INNOVATION FLOW: MANAGING INNOVATION SCOUTING
AT BAYER CS CASE STUDY SOLUTION
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SYNOPSIS
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Like many large manufacturing companies, Bayer Crop Science AG (Bayer CS) struggled to get an
overview of relevant technologies to source innovation teaming partners. The company’s organization was
siloed: each business unit had its own systems and processes to screen and source external technologies.
n
The case study focuses on the Innovation Sourcing team’s (IST) initiative to set up and grow a digital
platform called InnovationFlow. The idea behind the platform was to build the backbone for Bayer CS’
tio
scouting network and to empower employees to efficiently scout and leverage ideas externally.
The platform was developed in early 2020 and rolled out in Bayer CS in the following months. In February
lu
2021, Mélanie Héroult, head of research and development (R&D) innovation sourcing, and Verena
Herrmann, innovation scout, were preparing a presentation for Bayer CS’ top management evaluating the
So
platform and new challenges and questions that had emerged as the platform was growing fast. A major
problem was IST’s size: it was a small team with limited outreach relative to the size of the Bayer
organization and relative to its task to leverage ideas and solutions from external partners worldwide.
OBJECTIVES
• Analyze the problems of large manufacturing firms in organizing the sourcing of external technologies
and ideas.
• Understand the benefits of a digital platform and efficiently organize external technology sourcing.
• Understand how such a platform should be designed, developed, and implemented, and what it takes
for a small team to establish it successfully.
The Case Solution Starts From page 5
, Discuss the potential of the platform in the future.
Understand why the platform is only accessible for Bayer CS employees and not external partners.
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ASSIGNMENT QUESTIONS
1. Why did Bayer CS introduce the InnovationFlow platform? What challenges did Bayer CS face in
sourcing technologies from external parties (mainly start-ups) before the platform was implemented?
2. Why did the IST choose Bloomflow (Startup Flow) as the platform’s service provider? What did IST also
do to gain InnovationFlow’s maximal acceptance at Bayer CS and to guarantee traffic on the platform?
3. The InnovationFlow platform is not fully open as it requires registration and has specific roles for
contributors and users. Why is the platform organized in this way?
4. Who should use the platform? (a) Should the Partnership Development (PD) and Partnership
Management (PM) divisions use the platform; (b) should all three Bayer divisions rather than Bayer
CS alone use the platform; (c) should Bayer CS’ innovation partners use the platform, and if so, what
are the benefits and risks of this move?
5. What should Mélanie Héroult and Verena Herrmann suggest to Bayer CS’ top management?
The Case Solution Starts From page 5
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pl
m
Sa
ANALYSIS
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1. Why did Bayer CS introduce the InnovationFlow platform? What challenges did Bayer CS face
tio
in sourcing technologies from external parties (mainly start-ups) before the platform was
implemented?
lu
Moreover, a good starting
point to answer the question is the erosion factors identified by Chesbrough (2003, chapter 2 and
So
Chesbrough and Garman, 2009).
Increasing availability and mobility of skilled workers
The emergence and globalization of the venture capital market, empowering skilled people with good
ideas to set up high-tech ventures
Firms may have (patented) ideas that can be licensed to large companies
Increasing capabilities of external suppliers
Increase in relevant and patented technology developed by universities and research institutes
Emergence of innovation intermediaries/platforms that facilitate matching between supply of and
demand for knowledge
The Case Solution Starts From page 5
, 5. What should Mélanie Héroult and Verena Herrmann suggest to Bayer CS’ top management?
e
pl
m
First, Héroult and Herrmann should underline the success of IST’s efforts. By February 2021, there
were 1103 users and 2205 technology opportunity one-pagers were uploaded (see case Exhibit 1). With
a small team, IST succeeded in tackling a persistent problem at Bayer CS.
Sa
The InnovationFlow platform was continuously evolving, due in part to ongoing interactions with
Bloomflow. Emphasizing the potential for further improvements and additional functionalities is
crucial. Moreover, the data generated by the platform can be analyzed, leading to detailed information
of specific technologies, trends, or problems to be tackled.
n
Although the case study does not provide information about InnovationFlow’s direct benefits to the
tio
lu
So
The Case Solution Starts From page 5
AT BAYER CS CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
Like many large manufacturing companies, Bayer Crop Science AG (Bayer CS) struggled to get an
overview of relevant technologies to source innovation teaming partners. The company’s organization was
siloed: each business unit had its own systems and processes to screen and source external technologies.
n
The case study focuses on the Innovation Sourcing team’s (IST) initiative to set up and grow a digital
platform called InnovationFlow. The idea behind the platform was to build the backbone for Bayer CS’
tio
scouting network and to empower employees to efficiently scout and leverage ideas externally.
The platform was developed in early 2020 and rolled out in Bayer CS in the following months. In February
lu
2021, Mélanie Héroult, head of research and development (R&D) innovation sourcing, and Verena
Herrmann, innovation scout, were preparing a presentation for Bayer CS’ top management evaluating the
So
platform and new challenges and questions that had emerged as the platform was growing fast. A major
problem was IST’s size: it was a small team with limited outreach relative to the size of the Bayer
organization and relative to its task to leverage ideas and solutions from external partners worldwide.
OBJECTIVES
• Analyze the problems of large manufacturing firms in organizing the sourcing of external technologies
and ideas.
• Understand the benefits of a digital platform and efficiently organize external technology sourcing.
• Understand how such a platform should be designed, developed, and implemented, and what it takes
for a small team to establish it successfully.
The Case Solution Starts From page 5
, Discuss the potential of the platform in the future.
Understand why the platform is only accessible for Bayer CS employees and not external partners.
e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. Why did Bayer CS introduce the InnovationFlow platform? What challenges did Bayer CS face in
sourcing technologies from external parties (mainly start-ups) before the platform was implemented?
2. Why did the IST choose Bloomflow (Startup Flow) as the platform’s service provider? What did IST also
do to gain InnovationFlow’s maximal acceptance at Bayer CS and to guarantee traffic on the platform?
3. The InnovationFlow platform is not fully open as it requires registration and has specific roles for
contributors and users. Why is the platform organized in this way?
4. Who should use the platform? (a) Should the Partnership Development (PD) and Partnership
Management (PM) divisions use the platform; (b) should all three Bayer divisions rather than Bayer
CS alone use the platform; (c) should Bayer CS’ innovation partners use the platform, and if so, what
are the benefits and risks of this move?
5. What should Mélanie Héroult and Verena Herrmann suggest to Bayer CS’ top management?
The Case Solution Starts From page 5
, e
pl
m
Sa
ANALYSIS
n
1. Why did Bayer CS introduce the InnovationFlow platform? What challenges did Bayer CS face
tio
in sourcing technologies from external parties (mainly start-ups) before the platform was
implemented?
lu
Moreover, a good starting
point to answer the question is the erosion factors identified by Chesbrough (2003, chapter 2 and
So
Chesbrough and Garman, 2009).
Increasing availability and mobility of skilled workers
The emergence and globalization of the venture capital market, empowering skilled people with good
ideas to set up high-tech ventures
Firms may have (patented) ideas that can be licensed to large companies
Increasing capabilities of external suppliers
Increase in relevant and patented technology developed by universities and research institutes
Emergence of innovation intermediaries/platforms that facilitate matching between supply of and
demand for knowledge
The Case Solution Starts From page 5
, 5. What should Mélanie Héroult and Verena Herrmann suggest to Bayer CS’ top management?
e
pl
m
First, Héroult and Herrmann should underline the success of IST’s efforts. By February 2021, there
were 1103 users and 2205 technology opportunity one-pagers were uploaded (see case Exhibit 1). With
a small team, IST succeeded in tackling a persistent problem at Bayer CS.
Sa
The InnovationFlow platform was continuously evolving, due in part to ongoing interactions with
Bloomflow. Emphasizing the potential for further improvements and additional functionalities is
crucial. Moreover, the data generated by the platform can be analyzed, leading to detailed information
of specific technologies, trends, or problems to be tackled.
n
Although the case study does not provide information about InnovationFlow’s direct benefits to the
tio
lu
So
The Case Solution Starts From page 5
