To manage innovation companies judge projects on their technical and business merits, on ever stricter criteria. This is a ruthless process, in which many great ideas are generated at first, then nurtured then in many cases… abandoned. Only a limited number of projects finally emerge from the project stage to follow. These survivors are often too slow to make an impact on market in todays fast moving world.
How can we speed up innovation?
First starting with the open mind is essential. A clear focus on the anticipated business position is often the best places for driving the innovation strategy. Second, it pays to look outside one owns organisation, finding others with exactly those skills, market knowledge or technology that can help move the project forward. This is called open innovation.
Instead of the solid walls of the product development funnel, the open innovation funnel has permeable walls. information and ideas float in and out. Either at the start of the project with just a fuzzy idea or further on, when the necessary skills may well come from the outside. The result: the greater chance of success and it all happens much faster. There are lots of ways to accelerate the innovation through this open mind set. For instance by collaborative research with universities, scientific institutes suppliers, customers and even peer companies.
Licensing is another vital aspect of open innovation and gaining access to intellectual property generated by third parties and accelerating product development.
Why reinvent the wheel?
Spanning is the art of identifying fitting products and strategies in other companies. An added advantage is that in this way teams of to very knowledgable people are brought into ones own organisation. Then there is venturing …
Investing money in companies active in the core field interest is the good way to explore new markets and technologies. It is an excellent starting point for the advanced strategic relationships. Also we can go beyond that by teaming the complementary businesses to form a joined venture or even acquiring entire companies. By merging two successful organisations the sum will generally be more than the parts. The key to these processes is intellectual asset management.
Patents, trade marks and other intellectual property rights protect products, technologies and services. They are the best bargaining chips and key in the value extraction at the negotiating table.
In the fast changing world, with huge challenges, innovative speed is crucial.
Technologies, patents and the innovations that appear less strategic to one company, can be vital to another. Proudly found elsewhere . That is the new mantra of open innovation. Taking pride in collaboration and partnering, since together we can make things happen. Open innovation could be the fastest way to the better, brighter world for people today and generation to come.
The model below describes the opportunities and challenges of open innovation, and what is needed for realisation. It is from this research paper, published by Professor Tobias C. Larsson.