The term “Open Innovation” was eventually coined by Berkeley Professor Henry Chesbrough in 2003, and since then it has influenced the mindset of companies around the globe. Having initially evolved from the high-tech sector, especially software firms, the Open Innovation paradigm has now spread to most industries around the world, and has become a hot topic in innovation communities.
Most of the smartest people work for someone else, says Joy’s law – named after Sun Microsystems’ founder Bill Joy.Tapping into this intelligence to improve product/service offerings or their processes is the basic principle of Open Innovation.
The concept of Open Innovation has radically changed the way we think of innovation. Even though Open Innovation takes various forms, its key message remains the same:
Opening up innovation activities by either harnessing external ideas internally and/ or leveraging internal ideas externally.
The world has changed! An increasingly global business environment combined with rapid technological progress has changed the framework in which companies operate.
Confronted with this growing complexity in combination with growing customer demands, fierce competition and market pressure, companies have started to recognise that the “invent-it-ourselves” model is no longer sufficient to stay competitive.
The model is both too slow and costly, and does not provide the right access to technologies and talent. The focus for many companies has changed from continuous development to rapidly develop and test new business models in the market. Open Innovation (OI) is key to tackle these challenges. When considering an innovation process, companies need to have the right answers to major challenges and questions, such as:
You can find answers to these questions in our email course and Open Innovation guide, which reflects the results of survey conducted by ACE in 2012.
Across different types of organisations – small and big, public and private – many have created their own experiences when applying OI approaches in their innovation processes. We carried out a survey on the benefits of OI. Private companies emphasise that OI:
Public sector organisations can use OI to tap into the unlimited creativity of their citizens to find solutions to bigger societal challenges. Moreover, they can act as experimentation territories by applying technologies developed by the private sector to real life conditions. In the public sector OI helps to:
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