Abstract
Open innovation project is knowledge intensive. It has become an imperative to collaborate in learning and sharing knowledge from inter organization networks. The challenge of these networks is to manage and develop interpretations of the internal and external environments of enterprises. Personal contacts take place in the organizations' networks. Social groups are formed through their interactions. Creative individuals share their knowledge within the group. This leads to open innovation initiatives Three case illustrations are explained.
TopIntroduction
The basic functions such as production, marketing and finance continue to be the same from the day world has moved from agriculture economy to industrial economy. Business processes, procedures, methods, strategy, management thinking and approach related to basic functions have been changing. Any change such as adding to the new features to the existing products, designing a new product, changing the business processes, business models and other activities in the basic functions in an organization has to be carried out. This assignment is given to research and development department. The role of a research and development in an organization is to think of a new approach for the above activities. In case there is no research and development department in an organization, a group of executives at the instruction of the management will form as a group to carry out innovation initiative for the above activities. Their innovative approach will be based on the professional experience and knowledge (Anderson N & Costa A C, 2010). Their innovative approach will aim to be competitive in the market. In the present business scenario, it is not enough for enterprises to be competitive, but it is required to be acceptable as suppliers or service providers. Now it has become a necessary for every enterprise to think differently and follow a new approach to manage their business goals. Now critical business needs decide the type of innovation initiative is to be adopted.
In recent times open innovation initiative is gaining importance for the strategic management purposes. Now enterprises have started opening up their open innovation process and adapt their business models to benefit not only from internal but also from external ideas and knowledge. An important aspect of open innovation is that enterprises can capitalize on expanding the research and development activities by using external ideas as well as internal ideas for expanding their domestic and global markets. The open innovation approach forces enterprises to cross boundaries to get ideas from the various stake holders (Arora, 2015).
Essence of Open Innovation:
Open innovation project is knowledge intensive. It has become an imperative to collaborate in learning and sharing knowledge from inter organization networks (Denning & Dunham, 2012). The challenge of these networks is to manage and develop interpretations of the internal and external environments of enterprises. Personal contacts take place in the organizations’ networks. Social groups are formed through their interactions. Creative individuals share their knowledge within the group. This leads to open innovation initiatives (Kasemsap K, 2014). Ultimately it can be said that open innovation in the business landscape is the solution to face rapid changes that are taking place in domestic and global economy.
Key Terms in this Chapter
Globalization: The process by which business starts operating on a global scale.
Invention: Innovation means designing and creating something has never been made before.
Social media: Social media use web technology to quickly disseminate knowledge and information to huge number of users. Face book, Twitter, Blog, and other similar social networking site are collectively referred to social media.
Knowledge Harvesting: Knowledge harvesting is an integrated set of processes that allow the often-hidden insight of human expertise to be captured. Then it is converted into a specific actionable know-how that can be transferred to others.
Innovation: This deals with bringing in new methods and ideas resulting in required changes in an enterprise.
Core Team: A team consists of domain experts to perform multiple disciplinary activities.
Virtual Reality: A system in which images that look like real three-dimensional objects are created by a computer system.