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OPEN INNOVATION OF SUBSURFACE
SOFTWARE SYSTEMS
Vidar Hepsø Ph.D
Adjunct Professor Center for Integrated Operations NTNU
Principal Researcher/Project manager Statoil RD
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Open innovation
• Open innovation is the use of
purposive inflows and outflows of
knowledge to accelerate internal
innovation, and expand the
markets for external use of
innovation, respectively. [This
paradigm] assumes that firms
can and should use external
ideas as well as internal ideas,
and internal and external paths to
market, as they look to advance
their technology.”
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Gold corporation
-New ’open source’ exploration and prospecting model
• "I'd like to take all of our geology, all the data we have that goes back
to 1948, and put it into a file and share it with the world," he said.
"Then we'll ask the world to tell us where we're going to find the next
six million ounces of gold." Rob McEwen saw this as an opportunity to
harness some of the best minds in the industry. Perhaps
understandably, the in-house geologists were just a little skeptical.
(Page 9 Wikinomics)
• Goldcorp challenge; $ 575,000 was made available as prize for those
that came up with the best estimates, models and methods
• Gold. Corp ended up with110 new prospects of which half were
completely new and over 80% of the new prospects held substantial
value of gold
• Gold Corp estimated that they saved 2-3 years of exploration costs
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Norne data sets
•
The Norne data is unique in a global setting
since it is very unusual that an oil company
releases substantial integrated data-sets in
this manner
• Promote Statoil as an open organisation that
is willing to share key business related data
• Makes Statoil attractive to leading
academic partners in the world
• Educate new subsurface professionals with
detailed domain knowledge of company
challenges
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Closed vs. Open Innovation
Closed innovation principles
•
•
•
•
•
•
The smart people in the field work
for us
To profit from R&D we must
discover, develop and ship it
ourselves
If we discover it ourselves, we go
to market first
If we are the first to
commercialize an innovation, we
will win
If we create the most and best
ideas in the industry, we will win
We should control our IP so that
our competitors don’t profit from
our ideas
Open innovation principles
•
•
•
•
•
•
Not all the smart people work for us
External R&D can create value;
internal R&D is needed to claim a
portion of that value
We don’t have to originate the
research in order to profit from it
Building a better business model is
better than getting to market first
If we make the best use of both
internal and external ideas, we will
win
We should profit from others’ use of
our IP and vice versa
Source: Chesbrough, H. (2003), Open Innovation: the new imperative for creating and
profiting from technology, Harvard Business School Press
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Crossing the chasm of subsurface software tools
Enterprise
value from
subsurface
software
?
The
subsurface
software
chasm
What capabilities are needed?
•
•
•
•
Technology/platforms
Business processes
Governance models
Human skills
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The Ocean Ecosystem
http://www.ocean.slb.com/Pages/news.aspx
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Controlled interface
Community involvement
In API maintenance
-Alternative strategies
Open innovation
High
Ocean
MS *net
Low
Courtesy of John Henderson,
Boston University
Moderated
Open
API usage by third
parties
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