Open Innovation is used for various reasons:
- To avoid undesirable developments,
- to involve the customers,
- to carry ideas to the outside world,
- to minimise development risks and shorten development cycles,
- for know-how acquisition and dissemination,
- to improve the image,
- for the development of external partnerships
- or the development of new markets.
These are just a few of many reasons. Everyone may have different reasons, but every reason is a good reason to innovate. Open Innovation creates an incentive and shows how important innovation is. A good innovation culture is more important than ever. But what does it really do for you? The question is relatively easy to answer, as there are some proven benefits of open innovation.
These are the advantages of Open Innovation for organisations
Furthermore, it is more likely that your innovation will be more innovative if several people work on it than if you work on it alone. Because by adding external people, new perspectives open up and a functional added value can be created sooner than, for example, by simply developing something further without asking others for their opinion. At the same time, this increases acceptance on the market, because you have already included the customers in the development process. In this way you also counteract undesirable developments. Furthermore, it is also possible to open up new markets, which you had not thought of before or which you simply could not reach with your base and which only become possible through cooperation with others.
In contrast to Closed Innovation, Open Innovation avoids the classic feedback loops, as much is left directly to the outside world in the development process. Internally, you can therefore concentrate on other tasks. This shortens the time needed to go to market.
On the one hand, open innovation brings cost savings: by cooperating with others, whether end customers or partners, many processes can be shifted to them, thereby saving costs.
A large pool of knowledge
If you have no or no good ideas yourself, you can use open innovation to obtain knowledge and know-how in addition to ideas. On the other hand, you can also pass on your own ideas and knowledge to others. In this way you do something good and perhaps you can also profit from the resulting innovation. So a large pool of knowledge is created in which you share things and develop things together. So together creating a win-win situation. Together is the keyword.