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How to succeed in Open Innovation? Follow the 5 Rs Model

During the CIOs Roundtable of the Scaleup Summit we organized this month in Madrid together with IE University, we sat with Diego Díaz Pilas (Global Head of Ventures & Technology, Iberdrola), Sandra Blázquez (Head of Open Innovation, Repsol),  Giorgio Veronesi (Executive Director ICT – Innovation & Digital Technologies, SNAM)
Irene Gomez (CEO Wayra & Open Innovation Director, Telefónica),  Telmo Pérez Luaces (Chief Innovation & New Business, ACCIONA) and Rafael Fernández (Innovation Director, Ferrovial) to discuss the pain points in running Open Innovation inside large corporations  over the years. 
 
Together with Professor Ricardo Perez we extracted the 5 Rules an Open Innovation Manager needs to follow to navigate the change both of internal (read reorg) and external conditions (recession): 

- Relevance (internal and external): you need to communicate the value you provide, both outside and inside the company

- Rejection: you need to navigate through rejections and find alternative ways to get things done

- Resilience: you need to survive reorgs, adverse market conditions, ...

- Returns: you need to show results. Start with quick wins.

- Repeatability: you need to produce results at scale 

Ricardo Perez and Alberto Onetti  went through the 5 Rs Framework during this Mind the Chat. Enjoy.
How to succeed in Open Innovation? Follow the 5 Rs Model

How to succeed in Open Innovation? Follow the 5 Rs Model

During the CIOs Roundtable of the Scaleup Summit we organized this month in Madrid together with IE University, we sat with Diego Díaz Pilas (Global Head of Ventures & Technology, Iberdrola), Sandra Blázquez (Head of Open Innovation, Repsol), Giorgio Veronesi (Executive Director ICT – Innovation & Digital Technologies, SNAM)
Irene Gomez (CEO Wayra & Open Innovation Director, Telefónica), Telmo Pérez Luaces (Chief Innovation & New Business, ACCIONA) and Rafael Fernández (Innovation Director, Ferrovial) to discuss the pain points in running Open Innovation inside large corporations over the years.

Together with Professor Ricardo Perez we extracted the 5 Rules an Open Innovation Manager needs to follow to navigate the change both of internal (read reorg) and external conditions (recession):

- Relevance (internal and external): you need to communicate the value you provide, both outside and inside the company

- Rejection: you need to navigate through rejections and find alternative ways to get things done

- Resilience: you need to survive reorgs, adverse market conditions, ...

- Returns: you need to show results. Start with quick wins.

- Repeatability: you need to produce results at scale

Ricardo Perez and Alberto Onetti went through the 5 Rs Framework during this Mind the Chat. Enjoy.

YouTube Video UExlMFk2bWNXRkFoTVJYZnJxN0tsOUQ1WFdYY0J0TDNnZS5DNTU3ODQ4ODAzMjFERTI1
CampX was launched back in 2020. Labelled as Accelerator, it is actually a Venture Client platform, or, as  Niklasson Helene, VP Innovation Ecosystems & Partnership and Head of CampX calls it, a “testing tool” or “validation machine” for onboarding solutions from startups. Selected startups in very focused areas enter into a POV (Proof of Value). If it is successful, solutions are integrated in technology platforms or services and scaled internally. Since the launch, 80 projects have been validated and about 10-15% of them are currently in the integration phase. The internal target is to run about 50 ongoing projects across the 4 locations (Gothenburg, Lyon, Greensboro, and Bangalore) where Volvo Group has its R&D sites (CampX is under the CTO office). 
In 2022 a Venture Builder was added, and in 2023 an Incubator. Both are deployed only at the Gothenburg R&D facility, but if they prove successful, the CampX team is hoping to roll it out to other sites.

The Venture Builder, led by Karin Falck, is the landing point for internal ideas and IP that are vetted through subsequent iterations. Thus far 4 projects have been developed, 2 deployed internally and 2 span- out.
The Incubator programme - led by Robert Jan van Vug - gives some 30 startups access to the company’s testing labs, workshops and prototyping space for two years. It’s focused on seed/early stage startups that would otherwise be years away from being mature enough for a joint project with Volvo Group.
Inside the CampX model

CampX was launched back in 2020. Labelled as Accelerator, it is actually a Venture Client platform, or, as Niklasson Helene, VP Innovation Ecosystems & Partnership and Head of CampX calls it, a “testing tool” or “validation machine” for onboarding solutions from startups. Selected startups in very focused areas enter into a POV (Proof of Value). If it is successful, solutions are integrated in technology platforms or services and scaled internally. Since the launch, 80 projects have been validated and about 10-15% of them are currently in the integration phase. The internal target is to run about 50 ongoing projects across the 4 locations (Gothenburg, Lyon, Greensboro, and Bangalore) where Volvo Group has its R&D sites (CampX is under the CTO office).
In 2022 a Venture Builder was added, and in 2023 an Incubator. Both are deployed only at the Gothenburg R&D facility, but if they prove successful, the CampX team is hoping to roll it out to other sites.

The Venture Builder, led by Karin Falck, is the landing point for internal ideas and IP that are vetted through subsequent iterations. Thus far 4 projects have been developed, 2 deployed internally and 2 span- out.
The Incubator programme - led by Robert Jan van Vug - gives some 30 startups access to the company’s testing labs, workshops and prototyping space for two years. It’s focused on seed/early stage startups that would otherwise be years away from being mature enough for a joint project with Volvo Group.

YouTube Video UExlMFk2bWNXRkFoTVJYZnJxN0tsOUQ1WFdYY0J0TDNnZS40Q0JERDMxNzcwNTk1M0Y0
How to spun out a 200 million business

As the CEO of the System Business Group at BOE, the world’s largest display manufacturer, George Yao led a team in the research and development of the iGallery: a groundbreaking product composed of a digital art display terminal and a content platform.
To facilitate the advancement of this business, a subsidiary under the BOE Group - initially named BOE Art Cloud - was established.
After three years of exploration, it became evident that this innovative business required substantial divergence from BOE’s existing operations in terms of technology, product development, business models, and company operations. Furthermore, they recognized the necessity of integrating additional resources from external partners.
To foster the continued growth of this venture and give  its team greater independence and freedom to pursue innovation, and following in-depth discussions with Mr. Chen Yanshun, Chairman of BOE, at the end of 2019 the company was spun out (and rebranded as BOE EWIN).
In 2020, BOE EWIN successfully attracted strategic investments from multiple external investors, resulting in BOE relinquishing its controlling stake in the company.
Since then, BOE EWIN has experienced rapid growth in the creative and health display sectors by combining culture and technology. Eye-friendly displays are a must considering that almost 50% of Chinese students suffer of myopia.
Digital museums and culture shows are a huge area of development (metaverse like applications).
For BOE group the ultimate goal is to support ecosystem companies able to develop applications for displays.   
This and more in this Mind the Chat with George Yao, Founder and CEO of BOE EWIN.
How to spun out a 200 million business

How to spun out a 200 million business

As the CEO of the System Business Group at BOE, the world’s largest display manufacturer, George Yao led a team in the research and development of the iGallery: a groundbreaking product composed of a digital art display terminal and a content platform.
To facilitate the advancement of this business, a subsidiary under the BOE Group - initially named BOE Art Cloud - was established.
After three years of exploration, it became evident that this innovative business required substantial divergence from BOE’s existing operations in terms of technology, product development, business models, and company operations. Furthermore, they recognized the necessity of integrating additional resources from external partners.
To foster the continued growth of this venture and give its team greater independence and freedom to pursue innovation, and following in-depth discussions with Mr. Chen Yanshun, Chairman of BOE, at the end of 2019 the company was spun out (and rebranded as BOE EWIN).
In 2020, BOE EWIN successfully attracted strategic investments from multiple external investors, resulting in BOE relinquishing its controlling stake in the company.
Since then, BOE EWIN has experienced rapid growth in the creative and health display sectors by combining culture and technology. Eye-friendly displays are a must considering that almost 50% of Chinese students suffer of myopia.
Digital museums and culture shows are a huge area of development (metaverse like applications).
For BOE group the ultimate goal is to support ecosystem companies able to develop applications for displays.
This and more in this Mind the Chat with George Yao, Founder and CEO of BOE EWIN.

YouTube Video UExlMFk2bWNXRkFoTVJYZnJxN0tsOUQ1WFdYY0J0TDNnZS42NjBGMkRFNDcwMjM2NzYx
Launched in 2017, Cemex Ventures, the corporate venture capital and open innovation arm of Cemex, the Mexican multinational building materials  giant. Below the 5 highlights of the Mind the Chat with Gonzalo Galindo, Head of Cemex Ventures. 

1. “What is the value of CVC? Our investment in Synhelion is a good case. They were using solar heat for producing synthetic fuel. We saw other aspects of their technology that might be relevant for us. Specifically the opportunity to use it for producing cement. Working with them we figured out other aspects of the cement production process. Not just us at Cemex Ventures. We involved a lot of people inside Cemex and helped them open their eyes. And now we do things differently. Until you don’t see different ways of doing things, you continue to do things as you always have done. And doing so you will never change.”

2. “We invest off-balance sheet. It doesn't make any sense to encapsulate our open innovation activities within a certain capital allocation. We decided to go case by case also because we address different issues and dynamics that have different capital needs.”

3. “We very rarely give a check for the sake of investing in the company. With the check we hand a collaboration agreement. We invest more than the 10-15M we deploy every year. We add R&D and engineering capabilities and work alongside the portfolio companies for 3 to 7 years.” 

4. “Innovation in itself is irrelevant, if its purpose is not clear. It took years to understand and define what type of innovation arm we are”

5. “Innovation is not cheap. You need to partner, partner, partner.”
How to merge CVC and Venture Client: 5 Golden Rules

Launched in 2017, Cemex Ventures, the corporate venture capital and open innovation arm of Cemex, the Mexican multinational building materials giant. Below the 5 highlights of the Mind the Chat with Gonzalo Galindo, Head of Cemex Ventures.

1. “What is the value of CVC? Our investment in Synhelion is a good case. They were using solar heat for producing synthetic fuel. We saw other aspects of their technology that might be relevant for us. Specifically the opportunity to use it for producing cement. Working with them we figured out other aspects of the cement production process. Not just us at Cemex Ventures. We involved a lot of people inside Cemex and helped them open their eyes. And now we do things differently. Until you don’t see different ways of doing things, you continue to do things as you always have done. And doing so you will never change.”

2. “We invest off-balance sheet. It doesn't make any sense to encapsulate our open innovation activities within a certain capital allocation. We decided to go case by case also because we address different issues and dynamics that have different capital needs.”

3. “We very rarely give a check for the sake of investing in the company. With the check we hand a collaboration agreement. We invest more than the 10-15M we deploy every year. We add R&D and engineering capabilities and work alongside the portfolio companies for 3 to 7 years.”

4. “Innovation in itself is irrelevant, if its purpose is not clear. It took years to understand and define what type of innovation arm we are”

5. “Innovation is not cheap. You need to partner, partner, partner.”

YouTube Video UExlMFk2bWNXRkFoTVJYZnJxN0tsOUQ1WFdYY0J0TDNnZS5BNTRGQTE1QjY2NUE5NTAz
Volkswagen: a CVC without the C

Last October Volkswagen AG launched its first venture capital fund, to initially invest 300 million euros with a focus on decarbonization. Other funds might follow.

The fund is structured as a conventional VC and is totally independent. Volkswagen is currently the only LP (beyond the GPs) but the plan is to open it to external investors.  

The decision  to launch a VC more than a CVC aimed at reducing the organisational “inertia” and getting access to the most interesting startups. It has been a long journey (over 2 years) to convince the board, get the approval by the Antitrust, and internal governance (particularly rules for consolidation of results).

They target late stage companies (the sweet spot is series C). Why? We are not so experienced to work with early stage/high risk startups and prefer to work with companies with meaningful business size. 

“We are still taking advantage of the C”. Volkswagen Group Innovation plays as an interface between the funds and the business units. The goal is to provide the fund with technical expertise, gather the needs from business and support the onboarding of the portfolio companies (the KPI is 20-30% of the portfolio).

This and more (including the outcomes of the first year of Venture Client activities) in the Mind the Chat with Nikolai Ardey, Executive Director Volkswagen Group Innovation.
Volkswagen: a CVC without the C

Volkswagen: a CVC without the C

Last October Volkswagen AG launched its first venture capital fund, to initially invest 300 million euros with a focus on decarbonization. Other funds might follow.

The fund is structured as a conventional VC and is totally independent. Volkswagen is currently the only LP (beyond the GPs) but the plan is to open it to external investors.

The decision to launch a VC more than a CVC aimed at reducing the organisational “inertia” and getting access to the most interesting startups. It has been a long journey (over 2 years) to convince the board, get the approval by the Antitrust, and internal governance (particularly rules for consolidation of results).

They target late stage companies (the sweet spot is series C). Why? We are not so experienced to work with early stage/high risk startups and prefer to work with companies with meaningful business size.

“We are still taking advantage of the C”. Volkswagen Group Innovation plays as an interface between the funds and the business units. The goal is to provide the fund with technical expertise, gather the needs from business and support the onboarding of the portfolio companies (the KPI is 20-30% of the portfolio).

This and more (including the outcomes of the first year of Venture Client activities) in the Mind the Chat with Nikolai Ardey, Executive Director Volkswagen Group Innovation.

YouTube Video UExlMFk2bWNXRkFoTVJYZnJxN0tsOUQ1WFdYY0J0TDNnZS4zMkY2MjA3RDJERTkxNjkz