We learned the simple fact, that the smartness of open innovation lies in the fact that in this field you pay only for the successes, i.e., you are not being required to spend precious resources on developing the massive parallel processes inherent in real innovation projects.
Corporate champions of open innovation, such as P&G, Johnson & Johnson, Shell, Xerox, HP, CSC, and Cisco, have all demonstrated their strategic approach to the business art of borrowing brilliance and tapping into diversity. Strategies span from Shell Game Changers venture centred objective of “Bringing Silicon Valley inside” calling for “Any idea, Anyone, Anywhere, Anytime “, to CSCs centrally organized Innovation Office, and even to P&Gs ultimate “Proud of found elsewhere” mantra.
The smartness of open innovation is related to the fact that, in this field, you pay only for successes
Johnson & Johnson confirmed that technology lifecycles are getting ever shorter and are being accompaniedby onrushing technology convergence dynamics. Combined with the increasing global health care challenges this points to the conscious need to leverage the ideas and capabilities available in the world.
While the opening up of processes is an obvious business strategy, for Johnson & Johnson, owning the means of production plays an important role in active engagement in the open innovation process. It was highlighted that the inevitable initial internal resistance should be counter-managed.
For instance, open innovation drives should be presented to employees as activities focused on the search for complementary resources and opportunities not competing resources. Likewise, practising open innovation internally, in order to foster a motivating culture dynamically identifying and leveraging internal knowledge/ competencies, including learning to ‘fail forward’, should be considered a key business management requirement.
From a corporate strategy perspective, some argued that businesses following the trend towards open innovation have adopted a strategy of shifting optimization:
From a management perspective, the main recommendations from this years Open Innovation Summit are the following: