Does Open Innovation help businesses accelerate business results?

We have had an overview of Open Innovation – an inevitable trend that many businesses are adopting. In today’s article   BambuUP will discuss how the “rocket” model (specific to Open Innovation) rather than the “funnel” model (specific to Closed Innovation) helps businesses “accelerate” in the harsh competitive market.

What is Open Innovation?

Open Innovation – Open innovation is a new innovation trend that many large companies are adopting around the world.

Open innovation is a business management model to innovate & promote corporate cooperation with people and organizations outside the company. In this sense, open innovation challenges are a real cultural break from the moodiness of companies and the traditional secrecy associated with a company’s R&D culture.

This innovation model becomes possible when the company acknowledges that there are more bright experts and greater knowledge outside the organization involved. It is during this time that the opportunity to engage such external individuals or companies becomes more real.

Companies engage in open innovation activities in a variety of ways, such as inter-company alliances, university research, community resource competitions, and innovation ecosystems. . 

The term open innovation as we all know was coined by Henry Chesbrough, professor and Head of the Open Innovation Center of the Haas Business School of the University of California)

From the traditional “funnel” innovation process model to the “rocket” model

Traditional innovation uses a FIGURE process (selecting the most compelling ideas, then developing and prototyping). Characteristics:

1. The ideas and development efforts remain largely internal.
2. Several trusted vendors can contribute in the whole process.

In contrast, Open Innovation-based models used a FIRE-style process (Both the formation and development stages accept contributions from outside the company). These contributions enrich innovation activities and become a great asset. Characteristics:

1. Ideas are better connected to the market and meet real customer needs.
2. Innovative solutions bring more advanced technology content.

These external contributions increase the quality of ideas obtained through open innovation models, faster technological development, and smaller risks due to its connection to the outside world.

Engineering Crowdsourcing for open innovation:

Effective open innovation requires ideas that can be turned into tangible products. Since we are talking about technological innovation, engineers are the ones who can provide the necessary technical knowledge. Therefore, the combination of Open Innovation and technical sourcing from the community creates a very powerful tool for achieving successful results in technology innovation projects.

Community sourcing allows businesses to easily connect with experts, technology companies, SMEs, and startups outside, leveraging their knowledge and experience. cross-industry, global experience. It is thus easier for innovation teams to obtain multiple alternatives (from a technical and cost standpoint) to a given challenge and progress through a converging process.

Ultimately, crowdsourcing technology helps businesses seize the opportunity that comes with technological change and turn it into a competitive advantage.