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Open Innovation
Strategies for New Products, Services & Business
Models
Building New
Organizational Capabilities for Open
Innovation
Many companies find it challenging
to deliver truly breakthrough ideas. Fresh thinking is hard to come
by if long-time staff continue to have the same conversations based
on traditional wisdom and assumptions. Introducing fresh
perspectives, knowledge and inspiration from the outside allows us
to go beyond day-to-day thinking and opens up the mind to entirely
new possibilities. Tapping into outside inspiration, technology, new
capabilities and critical resources is a mandate in today's
networked world.
While many companies have historically
looked to their own innovation efforts to drive growth, Open
Innovation proponents argue that today’s business logic has changed
and that companies today must embrace new strategies for
systematically tapping into ideas, resources and knowledge from the
outside. Relationships with external partners such as universities,
academic research institutions, government or private labs and
individual entrepreneurs can bring emerging technologies onto the
radar screen or spur fresh insights that can be combined with
internal competencies to create novel technology combinations that
drive new products. And strategic collaborations and
partnerships with other firms can instantly drive innovative
new products, services and business models.
Open Innovation is as much a mindset as
a process, and challenges an organization’s assumptions about the
way innovation should be conducted. Below are some of the key
differences between traditional approaches and the principles of
Open Innovation:
| Closed Innovation Principles |
Open
Innovation Principles |
- The smart people in our field work
for us
|
- We need to work with smart people
inside and outside our company
|
- To profit from R&D, we must
discover it, develop it, and ship it ourselves
|
- External R&D can create
significant value; internal R&D is needed to claim
some portion of that value
|
- If we discover it ourselves, we will
get it to market first
|
- We don't have to originate the
research in order to profit from it
|
- The company who gets an innovation
to market first will win
|
- If you make the best use of internal
and external ideas, you will win
|
- We should control out IP, so that
our competitors don't profit from our ideas
|
- We should profit from other's use of
our IP, and we should buy other's IP whenever it
advances our own business model
| |
Source: Henry Chesbrough, University of
California at Berkeley
InnovationPoint helps companies tap into
the power of open innovation. We leverage our expertise in the
innovation process and incorporate the principles of open
innovation to help you create breakthrough new products,
services and business models that drive topline growth.
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