Open Innovations ?
Distributed innovation process based on purposively managed knowledge flows across organizational boundaries
The central idea behind open innovation is that, in a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research.
Open innovation offers several benefits to companies operating on a program of global collaboration:
- Reduced cost of conducting research and development
- Potential for improvement in development productivity
- Incorporation of customers early in the development process
- Increase in accuracy for market research and customer targeting
- Potential for synergism between internal and external innovations
- Potential for viral marketing
This model entails implementing a system that encourages competitiveness among contributors by rewarding successful submissions. Developer competitions such as hackathon events fall under this category of open innovation. This method provides organizations with inexpensive access to a large quantity of innovative ideas, while also providing a deeper insight into the needs of their customers and contributors
Similarly to idea competitions, an organization leverages a network of contributors in the design process by offering a reward in the form of an incentive. The difference relates to the fact that the network of contributors are used to develop solutions to identified problems within the development process