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How can you use open innovation to increase agility in a fast-changing market?

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Open innovation is a strategy that involves collaborating with external partners, such as customers, suppliers, startups, universities, or competitors, to share knowledge, resources, and ideas for creating new products, services, or processes. By opening up the innovation process, you can access a wider pool of talent, expertise, and feedback, and speed up the development and delivery of solutions that meet the changing needs and expectations of your market. In this article, you will learn how to use open innovation to increase agility in a fast-changing market, and what benefits and challenges you may encounter along the way.

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Ganesh Malani

Managing Partner at Apex Hatchers | Strategy & Innovation | Patron of Sustainable Development
Jo?o Carlos Barbosa

Sou apaixonado por Corporate Edutainment e Educa??o Executiva. Construindo a ENGROW, Cidade Aberta e cultivando o…
Markus Schreyer, PhD

Hospitality Executive | Chairman | Innovation, Experience, STEM

1 Define your goals and challenges

Before you engage in open innovation, you need to have a clear vision of what you want to achieve and what problems you want to solve. This will help you identify the best partners, platforms, and methods for your open innovation project. For example, if you want to improve your customer experience, you may want to co-create with your users, or use crowdsourcing platforms to gather feedback and insights. If you want to explore new technologies or markets, you may want to partner with startups, universities, or even competitors, or use open innovation labs or accelerators to test and validate your ideas.

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Markus Schreyer, PhD

Hospitality Executive | Chairman | Innovation, Experience, STEM
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Diving into open innovation? Start with the 'why' before the 'how'. Why is this product or service relevant, before you list all the features. For example, in my work with hospitality brands, we often co-created with consumers to validate concepts early on.

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2 Choose your open innovation model

There are different ways to implement open innovation, depending on your goals, challenges, resources, and culture. You can use a more inbound approach, where you seek and acquire external knowledge and ideas to enhance your internal capabilities, or a more outbound approach, where you share and exploit your internal knowledge and ideas with external partners to generate new revenue streams or social impact. You can also use a coupled approach, where you combine both inbound and outbound activities in a reciprocal and collaborative way. For example, you can join or create innovation networks, ecosystems, or communities, where you exchange knowledge, resources, and value with multiple stakeholders.

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Markus Schreyer, PhD

Hospitality Executive | Chairman | Innovation, Experience, STEM
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Reciprocity is key here. I've seen success with a coupled approach where inbound and outbound strategies are integrated. For instance, you might collaborate with external startups for fresh tech solutions while sharing your internal R&D with academic institutions for further research. Recent surveys show, that 80%+ of US corporations leveraging open innovation solutions to get access to tech.

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3 Manage your open innovation process

To ensure that your open innovation project is successful and agile, you need to manage it effectively and efficiently. This means that you need to establish clear roles and responsibilities, communication and collaboration channels, incentives and rewards, intellectual property and legal agreements, and evaluation and feedback mechanisms. You also need to align your open innovation process with your overall business strategy, and integrate it with your internal innovation process. For example, you can use agile methods, such as scrum or lean startup, to plan, execute, and iterate your open innovation project in short cycles, and involve your internal and external stakeholders in every stage.

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4 Foster your open innovation culture

One of the key factors that can influence your open innovation performance and agility is your organizational culture. You need to create a culture that supports and encourages open innovation, by promoting values such as trust, openness, diversity, curiosity, and experimentation. You also need to overcome barriers and resistance that may hinder your open innovation efforts, such as fear of losing control, not-invented-here syndrome, or lack of skills or resources. For example, you can provide training and coaching, celebrate successes and failures, and recognize and reward your open innovation contributors and champions.

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Ganesh Malani

Managing Partner at Apex Hatchers | Strategy & Innovation | Patron of Sustainable Development
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The key to agility is recognizing no company has a monopoly on good ideas. When designing its oral care products, Quip takes an open innovation approach by working with dentists and patients to source ideas from outside the company. They crowd-sourced suggestions from dental professionals actively using Quip toothbrushes to identify pain points and opportunities. This gives Quip invaluable real-world insights that their internal designers may miss. Quip remains nimble by embracing outside perspectives, not just internal R&D. Or consider GoldieBlox toys, which relied on a Kickstarter campaign to validate their concept of engineering toys for girls. By testing demand publicly before product development, they mitigated risk.

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Jo?o Carlos Barbosa

Sou apaixonado por Corporate Edutainment e Educa??o Executiva. Construindo a ENGROW, Cidade Aberta e cultivando o Desabafo Corporativo.
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A promo??o de uma cultura de inova??o aberta é fundamental para o sucesso organizacional. Ela envolve n?o apenas a implementa??o de políticas e práticas que encorajam a experimenta??o e a colabora??o, mas também a supera??o de barreiras culturais internas, como o medo de perder controle ou a resistência à mudan?a. Fomentar uma atmosfera de confian?a, abertura e diversidade é crucial para que as equipes se sintam seguras para explorar novas ideias e abordagens. O reconhecimento e a recompensa de esfor?os inovadores, tanto em sucessos quanto em fracassos, s?o passos importantes para construir uma mentalidade onde o aprendizado é contínuo.

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JC Negri

VP of Growth at Intech Innovation Group
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Strategic Partnerships: Collaborate on joint projects or initiatives to leverage each other's strengths and capabilities. This external collaboration can bring fresh perspectives and innovative solutions to navigate market changes. Open Collaboration Platforms: These platforms connect organizations with external innovators, allowing for the exchange of ideas, technologies, and solutions. Examples include innovation challenges, hackathons, or industry-specific collaborative networks.

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5 Learn from your open innovation outcomes

The final step in using open innovation to increase agility in a fast-changing market is to learn from your open innovation outcomes, both positive and negative. You need to measure and evaluate the impact and value of your open innovation project, not only in terms of financial or operational results, but also in terms of learning and growth. You also need to capture and share the lessons and best practices that you have gained from your open innovation experience, and use them to improve your future open innovation projects. For example, you can use tools such as surveys, interviews, case studies, or dashboards, to collect and analyze your open innovation data and feedback, and create a knowledge base for your open innovation community.

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Jo?o Carlos Barbosa

Sou apaixonado por Corporate Edutainment e Educa??o Executiva. Construindo a ENGROW, Cidade Aberta e cultivando o Desabafo Corporativo.
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Aprender com a inova??o aberta é chave para crescimento, analisando impactos e compartilhando li??es para futuras melhorias..

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Arnaud Marchand

Chief Executive Officer - JUBEA ??
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La flexibilité et l'adaptabilité sont essentielles pour réussir dans l'Open Innovation, car cela implique souvent des ajustements en cours de route.

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How can you use open innovation to increase agility in a fast-changing market?

1

2

3

4

5

6

1 Define your goals and challenges

2 Choose your open innovation model

3 Manage your open innovation process

4 Foster your open innovation culture

5 Learn from your open innovation outcomes

6 Here’s what else to consider

Business Innovation

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How can you use open innovation to increase agility in a fast-changing market?

1

2

3

4

5

6

1 Define your goals and challenges

2 Choose your open innovation model

3 Manage your open innovation process

4 Foster your open innovation culture

5 Learn from your open innovation outcomes

6 Here’s what else to consider

Business Innovation

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