Open Innovation: No Longer an Option
10/23/09 Filed in: Innovation
To compete effectively, companies will increasingly have to look beyond their internal walls for sources of advantage.
Open innovation—bringing ideas and solutions into your company from your partners, suppliers and customers, or tapping the “wisdom of crowds” through innovation markets – has gained favor as a way of creating value. Why? Because this new approach is delivering measurable results for its practitioners at a fraction of the cost of their old, proprietary methods. For example, a recent study conducted by Forrester Research with a $14B producer of consumer goods found that their use of the open innovation marketplace of InnoCentive produced an average of 74% return on investment with a payback period of three months. But despite the high-profile models heralded in the business press, very few companies understand what open innovation could—or should—look like for them. Read more... (PDF 1MB)
Open innovation—bringing ideas and solutions into your company from your partners, suppliers and customers, or tapping the “wisdom of crowds” through innovation markets – has gained favor as a way of creating value. Why? Because this new approach is delivering measurable results for its practitioners at a fraction of the cost of their old, proprietary methods. For example, a recent study conducted by Forrester Research with a $14B producer of consumer goods found that their use of the open innovation marketplace of InnoCentive produced an average of 74% return on investment with a payback period of three months. But despite the high-profile models heralded in the business press, very few companies understand what open innovation could—or should—look like for them. Read more... (PDF 1MB)