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Driving Open Innovation in the Front End
Type
conference paper
Date Issued
2007-05-16
Author(s)
Enkel, Ellen
Abstract
Shorter innovation cycles, industrial research and development's escalating costs as well as in a dearth of resources force companies to use pathways outside their current businesses. They realise that the locus where knowledge is created does not necessarily always equal the locus of innovation, and they need not both be found within the company. Experience has furthermore shown that neither the locus of innovation nor exploitation need lie within companies' own boundaries. Recently, open innovation, as this approached is called, has also attracted academia's attention. The first work has been done regarding analysing single aspects like knowledge sources, user innovation and ICT support. However, the theory and practice still lack a holistic perspective by taking strategy, processes, actors and capabilities within the open innovation approach into account.
With our qualitative study of 144 companies, we identified three core open innovation processes: (1) The outside-in process: Enriching a company's own knowledge base through the integration of suppliers, customers, and external knowledge sourcing can increase a company's innovativeness. (2) The inside-out process: The external exploitation of ideas in different markets, selling IP and multiplying technology by channelling ideas to the external environment. (3) The coupled process: Linking outside-in and inside-out by working within alliances with complementary companies. Additionally, we were able to identify eight principle modes of innovation and four capabilities needed to successfully use the open innovation approach. An IBM case study illustrates a holistic view of open innovation management.
With our qualitative study of 144 companies, we identified three core open innovation processes: (1) The outside-in process: Enriching a company's own knowledge base through the integration of suppliers, customers, and external knowledge sourcing can increase a company's innovativeness. (2) The inside-out process: The external exploitation of ideas in different markets, selling IP and multiplying technology by channelling ideas to the external environment. (3) The coupled process: Linking outside-in and inside-out by working within alliances with complementary companies. Additionally, we were able to identify eight principle modes of innovation and four capabilities needed to successfully use the open innovation approach. An IBM case study illustrates a holistic view of open innovation management.
Language
English
Keywords
Open Innovation; Process Archetypes
Modes of Innovation
Capabilities
IBM Case
HSG Classification
contribution to scientific community
Refereed
Yes
Event Title
7th European Academy of Management Conference (EURAM) 2007
Event Location
Paris
Event Date
16.-19.05.2007
Subject(s)
Division(s)
Eprints ID
37584