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Innovative Product Development : Assignment

   

Added on  2020-05-16

14 Pages3731 Words102 Views
Running head: INNOVATIVE PRODUCT DEVELOPMENTOpen InnovationName of the Student:Name of the University:Author’s Note:

2INNOVATIVE PRODUCT DEVELOPMENTTable of ContentsIntroduction......................................................................................................................................3Concept of open innovation.............................................................................................................3Causes that have made open innovation prominence in the recent years........................................4Fundamental rules of open innovation............................................................................................6Intellectual property and open innovation.......................................................................................6Main issues that occur in the open innovation.................................................................................7Long and short-term risk in a business while implementing open innovation................................8Case evidence of successful open innovation..................................................................................9Case evidence of failed open innovation.......................................................................................10Ethical issues in open innovation..................................................................................................10Management of open innovation...................................................................................................11Conclusion.....................................................................................................................................11References......................................................................................................................................12

3INNOVATIVE PRODUCT DEVELOPMENTLiterature ReviewIntroductionIn the recent years every business industry has been facing major challenges in theirbusiness due to globalization, huge competition and the high operating cost. These factors leadthe organizations to innovate new ideas in their business to gain competitive advantages.Innovation is an effective approach for the business organization to stay competitive in the globalmarket (Chesbrough et al. 2014). Creativity is the main area of innovation. A business can beinnovative if they foster and incorporate creative ideas in their business. Open innovation is onekind of innovation that contributes more in the success of a business. This current literaturefocuses on the effectiveness of the open innovation in the business industry in creating acompetitive edge for the business. Concept of open innovationOpen innovation refers to the inflows and outflows of the skills and knowledge tofacilitate an internal innovation in an organization. This innovation helps an organization toenhance their market for the external use of the innovation that is developed internally (West etal. 2014). The challenges, as well as the boundaries of an organization, can be reduced once theyadapt open innovation. Hence, the organization is able to combine their resources with theexternal-co-operators. The open innovation is more effective in comparison to the closedinnovation. In the closed innovation ideas, investigation and development of a product arecompleted within the organization and the aim of such innovation is to introduce the products inthe external market. On the other hand, in the open innovation process an organization utilizes

4INNOVATIVE PRODUCT DEVELOPMENTthe external technology and the resources and at the same time, they introduce their owninnovation to the external market that can be utilized by other organizations. The flow of the external knowledge is the vital area of the open innovation system. Openinnovation leads an organization to utilize the external sources and knowledge within theorganization and to transform it into a project (Lichtenthaler 2015). This type of innovationallows the organization to make a collaborative work with their external partners as a result;external technology is incorporated into the organization. On the other hand, an organization isable to sell this innovation to other organization as a technology, which enhances their profitmargin.Causes that have made open innovation prominence in the recent yearsOpen innovation becomes more popular in the business world as this leads theorganization to bring innovation to their own organizations and to sell innovation to the otherorganizations. Open innovation has gained prominence today as it helps the business owners andthe employees to lead their organization to evolve (Freel and Robson 2017). However,innovation acts as the key driver behind the success and growth of any business industry. Openinnovation makes the employees and the business owner as a better manager to take thechallenges in their organization. In the recent years, maximum businesses focus on the openinnovation rather the closed innovation. However, open innovation leads the business to invest intheir innovation process and to achieve profit by selling this innovation at the same time. Openinnovation leads a company to be open and exhibits their strategy to the employees to gainsuccess.

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