Tech Mining to Drive Open Innovation1

“TechMining”toDriveOpenInnovation1AlanL.PorterDirector,R&D,SearchTechnology,Inc.,andCo-Director,TechnologyPolicy&AssessmentCenter,[e-mail]&GambleandotherorganizationshavestirredexcitementaboutexploitingexternalR&Dforamajorityoftheirnewproductdevelopments.“TechMining”efficientlygenerateseffectivetechnologicalintelligence.Thispaperdrawsthesetwoconceptstogetherinthreeparts,plusadiscussion:•OpenInnovation(“OI”)–innovationderivinginsignificantpartfromexternallygeneratedS&Tknowledge•TechMining–ourversionoftextminingofscienceandtechnology(S&T)informationresourcestoelicitusefulintelligence•ANanotechnologycaseillustrationofhowTechMiningcanfacilitateOI•Discussion–drawingthistogetherWebelievethatTechMining(PorterandCunningham,2005;Cunninghametal.,2006)providesacriticalenablerofOpenInnovation.Toremaincompetitive,enterprisesneedtoreachout–OI.Buttheyalsoneedtheinformationedgetomakebetterandfasterdecisionsconcerningtechnologicalopportunities.OpenInnovationFigure1offersageneralschematicofthe“S-shapedcurve”characteristicofmuchtechnologicalinnovation.Thiscanbeconsidered“linear”inthesequentialphasingdepicted.Inreality,wehavecometorealizethatrarelydoesameaningfulinnovationresultfromastrictlyin-ordersequence.Rather,iterations,offshoots(unintendedapplications),combinations,andsoforthmakeforamorecomplexarena.1Porter,A.L.,“TechMiningtoDriveOpenInnovation,”inLi,J-L,Zhu,D.,Porter,A.L.,andWu,D.D.,ProceedingsoftheFirstInternationalConferenceonTechnologyInnovation,RiskManagementandSupplyChainManagement(TIRMSCM2007,Beijing),UniverseAcademicPress,Toronto,ISBN978-0-9783484-4-1,November,2007,p.1-13.Figure1.TechnologicalInnovation:AnS-curveProgressionTheinterrelationsamongresearch,development,andinnovationareneitherlinear,norstatic.Thepastdecadeorsowitnessedinsightfulrethinkingofwhatisimportant.Changesinthenatureofthemaintechnologiesinvolvedandfreshorganizationalarrangementsdrivethesenewideas.Paramounttoourinterestsarethe“fuzzyfrontend”(c.f.,SmithandReinertsen,1998)–theearly“idea”stagesininnovationthatentailrecognizingresearchknowledgeresourcesandopportunitiestointegratethoseintoviableinnovations.[“IdeaManagement”processesofferwaystoenhancethelikelihoodoffavorableoutcomes--//cims.ncsu.edu/documents/CIMSspr07.pdf.]IntermsofFigure1,thisemphasizestheresearcharena.Atthatearlystageofdevelopment,technologyforecastingisextremelydifficult.Thisplacesapremiumontechnologicalintelligencefeedingintorapidlyadaptiveinnovationdecisionsystems.Technologicaladvancesmustintegrateintocomplexcontexts.Internalandexternalfactorscount(Hobday,2005).Theseinvolve:•Infrastructure[Howcouldautomobile-centricsocietiestransitionfromgasolinetohydrogenfuels?]•Sunkinvestments[Whyaresemiconductorsalmostallsilicon-based?Considerthehugecapitalinvestmentsandlearningthatmakeshiftingfromsilicon-basedtechnologysodifficult.]•Particularinterests[Keyplayers’stakesinoneoptionmaycausethemtoopposealternatives.]•Headstarts[Sometimestheearlyoptionholdsswayoverthebettertechnology–e.g.,VHSvs.Betavideotapes.]Acombinationoftechnologicalandcontextualforcesdrivesinnovation.Thelatterincludemultiplefactors:•Businessconsiderations(e.g.,leadership,management,availabilityofcapital,technicalknow-how,essentialresources)•Competitors(e.g.,theirstrengthsandweaknesses,alsopotentialcollaborators)•Market(e.g.,currentsizeandcharacteristics,trends,globalmarkets,potentialnewmarkets)•Customers(e.g.,currentpreferences,recognizedandunrecognizedneeds)•Regulatory(andotherinfluences–e.g.,governmentalsupport,popularopposition,standards)“TechnologyDeliverySystem”(TDS)modelingofinnovationprocesseshasprovenfruitfulinidentifyingcriticalassets,barriers,andkeyleveragepointsforaninnovationtosucceed(c.f.,WenkandKuehn,1977;Porteretal.,1991).Figure2illustratesageneralTDSframeworkthatdirectsattentionto:•Enterpriseresources–thestagesalongthehorizontalaxisbywhichaninvention(fromR&D)canbetranslatedintoaninnovation.•Externalforces–thefactorsthatimpingeonsuccessofthatwould-beinnovation.Figure2.TheTechnologyDeliverySystem(“TDS”)TechnologyPushMarketPullR&D-Internal-ExternalEnterpriseAVision+Mgt+OrganizationTechCapitalMarketingSalesKnowledgeKnowledgeCapabilitiesEnterpriseBComplementaryCapabilitiesTechIndustryMarketInternationalKnowledgeContactsKnowledgeNetworksEnterpriseCComplementaryCapabilitiesTechIndustryMarketInternationalKnowledgeContactsKnowledgeNetworksInnovativeProducts&/orServicesTechnologicalInfrastructure-Interdependencies-RoadmapContextualFactors&Forces-Standards-Regulations-Competition-GovernmentalInterestsUSERS(&Buyers)-Resources-BehaviorsTechnologyDeliverySystemAlanPorter,SearchTechnology,2006Drawingananalogytogeographicalmapping,toknowwhereoneisgoing,Isuggestwewanttomaptherouteforaparticularinnovationtohelpdecidehowourorganizationmightattainsuccess.Thefirstorderofbusinessistoidentifythestakeholdersandthenecessaryresources.WehavefoundthatabrainstormingsessiontodrawtheTDSfortheinnovationinquestioncanbeenormouslyinformative.Onecangofurthertocounterposevariou