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Innovation networks
Prof. V.Seshadri SVKMs NMIMS

 Innovation networks- Types, Managing networks, Open Innovation networks, models of open innovation

Prof.V.Seshadri MOI - innovation networks Ref 1 Ch 6

Innovation networks
A network can be defined as a complex interconnected group or system to accomplish particular tasks. The concept of innovation networks denotes the working together with individuals /groups /organizations outside the company in a systematic manner to execute development projects. It offers many of the benefits of internal development, but with few of the drawbacks of collaboration Innovation networks may be seen as a new hybrid form of organization; a sort of virtual corporation
Prof.V.Seshadri MOI - innovation networks Ref 1 Ch 6

Innovation networks
A network can be thought of as consisting of a number of positions or nodes, occupied by individuals, firms, business units, universities, governments, customers or other actors and links or interactions between these nodes.

Prof.V.Seshadri MOI - innovation networks Ref 1 Ch 6

Innovation networks
A network perspective is concerned with how these economic actors are influenced by the social context in which they are embedded and how actions can be influenced by the position of actors. A network can influence the actions of its members a) through the flow and sharing of information within the network and b) through differences in position of the actors within the network which may cause power and control imbalances.
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Types of innovation networks

1. 2. a) b) Similar area Heterogeneous area Incremental approach Radical approach

Prof.V.Seshadri MOI - innovation networks Ref 1 Ch 6

 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/tidd

Types of innovation networks

Closed Open

Prof.V.Seshadri MOI - innovation networks Ref 1 Ch 6

 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/tidd

Open networks
Develops because of environmental interdependence & common interests E.g. Linux, Facebook

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Closed networks
It is an engineered network A nodal firm actively recruits other members No rationale of environmental interdependence or similar interest e.g. Microsoft in operating systems; Intel in microprocessors, P&G in Connect & Develop

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Learning networks
a network formally set up for the primary purpose of increasing knowledge (see the case study on Learning Networks) formally established and defined have a primary learning target have a structure for operation, with boundaries defining participation processes which can be mapped on to the learning cycle measurement of learning outcomes with feeds backsd which eventually decides whether or not to continue with the formal arrangement

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Virtual innovation networks

Based on firms that are connected by internet/intranet/extranet Exchange information within a business relationship to create value Common in Supply chain management & customer order automation

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Open Innovation -Principles

Not all the smart people work for you External ideas can help create value, but it takes internal R&D to claim a portion of that value for you. It is better to build a good business model before going to the market with it. If you make best use of internal & external ideas, you are sure to win. Profit from others use of your IP and also from your use of others IP. Expand R&D role from acquisition of knowledge to absorption of the know-why.
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1)Orchestra model Models for open innovation

e.g. Boeings 787 Dreamliner has a network of suppliers of components who design and build to performance as per standards agreed. Boeing focuses on integration and decision making

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2)Creative Bazaar model Models for open innovation

e.g. P&Gs Connect & Develop BMWs Virtual innovation agency

A firm goes (crowd sourcing) - shopping for innovation inputs and then goes about developing and integrating them with their product/system.

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3)Jam central Models for open innovation

Creating a central vision around which players are mobilized to contribute towards reaching it. e.g.5th generation computer project in Japan Philips Innohub

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4)Mod station models of innovation

Allows customers to make modifications to the game, software or hardware. e.g. Sun Microsystems opensparc Nokias Symbian O.S. Lego

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