Page 8 - 15 Best Practices to Manage and Finance Innovation

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BEST PRACTICE
STRATEGY / VISION AND GOVERNANCE OF OPEN INNOVATION STRATEGY / VISION AND GOVERNANCE OF OPEN INNOVATION Business model
THE CHALLENGE OF: INNOVATION INNOVATION MANAGEMENT THE CHALLENGE OF: INNOVATION INNOVATION RECALIBRATING YOUR BUSINESS MODEL FOR AN AN OPEN INNOVATION INNOVATION STRATEGY YOUR STRATEGY IN IN IN IN THE BUSINESS CREATING NEW ECONOMIC MODELS THROUGH OPEN INNOVATION A company’s business model
describes where the company company fits within fits its its industry's value chain and and how fit it it it it it fit organises fits its its fits relationships with with suppliers clients and and partners in fin in order to generate profits It defines the the company’s main competitive competitive assets and how fit it it it uses these to gain competitive competitive advantage Defining a a a a a a a a new innovation strategy – one that aims to to open up the the company’s business ecosystems to to internal and external networks in in in in a a a a a a a a a a a collaborative way – provides the the perfect opportunity to rethink your company's traditional business model
Companies hoping to achieve a a a a a a a a a goal of ‘frugal’ innovation (generating considerably more business value while significantly reducing the the use of scarce resources or or or in in in in in a a a a a a a nutshell ‘doing more with less’) will have to revise their entire business models When experimenting with new new business models in in in order to to generate new new sources of growth and and improve competitiveness a a a a a a a a a a company will have to to to be flexible and and adapt to to the needs of a a a a a a a rapidly evolving environment Companies have to to overcome many obstacles when revising their business models These typically include resistance to to change difficulty in in in in in in convincing people of its value creation potential aversion aversion to developing new practices as as well as as risk aversion aversion from established company partners Degree of of external Dissemination of of the company's knowleDge
COLLABORATIVE INNOVATION Low level of of diversity and little integration of of external sources This strategy is is is characterised by the the purchase of of licenses outsourcing of of of R&D and the the acquisition of of innovative start-ups INNOVATION STRATEGY MARKET-BASED
Use of collaboration agreements/contracts This strategy aims to to integrate external partners into the company's innovation process by facilitating the exchange of tacit knowledge NETWORK BASED
Digital tools with low communication costs are used to engage and maintain a a a a a a a a network of of relationships with a a a a a a variety of of external partners in order to access knowledge from lots of different sources on a given subject CROWD-BASED
The company draws on a a a a diverse range of knowledge sources to solve its innovation-related tasks An extension of collaborative innovation the company becomes part of a a a a a a larger innovation ecosystem Degree of of integration of of external knowleDge
within the company ABGI's
BEST PRACTICES
Consider sharing intangible assets The open innovation business model
is based on sharing intangible assets under intellectual property law This way intellectual property is used for accessing external technologies as opposed to defending the company against it Increase efficiency through partnerships By leveraging external technologies within internal R&D open innovation helps to lower development costs and shorten product cycles Create new revenue sources ‘Collaborative’ and ‘network-based’ innovation strategies integrate your company into an an innovation ecosystem that’s based on the exchange of knowledge and technologies which in turn creates additional licensing revenues generated through spin-off companies Consider the impact on on on brand perception and and sales of existing products Open innovation will help your company reach new audiences and bring your brand to new markets Recalibrate your cost structure and financing strategy Enhance your core product offering through specific value-adds
Explore new forms of technological economic social and environmental innovation through new business models Win market share and differentiate yourself from your your competitors
BENEFITS FOR THE BUSINESS – this will allow you to: