The Era of Open Innovation - Technion – Israel Institute
Download
Report
Transcript The Era of Open Innovation - Technion – Israel Institute
מציגים :רעות סינטר
אביעד חבל
The Kinds of Innovation
There are two kinds of Innovation:
• Close Innovation
• Open Innovation
The Closed Innovation Model
In Close Innovation, a company generates, develops and
commercializes its own ideas.
The Open Innovation Model
In Open Innovation, a company commercializes both its
own ideas as well as innovations from other firms and
seeks ways to bring its in-house ideas to market by
deploying pathways outside its current businesses.
From Close to Open
The main factors for the transformation:
• The rise in the number and mobility of knowledge
workers.
• The growing availability of private venture capital.
These factors gave the scientists and engineers the
ability to pursue a discovery when a company doesn’t
pursue it in time.
How Prevalent Is Open Innovation?
All industries have been or will be migrating to Open
Innovation. They changed their R&D from internal to
external.
For example:
Computers
Semiconductors
Telecommunications systems equipment
military weapons and communications systems
The Different Modes of Innovation
Funding Innovation
Generating Innovation
Commercializing Innovation
Funding Innovation
Innovation investors – they provide funds to small
independent businesses, and help move ideas out of
corporations and universities into the market through
creation of startups.
Benefactors –benefactors focus on the early stages of
research discovery, they get a first look at the ideas and
can choose to found those that seem favorable for their
industry.
Generating Innovation
Innovation explorers – specialize in preforming the
discovery research function that previously took place
within corporate R&D labs.
Innovation merchants – like the explorer but their
activities focused on a narrow set of technologies.
Innovation architects – in order to create a new
valuable product they divide the system into pieces
allowing each company to focus on one part.
Innovation missionaries – people and organizations
that create and advance technologies without thinking
of profit.
Commercializing Innovation
Innovation marketers – focus on developing a deep
understanding of the current and potential needs in
the market in order to profit from market ideas.
Innovation one-stop centers – take the best ideas in
the market and deliver it to their customers at
competitive prices. Unlike marketers, they have
unshakable connection with the end users.
In conclusion
External R&D can create significant value.
Companies don’t have to originate the research in
order to profit from it.
Building a better business model is better than getting
to market first.
Making the best use of internal and external ideas.
The Open Innovation is so unstoppable that companies
are “been forced” to migrate to open innovation like
LEGO company.