I've been highlighting recently how open innovation and venture capital are (and need to be) on a path of convergence. Here's another twist on the trend from Pepsi. The Pepsico10 Challenge is a partnership between Pepsi, Highland Capital Partners and Mashable. Its aim is is to identify, select and incubate 10 promising technology startups by connecting then directly with Pepsi brand teams for pilot projects.
It's a great example of corporate open innovation moving beyond the basic blocking and tackling of technology search and embracing OI across multiple functions (marketing in this case) and a focus on relationships (by directly mentoring/coaching) and not just 'transactions'.
Philips Open Labsis another, more well known, example of this corporate/innovator collaboration happening via an incubator model. Look for more of it. If you're a corporate innovation leader, think about simple ways that you can structure events and interactions to collaborate face to face with innovators whom matter to your categories.
I emphatically agree with the OI premise. There is phenomenal upside to the corporate sponsor / mentor and little, if any, downside. In addition to enjoying a first mover advantage with respect to a potentially ground breaking innovation – worthy in and of itself – the corporation also has an opportunity to assess their own cultural conventions. An OI initiative such as Pepsi’s provides Pepsi a chance to immerse itself in the “disruptive” atmosphere of the innovator. Given that experience Pepsi may elect to embrace one or more of the innovator’s disruptive operating conventions.
Posted by: Donald Blust | August 18, 2010 at 01:34 PM