Realising the Value of Open Innovation
Open Innovation is about expanding the innovation potential of organisations by openingthem up to new ways of working with external partners. Whether this manifests itself as newco-working agreements, acquisition of start-ups with interesting technologies, or spinning outnew developments into external companies the ultimate goal is the same: to increaseinnovation and realise increased value as a result.While the specific term ‘Open Innovation’ was only popularised relatively recently – byBerkeley Professor Henry Chesbrough in 2003, based primarily on observations oftechnology firms – the broader underlying dynamics of the change towards ‘open’ havedeeper roots. For example many global pharmaceutical companies began to look externallyfor product innovation in the 80’s and 90’s. Today, a far wider range of organisations arenow explicitly embracing Open Innovation, and many more are now prepared to attributepart of their current success to their Open Innovation strategies and activities.This report highlights the current practices of a diverse group of companies, covering boththose with a long track record of formal Open Innovation programmes as well as those inindustries that have seldom been considered from an Open Innovation perspective. In allcases we see change, evolution and sometimes revolution. In some cases this value isalready significant; for example both Unilever and GlaxoSmithKline now have OpenInnovation elements in over 50% of their R&D projects and are actively developing theirOpen Innovation processes to enable them to compete in complex global marketplaces.
Aims of the Report
This report describes how Open Innovation has been embraced by the large companies whoform the core of the Big Innovation Centre’s sponsor group in order to drive value in theirown businesses, their supply base and their customer community. Using the experiences ofthe Big Innovation Centre’s corporate partners as a microcosm of the wider businessenvironment, the report addresses the following areas:- the
for Open Innovation which require management focus;- how the
characteristics of different market sectors
influence the impact of OpenInnovation;- the
from a closed model of innovation to a more open approach, describingdiscrete steps along the journey;- common
barriers and ongoing challenges
faced by companies adopting OpenInnovation.The report is aimed at anyone who has an interest in the practical aspects of implementingand developing an Open Innovation approach. It provides insights based on the collectiveexperiences of a number of organisations that have undertaken this journey and are usingOpen Innovation to deliver value.