The State of Open Innovation?
Doug Berger, of Innovate LLC, has published a thought provoking article at Innovation Management on the state of open innovation. In it he addresses areas where open innovation has been valuable, where executives still find it lacking, and presents action steps that can be taken to achieve those desired results.
Berger has found that, in general, executives are enthusiastic about gains in the efficiency of new product development brought about by open innovation. However, a Boston Consulting Group survey uncovers disappointment with the results from growth initiatives and investments; executives don’t understand why investments in innovation haven’t yielded more share of existing customer’s spend, more new customers, and more new markets. They seek new revenue streams from innovation but struggle to find products that will meet needs emerging markets, where growth potential is.
In response, Berger offers up strategic advice on innovation planning, from determining goals and the scale of innovation architecture that is needed to dealing with risk.
Blogger Paul Hobcraft of Agility Innovation Specialists shares a similar sentiment, stating that while the potential and benefits of open innovation are recognized and receiving management attention, the practice is still maturing. Organizations still struggle to define and develop an innovative culture, IT systems do not fully integrate the OI process and metrics remain a challenge. Hobcraft predicts that open innovation will slip out of use or be common place and be replaced by a more collaborative and co-creation framework on open innovation platforms.
What do you think? Are you optimistic about the state of open innovation and how it has evolved in the past decade? What do you predict for the future?
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