Henry Chesbrough coined the concept of Open Innovation in 2006. Since then, it has evolved to a business model in itself: global knowledge e-markets connect now large communities of innovation providers with companies looking for a higher and faster return on innovation.
Henry Chesbrough outlines the benefits of open innovation as:
Benefits outside-in (incorporation of external ideas and technologies):
- Reduction of development costs
- Reduction of time to market
Benefits inside-out (exporting internal technologies)
- Creation of strategic alliances and value chains
- Licensing agreements and return on IP and technologies currently not in use by the company
A leading example in open innovation is FMCG manufacturer Procter and Gamble. Thanks to its initiative Connect + Develop, up to 50% of P&G's new product developments are already the result of the collaboration with a network of thousands of innovation partners. Though, obviously, P&G has the brand power and global reach to capitalize on its own open innovation model, any company can nowadays tap on the pool of innovators distributed around the world through some well stablished open innovation e-markets.
Companies like innoget or innocentive are leading examples of businesses that transform Chesbrough's model into a real platform to connect companies and people. The business model in both cases is based on crowdsourcing and paying for solutions. Companies with defined technological needs can post open challenges in these portals, that are visible to a large crowd of innovation providers composed by hundreds of thousands of subject matter experts. On the other hand, individuals or companies looking for buyers or licensees of their technological solutions can post their solutions to the pool of companies registered in this e-market places.
No comments:
Post a Comment