Let us discuss on an important strategically part which an company needs to have for the achievement of competitive advantage. Innovative Strategies plays an important role for any organisation to achieve its leadership position. In the coming slides you will find more details and in-depth idea about Innovative Strategies.
It has been found that the companies that have an view to invest into their innovative areas and capabilities will certainly be overcomes the tough economic conditions and also mark their growth when good times or favourable time comes. This proves that innovative temperament is required no matter how the external enviournment is. It is found that in the tough times the companies do various cost cuttings and they ignore their innovative capabalities but on the other hand there are some companies who invest on their innovative capabilities in tough times also and due to this they emerge as an leader when the growth returns.
So it is very much necessary to focus on an open innovation in the challenging business climate. When we say open innovation it means that we have to kept aside the traditional corporate boundaries and allow our intellectual properties to work for us freely both in the organisation and outside the company , this is very much challenging task but if it is followed it will certainly bring success to the company.
To have Innovative Strategies it is required five open- innovation moves and they are: Become a customer or supplier of your formal internal projects Let others develop your non-strategic initiatives Make your intellectual property work harder for you and others Grow your ecosystem, even when you are not growing Create open domains to reduce costs and expand participation All these points are discussed in the coming slides.
The first point says Become a customer or supplier of your formal internal projects
History shows that the companies that
continue to invest in their innovative
capabilities during tough economic
times are those that get best when growth
In a challenging business climate, focus
Open innovation can play an
important part in the solution by
breaking down the traditional corporate
boundaries, open innovation allows
intellectual property, ideas, and people
to flow freely both in and out of an
Five open-Innovation Moves
Become a customer or supplier of your formal
Let others develop your non-strategic initiatives
Make your intellectual property work harder for
you and others
Grow your ecosystem, even when you are not
Create open domains to reduce costs and expand
Become a customer or supplier of your formal
If your business is pursuing an important
capability that it can neither afford to
develop itself nor acquire on the open
market and others in or beyond your
Then join with those others to fund,
develop, and launch it as an independent
business and become its first customer.
Let others develop your nonstrategic
If your business is reinforcing on its core
activities and you have identified adjacent
complimentary initiatives that drain too much
attention, time an capital but that might attract
outside interest and investment.
Then spin them out to investors who can
takeover the development burden. Others will
fund the progress, and you can keep some equity
in case they make it big.
Make your IP work harder for you
If a lot of your company’s intellectual property
sits on a shelf and generates no direct financial
benefit & you understand that its value, to you
and to others…
Then let outside partners benefit from what
you’ve created ,continue its development and
pay you licensing fees. Many businesses recover
their R&D expenses spending in this way.
Grow your ecosystem, even when you
are not growing
If your company is an active innovator,
continually engaging with its customers,
collaborators,industry experts trade associations,
and others to identify future opportunities…
Then build on your ecosystem of potential
innovation partners. Be like a Major League
baseball general managers, who always know
which team will be interested in which player at
Create open domains to reduce costs
and expand participation
If your internal ideas are likely to attract interest
from valuable outside communities ,potentially
creating breakthrough advances or even
changing the game within our industry….
Then consider establishing open domains that
either exchange information and ideas or
provide shared facilities and services.
Taken together these are complicated activities that
should be approached holistically, under the
leadership of senior executives in strategic roles.
Darwin taught us that it’s neither the strongest nor
the most intelligent species survive; it’s those that
adapt best to changes in the environment.