Closed Innovation? No Way!! Time for OPEN INNOVATION!

Posted: October 9, 2010 in Creativity and Innovation Courses (SBM ITB)

Haii!! =D

Meet me again! The author of the blog with the title “The Door of Infinite Possibility”!

This time, i’m going to write about something very serious! It’s actually a big issue in this current year!
Before i began, let me introduce my subject for this post!

Say Hello to my new subject! Hellloooooo!! =D

Okay, so this is my new subject for this blog! OPEN INNOVATION!!
Some of you must be wandering right now.. What is OPEN INNOVATION? Why is it an issue for this current year? *wondering wondering*

No worry! Let us ask the one who make OPEN INNOVATION popular! Mr. Henry Chesbrough!

He is giving a lecturer now. =D

Mr Henry Chesbourgh states that “Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. This paradigm assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology.” [Chesbrough, 2006]

Innovation is very important for the company in order to survive! The company who didn’t do an innovation will go bankrupt because they will lose with their competitor. That is the reason why OPEN INNOVATION is a very important issue of the year, even tough not so many people realize how important it is!

Today, the company often used CLOSED INNOVATION instead of OPEN INNOVATION.

CLOSED INNOVATION is an innovation that only used an internal technology and knowledge in order to define a new products and services. In other words, only use the available resources inside the company.

CLOSED INNOVATION example is by build a research facility that research the products and services that will be hit in the market. The company who have a big capital will be benefit from this type of innovation of course because they can conduct a research that will make them superior than the other company. Some of the completed research have a license, but some of the patent research do not undergo more development because of not enough resources, money, and technology. Don ‘t you think that is a waste of money spend in the research?

That question will be answered by OPEN INNOVATION!!

Closed Innovation is no longer a good method of innovation. This is the list of Closed Innovation Erosion:

1. Increasingly mobile trained workers

2. More capable Universities

3. Diminished US hegemony

4. Erosion of oligopoly market positions

5. Enormous increase in Venture Capital

Now let us see our subject again! OPEN INNOVATION! *now in full color!* =D

OPEN INNOVATION is an innovation technique that include both the external and internal knowledge and technology in order to develop a new products or service that will be able to fit in other firm’s market, the new market, and the current market. Open Innovation suggest the company to consider the external knowledge and technology in order to improve their company.
Now is not the time to be closed to the environment. The company today needs to open their company to the environment!

The first step in doing an OPEN INNOVATION is by putting the OPEN SIGN in front of the company door. =3
Open Innovation is an innovation that suggest the company to share the research to the world outside the company. This means getting outside the boundary of the company. The company who have enough resources and technology can use the research created by other company and develop the research and even get a patent for it. This will resulting in a win-win solution for both the company because the company who doing a research will get a money and the company who develop the research will benefit from the research.

Today there is a lot of company that has changed into an OPEN INNOVATION company.
This is a few list of the company that is an OPEN INNOVATION Company :

Biocancer (Br) Provides drug development and clinical trial services to international pharmaceutical companies, mostly from the USA

TVEI (Br) A company founded by local media industry experts, offers multi-platform sport-related interactive content to consumers and advertising services to businesses.

Movix (Ch) Technologies for mobile operators developed by former employee of a large telco, the main product was licensed exclusively to a(nother) telco

Akikb (Ch) Self-storage solution, not available in Chile at the time, based on a widespread model from the USA and leveraging the infrastructure of an established “sister” construction company

Alltournative (Mx) Ecotourism and recreational experiences with the support and collaboration of local Mayan communities

Interfactura (Mx) Billing software and services initially developed for a large firm and integrated to its network of suppliers

This company do a research regarding their specialty. Their research will then be develop by the other company who have more money and technology. This kind of innovation will benefit both the company and will increase the scope of the products and services unlike the CLOSED INNOVATION.

The conclusion is that today company need to change their company into an OPEN INNOVATION company and say goodbye to CLOSED INNOVATION!

For more information and detailed regarding this OPEN INNOVATION i suggest you try to read and buy this book!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s