Open Innovation In Business

4137 Words17 Pages
Business houses have faced a massive shift since the last decade. The present era is an era of technology and the introduction of internet in the form of e-commerce has changed the way business houses used to operate. Therefore an enterprise, whether it is a small scale enterprise or a large one, be it a new business house or a well established one, all require an effective manpower comprising of marketers for promoting their business’ because an entrepreneur alone may or may not have the skills to promote the business that he has established .Moreover the present business scenario cannot be operated with pure bricks rule only .The new technologies are increasing at a high rate and adapting to these technologies will be beneficial for the…show more content…
All tools of social media are being tapped by various kinds of corporate houses at a fast pace in order to dramatically accelerate the rate of open innovation. However there is a difference between innovation and open innovation. Open innovation is about fetching internal and external resources and then acting upon those opportunities to bring better innovation to the market at a faster pace. Innovation is an intra organisation process and comprises of those discoveries that are kept highly secret. There is no flow of information from and to any kind of external sources. Neither are any kind of profits shared with the external sources. In a closed innovation environment, activities are often divided and experimented within the R&D department where the best and the brightest are expected to make sure the company gets to market early with new ideas to gain the “first mover”…show more content…
Thus innovation must not be an asset only of the R&D development and must involve multiple resources.This gives way to the need of an open innovation environment. In an open innovation environment,the company is free to work with external companies or use any kind of resources(including people) to outrage their innovation process. Open innovation is not only about soliciting ideas from outside but it also includes that the external sources must contribute heavily to the innovation process. It is also more than just a partnership where you pay for specific services. An open innovation process familiarizes teamwork where the employees focus on the problems, needs, and issues of the company and work them out together. External inputs can be in the form of selected partnerships, supplier summits, facilitated networks, alliances, consortia and joint ventures. The only key factor is that the company must understand the kind of external resources that it wants to
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