Unlock Growth with the Layered Collaboration Model: A Strategic Approach to Innovation
Unlocking Business Growth with the Layered Collaboration Model
Last week, I had the privilege of presenting one of my past industry cases at the Berkeley Open Innovation Seminar Series. It was a rewarding experience to share the framework I designed for strategic technology and knowledge acquisition through collaboration during my time as CTO at Televic. My presentation shed light on two pivotal aspects of our innovation strategy: first, a layered collaboration model that served as a guide to choosing the right type of collaboration; and second, a real-world example of how turning a seemingly negative feasibility study into an unexpected business success provided valuable insights. This article will focus on the layered model, while I’ll save the false negative feasibility case for a future article.
Preparing for this presentation was both exciting and slightly unsettling. I was a little nervous about presenting in the series, especially knowing that the audience included not just practitioners, but also many academics in the field of open innovation — people known for asking very insightful questions. And of course, there was the added pressure of having Henry Chesbrough, the godfather of the term "open innovation," in attendance. Interestingly, the case I presented predated the publication of Henry’s book Open Innovation, but it was fully in line with the principles discussed in his work.
Thankfully, the presentation went well, and I received many interesting questions from the audience that pushed me to think even deeper about my approach. I also got what might be the funniest feedback of my career — apparently, my slides were too abstract! I usually opt for image-only slides to keep the audience focused on my message instead of reading text on the screen, but it seems I might have taken it a step too far for this seminar. Perhaps I need to bring back some words on my slides for future presentations!
Origin of the Layered Collaboration Model
So, how did this model come about? The key insight was that there are multiple ways to structure innovation projects. If you take a look at the various grant schemes and calls for funding — whether regional or EU-level — you’ll notice a wide variety of options. However, many organizations tend to get comfortable with one model, limiting their scope. This is one of the seven key mistakes in innovation projects.
The challenge I faced at Televic was categorizing these collaboration opportunities in a way that was versatile enough to work across different business lines. Televic operates in four distinct markets: conferencing equipment, nurse call systems, communication solutions for railways, and educational technology for interpreter training. While these markets differ, they all share one critical element — reliable communication. I needed a model that would facilitate growth across these varied sectors.
Structuring Innovation: Time Horizons and Partner Involvement
The model I developed is based on two axes: time horizon and the degree of involvement between the company and its partners. On the time horizon axis, projects can range from close-to-market to long-term exploratory initiatives. The second axis — the division of work between the company and its partners — is often more complex for people to grasp. But let me explain.
Every innovation project should pass a strategic filter before it’s evaluated on the time horizon axis. Is it short-term, likely to yield results soon? Or is it a longer-term effort with more uncertainty? Keep in mind that the definitions of “short” and “long term” can vary significantly depending on the industry. In drug development, for example, long-term could mean a decade, while for other sectors, it might mean just a few months.
Image from book Win-Winnovation, p. 79.
Co-Investing for Strategic Growth
When the innovation is close to market, you want more control over the project, which means doing the majority of the work internally or with trusted subcontractors. This allows you to safeguard intellectual property (IP), minimize risks, and protect the innovation through NDAs and full acquisition of IPR. This type of investment ensures that you unlock the business potential with full control.
On the flip side, with long-term, uncertain projects, the business case is often less clear. In such cases, it doesn’t make sense to invest all of your company’s resources upfront. Instead, a better strategy might be to engage partners to do the majority of the exploration work. This reduces financial risk, but you also give up some control over the project, and exclusive rights to the results may not always be guaranteed.
In reality, many projects fall somewhere in the middle of these two extremes, where co-investment becomes key. Co-investing in innovation with partners can complicate matters in terms of ownership and results, but it can also produce a much larger outcome than if you were to do it alone. Using a Win-Winnovation approach, for example, allows partners to co-create value that surpasses what either could have been achieved independently.
Leveraging Student Engagement for Innovation Success
Interestingly, the model has one more layer that many companies overlook — engaging students in innovation. This type of collaboration is often seen as less strategic, but it holds tremendous potential for exploratory projects. Students are in learning mode, eager to explore new technologies and ideas. By involving them in disruptive or risky concepts, you can gain valuable insights without the pressure of having to produce a market-ready solution. These projects are ideal for testing early-stage ideas without impacting your day-to-day operations. An added bonus is that some of these students get to know your company well during their projects, and they often choose to stay on as employees. In today’s environment of intense competition for talent, this is a significant advantage compared to the continuous effort and cost of talent recruitment and hiring.
Key Takeaways for Business Growth
The layered collaboration model I developed isn’t just about controlling or sharing work — it’s about strategically aligning every innovation effort to maximize its potential. By categorizing projects based on their time horizon and the balance of work between your company and its partners, you can ensure that you’re investing wisely. And don’t forget to leverage student involvement for high-risk, high-reward explorations!
So, how many types of collaboration does your organization currently employ? Are there untapped layers where new opportunities could arise? Reach out to explore how this model can fuel your growth.
P.S. Stay tuned for my upcoming webinar on the 7 Key Mistakes in Innovation Projects. You don’t want to miss it!