The concept of innovation has become synonymous with relevant companies in the extremely competitive market. And it is not difficult to understand why this happens. Innovation, whether open or closed, brings a series of benefits to organizations.
Understanding these concepts and, most importantly, the applicability of these types of innovation can make a difference for any business. Although it is a simple logic, choosing which type of innovation and how to apply it in the company is a bold task that requires organizational maturity.
When you dive into the world of innovation, right from the start, you notice how unique this choice is. Each company has a different decision-making process and everything must occur according to the corporate profile and the strategic objectives to be achieved. Read this article to learn more and enjoy your reading!
How important is innovation?
If a few years ago, a change in the status middle east mobile number list was seen as a “very unusual” step, today the exploratory profile of new opportunities is seen as an entrepreneurial attribute. But it is clear that this transformation did not occur by chance.
Maintaining a traditional environment was seen as security and stability. However, in recent years we have seen large companies crumbling like empires. And the reason has almost always been the same. Companies have not kept up with the innovations that were taking place. In many cases, they did not believe that such transformations could threaten their business.
As a result, these companies did not invest in new technologies, did not keep up with the digital transformation and did not explore new markets. The result of such disbelief caused companies to close their doors.
As a reflection of the market, innovation has gained momentum in several aspects. Companies have been finding more appropriate ways to innovate without interfering with current operations. In this way, innovation has become plural. There are many different ways to innovate. However, these paths fall into two types of innovation. Open innovation, where the company has an external structure, and closed innovation, where the organization has the necessary personnel and investments internally for innovation to happen.
What is open innovation?
Widely known as Open Innovation, open low cost with practical backup involves the participation of external parties in the company’s innovation process. In this way, it can also be called collaborative innovation. In other words, if a corporation hires a startup, both will work collaboratively to ensure the success of the innovative actions.
The concept was popularized in 2003 by Harvard Business School professor Henry W. Chesbrough . After extensive research, academic studies and long experience in Silicon Valley, Henry released the book “Open Innovation: The New Imperative for Creating and Profiting from Technology”.
In addition to providing examples of the innovation process at Xerox, IBM, Lucent, Intel, Merck and Millennium, the author shows that with open innovation it is possible to advance your current business and expand your future business.
In light of this, it is possible to observe that open innovation involves partnerships with agencies, suppliers, startups, consultancies, clients and all other market players. This relationship can occur in the following ways:
- CVC (Corporate Venture Capital) – funds for investment in startups;
- VC (Venture Capital);
- Joint Venture – commercial agreement between two or more companies (competitors or not) to pool resources and carry out a specific activity;
- Mergers and Acquisitions (M&A);
- Acquisition of ideas, technologies or methodologies; or
- Any other available innovation vehicle.
In short, Open Innovation does not happen in a company just through its own actions. It always involves two or more stakeholders. And it can include more than one innovation vehicle.
What are the advantages of open innovation?
There is a wide range of options philippines numbers on the market. People with different experiences and ages, working in synergy, can present innovative and revolutionary ideas. But this interaction is only possible with open innovation, in which sharing makes individuals look beyond their operational activities.
Open innovation has some advantages, such as those highlighted below:
Smaller in-house teams
There is no need to have a large in-house team. In projects that require a high level of activity from the technology team, for example, to avoid overloading the internal team, hiring a supplier (startup) that offers specialized IT services is an excellent solution.
