Six Myths about Open Innovation
You have heard about Open Innovation in the news, but are hesitant to implement OI because you think it won’t be successful. Below are 6 myths about open innovation that will make you rethink your reluctance.
Nobody Has Success Using Open Innovation
No success? Open innovation has brought significant benefits to companies from enterprise to startup size, including GE, Lego, Samsung, and even NASA. The basis of success in OI is setting goals upfront and communicating these goals to all stakeholders. This ensures stakeholder buy-in and a workable timeline that those involved can refer to when delivering results at certain checkpoints.
Our Company is Too Small
While you may see huge corporations like Coca-Cola, Nestle, Nike, and more holding large-scale challenges, don’t let this scare you away from participating in your own challenge. Small and medium sized companies look to the expertise of technology scouts to find leading technologies and innovations that nobody else has yet. Smaller companies should look to focus their effort on a few key products or approaches ripe for innovation in order to drive impact early and create space for continued OI.
OI is Expensive
No two OI programs are alike, which means no two OI budgets are alike either. There are many resources available to companies starting out or building OI capabilities, including framing opportunities, lead generation, due diligence services and project management – outsourcing these tasks to experts saves the effort (and overhead) of full-time employees for the internal activities at the later stages of OI. If time is money, finding the right external partner is critical. At yet2, we offer different services to fit the needs and budget of our clients, from small/medium companies to Fortune 100 companies.
Our Internal Development Programs Will be Put at Risk
There’s nothing more worrisome than compromising your ongoing development efforts and intellectual property. Setting up and maintaining a policy that shields your employees from receiving confidential information is essential. A single point of entry for all outside idea submissions goes a long way toward preventing IP contamination, and contracting with an outside firm, such as yet2, to manage innovation portals, idea submissions and/or opportunity gathering cuts the risk of contamination to negligible.
We are Already Experts in our Field
Let’s be honest. You’re brilliant, you’re savvy, you’re experienced – but you only have so many hours and so much perspective outside your company walls. There’s someone out there with access to networks and resources that you may not have, and that can lead to highly promising ideas to present to your team. And as “Joy’s Law” states, “No matter who you are, the smartest people work for someone else.”
Open Innovation is a Passing Fad
Open Innovation is not another “Whole 30” diet. The idea of Open Innovation dates back to the 1960’s, even if the term wasn’t coined until 2003. It has provided countless wins across industries, including consumer goods, aerospace, electronics, oil & gas, computing, and biotech. What’s more, innovation resources have strengthened and evolved over time, from humble beginnings as online marketplaces during the dot com boom to fully customized, high-touch consulting and robust digital tools. Although the look of OI may continue to evolve, what is clear is that companies continue to look for ways to expand, diversify, and deliver impact through external partnerships.
If you would like to receive more information about opportunities open innovation can provide for your company, explore our website further or contact a team member to walk you through our process! Here at yet2, we want to share as much information about innovation as we can to impact how the future changes!