Fundamentals of Open Innovation by bakersmith282

VIEWS: 13 PAGES: 2

The basic idea of open innovation is that, in this world where information is widely distributed and available, organizations can't depend solely on their own research and data. However an organization should get license or buy such information from other companies or its producers. Also, the inventions produced by a company (and not being used by them) should be moved outside and made available for other organizations

More Info
									0
Description:

Open innovation is an ideal model that explains that organizations should utilize internal ideas, external
ideas, and internal and external ways to market, in order to be innovative to go for innovation. It
emphasizes that innovation should be brought in with partners and then the rewards and risk should be
shared between them. In the contemporary world, the boundaries have subsided and globalization is on
full momentum. This helps innovation to move inside and outside of an organization.

The basic idea of open innovation is that, in this world where information is widely distributed and
available, organizations can't depend solely on their own research and data. However an organization
should get license or buy such information from other companies or its producers. Also, the inventions
produced by a company (and not being used by them) should be moved outside and made available for
other organizations.

The idea of open innovation as an accepted norm can help individuals and entities to go beyond the
dependence of external sources such as competitors or customers and can encourage them towards
greater adaptability. This means that companies can view open innovation as a change process which
encourages them to rely on intellectual resources more than the conventional ones. This way, it is seen
as the systematic and organized exploration of an extensive variety of external and internal innovative
sources, the combination of this exploration with organization’s resources and capabilities, and using
these opportunities through different channels.

Advantages

Open innovation has many benefits for companies that are globally integrated with different companies:

    •        It decreases the cost of R&D
    •        It has increased potential for progress in productivity
    •        It makes easy incorporation of clients in the developmental process
    •        It increase the accuracy for marketing research and customer segmentation
    •        It increases the potential for integration between external and internal innovations
    •        It promotes viral marketing

Disadvantages

Open innovation has some challenges and risk associated with its implementation. These are:

    •        It might disclose information that is not to be shared
    •        It might cause an organization its competitive advantage due to disclosure of intellectual
             property.
    •        It increases the complexity of controlling the flow on innovations

You can additionally learn about Open Innovation here: http://www.researchomatic.com/Open-
Innovation-49813.html



        1

								
To top