Open Innovation: Company Analysis Report - BUSS101, Semester 2, 2024

This report provides a comprehensive analysis of open innovation strategies implemented by two New Zealand organizations: FaceMe (a small organization) and Fisher & Paykel (a large organization). The report begins with detailed company profiles for each, including their strategic plans, annual goals, product portfolios, and market share. It then delves into academic descriptions of the innovation models employed by each company, followed by a presentation of the specific innovation models, including the key elements and processes. The analysis covers how these companies have adopted open innovation to achieve their strategic objectives, highlighting the barriers they face, and the impact of these strategies in the New Zealand context. The report references multiple academic sources to support the analysis and provides a comparative understanding of open innovation practices across different organizational sizes.

Running head: OPEN INNOVATION IN ORGANIZATIONS
OPEN INNOVATION IN ORGANIZATIONS
Name of the Student
Name of the University
Author Note

1OPEN INNOVATION IN ORGANIZATIONS
Table of Contents
Company 1 – FaceMe (small organization)...................................................................2
Strategic plan..............................................................................................................2
Goals for the year.......................................................................................................2
Main products and services portfolio.........................................................................3
Market share...............................................................................................................3
Description of the innovation model for FaceMe......................................................3
Innovation model developed by FaceMe...................................................................4
Company 2 – Fisher & Paykel (big organization).........................................................6
Strategic plan..............................................................................................................6
Goals for the year.......................................................................................................6
Main products and services portfolio.........................................................................7
Market share of Fisher & Paykel...............................................................................7
Description of the innovation model for Fisher & Paykel.........................................8
Innovation model developed by Fisher & Paykel......................................................8
References....................................................................................................................11

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Company 1 – Fisher & Paykel
Strategic plan
Fisher & Paykel Healthcare has been able to design different products since the year
1934 and has further been able to grow into a global organization with its operations in more
than 50 countries. The manufacturing units of the organization are mainly located in the
countries like, Mexico, Thailand, Italy and China. The design heritage of the organization has
been able to play a major role in proper development of organizational culture that can have
an impact on the operations of Fisher & Paykel Healthcare in the industry (Fisherpaykel.com
2019). The culture that has been followed by the organization is based on the proper delivery
of products that are tailored based on the needs and demands of customers. Fisher and Paykel
was purchased by the Haier Group in the year 2012 and this had been able to increase the
levels of global reach of the organization (Fisherpaykel.com 2019). The benefits that are
offered by the organization to the customers are considered to be an important part of the
operations that have been developed in the market (Popa, Soto-Acosta & Martinez-Conesa,
2017). The development of Fisher & Paykel Healthcare as a premium global brand in the
industry is mainly based on the rapid growth of the organization in the industry. The strategic
plan that has been developed by the organization is mainly based on the ways by which
Fisher & Paykel Healthcare can improve the global position within stipulated amount of time.
The markets that can be developed by the organization are mainly based on the ways by
which different types of needs and demands of the consumers can be fulfilled in an effective
manner (Pisano, 2015).
Goals for the year
The major goal that has been set by the organization is based on the implementation
of continuous innovation in the operations and the products that are offered to the consumers.

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The self-serving goal that has been set by the organization is based on the endeavour that is
implemented in order to improve the quality of lives of people. The collaboration that has
been made by the organization with the designers have been based on the proper development
of innovative products (Randhawa, Wilden & Hohberger, 2016). The future of the company
will be mainly developed based on the levels of understanding of the customers. The
organization has also aimed at rethinking the designs of different appliances in an effective
manner in order to maintain its position in the industry (Nylén & Holmström, 2015).
Main products and services portfolio
Fisher & Paykel Healthcare has been designing different types of products in order to
fulfil various demands and needs of the consumers. The organization has received many
different patents based on implementation of modern technologies in order to develop the
products. The company is currently committed towards proper development of electrical
solutions (Goffin & Mitchell, 2016). The products that have been designed and developed by
the organization are mainly based on the proper use of natural resources in order to maintain
its position in the industry. The development of effective product designs has been able to
play a major role in the proper formation of a huge product portfolio (Dobusch, Seidl &
Werle, 2015).
Market share
Fisher and Paykel has been successful in the development of a leadership position in
the industry with the help of different services and products that are highly innovative in
nature. The major competitors of the organization in the industry include, Allied Healthcare
Products, ResMed and Ohio Medical. The organizations have been able to major levels of
competition to Fisher and Paykel based on the levels of revenues. However, the
implementation of open innovation has been able to play a major role in development of an
effective position of the organization in the industry (Brunswicker & Vanhaverbeke, 2015).

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Description of the innovation model for Fisher & Paykel Healthcare
The culture of open innovation has been implemented by the organization in order to
maintain its operations in the industry. The performance and functions of the organizations is
considered to be an important part of the operations that are performed by Fisher and Paykel
in the industry. The emotional role that is played by the products of Fisher & Paykel
Healthcare is an important factor that is able to play a major role in the proper development
of different types of designs (Bogers et al., 2017). The future of operations of the
organization is mainly based on the spirit of curiosity and collaboration. The innovation
levels in the organization are considered to be an important part of the operations that have
been performed by Fisher & Paykel Healthcare in the industry. The proper development of
trends in the industry is considered to be an important factor that is able to affect the
operations (Aloini et al., 2015). The changes that constantly take place in the external
environment have an impact on the development of effective operations of Fisher & Paykel
Healthcare. The development of the quality of a premium brand is an important part of the
operations that are performed by Fisher & Paykel Healthcare. The different types of materials
that have been used by the organization are able to play a major role in the quality of products
that are offered to the consumers (Brunswicker & Vanhaverbeke, 2015). The leading
innovations of the world have been helpful in providing a major position to the organization
based on levels of products that are developed and provided to the customers. Open
innovation has thereby been able to play a key role in development of high levels of revenues
of Fisher & Paykel Healthcare in the industry (Cassiman & Valentini, 2016).
Innovation model developed by Fisher & Paykel Healthcare
The innovation model that has been developed and implemented by Fisher & Paykel
Healthcare has been able to play a major role in the proper formation of the revenues of the
organization in the industry. The different products that have been able to play a major role in

5OPEN INNOVATION IN ORGANIZATIONS
development of the position of Fisher & Paykel Healthcare in the industry are, ActiveSmart
Foodcare and Variable Temperature Zone refrigeration technologies. AeroTech cooking
systems have been able to provide differentiated position to the organization in the industry
(Chesbrough, Lettl & Ritter, 2018). The creativity levels of the organization are considered to
be an important part of the operations that have been developed by Fisher & Paykel
Healthcare in the industry. The significant innovation that had been formed by the
organization has been named as SmartDrive. The direct drive based motor of the organization
has also been highly successful in the formation of reliable and efficient washing activities
(Cui et al., 2015). The DishDrawer Dishwasher is another major invention of the organization
that has been able to support the operations of Fisher & Paykel Healthcare. CoolDrawer is a
major product that was related to the idea of formation of an effective position in the industry
within short period of time. The technology of Variable Temperature Zone has also been an
important part of the innovative products that are formed by the organization (Dobusch, Seidl
& Werle, 2015). The organization has always aimed at providing opportunities to the
employees so that they are able to work in a collaborative manner in order to increase the
levels of creativity and innovation. The development of an innovative culture is considered to
be an important factor that can have a major impact on the ways by which Fisher & Paykel
Healthcare can maintain its position in the industry (Cassiman & Valentini, 2016). Different
levels and operations of the organization are affected in a huge manner by the proper
implementation of the innovative activities that were performed by them. Customer led
innovation is also an important aspect related to the operations of Fisher & Paykel Healthcare
in the industry (Bogers et al., 2017). The designs that have been developed and implemented
by the organization are affected by the choice of the consumers. The future operations of the
organization are also totally based on the ways by which needs of customers are fulfilled. The
process of fostering the spirit of collaboration in the industry is totally based on improvement

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of the levels of creativity and innovation as well (Brunswicker & Vanhaverbeke, 2015). The
design team that has been developed by the organization has been able to provide major
levels of support based on the ways by which open innovation can be continued in a
successful manner. Open innovation has been able to play a major role in the ways by which
Fisher and Paykel has maintained its position in the industry (Dobusch, Seidl & Werle,
2015).
Company 2 – Fisher & Paykel (big organization)
Strategic plan
The operations of Fisher & Paykel in New Zealand had started from the year 1934.
The development of the organization into the position that it currently holds is also based on
the levels of contribution that have been provided by a New Zealander. Fisher & Paykel is an
appliance manufacturing based organization. FISHER & PAYKEL is currently one of the
leading global manufacturing and research based organization that has been developed based
on the effective merger of different companies and the hard work of many researchers as well
(Fisherpaykel.com 2019). FISHER & PAYKEL has also been able to receive the position of a
highly innovative organization that has been able to develop its position in the industry. The
strategic plan that has been developed by the company is mainly based on the improvement
of innovative activities in order to gain an effective position in the industry (Saebi & Foss,
2015).
Goals for the year
The major goal that has been developed by FISHER & PAYKEL in order to maintain
its operations in the industry is based on the development of an innovation program in which
the researchers and innovators in the country will be provided with opportunities in order to
showcase their talents. The innovation program that has been designed in order to support the

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laundry cleaning based activities that are performed by the organization (Santoro et al.,
2018). The development of premium quality of the brand is an important part of the goals that
have been set by Fisher & Paykel. The expansion of the operations of the brand on a local
basis is an important factor that is able to boost the presence of the organization. The research
and development facilities of the company are considered to be an important aspect related to
the goals of Fisher & Paykel in the laundry and cooking appliances industry (Santoro et al.,
2018).
Main products and services portfolio
FISHER & PAYKEL New Zealand offers many different products that are able to
fulfil the healthcare based needs of the consumers. The wide range of laundry services that
are offered by the organization are mainly related to the needs of consumers based on kitchen
services, laundry services and many more (Fisherpaykel.com 2019). The kitchen and laundry
services that are developed by the organization have the ability to fulfil the demands of
different consumers in different parts of the country. The portfolio of services that are offered
by the organization are mainly based on different kitchen activities including, cooking,
grilling, cleaning and cooling as well (Teece, Peteraf & Leih, 2016). The organization also
provides laundry services that include, washing and drying. The products that are a part of the
developed portfolio of the organization have been able to play a major role in the ways by
which FISHER & PAYKEL has become one of the biggest organizations in the laundry
based industry within a short period of time (Van Lancker, Wauters & Van Huylenbroeck,
2016).
Market share of Fisher & Paykel
The market share that has been gained by FISHER & PAYKEL in the medicine
industry is quite high as the organization has been successful in development of its number
one position in the industry. The most significant part of the operations of FISHER &

8OPEN INNOVATION IN ORGANIZATIONS
PAYKEL in the industry is based on the ways by which the organization has always aimed at
developing its operations in the laundry industry with the help of different types of kitchen
and laundry services that are offered to the consumers. The development of services has been
totally based on the needs of the consumers and the innovative ideas that have been provided
by the employees as well (Vanhaverbeke et al., 2017).
Description of the innovation model for Fisher & Paykel
The innovation model that has been used by FISHER & PAYKEL in the operations in
the laundry industry is based on the new ground breaking products that have the ability to
fulfil the needs of the consumers. New Zealand has been able to gain a reputation in the
world based on the inventive and innovative attitude of the people and the history the country
has related to the pioneering of different healthcare based products. The life-changing ideas
that are provided by the researchers of the organization have been able to play a major role in
the proper development of the operations of FISHER & PAYKEL (Vanhaverbeke et al.,
2017). The innovators and entrepreneurs in the country are provided with major levels of
opportunities so that they are able to provide their ideas based on different organizational
activities. The ideas that are provided by the researchers to the organization are taken into
consideration and new products are also developed (Wang, Guo & Yin, 2017). The position
that has been developed by FISHER & PAYKEL in the industry is mainly based on the ways
by which the organization has been able to implement open innovation related activities in
the operations. The FISHER & PAYKEL Open Innovation Program has been able to play a
major role in the success that has been gained by the company in the industry (Yun, Won &
Park, 2016).
Innovation model developed by Fisher & Paykel
The major goal behind the implementation of open innovation in FISHER &
PAYKEL is based on the encouragement that is provided by the organization in order to

9OPEN INNOVATION IN ORGANIZATIONS
target the laundry services that are a part of the developed world. The potential that is gained
by the organization from commercial gains in the developed countries has been able to
provide major levels of support based on proper formation of innovative processes. The
organization has been successful in changing the ways by which intellectual property is used
and the methods that are implemented in order to continue the effective work process (Wang,
Guo & Yin, 2017). The strategy based on open innovation that has been implemented in
FISHER & PAYKEL is mainly based on the ways by which the levels of expertise can be
shared in order to promote high levels of change. The resources that have been gained by the
organization are also used in an extensive manner in order to provide focus on the services
that can fulfil the needs of different customers in the developed countries (Vanhaverbeke et
al., 2017). The organization has been able to develop its operations based on the focus that it
has provided towards the resources and intellectual property that have been gained by the
organization in an effective manner. FISHER & PAYKEL has the major parts of its focus on
the proper development of high levels of expertise in the formation of open innovation based
models. The major challenges that are being faced by the organization are based on the ways
by which the employees are able to adapt to the open innovation based activities (Van
Lancker, Wauters & Van Huylenbroeck, 2016). The organization has been working in a close
manner with the help of proper development of the public-private partnerships that are
developed with different groups in order to develop the services that can be provided to the
customers. The partnerships that are developed by the organization are mainly based on the
proper formation of the operations of FISHER & PAYKEL in the laundry and cooking
appliance industry (Nylén & Holmström, 2015). The researches that are made by the
organization are related to the benefits that are provided by different independent researchers
who have the ability to provide their effective ideas. FISHER & PAYKEL has been able to
develop an open approach based on the effective analysis of data in order to maintain the

10OPEN INNOVATION IN ORGANIZATIONS
operations in the industry for a longer period of time. The stores that are involved in the
proper development of different projects and medicines for FISHER & PAYKEL have been
able to provide new and innovative ideas to the organization in order to develop the products
in an effective manner (Randhawa, Wilden & Hohberger, 2016). The stores that had been
developed by FISHER & PAYKEL in New Zealand had been able to provide immense levels
of support to the growth of researchers and the research projects that are developed by them
(Popa, Soto-Acosta & Martinez-Conesa, 2017). The appliances that are developed by Fisher
and Paykel include different subsidiary organizations. The Dynamic Cooking Systems Inc. is
an organization that mainly specialises in the outdoor cooking based products which are
available in New Zealand and Australia. The financial services offered by Fisher & Paykel
have offered specialised services in order to maintain the position of the organization in the
industry (Fisherpaykel.com 2019). The vision that has been developed by the organization is
mainly based on ten different projects that were funded by FISHER & PAYKEL. The
knowledge that has been gained by the organization from the independent researchers has
been able to play a major role in proper development of the medicines in different parts of the
world. The facilities that have been provided by the research activities of FISHER &
PAYKEL can thereby be considered the most collaborative research based centres
(Fisherpaykel.com 2019).

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References
Aloini, D., Pellegrini, L., Lazzarotti, V., & Manzini, R. (2015). Technological strategy, open
innovation and innovation performance: evidences on the basis of a structural-
equation-model approach. Measuring business excellence, 19(3), 22-41.
Bogers, M., Zobel, A. K., Afuah, A., Almirall, E., Brunswicker, S., Dahlander, L., ... &
Hagedoorn, J. (2017). The open innovation research landscape: Established
perspectives and emerging themes across different levels of analysis. Industry and
Innovation, 24(1), 8-40.
Brunswicker, S., & Vanhaverbeke, W. (2015). Open innovation in small and medium‐sized
enterprises (SMEs): External knowledge sourcing strategies and internal
organizational facilitators. Journal of Small Business Management, 53(4), 1241-1263.
Cassiman, B., & Valentini, G. (2016). Open innovation: Are inbound and outbound
knowledge flows really complementary?. Strategic Management Journal, 37(6),
1034-1046.
Chesbrough, H., Lettl, C., & Ritter, T. (2018). Value creation and value capture in open
innovation. Journal of Product Innovation Management, 35(6), 930-938.
Cui, T., Ye, H. J., Teo, H. H., & Li, J. (2015). Information technology and open innovation:
A strategic alignment perspective. Information & Management, 52(3), 348-358.
Dobusch, L., Seidl, D., & Werle, F. (2015). Opening up the strategy-making process:
Comparing open strategy to open innovation. University of Zurich, Institute of
Business Administration, UZH Business Working Paper, (359).