While there are many high-profile examples of success, the term ‘open innovation’ is still often met with a level of confusion and even cynicism. In this installment of Big Fish Little Fish you will find practical advice and transferable tips from business leaders and innovation experts to help demystify and inform your own open innovation partnerships.
What is Open Innovation?
While there are many models, Open Innovation generally takes two forms: inbound and outbound.
Inbound innovation normally refers to organisations looking beyond their own internal R&D team, as well as their usual supply chains, to identify insights, capabilities, and possible new collaboration partners. They then work together to develop ideas to take to market.
Outbound innovation refers to organisations that open their ideas and/or information for others to develop into new products and services. This may entail giving 3rd party partners a ’right to roam’ over IP, which is developed in-house, and doing licensing deals to share in any profit that arises from their commercialisation.
An Open Innovation mindset is about learning from others; you don’t have to start from zero
Talking to businesses as part of the Big Fish, Little Fish campaign exposed the impact of differing company cultures, and the resultant clashes that can ultimately result in the breakdown of partnerships.
For every major barrier to success, businesses identified an innovation catalyst; steps that can be taken to mitigate these points of friction and help both parties collaborate more effectively.
You can read more about this in the first instalment of the Big Fish Little Fish mini guides series, Overcoming culture clash to catalyse innovation.
But when it comes to open innovation specifically, businesses highlighted several points that firms should consider:
- “Show you are prepared to put skin in the game”
- “Address IP early”
- “It is easy to get excited by the opportunity, but don’t lose the structure”
- “Translate how this innovation partnership will impact the sales and commercial teams on the ground”
- “You are not failing, you are learning”
Improving partnerships between large and small firms is part of CBI’s desire to create a dynamic, competitive, future focused economy, driven by innovation, that will support UK prosperity over the coming decade.
The CBI set out its vision for how this will be achieved in Seize the Moment empowering business to be at the forefront of positive change.
Read the next installments in the Big Fish Little Fish mini-guide series.
Delivered in partnership with Kainos
At Kainos, innovation comes first. We reimagine how organisations operate, using the very latest technology and the curiosity, enthusiasm and talent of our incredible people to deliver game-changing results.
Hear from Paul Batterham at Kainos on the benefits of innovation partnerships with startups such as loyalBe
What can you do?
- Share this article with your networks and include your own story with #PartnerToProgress @cbitweets
- Reflect on your own approach to partnerships and consider if there are changes you can make
- Get in touch to help shape the next phase of CBI’s campaign to help businesses innovate through partnership
- Join CBI as a member along with 190,000 businesses to benefit from networks, practical support and insight and to ensure your voice is heard and to on the issues that matter to your business.