What is open innovation

What is open innovation and why is it important for business in future

When the pandemic caused by the Covid-19 broke into our lives, companies began to send messages such as “together we come out stronger.” Within this idea, there was not only the union of the staff of the same organization. It was a motivation that combined the efforts of two or more companies to achieve a common good. Globalization and this unprecedented situation that we are experiencing for these generations mark a new course: companies cannot move forward alone. They need openness to share obstacles and find collective solutions. In this way, it will be easier to grow in a post-covid19 era. We speak in a way, of open innovation

What is open innovation? 

The key to the future Open innovation is a modern term coined by writer Henry Chesbrough in the early 2000s and refers to the practice of companies to obtain ideas from both internal and external sources. That is, an organization shares its information with people outside the business, and a solution is sought. 

Thanks to technology, reinvention, and innovation, many businesses are being saved. Open innovation is a strategy to seek new ideas and processes with internal and external collaboration. “Companies have always asked the public for opinions about the services they offer,” you will say. Yes, but this concept goes further. It seeks to decentralize the company by giving it a more collaborative approach.

Many companies tend to work with a more closed innovation, where the company takes advantage of internal ideas, and its approach is from the inside out. However, companies joining open innovation rely on outside ideas with an outside-in approach. It is in this perspective where it seems that organizations are going to position themselves from now on.

Advantages of open innovation for companies 

Embracing innovation in a period of uncertainty can be reckless for many managers. However, these months of health crisis are making it clear to us that, thanks to technology, reinvention, and innovation, many businesses are being saved. Open innovation makes companies acquire the ability to access the knowledge and experience of other companies that go beyond their internal resources. What benefits does this innovation bring?

Ability to connect with collaborative ideas for new products and services: this means that in such a globalized world, innovation is widely distributed and cannot be sustained by a single company. Therefore, it is essential to have multiple points of view. 

Quick go to market: when a large group of people is working for the same purpose, there is a greater chance that the development of a product, for example, will happen earlier. 

Attracting new investors: sharing information with other people outside the business, without affecting competitive advantage, becomes a breeding ground for attracting new commercial interests from investors.

How to get started with open innovation 

Joining the open innovation bandwagon depends on your business model and competitive strategy. Generally speaking, there are two ways to enhance this model: 

A small business: A good open innovation process can be done with a customer ideas portal. Large organization: this type of company has a greater capacity to access more ambitious resources such as an idea innovation contest or a joint project with public companies.

Wrapping up

This idea of ​​innovation that is committed to collaboration is more aimed at managing change in work processes that have been marked since the beginning of this stage of uncertainty. Many experts say that innovation can make the difference between making the crisis an opportunity and disappearing from the market. For this reason, a new path will be to promote internal innovation, generate a more resilient culture in the work team, and learn to work in environments where collaboration with entrepreneurs and other organizations is normalized to add value. Right now, we have the technology, which is the weapon that is making these synergies possible.

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