Managing the Uncertainty of Open Innovation

Sunday, March 18th, 2012 - Innovation Design

Managing the Uncertainty of Open Innovation Managing the Uncertainty of Open Innovation

One of the hottest topics in business management today is open innovation. The image uses an open business model for companies to ” co – innovate ” with their sect, suppliers, and customers – in structure to hasten the prizes of innovation. For model, a little or midsized company develops a amusement – changing new notion and works with a larger company to bring the product to marketplace. Managing the Uncertainty of Open Innovation

Ended the collaborative appositeness of open innovation ( OI ), companies are able to control new ideas and lines, and conduct experiments at lower risk levels. However, OI does bring up some concerns, consonant who owns rights to the intellectual property ( IP ). OI should be conducted in a fashion that promotes shared positiveness and deference. Live incumbency be a coupled – edged knife when the larger company insists on owning the IP in exchange for their risk. The OI tie incubus be a treacherous one to navigate.

Vast corporations like Nestle, Kraft, Siemens, General Mills, and Clorox all participate in open innovation practices. Here is a event study of the open innovation operation at Proctor & Gamble, one of the most collectible consumer product companies in the universe. P&G introduced their Leash + Generate program on their website at pgconnectdevelop. com. The site is a compass position the general public obligation propose their innovations, scan about successful business partnerships, and matched scavenge current IP needs of the company.

” Historically, P&G relied on internal capabilities… We did not actively explore to mate with embryonic external partners. Times have changed, and the world is more connected. In the areas in which we do business, there are millions of scientists, engineers and other companies globally. Why not collaborate with them? We now embrace open innovation… ” reads the P&G website. In just over two years, the program has received 7, 500 submissions. P&G has established more than 1, 000 active agreements with innovation partners, and claims more than 50 % of their product initiatives involved collaboration from outside innovators.

In the Connect + Develop program, innovators must have their IP in place before they submit their idea. This protects the innovator while the IP adds value to the organization – the key is to build relationships and produce win – win deals. Through working together and developing effective ways to manage IP rights, OI can further advance innovative culture and produce favorable results for all parties involved. Managing the Uncertainty of Open Innovation

Managing the Uncertainty of Open Innovation

Here are some tips for nurturing open innovation in your business.

It takes leverage, courage, and toughness to create a balanced open innovation relationship. In a balanced relationship, the IP or technology of the inventors or small business should remain theirs.
Develop both reactive and proactive ways to address open innovation. On the reactive side, invite the world ‘ s finest innovators seeking open innovation opportunities to develop your IP needs.
Proactively, tap into local universities, companies, and venture capital firms to meet inventors, set up networks, and make connections that are not readily apparent to most people. Managing the Uncertainty of Open Innovation

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