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OPEN INNOVATION & COLLABRATION - Coggle Diagram
OPEN INNOVATION & COLLABRATION
Benefits of Open Innovation
Increase the pool of knowledge
Reduce reliance on limited internal knowledge
Can reduce the cost and uncertainty associated with internal R&D, and increase depth and breadth of R&D
Reduce costs of internal R&D, more resources on external search strategies and relationships
Greater emphasis on capturing First-mover advantages depend on rather than creating value
Better balance of resources to search and identify ideas, rather than generate
Value of IP very sensitive to com- plementary capabilities such as brand, sales network, production, logistics, and complementary products and services
Challenges of Open Innovation
How to search for and identify relevant knowledge sources
How to share or transfer such knowledge, especially tacit and
systemic Less likely to lead to distinctive capa- bilities and more difficult to differentiate
External R&D also available to competitors
Need sufficient R&D capability in order to identify, evaluate and adapt external R&D
technology and market context Developing a business model demands
time-consuming negotiation with other
actors
Generating ideas is only a small part of the innovation process
Most ideas unproven or no value, so cost of evaluation and development high Conflicts of commercial interest or strategic direction
Negotiation of acceptable forms and terms of IP licenses
Types of collabration
Subcontract/ supplier relations
Licensing
Consortia
Strategic alliance
Joint venture
Network
A model for collabration for innovation
MOTIVES
Strategic leadership and learning
Tactical-cost, time and risk
TECHNOLOGY
competitive significanc
complexity
codifiability
DESIGN OF ALLIANCE
partner selection
trust and communication
objectives and rewards
ORGANIZATION
• existing competencies
• corporate culture
• management comfort
LEARNING
intent to learn
receptivity to knowledge
transparency of partne
Managing Alliances
Only around half of all alliances are successful:
strong partners - 67% succeed (vs. 40%)
equal ownership - 60% succeed (vs. 31%)
minimal overlap - 62% succeed (vs. 25%)
flexible - 79% (vs. 33%)
Common problems with alliances:
share hard-earned technical & market knowledge
compromise product specification, development & strategy
danger of leakage of knowledge to third parties
Factors which improve success of an alliance:
perceived as important by all partners
alliance ‘champion’ exists
clear plan & milestones agreed
frequent communication between partners
contributions & benefits perceived as fair
high trust between partners, not contractual
Dimensions of trust:
network - because I know &/or like you
competence - because I believe you have the skills & know how
commitment - because we are committed to the same goals
problem if network>competence>commitment
Network type
Entrepreneur-based
Project or product development teams
Communities of practice
Spatial clusters
Sectoral networks
New technology consortium
Supply chain learning