open innovation - manu melwin joy
TRANSCRIPT
Open Innovation
Prepared By Manu Melwin Joy
Assistant ProfessorSCMS School of Technology and Management
Kerala, India.Phone – 9744551114
Mail – [email protected]
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Open Innovation
• Open innovation refers to the use of both inflows and outflows of knowledge to improve internal innovation and expand the markets for external exploitation of innovation.
Open Innovation
• The central idea behind open innovation is that, in a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, but should instead buy or license processes or inventions (i.e. patents) from other companies.
Advantages
• Reduced cost of conducting research and development.
• Potential for improvement in development productivity.
• Incorporation of customers early in the development process.
• Increase in accuracy for market research and customer targeting.
Models of open innovation
• Product platforming– This approach involves
developing and introducing a partially completed product, for the purpose of providing a framework or tool-kit for contributors to access, customize, and exploit.
Models of open innovation
• Idea competitions– This model entails
implementing a system that encourages competitiveness among contributors by rewarding successful submissions.
Models of open innovation
• Customer immersion– While mostly oriented
toward the end of the product development cycle, this technique involves extensive customer interaction through employees of the host organization.
Models of open innovation
• Innovation networks– Similarly to idea
competitions, an organization leverages a network of contributors in the design process by offering a reward in the form of an incentive.
Models of open innovation
• Innovation networks– Similarly to idea
competitions, an organization leverages a network of contributors in the design process by offering a reward in the form of an incentive.
Models of open innovation
• Collaborative product design and development– This differs from platforming in
the sense that, in addition to the provision of the framework on which contributors develop, the hosting organization still controls and maintains the eventual products developed in collaboration with their contributors.
Versus closed innovation
• The paradigm of closed innovation holds that successful innovation requires control. Particularly, a company should control the generation of their own ideas, as well as production, marketing, distribution, servicing, financing, and supporting.
Versus closed innovation• Throughout the years several
factors emerged that paved the way for open innovation paradigms:– The increasing availability and
mobility of skilled workers– The growth of the venture capital
market– External options for ideas sitting on
the shelf– The increasing capability of external
suppliers
