Increase business product by Open innovation

By applying Open Innovation, businesses can increase speed 5 times, increase labor productivity 3 times while saving 20% – 30% of investment.

2 years heavily affected by the COVID-19 pandemic is also the necessary time for innovation in businesses to be stronger than ever. Because impacts from the external environment can all affect, causing disruptions in business and disruption of production supply chains. Therefore, promptly providing effective solutions, connecting startups and promoting innovation in production can increase labor productivity many times and save costs for investors.

Obstacles on the path of Open Innovation in Vietnam.

Open innovation has an important role to play in driving aggregate productivity gains. However, although innovation is taking place quite quickly in Vietnam in the past period, there are still bottlenecks that prevent productivity from increasing accordingly and need solutions to resolve.

It can be seen that not applying Open Innovation in enterprises will cause obstacles in the production stage, decrease in revenue and make it difficult for enterprises to access and apply technology in production. Therefore, the application of Open Innovation in production is to help create a push for Vietnam to achieve the set goals and aspirations, such as by 2030 developing countries have modern industry, income high average income.

However, the index of Open Innovation in developing countries is still quite low. According to the data of the UNESCO Institute of Statistics, if developing countries spend less than 1% on R&D investment in enterprises, this figure in developed countries is above 3%. Therefore, in developing countries, the common ground for investment in Innovation and R&D is not commensurate with the value it brings. Therefore, leaders of enterprises need to pay more attention to the level of innovation investment for their organizations, only then can enterprises develop, increase production value and improve their position in the market.

For example, in Singapore, the country is considered one of the 10 best ecosystems in the world. The unicorns in Singapore all have close connections and provide Innovation services to traditional businesses in Singapore. Typically, Trax platform specializes in data analysis for retail segments, by offering technology applications to help manage goods in supermarkets and retail points automatically. Thereby saving personnel costs, administration costs for businesses. This tech unicorn had a valuation of $1.3 billion for its last funding in 2021.

It is assumed that when innovation is promoted, productivity will increase and vice versa, this does not happen or at least does not increase accordingly. In fact, in Vietnam in the past year, the indicator of labor productivity growth is among a few socio-economic indicators that have not been achieved while this is a very important indicator, reflecting the ability to competitiveness as well as the level of sustainable development of the economy.

3 stages businesses need to do to implement Open Innovation.

It can be said that opening up innovation activities will be the key to success for businesses to jointly achieve the ideal of existence, improve customer experience in the market, and still be able to catch up and surpass them. through the rapid development of technology. When implementing Open Innovation, businesses usually follow 3 stages: Discovery; Complete; Deployment. These 3 stages correspond to the level of penetration of enterprises into the Open Innovation market.

• In which, at the discovery stage, including activities with low investment level, nature of seeking information and solutions, more open in the leader’s thinking.
• The next stage will have higher penetration and understanding, businesses can organize accelerator programs, incubators or deploy strategic cooperation with a number of technology companies, startups that have zoned in previous stages.
• The final stage will be the stage of cooperation and investment signing.

Through open innovation networking platforms such as BambuUP, units will be provided with diverse sources of information on the latest and selected Innovative ideas/solutions/products around the world to help businesses stay updated and accelerate their innovation journey.

At the same time, creating a connection between the party providing Innovation and the party looking for Innovation. Thereby, it is possible to support startups/technology companies to widely promote to the international market to realize their ideas, expand their business, and reach out to potential customers and investors. Or partner with businesses in the Innovation journey such as innovating/searching for technology, designing and facilitating innovation/initiative implementation, setting up a virtual innovation hub.