Leaders at the NineSigma Conference agreed, Open Innovation is not an option but a competitive necessity. In another article, where Moises Norena, Director of Global Innovation at Whirlpool Corporation mentioned that an innovation in general in a requirement, not an option. Innovation is the path to sustainability and growth. Open innovation is a way to exponentially expand your ability to generate ideas and develop them.
To be fully effective and efficient, Open Innovation needs to be integrated in daily operations and management, it needs to integrate the building blocks of an organisation, People, Processes and Technology. Though, according to Dr. Frank Piller, Professor of Management and Director of the RWTH Technology and Innovation Management Group, RWTH Aachen University, organisations still lack “Open Innovation readiness”. He continues:
“One of the learnings was that enabling organisations to succeed with Open Innovation requires passionate, focused Open Innovation leaders, buy-in from employees and management, and realistic time frames and budgets.”
Moises Norena is confirming above mentioned in his interview:
“This involves the interaction of different people within your organisation that will be threatened. You got to be able to show the win and show that there is management of the risks associated with OI. organisations should also know that OI can provide real benefits but it should be managed in a way that complements with the internal efforts, not as a substitute.”
“[…] requires leaders to drive a change in their teams and organise in ways that allow this balance. The second thing I see, that is also very important, is the shift in mentality to do experimentation – this requires a big change because organisations have the tendency to expect the experiments to drive a business results and in fact, they should be designed to learn. That is a big change.”
If the pre-conditions are right and set, Open Innovation will enable 1) reduce cost, 2) increase output-to-market and 3) faster time-to-market. This is a necessity in order to be and remain competitive within the fast changing environment of parallel and shorter PLC’s.
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