How successful is Open Innovation as an innovation method? For leaders like Proctor and Gamble the answer is obvious but the same can’t be said for the vast majority of enterprises taking this route. Partner of The Conference on Social Product Development & Co-Creation, Doug Berger, takes the soundings.
Open Innovation has been an increasingly hot topic since 2003, and the publication of Henry Chesbrough’s book, Open Innovation. Here we are 8 years later. A top-of-mind question for innovation executives that are on this road is, “What does my company have to show for our innovation investment?” This article delineates where Open Innovation has been valuable and where it has yet to deliver returns. Chief Innovation Officers will find 6 specific action steps, which will significantly ramp up gains from their open innovation initiatives.
Lots of enthusiasm yet results are disappointing
Open Innovation has improved time to market, the creation of new product features, cost, technology scouting, and line additions. These are all vital metrics for R&D effectiveness. This enthusiasm, and rightly so, comes from delivering nice gains in the efficiency of new product development.
Yet, 60-80% of executives are disappointed with the results from growth initiatives and investments (recent Boston Consulting Group survey). At the end of the day, there is one result that executives truly care about from their innovation investments, and that is new growth. They are mystified as to why their investments in innovation haven’t yielded more share of existing customer’s spend, more new customers, and more new markets. Those executives based their investments on the seemingly sound assertions that best practices and processes would get them there, that new expertise was needed, and that growth ideas should come from outside the company.
Looking at innovation investments … What are executives seeing?
This blog post was orginally published in The Conference of Social Product Development & Co-Creation partner's blog, Innovation Management. To continue reading the full article, click here.