Leading Your External Innovation Network

Orchestrating Collaboration

Leading Your External Innovation Network

GUEST POST from Art Inteligencia

The days when a single organization could dominate innovation solely through internal R&D labs are over. In the age of exponential change, innovation is a contact sport. As a thought leader focused on human-centered change and innovation, I see the most successful companies shifting their focus from being self-sufficient inventors to becoming expert orchestrators of external networks. They understand that the collective intelligence of an ecosystem—comprising startups, universities, competitors, and even customers—far exceeds the capability of any lone corporation.

Leading an external innovation network is fundamentally different from managing an internal team. It requires shifting from command-and-control to influence and co-creation. It’s about building a robust, diverse, and fluid network of partners who share a common purpose but bring radically different skills and perspectives. This isn’t just “open innovation”; it’s strategic, purpose-driven collaboration, designed to achieve breakthroughs that would be impossible alone. The challenge for today’s leaders is not acquiring external assets, but mastering the art of the symbiotic relationship, where mutual value and growth are guaranteed.

The Three Imperatives of Network Orchestration

To successfully lead an external innovation network, a leader must focus on three core imperatives:

1. Define the Shared Problem, Not the Solution

External partners aren’t looking for a contract; they’re looking for a mission. Your organization must clearly articulate the Wicked Problem it aims to solve (e.g., “How do we make urban logistics carbon-neutral?” rather than “We need a faster drone model”). Defining the problem invites a diversity of approaches and technologies. Defining the solution constrains creativity and filters out the radical ideas often found outside your walls. This clarity establishes the shared purpose that binds the network.

2. Design the Interface for Trust and Speed

Bureaucracy kills collaboration. The interface between your company and its external partners must be lean, fast, and built on psychological safety. This means simplifying IP agreements, offering flexible contracting models (like joint ventures or co-development agreements rather than simple vendor contracts), and establishing clear, transparent communication channels. Trust is the transactional currency of the external network, and a fast, clear process is the best way to earn it, particularly with agile startups.

3. Cultivate a Portfolio of Relationship Models

Not all external partners are created equal. A startup requires venture capital and mentorship; a university needs joint research grants and data access; a mature competitor might require a formal standards consortium. Successful orchestrators manage a portfolio of relationship models, matching the right type of engagement (e.g., challenge, investment, acquisition, co-development) to the specific partner and the innovation maturity level. This avoids treating every partner like a transactional vendor.

The Internal Barrier: Managing Cultural Change

External innovation is doomed to fail if the internal culture remains resistant. Leaders must proactively combat the pervasive “Not Invented Here” (NIH) syndrome. This requires:

  • Mandating “External Ambassadors”: Creating roles or rotating assignments where internal experts are rewarded for successfully sourcing and integrating external ideas.
  • Measuring Network Health: Shifting innovation metrics to include Relationship Velocity (how fast partners move from ideation to pilot), Diversity Index (the variety of partners used), and the Rate of External Integration.
  • Celebrating External Wins: Publicly celebrating the external partners and the internal teams who worked with them, positioning collaboration as a prestigious act of corporate agility.

The goal is to transform internal employees from being gatekeepers of ideas into curators and integrators of solutions.


Case Study 1: P&G’s Connect + Develop (C+D) Program

The Challenge:

In the early 2000s, P&G realized its internal R&D productivity was declining, despite massive investment. They were constrained by the “Not Invented Here” syndrome and needed to source more ideas and technologies from the outside to meet ambitious growth targets.

Network Orchestration Model:

P&G fundamentally shifted its innovation strategy to Connect + Develop (C+D). This was not a passive idea submission portal; it was a global, active network orchestration effort. They created specialized internal “Technology Entrepreneurs” whose sole job was to scout, broker, and integrate external innovations. Key partnerships included:

  • NineSigma: Used to run open challenges and solicit solutions from a vast network of scientists and small firms worldwide.
  • Innovation Intermediaries: Partnering with consultants and organizations that specialize in linking technology with unmet consumer needs.

Crucially, P&G made its own proprietary technologies available to partners, fostering a two-way intellectual property exchange built on mutual benefit. P&G offered scale and market access; partners offered speed and radical concepts.

The Innovation Impact:

Within a few years, C+D was responsible for over 50% of P&G’s product initiatives and billions in revenue growth. Iconic products like the Swiffer Duster and Olay Regenerist were either fully or substantially developed using external technology. P&G demonstrated that external innovation is not a marginal activity but the main engine of corporate growth when expertly orchestrated.


Case Study 2: BMW’s Open Manufacturing Platform (OMP)

The Challenge:

BMW, like all automotive manufacturers, faced the challenge of digitizing its vast, complex global production network. Achieving real-time data analysis, predictive maintenance, and operational efficiencies required a common data and technology standard across its supply chain and factory floor, a goal too large for one company to tackle.

Network Orchestration Model:

Instead of building a proprietary solution, BMW co-founded the Open Manufacturing Platform (OMP) with Microsoft. OMP is an open, community-driven initiative built on open standards and open source technologies (specifically, the Microsoft Azure cloud platform). The goal was to create a common reference architecture for industrial IoT and AI solutions. BMW actively encouraged competitors and suppliers—including Daimler, Bosch, and hundreds of smaller tech firms—to join. They relinquished proprietary control to foster a pre-competitive collaboration space for infrastructure, ensuring they could focus their internal R&D on differentiated applications.

The Innovation Impact:

By orchestrating this platform, BMW gained access to a wider pool of talent and accelerated the development of key manufacturing solutions. The OMP rapidly became an industry standard, benefiting BMW by creating a harmonized, scalable technology ecosystem that they could then build differentiated applications on top of. This case illustrates leading an external network not through ownership, but through platform stewardship, focusing on shared infrastructure to unlock superior results for all participants, dramatically reducing the cost and risk of digital transformation.

The future belongs to the innovation ecosystem architect. To succeed, leaders must cultivate a culture that views external partners not as threats or transactional vendors, but as co-investors in a shared future. It requires courage to give up some control, trust to open up the IP discussion, and clarity to define the societal or market challenge you are collectively addressing. By mastering the orchestration of this dynamic network, your organization can move from incremental improvement to exponential, sustainable breakthrough.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Google Gemini

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