...What is open innovation? What advantages does it bring? How does it contrast with the “closed” innovation model? In open innovation, the company does not depend on its internal research alone, it commercializes innovation from other firms as well. There is no boundary within which the company works, the workforce is highly mobile and every idea is welcome. Also the market segments are also not isolated, if an innovation caters to the needs of a different segment, the company might still go ahead and commercialize it that is the company will be willing to invest in a different business as well. In company that follows open innovation model, you can make initially promising idea into a really successful commercial product with a little tweaking whereas in closed innovation these ideas are disposed completely. The contrast between the two models is that in open innovation the company that commercializes the product doesn’t necessarily discover the original idea. In closed innovation model, the company believes that not sharing the IP will bring in profits whereas in open innovation model sharing the IP and others using their IP is seen as profit making. What types of innovators are identified by the article? What are their distinctive features? The article talk about four different types of innovators-innovation explorers, innovation merchants, innovation architects and innovation missionaries. Each types has distinctive features which helps each type make business. ...
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...Long Range Planning 41 (2008) 378e394 http://www.elsevier.com/locate/lrp Innovation Games: A New Approach to the Competitive Challenge ´ Roger Miller, Xavier Olleros and Luis Molinie Innovation is often perceived as an unmanageable phenomenon. Bets are placed on new products with the hope that a few winners will compensate for the many losers. At best, sophisticated selection procedures impose a certain discipline and provide guidance for containing costly errors. The research that we have conducted yields a more nuanced view. Innovation, we have found, becomes manageable when managers move away from universalistic prescriptions and recognise that different rules and practices apply in different contexts. Our main argument is that both executives and public officials need to learn from the new realities of innovation. Instead of being a uniform process, innovation takes place in seven distinct ‘games’, focusing on market creation, market maintenance and innovator support. Rules for managing innovation are neither generic best practices that can be applied universally, nor narrow industry-specific recipes. Instead, distinct contexts call for specific strategies and rules to create and capture market value. Thus, innovation games are not predetermined sets of rules but leave ample room for creative competition and collaboration. Our approach urges business executives and academics to reassess the validity of conventional approaches, no matter how well established. Managers...
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...1. Short History of Sopharma Established as a small manufacturing laboratory with the Bulgarian Pharmaceutical Cooperative Society in 1942, the company grew into Galenus Factory, the first modern pharmaceutical enterprise on the Balkan Peninsula. After its nationalization in 1953, Galenus Factory was renamed to Chemical-Pharmaceutical Plant. After the successful privatization in September 2000, Sopharma has become a private pharmaceutical company with priorities aimed at the establishment of the world standards for quality and efficiency. In 2000, 67% of Sopharma was privatized by Elpharma - a consortium between Unipharma and Electroimpex. Bulgarian pharmaceutical company Unipharma was just privatized by the present CEO of Sopharma Ognian Donev while Electroimpex was owned by Bulgarian businessman and entrepreneur Borislav Dionisev. After Privatization Sopharma modernized and increased its production capabilities. At present Sopharma is the main unit in the structure of the group “Sopharma Industries”. As of September 2009 Sopharma owns 16 subsidiaries - 8 in Bulgaria and 8 abroad. Most of them operate in the field of medicine and produce different types of products for medicine and cosmetics or support the main activity. Some Bulgarian subsidiaries are publicly traded and are listed on the Bulgarian Stock exchange. 2. Environment a. GDP, inflation, exchange rate, current account deficit b. Products and Markets Sopharma is currently active in three areas: •...
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...Business Model INNOCENTIVE is an “open source innovation” company founded in 2001 as a venture company within Eli Lilly & Co, a major pharmaceutical company. It is based on the idea that valuable ideas come inside or outside the company, and is distributed widely in markets and around the world. The business model of crowdsourcing pioneer INNOCENTIVE is quite similar to a question-answer web forum on the web. Main stakeholders in this model • The “Seeker”- The Company, organization or individual who is looking for an answer to a problem or a question. • The “Solver” – Individuals who are willing to answer to the questions or problems, usually giving a good solution based on experience or their idea • The “Observer” –Though this does not appear on their company page, INNOCENTIVE acts as a moderator to guide the two parties. The “Seeker” (it can be a corporation, governmental entity, nonprofit organization or partners) registers to INNOCENTIVE site and sets: 1. The question or problem to ask, 2. Set the amount of reward when the problem is answer to the “solver” 3. And, set the deadline, by when the problem would like to be solved. The “Seeker” will also pay a fee each time the problem is posted. The amount of the reward will be decided by the “Seeker” and INNOCENTIVE, based on such criteria as how effective the answer/idea was, or by how much profit it would bring to the “Seeker”. On the other hand, the uniqueness of this model is that the “Solver”...
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...CONNECT & DEVELOP: A NEW APPROACH TO INNOVATION AT PROCTER & GAMBLE Written by Larry Huston (vice-president for innovation and knowledge) and Nabil Sakkab (senior vice-president for corporate R&D) in 2006 PREMISE Procter & Gamble launched a new line of Pringles potato crisps in 2004 with pictures and words—trivia questions, animal facts, jokes—printed on each crisp. They were an immediate hit. In the old days, it might have taken us two years to bring this product to market, and we would have shouldered all of the investment and risk internally. But by applying a fundamentally new approach to innovation, we were able to accelerate Pringles Prints from concept to launch in less than a year and at a fraction of what it would have otherwise cost. Here’s how we did it. Back in 2002, as we were brainstorming about ways to make snacks more novel and fun, someone suggested that we print pop culture images on Pringles. It was a great idea, but how would we do it? One of our researchers thought we should try ink-jetting pictures onto the potato dough, and she used the printer in her office for a test run. (You can imagine her call to our computer help desk.) We quickly realized that every crisp would have to be printed as it came out of frying, when it was still at a high humidity and temperature. And somehow, we’d have to produce sharp images, in multiple colors, even as we printed thousands upon thousands of crisps each minute. Moreover, creating edible dyes...
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...MakerBot lead growth of the new personal manufacturing industry? 1) Makerbot uses open source technology which shares not only the software and but the hardware in 3D printer. It help MarketBot to get more and more new ideas and new way to improve their products. 2) MakerBot also sold printing consumables form a wide range plastics distributors. This will help MakerBot reduce cost of purchase and can provide customers a great diversity of choose. Specifically, the ABS plastic is safety and in an array of colors. This above is the MakerBot’s business model which is change the game rule of traditional manufactory process. 3) The maker community is the engine of MakerBot’s innovation. There are Magazines, group creativity and the Makey Awards help MakerBot to met create, explore and share innovations using new technologies. 4) MakerBot get support from Big company and government. GE, Ford, Kauffman Foundation build some community to help customers learn about the latest manufacturing techniques and the White House give strong signal to support the 3D industry. * Long term, how potent was Makerbot’s open innovation strategy focused on crowdsourcing, in the face of rising competition? 1) Makerbot’s open innovation strategy has the following advantages: 2) Efficiency. There are thousands of way to solve the problem or design a product. In this way, open innovation is over the company to solve problem by themselves. 3) Low cost. 3D print value chain...
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...USA www.ijbssnet.com A study of Organizational Citizenship Behaviours, Organizational Structures and Open Innovation M. Muzamil NAQSHBANDI* Dr. Sharan KAUR Deptt of Business Strategy and Policy Faculty of Business and Accountancy University of Malaya, Kuala Lumpur, Malaysia- 50603 E-mail: virkul@gmail.com* Abstract With increasing technological advances, the need to create not only innovations but faster innovation has become a part of sustaining or gaining competitive advantage. Open innovation paradigm answers this need by utilizing larger resources and expertise that firms involved in the open innovation process offer. Given the recency of the concept of open innovation, the factors that influence the creation of open innovation are hazy. Most of the research on open innovation looks at the “hard” aspects of organizations, while the soft issues stand less researched. This conceptual paper draws attention to two such aspects of organization: organizational citizenship behaviour and organizational structure. This paper proposes that practicing organizational citizenship behaviours by the employees enhances the chances of creation of open innovation while not doing so can botch up the whole exercise particularly during the infancy stage. It is also proposed that informal organizational structures favour creation of innovation in the open innovation paradigm more than the rigid formal structures. It is further argued that besides proper citizenship behaviours...
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...How to foster innovation in your business Presentation on the occasion of the Credit Suisse event 7th September 2013, Zurich Dr. Reto Müller Chairman of the Board of Directors Helbling Holding AG Helbling - a Leader in Technological Innovation and Business Consulting Helbling Group Key figures 2012 We are unique through our ability to integrate a spectrum of professional know-how, experience and skills. 458 employees Our ability to link technological expertise with business competence results in entrepreneurial success for our clients. Companies in Switzerland, Germany, USA and China Revenues CHF 110.9m International Network Offices (Corporate Finance International) Owned by 25 managing partners 2 Examples of innovations at Helbling Extract out of some thousand innovation projects in more than 50 countries Innovation leaders collaborating with Helbling: Nestlé, Roche, ABB, Airbus, Siemens, Medtronic, Schindler, Pfizer, Novartis, Sonova, Google, BSH, Geberit, Sika, V-Zug, Source: Helbling Qiagen, Tecan and many others 3 Strategic innovation management – selected Helbling references Companies Why Helbling? We measure ourselves - e.g. on the increase of the value of your innovation pipeline We are senior experts with over 15 years consulting experience and a focus on the topics "Increasing innovation success and increasing the power of innovation» We use self-developed tools and instruments ...
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...CAREERS TRENDING: Business Idea Generator // Starting a Business // Cloud Computing // Email Marketing // Starting a Website // Small Business Resource Center Reference: Innovation: Key to Successful Business by Chad Brooks, BusinessNewsDaily Senior Writer | September 23, 2013 08:20pm ET 21 33 1 Reddit 23 ideas, inventions, patents [Pin It] Credit: Light bulb idea image via Shutterstock View full size image One of the keys to any successful business is being able to come up with new ideas to keep operations, products and services fresh. The process of bringing those ideas to reality is called innovation. While thinking up new ideas is one step of the process, businesses have a much greater task in trying to turn that into an actual product or service that will benefit customers. In an article he wrote for BusinessNewsDaily, Fusion92 vice president of innovation Jacob Beckley said while innovation might have slightly different meanings depending on the industry, its core is universal. "It embodies the improvement of something that has come before," Beckley wrote. "It is the evolution of convenience, efficiencyand effectiveness." The companies that do this best, according to Beckley, are the ones that will ultimately have sustained success. "In the vast sea of innovation, companies that take the largest risk, close the biggest gaps and identify the newest opportunities are rewarded with the title of true innovators and leaders by their consumers...
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...Business Development and Innovation OpenIDEO Case 1) What are the respective strengths and weaknesses of IDEO and OpenIDEO ? IDEO : Strengths: The major strength of IDEO is its very innovative nature: the culture of the firm is to always think about how to build the future through creation and experimentation. The services they offer go beyond just product innovation: they create whole new innovative strategies closely with their clients. Moreover, they are able to develop those strategies thanks to their human resources that are a key element for IDEO. They attract skilled, creative and motivated employees so it enables them come up with the best innovative solutions. Combined with their collaborative way of work and deep brainstorming sessions, IDEO is able to offer original and efficient services. Finally, one of the firm’s strength is to emphasize on the use of prototypes that is a powerful way of trying something and see how people would react to it. IDEO’s three R’s (“rough, rapid and right”) enable them to better achieve their designing and innovation strategies. Weaknesses: The main weakness of IDEO would be that they lack expertise on a certain field. Indeed, they choose to have a more general approach to problem solving that is not to focus on a particular domain but apply their concepts to any sector. They offer design-consulting services in many areas such as education, energy, financial services, health, food etc. so it can be a weakness to be over-diversified...
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...INNOVATION IS WHOSE JOB? WHAT IS INNOVATION; A PRODUCT OR A PROCESS? A lot of thought and research has gone into the topic of Innovation. It is one subject that carries several definitions and opinions. The most common one being that Innovation is the act of coming up with new (mostly radical) ideas in form of products or a new technology. This particular definition paints a picture of some sort of paradigm shift from the conventional way of doing things. Today, however, Innovation has been found to encompass a wide range of business activities from pricing to costing models and service delivery options. In this regards, the guy that came up with the idea of turning wood into chairs is not more innovative than the guy that came up with the idea of putting cushions on it and/or how to market it and earn profit. The 5 Myths of Innovation addresses the basic assumptions generally made about Innovation. The authors seek to examine these assumptions and comment on its validity based on research and reported experience at the companies studied. The first myth is about The Eureka Moment. This talks about that áh’ feeling most often associated with a flash of insight or original idea. The article further states that a lot of companies organize big brainstorming events, ideation workshops, or innovation jams to try and come up with that sterling idea that will shake the world. As most often happens, nothing gets done after all these. The article makes a claim that the reason behind...
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...precise illustration, explain how BMW has planned innovation and new product development to manage its technology life cycle, i.e., product life cycle The ways in which BMW has planned innovation, and new product development, to manage their technology life cycle and product life cycle, has been accomplished through consistent innovation. In consideration of the life cycle of BMW, there are many factors taken into account when developing a marketing strategy. Life Cycle Value Assessment (LCVA), or life cycle analysis, is a tool used to determine environmental, economic, and other various determining factors which can influence the entire life cycle of a given product. It also serves to influence important business decisions. The continued growth and success of BMW can be defined by the way in which they focus on culture as a company. According to the article, Innovation: A Strategic HR Imperative, “For example, BMW’s continued success is its strategic focus on developing customer-friendly innovations, coupled with an approach to innovation management that is unique within the automotive industry” (Stanleigh, 2012). BMW sets themselves apart because they prescribe to the philosophy of a company knowing what it stands for, and capitalizing on its strengths; by doing so it can more easily develop and implement a clear strategy. While some companies put their primary focus on manufacturing, BMW also incorporates innovation throughout every department within the organization...
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...entrepreneurship and innovation in developing countries? (a) Haiti (b) Uganda (c) Ghana (d) Latvia 2) According to the article pertaining to innovation in developing nations, there is a positive relationship between ___________ and __________. (a) education, rate of income (b) cultural barriers, economic development (c) firm size, innovation 3) T/F As a benefit of service innovation, it is believed that users have valid, innovative, useful, and creative ideas. True A unique approach to innovations produces _______ innovation verse a typical strategy that produces ________ innovation. a) radical/incremental b) greater/less c)less/greater d) incremental/radical What is not one of Porters 5 forces for competitive strategy? a) Rivalry b) Substitutes c) Consumer power d) Barriers and entry 1. The adoption of a radical process innovation is significantly promoted THE MOST by: A. Large company size B. The presence of a champion C. Technology policies D. Sustainability Answer: B 2. Which of the following factors DOES NOT impact how well a company innovates? A. Company size B. Level of education C. Race D. Amount of resources Answer: C What factor could influence innovation? A. Size of firm B. Education C. Government Regulation D. All of the above Answer: D Rivalry, buyer power, supplier power, substitutes, and barriers of entry are the five forces for competitive strategy. T/F? Answer: True 1) In Ghana, innovation was greater...
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... Unit 2 Assignment 1 Erica Burnette December 1, 2012 MBA 6006 Dr. Douglas Buck The process of changing organizational culture is a long-term and difficult process. There is an undeniable resistance to change the former way to the new and evolving way of doing business. As businesses continue to expand in the global markets, it will require a strong leadership commitment to change the vision of what the goal of change will be in order to sustain continuous innovation. In the excerpt of Vineet Nayar’s, “Recasting the Role of CEO: Transferring the Responsibility for Change. How Leaders Tap the Creative Energy of Employees”, it demonstrates the concept that if management can remove itself and allow employees to lead that the collaboration process will lead to continuous and sustaining innovation. This assessment will explore the transformation that Nayar implemented within HCLT to change the organizational structure, culture, and processes to support and sustain innovation in the changing global markets. Recasting the Role of CEO is as it states is the role reversal change that Nayar implemented to change the organizational structure of thinking within his organization. From that trend he developed and equally important initiative call Employee First Councils which evolve from EPIC. As Nayar points out he saw that his organization would need to rethink the role of CEO and to transfer much more responsibility for change to the employee (Nayar...
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...Week 3 Knowledge Check Study Guide Concepts Mastery Areas in which people are Score: 20 / 21 Questions 100% 1 2 3 100% 4 5 6 Strategic planning 100% 7 8 9 Levels of planning 67% 10 11 12 The creative process 100% 13 14 15 100% 16 17 18 100% 19 20 21 creative Ingredients for enhancing innovation at work and approaches to innovation Obstacles to corporate innovation Barriers to effective decision making Concept: Areas in which people are creative Mastery 100% Questions 1 2 3 1. Ramona, a member of the innovation team at Buzzer Co., a beer manufacturing company, suggests that the company use the spent grain generated through the process of beer manufacturing to create commercial products. Ramona explains how the wasted grain can be broken down through the process of fermentation to generate biogas and compounds that can be used to make personal care products and clothes. In the context of William Miller's research, into which area is Ramona channeling her creativity? A. Organization creativity B. Relationship creativity C. Event creativity D. Material creativity Correct: The Correct Answer is: D. In the context of William Miller's research, Ramona is channeling her creativity into the area of material creativity. Material creativity entails discovering new uses and inventing materials for services, products...
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