Insight: Ideas for Change - Open Innovation - Henry Chesbrough

TL;DR

Open innovation is the practice of incorporating external ideas and technologies into a company's innovation activities, resulting in cost reduction, time savings, and increased value creation.

Transcript

welcome to this session to discuss an Insight an idea with Henry chesboro my name is sumitra professor at NCR Henry welcome oh thank you you're best known for the discussion around open Innovation and perhaps even the father of open Innovation so can you perhaps just explain what does open innovation mean so open innovation in very briefly would be... Read More

Key Insights

• 🤗 Open innovation reduces costs by utilizing external resources and starting at an advanced stage of development.
• 🥳 Sharing ideas and technologies externally can create value chains and stimulate various parts of the ecosystem.
• 🤗 Open innovation can lead to research and development becoming economically sustainable.
• 🈺 The pharmaceutical industry needs to embrace open innovation to overcome challenges with the traditional business model.
• 🤗 Cultural change and mindset shift are necessary for successful implementation of open innovation.
• ❓ Reward systems and talent management practices should be adapted to recognize and celebrate external contributions.
• 🤗 Open innovation has been more widely accepted in the outside-in aspect, while the inside-out aspect is still underdeveloped.
• 🈺 Open source and open innovation share similarities but differ in terms of the associated business models.

Questions & Answers

Q: What is open innovation?

Open innovation is the concept of incorporating external ideas and technologies into a company's innovation activities, while also allowing unused internal ideas and technologies to be utilized by others.

Q: What are some benefits of open innovation?

Open innovation offers cost reduction by leveraging external resources instead of starting from scratch. It also provides time savings by building upon ideas and technologies that have already been tested. Additionally, open innovation allows for the construction of value chains and the opportunity to earn royalties on shared technologies.

Q: How does open innovation address the challenges faced by the pharmaceutical industry?

The pharmaceutical industry is facing challenges with the traditional blockbuster business model. Open innovation suggests that instead of relying solely on internal research and development, companies should open up to external collaborations and leverages. This approach can lead to a more sustainable and efficient innovation process.

Q: How does open innovation impact talent management?

Open innovation requires a shift in reward systems and recognition. While traditional models often emphasize internal achievements, open innovation encourages the celebration of external contributions as well. Talent management needs to adapt to recognize the value of collaborating with external partners.

Summary & Key Takeaways

• Open innovation involves utilizing external ideas and technologies while allowing unused internal ideas to be used by others.

• The outside-in benefits include cost reduction, time savings, and the ability to start at a more advanced stage.

• The inside-out benefits include constructing value chains, earning royalties, and making research and development more economically sustainable.