The business world is constantly changing, and innovation is one of the keys to success. Therefore, to remain competitive, many companies are looking for new ways to innovate, and so they seek to use open and collaborative innovation. They are forming partnerships to boost their business and even reduce costs.
Open innovation is a term coined by Henry Chesbroug, a researcher at Harvard Business School. The idea is to promote a more collaborative and diverse form of innovation. It involves several parties outside a company, such as customers, suppliers, research institutes, government agencies, startups, and other companies. Therefore, the goal is to create value for all parties involved by sharing ideas and resources to achieve a common goal.
The process involves four main phases:
1- Discovery The company identifies a problem or business opportunity with the purpose of solving it.
2- Cooperation The company is open to collaborating with its customers and partners so that they can find solutions
3- Co-creation The company works together with its customers and partners to develop an innovative solution.
4- Commercialization The innovative solution is brought to the market and implemented.
What are the advantages of Open Innovation?
1. Reduction of time and costs
It is possible to count on asia mobile number material a wide network of partners in a collaborative manner. The costs involved are low and even zero in some cases.
Furthermore, the large number of professionals and organizations involved speeds up the process. The experimental and decentralized nature of the project also contributes to creativity and the exchange of ideas.
2- Risk Reduction
Open innovation ensures a much more complete view of the market. After all, it’s not just the ideas of your company’s professionals. It’s possible to know the views of other companies, startups, customers, suppliers, universities, among others. You can collect much more reliable and comprehensive data to make the best decisions .
3- Increased return on investment (ROI)
All of these factors mentioned what roles are distinguished in the buying center? above contribute directly to increasing your company’s return on investment (ROI) . As a result, risk reduction, innovation agility and cost reduction generate greater revenue potential. In other words, open innovation can be much more profitable than just innovating internally.
4- Brand Strengthening
Open and collaborative innovation can help companies establish a positive brand image, with the purpose of showing that they are open to collaboration and innovation. It is a way of telling stakeholders that the company cares about the evolution and learning of the market. Do not think that only small companies or startups use this business model. Big brands have also adopted open innovation, such as Coca-Cola, which launched the Co.Lab platform, which allows consumers to taiwan database list create new drinks and flavors for the brand. This platform also helps the company evaluate and test new concepts before launching them on the market.
And Microsoft created the Microsoft Garage program, thus allowing its employees to collaborate .
Rizer has outlined some key steps to help you start implementing innovation in your business
1- Identify a business problem or opportunity that needs to be solved or explored. 2- Identify potential partners who can help solve the problem or explore the opportunity. 3- Establish a collaboration and communication platform with your partners to enable the exchange of ideas and resources. 4- Test and implement innovative solutions. 5- Monitor and evaluate the results of innovative solutions so that you can not .