What is open Innovation?
Open innovation refers to the approach of seeking input and ideas from outside as well as inside a company or organisation, to drive innovation.
Thus, open innovation involves sharing knowledge and information about challenges and seeking ideas and solutions from outside the company or organisation. This approach aims to tap into a wider pool of knowledge, expertise and resources to drive innovation.
As a result, many businesses have embraced open innovation as an essential part of their innovation management strategy.
Why is it becoming so popular?
Open innovation has gained widespread popularity as a means of driving innovation and staying ahead of the competition. A recent study by PwC found that 61% of companies are now incorporating open innovation into their strategies, compared to 34% relying solely on traditional research and development methods.
Open innovation offers several advantages over traditional R&D methods. These advantages include access to a broader pool of ideas and expertise, reduced risk of failure through shared costs, and faster innovation cycles through independent work by partners on different aspects of a project.
As competition in the global economy intensifies, it is clear that companies need to embrace innovative approaches to stay ahead of the curve.
Open innovation has become a popular approach for companies of all sizes. By collaborating with external partners and tapping into a wider pool of ideas and expertise, organisations can reduce the risk of failure and speed up the innovation process.
One example of a company that has embraced open innovation is General Electric (GE). GE is known for its open innovation challenges and initiatives, which aim to solicit ideas and solutions from external sources. Through these challenges, GE not only encourages innovation, but also familiarizes itself with potential talent from around the world.
Procter & Gamble (P&G) is another company that has leveraged open innovation to drive product development. P&G's open innovation efforts are facilitated through the Connect+Develop website, which provides a platform for communication and collaboration with external innovators. On this site, P&G communicates its innovation needs and provides detailed information related to specific challenges, enabling innovators to submit their ideas and collaborate with the company. As a result of these efforts, P&G has established multiple partnerships and produced a number of innovative products.
The benefit for inventors
Open innovation provides an excellent opportunity for individual inventors by giving them access to resources, networks, and platforms to help bring their ideas to market. By participating in open innovation initiatives and challenges, inventors can connect with potential partners, customers, and investors who can provide funding, expertise, and other resources. This can help turn an inventor's idea into reality more quickly and efficiently than if they were working alone.
In addition, open innovation can also provide a platform for individual inventors to showcase their ideas to a wider audience. This can help raise their profile and increase their chances of success, as they may be more likely to attract attention and interest from investors, partners, and customers.
In summary, open innovation provides a range of benefits for individual inventors, including access to resources, platforms for showcasing ideas, and opportunities for learning and growth.
Innovate can help you commercialise your idea and make the most of the open innovation opportunity. Book a free consultation here.