‘Open innovation’ is becoming a popular approach to innovation, building on the advantages of networking. But what problems might the implementation of such an approach throw up?

Open innovation is an approach used by creative companies such as the fashion and architecture that allows the use of purposive outflows and inflows of knowledge to increase the internal innovation and to expand the markets. However, the implementation of the approach can cause problems concerned with property rights and the way the interaction will be managed in established organizations. Additionally, the outsourcing practice aimed at seeking talented and skilled researchers brings in the workforce with cultural and geographical differences which can supply poor quality labor in the firm. Sharing of external knowledge can expose the core competencies of the organization to its rival companies. Therefore, the approach can make a business lose its competitive edge to its competitors…

  1. ABC Electronics has heard about open innovation and sees this as a possible solution to its flagging innovation efforts. How might they think about implementing such a program and what issues would they watch out for?

The ABC electronics can start focusing on looking for new and different people with new and profitable ideas. Therefore, the company should also consider suppliers by looking for new businesses that can share new ideas. It should find an external alliance with a group that is well connected and accessible internally and maintains a connection that catalyzes flourishing collaboration. The services and skills provided by the external unit should match with the needs of ABC electronics so that it can continue serving its customers and not invest in projects with short-term profits…    

Order a Similar or Custom Paper from our Writers