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How to adopt open innovation in your organization?

July 15, 2019

[digital transformation, ebook]

Your company plans is to launch on innovation? The principal recommendation it's to follow an "open innovation" strategy. The main idea of ​​this approach is to stimulate innovation in your business by introducing external ideas and technologies.

There are two aspects of open innovation. The first reflects a movement from "outside to inside" and can take many forms: 

■ Buying or leasing technology rather than developing it internally.
■ Partnering with or acquiring innovative start-ups.
■ Engaging in collaborative innovation with existing partners, suppliers, or customers.
■ Providing an internally incubator for entrepreneurs.
■ Sending your managers into innovation-focused learning courses at partner companies.

The second aspect reflects the movement from "inside out". It is about adding value to your own data, technologies, or processes by sharing them with the outside world, such as launching a data sharing platform or providing services through open APIs. It is a process of accelerating innovation by enabling others to add value to what you are doing.

"Open innovation is the antithesis of the traditional vertical integration approach where internal R&D activities lead to internally developed products that are then distributed by the firm.”

Henry Chesbrough ,the originator of the open innovation concept. 

Open innovation has been producing positive results in many industries for years. For instance, GE applied its Open Innovation Manifesto to an Ecomagination project that aims to address environmental challenges while expanding GE’s business. Over the past decade, GE has invested $20 billion in the initiative and generated new revenues of $270 billion, while reducing GHG emissions by 18% and freshwater use by 29%.

The results for the construction industry would no doubt be even greater, for construction is an industry
that lags others in R&D/IT staffing and investment, and it is an industry with an enormous digital gap to close. Open innovation can therefore help construction “leapfrog” its way to digital transformation.

 

Open Innovation enables organization to benefit immediately from years of R&D, thereby avoiding high internal costs and increasing their capacity for transformation.

 

To learn more about how to implement change, and start taking action, click on the button below to download the full eBook:

 
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