What is it?
The practice of businesses and organizations sourcing ideas, innovations, and technology from external sources as well as internally.
How does it work?
Open Innovation refers to the business strategy that encourages businesses and organizations to source ideas, innovations, and technologies not only from within their organization, but also from external sources. This strategy leverages the collective knowledge and innovation capacity of various stakeholders such as customers, suppliers, research institutions, and even competitors to drive growth and competitive advantage.
When is it useful?
In a practical business context, Open Innovation is a paradigm shift from the traditional closed innovation model where companies relied solely on their internal research and development. Today, businesses actively seek external collaborations, partnerships, and even crowd-sourced ideas to accelerate innovation, reduce R&D costs, and stay ahead of the competition. This is achieved through various strategies such as co-creation, licensing, joint ventures, and innovation contests.
Real-World Impact
One of the most well-known examples of Open Innovation is the tech giant IBM. IBM’s “Innovation Jam” is an online brainstorming session where employees, customers, partners, and even family members are invited to submit ideas and solutions to specific business challenges. These sessions have generated thousands of innovative ideas, leading to the development of numerous successful products and services.
How to Get Started
Understanding Open Innovation can be highly beneficial for users of Empress’s suite of tools and services. Empress supports this open innovation model by providing collaborative tools that facilitate idea sharing, brainstorming, and co-creation. These tools can help businesses to tap into the collective intelligence of their stakeholders, thereby accelerating innovation and driving business growth.
Get the Empress Edge
It’s interesting to note that Open Innovation is not just about sourcing ideas from the outside. It also involves sharing or selling a company’s underutilized ideas and technologies to external parties. This two-way flow of ideas not only maximizes the value of a company’s intellectual assets, but also fosters a culture of innovation and collaboration.