Open Innovation Flashcards
Ambidextrous Firms
Managing business as usual whilst managing new opportunities- exploitation and exploration
Exploration
Flexibility
Risk-Taking
Patience
Exploitation:
Process
Repeatability
Efficiency
Challenges for Successful Innovation Management
Market and customer issues * Failure to understand and satisfy market need
Technology issues * “How innovative do I want to be?”
Capturing the value * Weak appropriability (IP) * Poor access to complementary / (co)specialised assets
Product strategy and planning * Incoherent product range * Too many projects at any one time
New Product Introduction (NPI) Process * Chaotic process, often late, over cost, many mods required * Not geared to creativity / entrepreneurial activity at front-end
Innovation Management
Generate a lot of new ideas
Experiment with the best ideas
Build the product/service
Strategy and People on the outside
Closed Innovation
Closed innovation is the practice of developing and commercialising new products, services, or technologies entirely within the boundaries of a single organisation. In a closed innovation model, the company relies primarily on its internal resources, research and development teams, and proprietary knowledge to generate new ideas, solve problems, and create innovations.
Open Innovation
Inbound open innovation: technology
Outbound open innovation: giving your ideas out, creating another business
Principles
Closed:
The smart people in our fieldwork for us
To profit from ideas we must discover, develop and sell them ourselves
If we create the most and best ideas in the industry, we will win
We should control our intellectual property so that our competitors don’t profit from our ideas
Open:
Not all smart people work for us so we must access the knowledge and expertise of bright individuals outside our company
We don’t have to originate the research in order to profit from it
Building a better business model is better than getting to market first
If we make the best use of internal and external ideas, we will win
Collaborative Agreements
Contract: ask them to do something, they do it
Licensing
Shared resources
Partial acquisition
Joint ventures
Joint venture: create a separate business
Acquisition: integrate them completely within the company
Increasing integration and investment
Management Challenges
Organisational culture:
Cannot be created overnight
You could have a dedicated team for OI
Different units of a company would have different sub-cultures
Skills:
Introspection- know your own business
Extrospective- know your partner’s business
Technical- financial, portfolio management, know enough to be able to collaborate
Interactive- communication, negotiating
Metrics:
Activity versus value
When a measure becomes a target, it ceases to become a good measure
IP: Provides the language of collaboration
Asymmetric’ partnerships
Big companies taking advantage of smaller ones
Small companies taking advantage of the bigger ones
Complexity:
Everything is constantly changing so it is hard to have a long-term relationship with them
Reputational Risk
If the technology is embedded in your product, your reputation may be at stake if it fails
Where do you do it
Online idea brokers
Technology parks and open innovation
Innovate in places innovation is already happening- Cambridge
Industry Vs University
Proprietary knowledge is an asset, employees, applied research with a short term focus, focus on profit
vs
Open publication/knowledge exchange, organised anarchy, novel research with a longer term focus
Level of Engagement
Awareness: careers fairs
Involvement: Industry advisors
Industry affiliate
Support: workshops and seminars, guest lectures
Sponsorship: student fellowship, collaborative research
Strategic partner: long-term partnership, major gifts
