Open Innovation Strategy, Phillips: A Case Study

OPEN INNOVATION IN ICT
OPEN INNOVATION IN ICT
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OPEN INNOVATION IN ICT
Executive Summary
Open Innovation is defined as shift from traditional controlled and closed innovation environment
for flexible and open models. Strategy for open innovation aims in redefining boundaries between
organization and its environment. Furthermore, Open Innovation’s concept is related with model
for open business, as the connection between models for new business and technology is
strengthened with Open Innovation’s intensive use. Phillips service consists of several products.
Customer satisfaction is essential for the services of Phillips. It is considered to be disruptive
innovation as a great value is created in economy by beating other similar service industries. How
Phillips is disruptive is discussed in this study and some recommendations are provided for
improving the strategy of the business.

OPEN INNOVATION IN ICT
Table of Contents
1. Open Innovation Strategy, Phillips:.........................................................................................1
1.1 Introduction..................................................................................................................................1
1.2 Exploration of Adoption Categories....................................................................................1
2. Retrospective Analysis of Phillips...............................................................................................4
2.1 Evaluation of their Design:.....................................................................................................4
2.2 Evaluation of original Entrepreneurship and Start-Up Potential:..........................4
2.3 Evaluation of their Application of Business Analytics:................................................5
Conclusion.................................................................................................................................................5
Bibliography...............................................................................................................................................
Appendix 1...................................................................................................................................................
Infographic Representation:..................................................................................................................

OPEN INNOVATION IN ICT
1. Open Innovation Strategy, Phillips:
Open Innovation Strategy looks in redefining boundaries between organization and its
environment, which makes firm more embedded and porous in networks of loosely-coupled for
different actors, individually and collectively working towards commercializing and collecting new
knowledge (Brunswicker & Vanhaverbeke, 2015). For this case study, as Open Innovation Strategy
Phillips is chosen that falls under the category of open innovation. Its innovation strategy focuses in
area of lighting and healthcare.
1.1 Introduction
Open Innovation paradigm is known as shift from closed innovation and R&D environment
for flexible models. At most elementary level, Open Innovation’s concept is embedded for the notion
which the knowledge sources in innovation are shared widely in economy (West & Bogers, 2014).
Phillips have two essential divisions such as Phillips Professional Healthcare and Phillips Consumer
Health and Well-being. Phillips was one of the largest producer of lighting with respect to
applicable revenues in the world.
As per Clayton Christensen’s theory, disruptive innovation is termed as a method in which a
service or a product that have minimum application at beginning stage and is at the bottom position
in market. Later, being able to compete with the competitors due to enhancement in service or
product (Vecchiato, 2017). Phillips is one of the most successful companies in disrupting the
business of lighting by providing numerous technologies. Phillips reveals recognition of integration
and access of healthcare products and systems and selection of technology of connected care for
determining how the world can meet new needs of healthcare.
1.2 Exploration of Adoption Categories
There are five adopter categories which are found in research: innovators, early adopters,
early majority, late majority and laggards. As per the research of Roger, innovators will adopt
innovation, taking risk even having intelligibility with respect to finance and still new in market (Oh
et al, 2016).
Innovators: People who adopt anything as it is latest. They love to explore and are happy taking
risks, even if this can lead to failure.
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