Contents

Foreword by Christopher Meyer

Acknowledgments

About the Authors

Preface

Chapter 1. Introduction

Placing Bets

Managing the Innovation Process

Balancing a Portfolio

False Positives Versus False Negatives

Rationalizing Innovation Failure

Portfolio Management and Open Innovation

Meta-Innovation

Prize Philanthropy

Problem Solving Versus Question Asking

Part I. Challenge Driven Innovation: How a Marketplace of Innovation Allows Us to Reframe the Innovation Model, Improve Performance, and Manage Risk

Chapter 2. The Future of Value Creation

Overview

Transaction Costs and Vertical Integration

Vertical Disintegration

Globalization and Competition

Lead Users

Open Source Software

Problem Solving in Chat Rooms

Not by Bread Alone: Diverse Utilities

Count What Counts

All of a Sudden

Case Study: How Orchestration Creates Value for Li and Fung

Chapter 3. A New Innovation Framework

Overview

Open Innovation’s Unique Potential

A Rational Compromise

Exploring Problem-Solving Diversity

Risk Sharing

Innovation Marketplaces

Historical Stage-Gate Processes

Seven Stages of Challenge Driven Innovation

The Future of Work and the Workplace

Innovation Tasks: Internal and External

Not-for-Profit Organizations

Open Medicines Development: Early Steps

Case Study: How NASA Expanded Its Innovation Framework to Find New Solutions to Old Problems

Chapter 4. The Long Tail of Expertise

Overview

Defining and Hiring Experts

The Untapped Potential

Tackling the Long Tail

Diversity, Marginality, and Serendipity

The Tear Gas Connection

Eureka! The Right Question at the Right Time

Case Study: How the Oil Spill Recovery Institute Tapped the Crowd to Be Better Prepared for Arctic Spills

Chapter 5. The Selection of Appropriate Innovation Channels

Overview

A Channel Decision-Making Tool

Innovation Channels

Terms Used in Defining Archetypess

Project Module Archetypes

The Challenge Driven Enterprise

Case Study: How Eli Lilly and Company Is Changing from a Closed Company to an Open Network to Provide Medicines for the Twenty-First Century

Part II. The Challenge Driven Enterprise: Virtualizing the Business Model to Drive Innovation, Agility, and Value Creation

Chapter 6. The Challenge Driven Enterprise

Overview

What Is a Challenge?

Hallmarks of the Challenge Driven Enterprise

The Real Challenge

Case Study: How Procter & Gamble Is Innovating Through Connect + Develop

Chapter 7. Transformation

Overview

Organizational Forms and the Emergence of a New Paradigm

The Challenge Driven Enterprise as Business Strategy

Remaking a Culture

Talent Management 2.0

The Changing Nature of Work

The Role of Senior Leadership Is to Lead

The CEO Conundrum

Make This Your Mission

Case Study: Virtual Software Development: How TopCoder Is Rewriting the Code

Chapter 8. The Challenge Driven Enterprise Playbook

Overview

The Playbook

I. Board of Directors and C-Level Commitment

II. Promote Early Trial and Adoption

III. Virtualize the Business Strategy

IV. Establish the CEO Mandate

V. Create and Empower the CDE Task Force

VI. Align and “Ready” the Organization

VII. Select Enablers and Enroll Partners

Timelines and the Institutionalization of the CDE

Use the Playbook, Adapt as Needed, and Play to Win

Case Study: How the Prize4Life Foundation Is Crowdsourcing ALS Research

Chapter 9. Leadership

Overview

Key Points of the Book

Darwin, Adaptation, and the New Normal

Joseph Campbell and The Hero’s Journey

The CEOs Journey: Five Essential Waypoints

The CEO as the Hero

A Marathon, Not a Sprint

The CDE, Innovation, and Competing in the Twenty-First Century

This Will Be Your Legacy

Case Study: How President Obama’s Open Government Initiative Is Reinventing Government and Changing Culture

Afterword

Endnotes

Supplemental Reading

Index