Run structured open innovation programs

There are different types of open innovation. The three most common types include:

Internal open innovation

This type of open innovation happens when a company opens up its R&D department to employees from other departments within the organization. The aim is to get new perspectives on how to solve problems and develop new products, services, or processes.

An example of internal open innovation is when a company allows its employees to share their knowledge and expertise, leading to more innovative solutions.

This approach has helped many companies develop new products and improve their existing products faster than if they had relied solely on their internal resources.

External open innovation

This open innovation happens when a company solicits ideas and advice from outside the organization. The company may use various methods, such as social media, online platforms, or competitions.

An example of this method is crowdsourcing, where a company asks for ideas or solutions from a large group of people, usually via the internet.

Crowdsourcing can be a very effective way to generate new ideas, as it allows a company to tap into the collective knowledge of a large group of people.

Can also classify open innovation according to the level of inclusion

Companies may leverage open innovation in various ways, putting the principle into practice whichever best serves their commercial goals. You can clearly grasp how to utilize open innovation as you consider the various forms it might take.

Four levels of inclusiveness allow us to categorize open innovation:

1. Intracompany

Intracompany refers to internal initiatives for open innovation. While this form of invention counters the general tenets of open innovation, intracompany innovation collects resources from several departments.

The idea is that by doing so, your company can develop products or services more quickly than if it relied on a single department. For example, a company might have a policy allowing employees from different departments to share ideas.

2. Intercompany

In an intercompany open innovation, open collaboration between two or more businesses happens. Such an arrangement can offer several advantages, the most noteworthy being sharing resources, which can decrease costs.

Other benefits include a reduction in the time it takes to bring products or services to market and an increase in the overall quality of the innovation.

One example of an intercompany concept is when two companies collaborate to develop a new product, like how Apple and Mastercard worked together to produce Apple Pay.

This app allows people to save and use the information from their credit or debit cards to perform cardless transactions via iPhones.

3. For experts

This type of open innovation involves bringing in individuals from outside the business with the necessary skills and expertise to offer insightful commentary on any innovation-related activities of the company.

An example of this approach would be a company inviting experts from other industries to offer their thoughts on how the company could improve its products or services.

4. Publicly open

A publicly open innovation welcomes anyone from outside the company to participate in open innovation, regardless of their background.

An excellent example of publicly open innovation is the open source movement, where businesses allow anyone to contribute to developing their products or services.

This type of innovation is often seen as the riskiest, as it can be challenging to control the quality of the contributions.

There are benefits and drawbacks to each type of open innovation. It is essential to consider these factors when deciding which form of open innovation is suitable for your company.

Open innovation positively impacts a company’s bottom line, but it is essential to remember that it is not a panacea.

There are risks associated with open innovation, and it is vital to be aware of these before embarking on any open innovation initiatives. Open innovation can be a powerful tool for companies looking to improve their products and services when done correctly.