Name: How open innovation can bring ideas to life
Uploaded: 2023-10-25T11:23:28.466Z
Duration: 410.64

Unleashing collective intelligence through open innovation v4.mp4

Unleashing collective intelligence through open innovation v4.vtt

English

{{00:00:00}}
There's a beauty of collaboration.

{{00:00:01}}
Open innovation is you
learn with small mistakes.

{{00:00:04}}
It's not a huge mistake
that we can't recover.

{{00:00:06}}
So in this case, we just understood
we got to be more clear and we

{{00:00:09}}
have to pick the right partners.

{{00:00:11}}
And if we don't, that's fine we will lose
every once in a while and that's okay.

{{00:00:23}}
Open innovation is a term I
don't think it's misused quite

{{00:00:27}}
a bit, but it's a term where I.

{{00:00:30}}
It's truly about finding what's the right
fit for you as a company and looking both

{{00:00:35}}
internally or externally and organically
or inorganically and trying to get to

{{00:00:39}}
the right solution for your end customer.

{{00:00:42}}
We typically, as companies and people,
try to do things ourselves, and that's

{{00:00:47}}
not always the right or the best thing
to do, so we need to understand what

{{00:00:51}}
are our strengths and weaknesses.

{{00:00:53}}
And figure out where we want to
double down on our strengths and how

{{00:00:56}}
we want to address those weaknesses.

{{00:00:58}}
If you want to address them,
then go find the right partner.

{{00:01:01}}
Sometimes it's the best option or go find
a right team or a company and apply them.

{{00:01:07}}
It could be either or, or
actually go and do it yourselves.

{{00:01:10}}
So anything is an open
innovation for me as a person.

{{00:01:18}}
I believe in this 4C principle
or 3C plus 1C principle.

{{00:01:21}}
Clarity, conviction, commitment
are the first three C's.

{{00:01:25}}
You need to be clear as a team, as
a company,  why you're going after

{{00:01:29}}
this and what you really want.

{{00:01:31}}
Because once I understand what the
problem is, what I'm trying to solve,

{{00:01:34}}
then comes the time for conviction.

{{00:01:36}}
This is exactly where it's either
internal, external, or a mix of partners.

{{00:01:41}}
And everything we have done, and a lot
of things that we do as a team, even

{{00:01:44}}
within Cummins, our specific division,
we are not doing everything internally.

{{00:01:49}}
We look for partners.

{{00:01:50}}
For example, we have our competition,
in many cases, our partners.

{{00:01:54}}
We have small consultants as our partners
who help us to build that conviction

{{00:01:58}}
in the market for the conviction for
our own vision, our own strategy.

{{00:02:02}}
Once we are clear there, thus comes
the third part, which is commitment.

{{00:02:06}}
Without commitment, it makes no sense
because whatever we did as ourselves

{{00:02:11}}
or with partners falls apart if we
can't commit to it and go after it.

{{00:02:15}}
That's the three C's.

{{00:02:16}}
The fourth C is an interesting addition
to my philosophy lately, has been courage.

{{00:02:21}}
It makes no sense to have all
these things and don't have courage

{{00:02:24}}
because you will fail every single
time when we try something out.

{{00:02:28}}
We have had great partner examples
where we actually did great in terms

{{00:02:32}}
of understanding the right strategy
for our markets, going and executing

{{00:02:35}}
something as well, trying the hypothesis
in the market, coming with an MVP.

{{00:02:38}}
But there were partners as well
where we  partnered, spent money.

{{00:02:43}}
But necessarily didn't get anything
output from that so you're gonna fail,

{{00:02:47}}
but that's okay Have the courage to
go fight that battle again and again

{{00:02:50}}
till you decide not to fight it anymore

{{00:02:57}}
Conviction is the main part every single
part is for example one of the one of

{{00:03:02}}
the consultant that we had partnered with
was pre scouted to help us understand

{{00:03:05}}
how hydrogen fuel cells can help us
as a company and where do they fit?

{{00:03:10}}
It was important because we as a
company understand a lot about it.

{{00:03:14}}
We have really good focus.

{{00:03:16}}
As I had mentioned we have a complete
separate team, Accelera by Cummins.

{{00:03:20}}
Now that's focused on it and it's
completely out of our environment and

{{00:03:23}}
culture, but we on the stationary side
of the business, we have same customers

{{00:03:28}}
asking for similar solutions, but we
don't have all the expertise in house.

{{00:03:32}}
So the company prescouter came in and
the role was to help us achieve how.

{{00:03:37}}
The market is evolving, not just from
a strategy side of it, but also from

{{00:03:41}}
competitive landscape, understanding
what our competition is doing, how the

{{00:03:45}}
industry is perceiving it, what are
the products specifically like specific

{{00:03:49}}
details about the product that yes, we
could go and do it internally as well.

{{00:03:52}}
But having that outside
loop was important.

{{00:03:55}}
Also talking to industry subject matter
experts and getting their perspective

{{00:03:59}}
from an unbiased opinion, unbiased view.

{{00:04:03}}
Bringing all that together, but
going back to the first C of clarity,

{{00:04:07}}
we took that and putting it into
a clarity equation was important.

{{00:04:11}}
So now the whole story made sense for us
as a company and us to go and participate

{{00:04:16}}
in next three to five years plan as well.

{{00:04:24}}
This was a great, this was a good example.

{{00:04:26}}
I just gave, right?

{{00:04:27}}
There  in one other example we partnered
with another company to help us go

{{00:04:31}}
understand how do we as a company
participate in revenue generation through

{{00:04:39}}
assets within the energy industry market,
I don't want to go into the jargons, but

{{00:04:44}}
in this case, the company was trying to
figure out what is the right solution.

{{00:04:48}}
Do we have the right
products as a company?

{{00:04:50}}
And if not what do we need to
get better with this equation?

{{00:04:54}}
The company, instead of going and
talking to so many outside customers

{{00:04:58}}
and subject matter experts, kept
on interviewing us as a company.

{{00:05:02}}
It was not just their fault.

{{00:05:04}}
It's not pointing fingers.

{{00:05:05}}
We were also not clear internally of what
is the problem we are trying to solve.

{{00:05:11}}
When we were not clear with our first C,
it's very hard for us to go build that

{{00:05:15}}
conviction with these external partners.

{{00:05:17}}
So lessons learned, right?

{{00:05:18}}
That's the best part.

{{00:05:19}}
There's a beauty of collaboration.

{{00:05:21}}
Open innovation is you
learn with small mistakes.

{{00:05:24}}
It's not a huge mistake
that we can't recover.

{{00:05:26}}
So in this case, we just understood
we got to be more clear and we

{{00:05:29}}
have to pick the right partners.

{{00:05:31}}
And if we don't, that's fine.

{{00:05:32}}
We will lose every once in a while.

{{00:05:34}}
And that's okay.

{{00:05:40}}
I like to see it with an X and
Y axis as an engineering firm

{{00:05:45}}
talking in general, right?

{{00:05:46}}
Y axis is value to customers and X
axis is our ability to go deliver

{{00:05:51}}
something in the market as a company.

{{00:05:53}}
And anytime.

{{00:05:54}}
In that X and Y axis, if the solution
or the need or the customer problem

{{00:05:59}}
fits towards the right end corner,
that basically means it's high

{{00:06:02}}
value to the customer and we have
a high ability to do it ourselves.

{{00:06:06}}
But anything that falls on the top
row, but on the lower side of the

{{00:06:10}}
X axis where the value to the end
customer is high and our ability to

{{00:06:15}}
deliver as a company is probably lower.

{{00:06:18}}
Then the question comes, do we want
to go really invest time, money,

{{00:06:23}}
resources, and our effort in doing it
ourselves, or do we want to go and find

{{00:06:28}}
the right partner to enter the market?

{{00:06:30}}
Once we have the clarity to say,
yes, we want to enter the market.

{{00:06:33}}
And that's how we typically
choose the right partners.

{{00:06:36}}
And based on that problem, we
switch between either finding a

{{00:06:40}}
really strong partner or finding
niche partners to enter the market.

Open innovation is you
learn with small mistakes.

It's not a huge mistake
that we can't recover.

So in this case, we just understood
we got to be more clear and we

And if we don't, that's fine we will lose
every once in a while and that's okay.

Open innovation is a term I
don't think it's misused quite

It's truly about finding what's the right
fit for you as a company and looking both

internally or externally and organically
or inorganically and trying to get to

the right solution for your end customer.

We typically, as companies and people,
try to do things ourselves, and that's

not always the right or the best thing
to do, so we need to understand what

And figure out where we want to
double down on our strengths and how

If you want to address them,
then go find the right partner.

Sometimes it's the best option or go find
a right team or a company and apply them.

It could be either or, or
actually go and do it yourselves.

So anything is an open
innovation for me as a person.

I believe in this 4C principle
or 3C plus 1C principle.

Clarity, conviction, commitment
are the first three C's.

You need to be clear as a team, as
a company,  why you're going after

Because once I understand what the
problem is, what I'm trying to solve,

This is exactly where it's either
internal, external, or a mix of partners.

And everything we have done, and a lot
of things that we do as a team, even

within Cummins, our specific division,
we are not doing everything internally.

For example, we have our competition,
in many cases, our partners.

We have small consultants as our partners
who help us to build that conviction

in the market for the conviction for
our own vision, our own strategy.

Once we are clear there, thus comes
the third part, which is commitment.

Without commitment, it makes no sense
because whatever we did as ourselves

or with partners falls apart if we
can't commit to it and go after it.

The fourth C is an interesting addition
to my philosophy lately, has been courage.

It makes no sense to have all
these things and don't have courage

because you will fail every single
time when we try something out.

We have had great partner examples
where we actually did great in terms

of understanding the right strategy
for our markets, going and executing

something as well, trying the hypothesis
in the market, coming with an MVP.

But there were partners as well
where we  partnered, spent money.

But necessarily didn't get anything
output from that so you're gonna fail,

but that's okay Have the courage to
go fight that battle again and again

Conviction is the main part every single
part is for example one of the one of

the consultant that we had partnered with
was pre scouted to help us understand

how hydrogen fuel cells can help us
as a company and where do they fit?

It was important because we as a
company understand a lot about it.

As I had mentioned we have a complete
separate team, Accelera by Cummins.

Now that's focused on it and it's
completely out of our environment and

culture, but we on the stationary side
of the business, we have same customers

asking for similar solutions, but we
don't have all the expertise in house.

So the company prescouter came in and
the role was to help us achieve how.

The market is evolving, not just from
a strategy side of it, but also from

competitive landscape, understanding
what our competition is doing, how the

industry is perceiving it, what are
the products specifically like specific

details about the product that yes, we
could go and do it internally as well.

But having that outside
loop was important.

Also talking to industry subject matter
experts and getting their perspective

Bringing all that together, but
going back to the first C of clarity,

we took that and putting it into
a clarity equation was important.

So now the whole story made sense for us
as a company and us to go and participate

in next three to five years plan as well.

This was a great, this was a good example.

There  in one other example we partnered
with another company to help us go

understand how do we as a company
participate in revenue generation through

assets within the energy industry market,
I don't want to go into the jargons, but

in this case, the company was trying to
figure out what is the right solution.

Do we have the right
products as a company?

And if not what do we need to
get better with this equation?

The company, instead of going and
talking to so many outside customers

and subject matter experts, kept
on interviewing us as a company.

We were also not clear internally of what
is the problem we are trying to solve.

When we were not clear with our first C,
it's very hard for us to go build that

I like to see it with an X and
Y axis as an engineering firm

Y axis is value to customers and X
axis is our ability to go deliver

In that X and Y axis, if the solution
or the need or the customer problem

fits towards the right end corner,
that basically means it's high

Best Practice

In today's rapidly evolving business landscape, organisations are recognising the need to de-risk their innovation efforts. One powerful approach is through cross-industry open innovation. By looking outside their own industry and collaborating with external partners, organisations are able to gain access to fresh perspectives, diverse expertise, and novel ideas that can drive breakthrough innovations while minimising risks. 

Ishan Jaithwa, Innovation Manager, New Growth Areas at Cummins discusses the value of open innovation and collaboration both within a business and externally.

Collaboration

Insights Innovation

Strategy

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Ishan Jaithwa

Energy Leader

Jaithwa explains the 4C principles and applies them to business situations.

Framework of innovation

A case study gives insight to how external help allowed for a new outlook of the market from both a strategic and competitive point of view.

A collaborative success

Jaithwa shares his experience on where the 4c's allowed him to realise that a collaboration wasn't a good fit.