10+10 reasons make “Open Innovation platform” a must for corporates!

10+10 reasons make “Open Innovation platform” a must for corporates!

1. Corporate Innovation is must, however, 95% of innovation initiatives in large firms fail leading to loss of time, money and resources.
2. Corporations are designed to ensure the success of their established businesses due to revenue pressure by supporting current customers and technologies & not Innovation.
3. Innovation requires fresh ideas, and fresh ideas require mavericks while corporate leaders are trapped by conventional thinking leaving no bandwidth for top talent to Innovate.
4. Corporate managers neglect new ‘innovation’ projects as they are considered as diversions from their focus on current status quo & optimizing revenue.
5. Lack of talent with “Mature Turks”—managers who have successfully run larger businesses with causal thinking but also readily challenge convention with effectual thinking.
6. Corporate R&D is slow to keep pace with accelerating pace of information technologies with softer success metrics, KPIs and lack of understanding of end customers dynamic needs.
7. The concept of “open innovation” captures the increasing propensity of firms to work across their traditional boundaries of operation breaking the wall garden.
8. "open innovation" plays a predominant role that helps firms in sourcing ‘innovation’ of potential value from the broader environment to optimize the business potential.
9. “Open Innovation” is sourced from outside corporates organizational boundaries by developing more outward-looking strategic approaches to ‘innovation’.
10. “Open Innovation as a platform” can exist at the sweet spot among a number of variables: risk level, capital investment, access to the external ecosystem, and engagement level while providing a wide variety of incentives for corporations. Here are some of them:

i.Scan Innovation horizon : “open Innovation platform” helps corporates continuously scan the horizon to identify disruptive innovation in fast changing technology landscape that impact their future business.

ii.Proximity to emerging technology and trends: Startups occur naturally at the cutting edge of technology. Through “open Innovation platform”corporations gain insights into new technologies and business models (among other things) that can be applied to other business segments.

iii.Access to talent: “open Innovation platform” due to its proximity to Startups, can provide a source of high-quality talent for the host corporation either through an acquisition or by strategic alliance.

iv.Open-source R&D: “open Innovation platform”provides a venue for multiple industry-specific experiments without having to deal with the costs or logistical hurdles associated with traditional R&D.

v.Competitive Gains: “open Innovation platform” helps discover, embrace, and adopt new disruptive innovation that helps corporates create new markets, generate higher revenue and off course profitability.

vi.Financial returns: “open Innovation platform” provides an opportunity to become equity stake holder in a participating startup, leading to financial gains if the startup grows rapidly or is acquired.

vii. Innovative culture: “open Innovation platform” brings the entrepreneurial mindset that rubs off on the company’s culture. Internal employees have the opportunity to become mentors and interact with the startups.

viii. Intrapreneurship a ‘ win-win’: “open Innovation platform” lets new ideas spur innovation throughout the company. Young minds ready to jump on the startup bandwagon can do so right within the company without leaving. It is a win-win as new ideas get encouragement & they stay within the company.

ix. New partnerships: The creation of a “open Innovation platform” sends a signal that a corporation is committed to engaging in the external innovation system increasing start-ups affinity to corporates brings continuous supply of Innovation.

x.Startups accelerate: “open Innovation platform” helps startups validate and accelerate their ideas with mentoring, monitoring, funding, market access, R&D knowledge, infrastructure and management expertise from corporates.