Advanced Innovation Management Report: Open Innovation in Singapore

This report provides an overview of open innovation, focusing on its application within Singapore's environmental sustainability and water resource industries. It begins with an executive summary and introduction, then explores the concept of open innovation with real-world examples, including initiatives by Coca-Cola, PepsiCo, and Vodokanal of St. Petersburg. The report then outlines best practices for innovation in environmental sustainability and water resource management, discussing sustainable farming systems, economic sustainability, and environmental sustainability. It concludes by analyzing the implementation of open innovation within Singapore's industry, highlighting the country's need to address water scarcity. The report emphasizes the importance of mobilizing both internal and external resources to drive innovation and improve environmental outcomes. This report is a valuable resource for understanding open innovation strategies and their impact on environmental sustainability and water resource management.

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Executive summary
According to Chesbrough, open innovation refers to the process of use internal and other
external resources along with ideas to develop the business and innovate the activities of the
company. There are particularly five key elements of the process of innovation that are
networking, collaboration involving partners, competitors, universities etc., corporate
entrepreneurship, proactive IP management and lastly research and development. The council of
industry of Singapore is given $19 billion to invest in the field of science and technology so as to
innovate and develop the major concerned field of environment sustainability and water resource
industry. The report includes implementation of open innovation in Singapore industry along
with various recommendations.

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Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................2
Open Innovation and Real World Examples...................................................................................2
Best Practices of Innovation in Environmental Sustainability and Water Resource Industry........4
Implementation of Open Innovation in Singapore Industry............................................................6
Conclusion.......................................................................................................................................8
Recommendation.............................................................................................................................8
References........................................................................................................................................9

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Introduction
The purpose of this report is to provide brief information about the importance and impact of
open innovation in the community. The given case study evaluates the position of Singapore
with respect to innovation worldwide. The country has shifted its place from sixth to seventh in
Global Innovation Index, 2017. In regards to which the Singapore authority decided to $19
billion in the field of science and technology for next five years so that, the country can become
a global hub innovation and entrepreneurship. Further, the report evaluates the importance of
open innovation worldwide and key examples that explains the use of innovation by different
countries. Further, it also elaborates best practices of open innovation around the globe in
environmental sustainability and water resource industry. The latter part of the report implies the
implementation of open innovation in the industry of Singapore. Further, more details about the
report are discussed below:
Open Innovation and Real World Examples
Open innovation refers to the process of mobilizing the internal as well as external resources and
ideas in order to innovate the activities of an organization along with products and services
offered by them. The main purpose of the process of open innovation is to embrace the external
aspects available to them and effectively organize them to increase the efficiency of the
organization in the target market (Vanhaverbeke, & Cloodt, 2014). Open innovation helps the
organization in eliminating the problems present with them and introducing beneficial outcomes
of the event. This process of innovation helps the countries in becoming competitive in the
environment and reducing the cost of development as well. Open innovation can be in aspect of
the organization or industry. With the help of this type of innovation, the countries increase their
competency and use the resources more wisely. Further, various aspects of the process of open
innovation offer several benefits to the organizations using it (Van de Vrande, Vanhaverbeke, &
Gassmann, 2010). The process of open innovation creates synergies between the internal and
external innovations present with the organization. Further, it is important for the organizations
to incorporate such open innovation in their strategies to attain benefits in the environment.

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Apart from innovating the products and services, the organization make use of open innovation
to enhance environmental sustainability and manage water reservoirs as well (Vanhaverbeke,
Van de Vrande, & Cloodt, 2008). Some of the real world examples of open innovation used by
organizations worldwide in this industry are discussed below:
 As the fact is known to all, that companies present in the current environment are
working with a profit making mind-set. This objective of is helping the organizations to
gain bucks in the market but it is increasing the concern of environmental sustainability
and water scarcity. Coca-Cola Company also comes in the list of organization that
excessively makes use of water and other natural resources. In regards to which the
company Coca-Cola (Australia) made use of open innovation practices for the purpose of
environmental sustainability. The company initiated wastewater treatment process, under
this process the organization replenished the water that was used in global sales volume
and provided it back to the communities and nature as well. As major content used in
making beverages is water, due to which the company faced the need to preserve water.
With every plant of Coca-Cola, the management settled a wastewater treatment plant that
can purify the water at the same time and send it back to the society. Further, the
company also started producing ‘PlantBottles’ that are fully recyclable. The bottle and
cans are formed through plant-based plastic that are easy to recycle. So, these were the
open innovation strategies initiated by the company Coca-Cola (Coca-Cola, 2018).
 Just like the company Coca-Cola, PepsiCo also initiated various open innovation
strategies in their business to contribute their share in the environmental sustainability
and water resource industry. The company converts oat hull waste into an environmental
friendly, inexpensive energy source. With the use of hi-tech innovative technology
available with them, the company started using renewable biomass (oat hull) instead of
fossil fuel (natural gas). Oat hull, a by product received in the process of production of
Oats helps the organization in fuelling the biomass boiler. This process helped the
company in using the by products and significantly making their initiative in eliminating
greenhouse gases. This initiative of PepsiCo led in Brazil reduced the use of natural gas
by 456,000 cubic meters. Resulting to which, the production process of the company
eliminated the emission of carbon di oxide in the environment. Further, the company also

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started producing green bottles that are entirely biodegradable. These bottles are formed
using natural bio-based raw material like switch grass, corn husks, and pine-barks
(PepsiCo, 2018).
 Vodokanal of St. Petersburg is an organization based in Russia is involved in water
management and water utilities activity. The company make use of innovative strategies
to ensure that water is reserved for the people to use. At all the stages of purification of
water like ozonization, sedimentation etc. the company make use of innovative
technology available to them so that they can effectively utilize the internal resources and
make best use of it in the external environment. The company also organized a treatment
plant to reduce the iron concentration present in tap water. The company also tested
innovative ways to reduce the energy consumption and provide better assistance to the
people living in Russia. The company effectively utilized all the available external as
well as internal resources in treating wastewater sludge and initiate wastewater
disinfection (Unglobal Compact, 2010)
Best Practices of Innovation in Environmental Sustainability and Water
Resource Industry
Apart from the finance, manufacturing and service industries, it is important for the company to
shift their concern to the environmental sustainability and water resource industry. So, below
mentioned are some of the best practices in open innovation that should be initiated by
companies to sustain the activities of environment:
 Sustainable Farming Systems: It is awful to know that agriculture also contributes to
the water pollution by a non-point source. Diffuse pollution can arise from many
activities organized on the farm. Many substances used in the process of farming also
affect the environment in a negative manner. So, in order to manage the negative
environmental aspect, the companies present in this industry should widely make use of
resources that are natural and do not have any negative impact on the soil (West, Salter,
Vanhaverbeke, & Chesbrough, 2014). With an aim to initiate open innovation practices,
the organizations should use conservative agriculture techniques to minimize the delivery

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and transportation of agriculturally derived. In order to diffuse pollution, the governments
of different countries should provide various machines to the companies so that they can
easily deliver the material and extract water effectively. The company should also use
innovative practices to reduce the wastage of water and make use of by products received
from the agricultural process (Carrillo-Hermosilla, del González, & Könnölä, 2009). The
open innovation practices should be utilized in such a way that it does not pollute the
environment through chemical and biological transformation. Further, the organizations
should also make use of integrated pest management system so as to in order to prevent,
avoid, monitor and suppress risk associated with the process of farming.
 Economic Sustainability: innovative activities in preservation of water resource
management will eliminate most of problems faced by people worldwide. As mentioned
above, it is very important for the companies nowadays to make use of open innovation
strategies in this field so as to improve the stability of the environment. The companies
present in the environment to initiate activities that eliminate the wastage of water
reserves in the environment (Luan, 2010). The manmade activities should assist the
environment and not hamper the natural resource. The food products producing
companies should make use of innovative machine that purify the water without wasting
it. The food manufacturing organizations should take care of the concern of water
scarcity more proactively. The organizations should also aim to achieve long term
stability of their investments made in the field of open innovation. Considering it as the
most important field of innovation, the organizations should invest in this field in such a
way that the reservoirs are preserved and economic benefits are received.
Open innovation does not only refers to innovating products and services for the better
functioning of the organization. Nevertheless, open innovation refers to innovating any
aspect that creates new and beneficial change for the companies and the environments as
well. In response to which, the governments of different countries should form the
legislation to make use of a fixed quantity of water resource. Reserves used more than the
yardstick should impose penalty on the companies. The companies should also keep good
accountability for efficient cost reduction and profit generation. The companies should
calculate profit per mega litre and yield per mega litre (Wong, & Brown, 2009).

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 Environmental sustainability: The best way to sustain the environment is to reduce the
consumption of natural resources and replace it other resources. The companies should
start using solar panels, wind energy etc. to absorb energy and make use of it for their
business process. It is important to consider that the innovation initiated should be
economic along with effective (Kılkış, 2016). The innovation should successfully drive
environmental changes in the environment. Further, with respect to the part of open
innovation, it is important for the companies to innovate their way of using natural
resources as well. With the use of adequate technologies, the compnies should find out
various ways to innovate their activities for the motive of environmental sustainability
(Speight, 2015).
The innovation initiated should be regarded as an open innovation, not a closed one. The
only difference between open innovation and closed innovation is that the process of
open innovation requires the use of both internal and external resources for the growth of
the organization whereas closed innovation refers to the process of closed innovation, the
organization commercialize its own ideas using the internal available resources only.
Thus, the companies present in the environment should aim to compensate with the
natural resources that they use by initiating innovative activities with the use of available
resources present with them. The open innovation should be initiated in such a way that it
provides output of the money invested by the organizations in this field (Dhalla, 2017).
Implementation of Open Innovation in Singapore Industry
It is important to note the looking at the various sectors in Singapore the environmental
sustainability and water resource industry face highest need to make use of open innovation so as
to reduce the extent of water scarcity available with them. The people of Singapore face
emergent need to increase the amount of fresh water available with them (Tietenberg, & Lewis,
2016). The people of the country use 430 million gallons of water in a day that too much to use,
resulting to which the country faces water scarcity. In response to which, it is important for the
council of industry to invest $19 billion in the science and technology field so that they can bring
successful innovations that can help the company to save the natural resources. Implementation
of open innovation in this industry is discussed below:

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Source: (Chesbrough, 2003)
 It is expected that the current water demand will double itself by the end of year 2060. As
the PUB department of Singapore is responsible for water sustainability in the
environment, so they should initially find out the areas where the country is wasting their
natural resources. In response to which, the department should then find out various
innovative plans and measures to sustain the water resources of the country (Sachs,
2015).
 As a part of the environment conservation plan of the country, the council of department
should invest the money and time on creating new energy conservation, rainwater
harvesting, and climate change detector machines. These machines will help them to
proactively take measures for the betterment of community and spread innovation in the
environment. Singapore department should research the innovative technology used by
other countries in protecting their resources and conserving the environment and then
then aim to mould and adopt similar technology in their society as well. This process will
open ways for innovation in the business (Wheeler, & Beatley, 2014).
 Lastly, the department should involve various companies in their project and motivate
them to make use of open innovation so as to use the resources wisely. These
multinational organizations will help the country to achieve their objective through the
CSR activities conducted by them (Baranenko, Dudin, Lyasnikov, & Busygin, 2014).

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Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that the environmental
sustainability and water resource industry is the industry that required innovation to the
maximum extent in Singapore. The country Singapore faces many issues in the industry resulting
to which there is greater scope for the organizations to make use of innovation in such a way that
challenges are eliminated and benefits are derived from the innovative practices of the country.
Also, the country Singapore is lacking behind in the field of innovation, so open innovation in
this field will provide dual benefits to the community and its people. Open innovation has
become an important need for the organization as it helps them in deriving benefits from the
available resources (internal and external). The above mentioned report provides a detailed
analysis of real world examples and use of open innovation in this industry. The report
successfully complies with the requirement of the assessment.
Recommendation
There are few recommendations given to the governmental bodies and other organizations of
Singapore in order to apply open innovation in their business:
 The process of open innovation has a very critical path; it is not easy for the organizations
to make use of open innovation in their business. Many times organizations fail to make
use of adopted open innovation. So, the companies adopting innovation in the
environmental sustainability and water resource industry should use it wise because one
mistake can negative impact the reserves of the country.
 The council of department has provided optimum funds in the field of science and
technology, so the department should aim initiate open innovation instead of closed
innovation as they have available resources and technology as well.
 The process of sustainability should be attained in the field of innovation as well. The
organizations using and adopting innovation should aim to use it for long run so as to
create an impact worldwide. So, the innovation adopted should not be cost-ineffective
and user friendly as well.

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 With the above information provide, the readers can understand the importance of open
innovation specifically in the field of environmental sustainability and water resource
industry. With such information, the department should make use of available resources
in the right direction to attain dual benefits for the country Singapore.

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References
Baranenko, S., Dudin, M., Lyasnikov, N., & Busygin, K. (2014). Use of environmental approach
to innovation-oriented development of industrial enterprises.
Carrillo-Hermosilla, J., del González, P. R., & Könnölä, T. (2009). What is eco-innovation?.
In Eco-innovation (pp. 6-27). Palgrave Macmillan, London.
Chesbrough, H. (2003). Open innovation. Academia.edu. Retrived from: <
https://s3.amazonaws.com/academia.edu.documents/30503779/open_innovation.pdf?
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Coca-Cola, (2018). A World Without Waste: Coca-Cola Announces Ambitious Sustainable
Packaging Goal. Retrieved from: https://www.coca-colajourney.com.au/stories/world-
without-waste-sustainable-packaging-goal
Dhalla, A. M. (2017). Developing a Global Hydrohub: Singapore's Leadership in Water
Innovation. In Chemistry and Water (pp. 541-552).
Kılkış, Ş. (2016). Sustainability-oriented innovation system analyses of Brazil, Russia, India,
China, South Africa, Turkey and Singapore. Journal of Cleaner Production, 130, 235-
247.
Luan, I. O. B. (2010). Singapore water management policies and practices. International Journal
of Water Resources Development, 26(1), 65-80.
PepsiCo, (2018). PepsiCo Brazil Biomass Program. Retrieved from:
<http://www.pepsico.com/live/story/pepsico-brazil-biomass-program>