The Luxury of Open Innovation: A Case Study of Whirlpool (original) (raw)

Open innovation - what behind the buzzword; Analysing what Open Innovation Changes in the Way Companies Innovate in terms of Partner Relationships, Internal Organization and Innovation Performance

Innovation is higher than ever on companies’ agenda. 62% of executives interviewed in a recent survey say their business strategy is “largely” or “totally” dependent on Innovation. In today’s globalized competitive environment, innovation has become the key criterion by which you can assess how good a company is and how good it is likely to be in the future. To give an example of this innovation play in the emblematic mobile phone industry, Apple, RIM and HTC, the three most innovative companies in the industry, capture more than 50% of the total profit pool with less than 10% of the industry’s volume because they are ahead with innovation. In today’s world, companies are required to innovate more and faster than ever before. § Innovate more not only to address more demanding and fastly changing customers but also to respond to the specific needs of emerging markets. ChotuKool, the 69fridgeandNano,the69 fridge and Nano, the 69fridgeandNano,the 2,200 car are well known examples of the so-called “frugal innovation” chal...

Open Innovation: The New Way of Knowledge Transfer?

Due to globalization, competition has increased and companies have reorganized their activities in order to maintain profitability. The consequence has been an emphasis on short term results, at the expense of long term research. Therefore, most Corporate Research laboratories were closed or built down considerably. However, long term research is required for products that are difficult to copy by competitors. Moreover, companies have come to realize that only radical innovation, based on long term research, will distinguish them from their competitors. Since the end of the 1990s, attempts are being made to combine short term financial interests with long term innovation requirements. Many of these attempts can be classified under the heading of Open Innovation, which may be viewed as a company’s endeavour to profit from external knowledge without making heavy internal investment in long term research. This paper examines the prospects of Open Innovation, on the basis of own research and reported literature work. It is argued that companies cannot totally rely on external sources of knowledge, and that new ways must be found to compensate for the results that used to be achieved by companies’ own Corporate Research.

New Ways In Innovation Processes: Open Innovation

Open innovation extends the boundaries of innovation processes, and in several possible levels involves customers, partners, suppliers, and other non related people. The challenge of open innovation is how to keep an organisations future plans and secrets, while the new products and solutions are visible and useable for everyone. As a special form of open innovation Living Labs are created for involving different stakeholders in the innovation process: private and academic research institutions, business and governmental bodies, and the customers to try and evaluate the results.

Working Paper No 3 - Open Innovation as Corporate Strategy

Modern manufacturing is increasingly complex due to an increased number of stakeholders (e.g. community advocacy groups and consumer interest groups) as well as uncertainties created by rapidly changing technologies and economic conditions. Firms focused on keeping innovation exclusively in-house may find it difficult to develop products which satisfy the latest trends and diversity of interests. Open innovation models allow firms to integrate external IP as well as external resources into the firm’s production strategies. Careful planning and detailed attention to human resource development needs enables the creation of an internal culture that can readily absorb external information to generate value added business models and products.

Introduction to the Open Innovation Paradigm

2016

This chapter introduces the teacher and the student to the open innovation paradigm. It points out the rationale for open innovation from the historical point of view and describes the differences between closed and open innovation. As open innovation has been observed in numerous contexts, this chapter addresses theories related to open innovation on one side and practical implications on the other. We discuss the incentives for firms to engage in open innovation, as well as the shortcomings from engaging in it. Competitiveness results from generating value propositions that differ from competitors’ value propositions. Innovation increases the customers’ value propositions and generates revenues for innovators or owners of innovation (Schumpeter, 1934). Innovation also generates value to the society, even if the innovator does not capture the majority of its profits (Teece, 1986). This chapter first defines innovation and then explains how open innovation helps firms to innovate ea...

A New Step-by-Step Model for Implementing Open Innovation

Sustainability

Open innovation has been found to have many benefits and tangible results for those who partake in it. This study aims to showcase the importance of open innovation, and through a theoretical example present how an organization (university, research center, company, firm, etc.) can take action to implement open innovation guidelines. In this paper, firstly, a demonstration showing how open innovation can work with multiple partners is shown. Secondly, a model is presented that shows the steps an organization must follow to successfully implement open innovation. This model covers the introduction of an organization to open innovation from the initial interest to the implementation of the final product. Several success stories are also presented to demonstrate how these steps have been used by major organizations during several collaborations as well as the results produced from implementing open innovation.