In recent times we have heard a lot about the concept of “open innovation” in the business sector. What is and what benefits does it have for a company?
WHAT IS IT?
This is an interesting concept coined in 2003 by the professor and expert in Economics Henry Chesbrough, who refers to a business model based on knowledge sharing in a bidirectional way to get the most innovative potential possible.
HOW DOES IT APPLY?
Open innovation revolves around the idea of innovation and collective intelligence to generate new opportunities for growth and development for all parties involved, as it becomes increasingly difficult to guarantee the growth of a company only with investments and own resources. Se tries to innovate beyond the internal resources that own a company, to open the doors to attract the talent.
It is about innovating beyond the internal resources that a company has, to open the doors to attract talent. Thus, a company can incorporate external ideas and technologies and take to the outside other technologies of its own that no longer use (surplus technology) and can be exploited or improved by others.
BENEFITS OF OPEN INNOVATION
The advantages of open innovation are many, both for large and small companies and especially in these times, because it is an exchange of ideas, resources, knowledge and expenses to accelerate any innovation process that could not otherwise be carried finished. Its main benefits are:
- New business and growth opportunities: new markets
- Acceleration of innovation: reduces the cycles of each process by intervening internal and external talent with great knowledge in the field.
- Reduction of costs in innovation processes, especially in research and in the generation of ideas, but also in the rest to share costs.
In Spain, there are many companies with traditional organizational structures, but more and more companies are betting on open innovation as a business growth model, such as Banco Santander, Endesa, Correos and, of course, Telefónica who has accelerated more than 1,500 start up investing more than 120 million euros.
As a result, open innovation is not only another way of doing R & D, but also represents a new and much more collaborative business model that offers new opportunities and favors business innovation.
* At Atria Innovation we are dedicated to bringing R & D closer to both SMEs lacking this department and to multinationals in specific technologies in which they have no experience. Request information at: firstname.lastname@example.org