1. ©2012 The LEGO GroupPage 1

2. ©2012 The LEGO GroupPage 2 Inventing the future of play -together with the builders of tomorrow Building Open Innovation Capabilities and Toolbox at The LEGO Group A story told backwards…

3. ©2012 The LEGO GroupPage 3 Presentation overview Building a reputation of openness The Mindstorms NXT case LEGO Cuusoo LEGO Architecture Building knowledge about Open Innovation Influential quotes Four value pools Implementation plan Building Open Innovation toolbox through pilot projects In the production area On the core LEGO Experience On HR processes On an Open Innovation platform

4. ©2012 The LEGO GroupPage 4 Alpha Rex Spike Tribot LEGO MINDSTORMS 2nd Gen, co-created with lead users RoboArm T-56

5. ©2012 The LEGO GroupPage 5 LEGO Cuusoo, a crowdsourcing platform for new product ideas

6. ©2012 The LEGO GroupPage 6 Minecraft 2 days Road to 10.000 votes An engaged community!

7. ©2012 The LEGO GroupPage 7 Crowdsourcing innovative packaging solutions

8. ©2012 The LEGO GroupPage 8

9. ©2012 The LEGO GroupPage 9 A reputation of being open was built…

10. ©2012 The LEGO GroupPage 10 From isolated to orchestrated efforts Taskforce established with the aim of: -assessing the opportunities, needs, and benefits for introducing new practices of OI across The LEGO Group -defining what next practice would look like building on internal practice as well as insight from the best OI practitioners in the world -making a firm and evidence based recommendation on what and where the value could be, how this could be delivered and what would be needed to achieve this. -setting out a viable roadmap – based on how we should move forward, balancing risk and rewards etc.

11. ©2012 The LEGO GroupPage 11 Our Approach Learning from Others - 12 interviews with leading OI companies. Learning from The LEGO Group - input from over 30 practitioners including 10 interviews Learning by Doing - 4 micro pilots to test capabilities, culture and appetite

12. ©2012 The LEGO GroupPage 12 External as well as internal contributors have willingly shared their experiences and ideas… “99.99% of the smartest people in the world don’t work for us.” P&G “People don’t have to work for us to work with us.” Internal Quote “All our radical innovations come from people who are not domain experts.” Orange Telecom “Until you open up, you do not know what is possible.” McLaren “I am scared to look at external ideas because we don’t want to get sued.” Internal Quote “The problem with an innovation culture is that for most of the time and for most of the people you don’t really want one!” David Robertson, IMD “Consumers of today are intelligent, they are creative and they have an opinion… And they expect you to listen!” Internal Quote However they probably grew up playing with LEGO bricks

13. ©2012 The LEGO GroupPage 13 Internal Talent Entrepreneurs Kids and AFOLsCompanies & Institutions We have identified 4 Value Pools to be leveraged…

14. ©2012 The LEGO GroupPage 14 Diverse internal input Companies & Institutions Kids & Fans Internal Experts and their teams Systematically ensuring greater diversity in our innovation efforts by seeking and applying input from the four value pools. This will provide richer and more innovative solutions with optimal contributions from the entire value chain There is overwhelming evidence that adopting T- shaped OI can trigger breakthrough solutions, as well as powerfully enrich the culture This is the single biggest change to TLG culture and practices we propose To fully exploit the potential we need to apply a T-shaped model for OI…

15. ©2012 The LEGO GroupPage 15 CM Critical Tasks Organisation Culture People The four steps towards OI across “Tasks”, “People”, “Culture” and “Organization”… Reinforce Collaboration Celebrate & Share Build Capabilities OI Sr. Director + 1FTE Run 4 Pilot projects tapping into one or more Value Pools Flagship OI Program, leveraging all four Value Pools within one project e.g. next Big Bang Play Theme Practitioner OI Network based on selected pilots Build Initial Toolkit IP, IT, Process, Incentives Build Initial Toolkit IP, IT, Process, Incentives Build Full System Capability Set KPI’s & Metrics Leading OI (Capability Training) Leading OI (Capability Training) Competency Framework Open LEGO Ecosystem OI Becomes Signature Review & Refine Toolkit IP, IT, Process, Incentives Review & Refine Toolkit IP, IT, Process, Incentives Scope & Define Business Case Approval Business Case Approval Strategic Recommendation Review R R R R R R R R Expansion of OI Network R R R R Lead & Enable 2011 Develop the LEGO Way of OI 2012 Build & Deploy 2013/14 Scale & Leverage 2015+

16. ©2012 The LEGO GroupPage 16 Current pilot projects: "People are much more likely to act their way into a new way of thinking, than think their way into a new way of acting." Richard Pascale Therefore we run pilot projects - in our production area (solving hard, “unsolvable” problems) - on improving the core LEGO experience through crowdsourcing - on how to improve core HR processes - on an Open Innovation platform

17. ©2012 The LEGO GroupPage 17 What we want to achieve: Going from:Towards: Creativity from the fewSystematic creativity from the many Select strengths put to playFull potential realized Succeeding togetherSucceeding more together with more people A relatively closed cultureA culture of openness

18. ©2012 The LEGO GroupPage 18 Thank you for your time! ? !