For over 25 years, yet2 has been at the forefront of Open Innovation (OI), navigating its evolution from rigid, linear models to agile, adaptive approaches. Unlike other early practitioners who have come and gone, we’ve continuously refined our methods by listening to client challenges and evolving market demands.
Today, we’re witnessing the rise of OI 3.0 and OI 4.0—a shift toward real-time iteration, trust-based partnerships, and flexible engagement strategies. This transition is already delivering significant value for companies ready to move beyond traditional frameworks.
From Linear to Agile: The Evolution of Open Innovation
Originally, OI followed a structured “Want, Find, Get, Manage” (WFGM) model, helping companies systematically integrate external innovation without disrupting internal processes. Learn more about this in our blog. While effective, this model often lacked the flexibility needed to adapt to shifting market dynamics.
yet2 has found that successful OI today requires multiple cycles of the ‘Find’ phase—allowing for strategic pivots, stakeholder input, and iterative learning before committing to a solution. Additionally, we see a growing emphasis on the four stages of the ‘Get’ phase (non-confidential discussions, confidential engagement, due diligence, and deal negotiation), making flexibility essential to success.
The Data: Open Innovation Is Becoming More Nimble
In 2020, yet2 managed roughly 140 OI projects—but less than 5% were flexible. Today, the landscape looks very different:
- In 2024 (Q1-Q3), more than 33% of projects were nimble, and reached 50% by year-end.
- Companies are shifting from transactional deals to trust-based collaborations.
- Speed and adaptability are no longer optional—they are essential.
This is more than a trend—it’s a fundamental recalibration of how OI works. Not adapting to this means losing speed to market and making decisions without enough data.
Client example: A linear approach would have led to a premature investment decision point.
Traditional OI methods often forced companies into premature investment decisions before fully understanding market dynamics. Clients now demand an iterative, responsive approach that allows for exploration before commitment.
Take a global consumer goods company looking to explore reusable snack packaging. A linear OI approach would have locked them into early-stage deals with well-known players—many of whom later struggled due to supply chain issues, lack of consumer adoption, or funding constraints.
Instead, yet2 iterated on the ‘Find’ phase, uncovering 89 previously overlooked companies across Australia, New Zealand, Japan, Malaysia, Taiwan, South Korea, Colombia, Kenya, South Africa, and the Philippines—markets where innovation was truly thriving. Our agile approach through continuous scouting and anonymous outreach surfaced critical data and insights early in the project enabling yet2 and the client to adjust strategy in real-time. As a result, we helped them match unmet needs with what’s actually possible, rather than forcing innovation into an inflexible model.
Is Your Open Innovation Strategy Built for the Future?
Companies that embrace flexibility in their OI strategies are the ones driving real impact. The question is: Is your organization adapting? Do you have the right partners? Is your approach nimble or rigid?
Coming Up in Part 2: The Client-Driven Push for Flexible OI
The demand for agility isn’t happening in isolation—clients are actively shaping this shift. In the next article, we’ll explore what factors driving companies to abandon rigid OI models and how they’re redefining success in innovation.
📩 Want to see how yet2 is helping companies navigate this shift? Download our latest case study on matching unmet needs with innovative solutions in consumer health.
Words by Emily Smith
Image by BingAI
