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Articles in category: Open Innovation
It’s a common question thrown at me by entrepreneurs, venture capitalists, or the more cynically minded corporate leaders.
That is, why bother trying to innovate if no matter what they do, large companies can no longer maintain a sustainable advantage and their life spans are just getting shorter and shorter? Isn’t it better to hasten Joseph Schumpeter’s process of creative destruction and move capital and employment from inefficient dinosaurs to more vibrant and agile upstarts?(Read Full Article)
Facebook’s acquisition of WhatsApp for a reported $19 billion (£11.3 billion) shows how procurement can get involved in high-risk high value projects, such as IT systems and major capital expenditure. Here are three points to inform your thinking: • Cost, price and value. The acquisition price of $19 billion has very little to do with cost because WhatsApp employs about 55 people and charges 69p in the UK for an annual service – it’s free for the first year.(Read Full Article)
I have spent much time in developing countries in which the concepts of innovation and in particular innovation management are still very immature. However, it was not until today where I attended a conference – and a hands-on workshop on developing new businesses – that I realized I need to pay even more attention to the different levels of innovation height and ambitions in different markets.
The more mature the market is, the more advanced you can be in your innovation thinking.(Read Full Article)
As more and more startups like Airbnb, Etsy and Kickstarter crowd into the space of the collaborative economy, big brands are starting to get in on the action, too. Staples sells products developed on Quirky; Avis has acquired Zipcar; Walgreens has partnered with TaskRabbit for delivery.(Read Full Article)
Kenya's mobile network operator Safaricom has been rated number 9 in innovation globally by Fast Company magazine due to its role in bridging the healthcare gap with telecoms services.
The magazine noted that Safaricom's Daktari 1525 which helps connect the doctor and patient had improved the lives of millions of Kenyans by making them healthy.
"In Kenya, where more than half of citizens live on less than a dollar a day, medical care can be a far-off luxury. But local telecom giant Safaricom has built a vital bridge between doctor and patient. This year, it's boosting marketing ...(Read Full Article)
We all want to be at the top of our industry. To achieve that we are today just as dependent on exceptional supplier relationships as we were fifteen years ago. It as become a lot easier yet still only a few organisations get this right. Consider the example of how Honda and Toyota started dominating the US auto market in the nineties. Applying these principles are just as valid now but more achievable through the communication habits and tools at our disposal today.(Read Full Article)
"I’ve seen few companies that would invest the time and trust in developing such strategic relationships with their suppliers but the ones that do, realise long-term sustainable business benefits.” Given the last statement from Santosh Nair of GEP regarding an organisation’s ability to identify, cultivate and then ultimately sustain the strategic relationship developed between a buying organisation and a supplier, is one for close scrutiny and consideration.
In order to reach its maximum effectiveness and benefits between two companies, innovation must be rooted in agreed executive working principles, shared responsibilities, open transparency, shared risk/reward and finally commitment ...(Read Full Article)
The first three Angolan domestic appliances assembling lines, owned by INOVIA company were inaugurated on Friday in the Special Economic Zone, in Viana, Luanda.(Read Full Article)
For procurement, delivering innovation is route to greater value and recognition. But what are we really talking about when you get past the buzzword?
In procurement, we all love to talk about innovation. It’s sexy and enticing because everyone wants to be the next Steve Jobs and because it improves the perception of value in the function. The problem is, the word has been used so liberally that its meaning is beginning to be diluted.
Whether you’re a digital start-up or an institutional entrepreneur, three simple heuristics offer an excellent way to determine whether a fledgling innovation initiative should be put out of its misery (and yours). Even if the innovation business case appears compelling and its numbers sound, should these three pathologies appear, don’t hesitate or delay: Kill your innovation effort ASAP.
1) No Pleasant Surprises
Almost all innovation efforts have the hiccoughs and bumps in the road. Design schedules invariably slip and that “quick-and-dirty” prototype ends up costing much more than expected. That’s normal. But listen closely for and pay ...(Read Full Article)
The development community's narrow focus on top-down innovation is obscuring the importance of other areas - such as user-led innovation - as useful inputs to the innovation process, says a leader of the UN Development Programme's innovation team.
The community must move away from its 'one-size-fits-all' approach to innovation and create a varied tool kit to adapt programmes to complex individual situations, says Giulio Quaggiotto, who leads the UN Development Programme (UNDP) Knowledge and Innovation team at the Europe and Central Asia office.(Read Full Article)
Open innovation is a new paradigm shift in which companies not only rely on their internal resources to make innovation happen. They merge these with external resources in order to bring better innovation to market faster. This is now happening in a much more systematic approach than ever before and the early movers are starting to see real benefits out of this approach. Unfortunately, there are not yet any notable South African companies when it comes to open innovation. It is my impression that many companies are still trying to understand the more traditional kind of innovation based on their ...(Read Full Article)
This little story speaks in volumes about how companies will tackle the built-up deficit in innovation training and development in different ways. A CFO is wary about investing in the training and education of the employees. He asks the CEO: ”What happens if we invest in developing our people and then they leave the company?” The CEO is a bright person and replies: ”What happens if we don’t and they stay?” Nicely put! We are definitely going to see some winners and losers in the coming years.(Read Full Article)
In an effort to drive African-led development, the African Innovation Foundation (AIF) has announced the call for entries for the 2014 Innovation Prize for Africa (IPA) on local innovations and entrepreneurships. The African challenge for entrepreneurs and innovators is to propose projects that unlock new African potential under one of five categories, which include, agriculture and agribusiness; environment, energy and water; health and wellbeing; Information and Communications Technolgy (ICT) applications; and manufacturing and services industries. "The winning submission will be awarded a prize of $100, 000, with two additional $ 25 000, for the runner up with an innovation with the ...(Read Full Article)
One of the most common complaints senior executives have about disruptive innovation is its seemingly snail-like pace. How is it, they wonder, that it takes us forever to pursue ideas that promise to create new markets when the world seems to be innovating at a dizzying pace? This frustration is compounded by the fact that the usual levers senior executives use to get things to go faster — creating tight deadlines, flooding the project with resources, checking in more frequently — don't seem to work, and in many cases cause teams working on disruptive ideas to actually go slower. Why is ...(Read Full Article)
The Minister of Science and Technology, Derek Hanekom hosted the first-ever dialogue between government, business, academia, civil society and members of the Portfolio Committee on Science and Technology to enhance the Science Technology and Innovation system of South Africa. Strengthening the system is required to address the need for improved coordination and coherence in the use of research and development in promoting innovation for the purposes of social and economic development in the country.(Read Full Article)
It is my experience that open innovation is going to affect all industries, but some more than others, and some sooner than others. Overall, I see four external factors that matter here: 1) cycle time for products/services development, 2) money and 3) IPR needed for getting new products/services to market and 4) the level of conservatism in the industry. The fifth factor is the internal readiness of your own company. This is also the one that is the most important as corporate innovation teams can influence this one the most.(Read Full Article)
Open Innovation in its purest concept, has been widely used as a strategy in companies from different segments. The model, in general, is practiced through showing corporate challenges and searching for partners and external collaborators who are able to bring new solutions. In a highly connected world where the speed of information generation rapidly increases, the collective creation and collaboration gain more importance and are challenging the traditional Open Innovation model bringing important questions: How to build innovative solutions without generating competition? How to promote interaction and connection as the main tools for generating innovation?(Read Full Article)
Recently, I was asked to make a presentation to the senior procurement leadership team of a well-known pharmaceutical company. I was asked to do a piece on how to source innovative ideas from suppliers. Often the pressure to seek innovation from our external supply base comes from senior leadership, often the CEO. The request prompted me to ask my colleagues and see if there was common approach to the topic. My own experience – and those of other CPOs – revealed a number of approaches that differed from business to business and industry to industry. Reflecting on this, I have put together ...(Read Full Article)
One of my corporate contacts recently asked if I could share some insights on what corporate (open) innovation teams or groups look like and whether there are same similarities across industries. This prompted me to take a quick look and here I give you short descriptions of some groups with a public presence.
Shell Game Changer: GameChanger is a simple, flexible, and real-time innovation process run by an autonomous team at Shell that invests in helping people develop their novel ideas from genesis to proof of concept. Ideas can and do come from anyone, anywhere at any time – in or ...(Read Full Article)
Suppliers are constantly innovating, some more than others, but this isn’t always a benefit for their customers. The terms innovation and collaboration tend to go hand in procurement, and it isn’t difficult to see why. A relationship where your supplier delivers innovations exclusively for your benefit, and you made it in their interest to do so typifies collaboration. Innovation doesn’t have to be the product of collaboration though, simple cost pressure can also force suppliers to be inventive. However, left to their own devices, suppliers will innovate in such a way that they gain an advantage in ...(Read Full Article)
Is it possible for a company to over-innovate? The simple answer is “Yes”. Internal issues have a lot to do with the thickness of the idea and innovation pipeline within your company. You might have a very strong idea generation process (the front end of innovation), but this does not matter much if you not capable of taking these ideas through the internal system towards the market. Execution is just as important as ideation.(Read Full Article)
Here you get my top 5 list of companies with strong open innovation efforts. Your comments and suggestions for other companies are appreciated!
1. GE – for continuously developing the Ecomagination Challenge
GE have turned the Ecoimagination Challenge into a very interesting innovation vehicle – which also doubles as a good PR tool – and they seem to get not only high external engagement, but also high business value out of their efforts. Great work!
2. LEGO – for making different kinds of external sources work together
LEGO is building a strong open innovation program .....................(Read Full Article)
The great thing about uncontrolled environments is they’re not controlled. Change becomes easy and innovation abounds. Business improvements are only limited by your ability to imagine. The sky’s the limit. Of course a business environment with no controls is a dangerous place. Mistakes go undetected and fraud can thrive unless there are pragmatic business controls in place. But working within a tightly controlled environment requires a different way of thinking in order to ensure that change isn’t stifled completely.(Read Full Article)