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OPEN INNOVATION AND COLLABORATION - Coggle Diagram
OPEN INNOVATION AND COLLABORATION
Principles of open innovation
Tap into internal knowledge
External R&D has significant value
Do not have to originate research in order to profit from it
Building a better business model is superior to being first to market
Best use of internal and external ideas, not generation of ideas
Profit from others intellectual property
Potential benefits
Increase the pool knowledge
Can reduce the cost and uncertainity
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 rather than creating value
Better balance of resources to search and identify ideas, rather than generate
Value of IP very sensitive to complementary capabilities such as brand, sales network, production, logistics, and complementary products and services
Challenges to apply
How to search for and identify relevant knowledge sources
How to share or transfer such knowldege, especially tacit and systematic
Less likely to lead to distinctive capabilities and more difficult to differentiate
External R&D also available to competitiors
Need sufficient R&D capability in order to identify, evaluate and adapt external R&D
First-mover advantages depend on technology and market contract
Types of collaboration
Subcontract
Licensing
Consortia
Joint venture
Strategic alliance
Network
Typical duration
Short term
Flexible
Advantage: Low commitment
Disadvantage: Potential lock-in
Medium term
Advantage: Technology acquisition
Disadvantage: Contract cost and constraints
Advantage: Expertise, standards, share funding
Long term
Advantage: Complementary know-how
Disadvantage: Strategic drift
Fixed term
Advantages: Cost and risk reduction
Disadvantages: Search costs, product performance and quality
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 alliances
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