enjoy its growth. Not wait for us to have their scientists develop a working product. So Procter and Gamble partnered with a company called ARA Labs that already had a working product into segment to speed up the development. The result was a quicker and cheaper innovation process. Both NASA and Procter and Gamble, use open innovation to speed up development. Other organizations use this approach to improve idea creation and the discovery of novel opportunities. Korean conglomerate Samsung is one of the leaders in the smartphone market, with around 20 percent of the market share. Recently, they created a new line of products called Fan Additions. It is an open innovation initiative aimed at gathering feedback from users and implementing them in special releases. Using an open forum goes sense and members, they gather ideas from users, analyze them, and implement them to specific product. For example, their new line of high-end smartphones S21, released the fan edition that has upgraded some components, such as the chipsets, and they upgraded others such as the fingerprint sensor. This is a way to use open innovation for ideation in incremental projects. Instead of figuring out themselves, what people value most about their products, Samsung, here is directed from the consumers and creates an incrementally better product for the user perspective. Open innovations you have seen is about using knowledge that exist outside the organization. There are many ways should do it, and it can be applied to different stages of the innovation process and to different types of innovation, radical projects, and NASA and incremental improvements as Samsung, for example. In the next class, we will take a deep dive into how open innovation is managed and how it can help organizations improve their ideas, accelerate their development, and launch their products. See you there.
