Time for open innovation – breaking the convention of product innovation
Open innovation is a model of practices used by companies, based on application of internal and external ideas, as well as the processes of implementing innovations to the market. They constitute the idea of a deliberate flow of knowledge, ideas and technologies accelerating the process of implementing innovations.
Open innovation is an evolutionary model shift that assumes that organizations can and should manage and develop both internal and external ideas to create innovation and thus be able to enter the market. It means that internal departments within an organization are not the only way to innovate.
The concept of open innovation was created to distinguish the innovative process, which is carried out inside the company and only with the use of its internal resources (closed innovation), and the process that is more and more commonly used on the market and consists in the use of ideas arising both inside and outside the company as well as internal and external methods of introducing a new product, i.e. a new technology to the market. The differences between closed innovation and open innovation are shown in Table 1.
Companies operating on the fast moving consumer goods (FMCG) follow the habits and new preferences of their customers in order to be able to meet their requirements and expectations towards their products.
In order to effectively manage innovations, one should remember about multiple paths. This is confirmed by the results of research by Ms Aneta Karasek from the Maria Curie-Skłodowska University in Lublin, which show that there are many impulses to introduce innovation, which is shown in Chart 1.
Nowadays, flexibility is becoming one of the most important capabilities in business as the product life cycle is shortened and the external environment of the organization is constantly changing, technologies improve every day. In such circumstances, companies cannot afford to develop technology solely in R&D departments, it is unproductive, ineffective and costly. For this reason, companies have “opened” their innovation processes to improve their innovation potential, as shown by the following inspirations from foreign markets:
The above examples are only inspirations for creating open innovations. It is possible with the support of UNICO, its committed, passionate team, research and development facilities and an offer created over the years and improved in line with changing trends.
If you did not find a ready solution in our portfolio, it is possible that we are currently working on it. Feel free to contact us – we will offer an individual solution that meets your expectations.
Literature:
- Sopińska, W.Mierzejewska Zarządzanie i Finanse Journal of Management and Finance Vol. 14, No. 2/1/2016
- Zawawi N.F.M, Wahab S.A., Al-Mamun A., Yaacob A.S., A/L Samy N.K. & Ali Fazal S. [2016], Defining the Concept of Innovation and Firm Innovativeness: A Critical Analysis from Resorce-Based View Perspective. International Journal of Buisness and Management; Vol. 11, No. 6; 2016;
- Orlov L.S. [2019], Open innovation theory: Definition, instruments, frameworks. Strategic Decisions and Risk Management, 10(4),396–408. DOI: 10.17747 / 2618-947X-2019-4-396-408;
- Bojewska B. [2009], Zarządzanie innowacjami jako źródło przedsiębiorczości małych i średnich przedsiębiorstw w Polsce, „Monografie i Opracowania”, 564, Szkoła Główna Handlowa w Warszawie;
- Czupilowska K. [2014], Innowacje produktowe w świetle preferencji konsumentów w segmencie czekolady na przykładzie rynku FMCG. Studia i prac Wydziału Nauk Ekonomicznych i Zarządzania nr 38, t. 1, Uniwersytet Szczeciński;
- Ahn Yong-Yeol, Ahnert S.E., Bagrow J.P., Barabasi Albert-Laszlo [2011] Flavor network and the principles of food pairing, Article in Scientific Report – November 2011;
- Ph. Kotler, F. Trias de Bes [2004], Marketing literalny, PWE, Warszawa 2004, s. 58;
- T. Olejniczak [2013], Innowacja produktowa na rynku żywności – nowość rzeczywista czy manipulacja?, „Handel Wewnętrzny” 2013, nr 3, s 195;
- H. W. Chesbrough, Open innovation, Harvard Business School Press, Boston, Massachusetts 2001, p. XXVI.
- A. Karasek, Źródła innowacji w polskich przedsiębiorstwach: wyniki badań, Zeszyty Naukowe Wydziałowe Uniwersytetu Ekonomicznego w Katowicach. Studia Ekonomiczne, 2014
