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Is Open Innovation Beneficial for the Indian Economy?

While running a business, a businessman has to face several problems that need to be taken care of seriously.

Is Open Innovation Beneficial for the Indian Economy?

Monday February 17, 2020,

6 min Read

While running a business, a businessman has to face several problems that need to be taken care of seriously. The best way to solve these problems one should follow the old method that means instead of involving one man, get help from more people. More people mean, more ideas and more ideas mean quick solutions to your problems. This is the major concept of open innovation.

Open innovation is the process through which a company and businessman describe a challenge in front of the others and ask for suitable marketable solutions. Though this concept has not come all of a sudden and has been used for a longer time. It is due to the advancement of technology that this concept has become hugely popular now especially for businessmen and organizations who want to secure their business success and social progress.

Key Factors of the Open Innovative Process:

It has been found that R&D is the business model that Open innovation uses to transform it on its head. Unlike secret underground labs where developers follow only the world domination method, today’s businessmen do just the opposite. They take help from several resources that are always open and share new ideas and rewards.

There are even various companies that give opportunities to their own employees and clients to share and present their views. They arrange different programs in order to search for an organization or firm that could provide effective solutions to their particular problems. 

For your better understanding, here we are giving an example for you. Suppose an owner of a company organizes an annual Open Innovation contest where the business of all fields can participate. Here they are asked to present to share technological solutions to a number of real-world business challenges that the owner has been facing for a longer time

These contests are really helpful as they help the businessmen to get the right and innovative solutions for their business and clients. The winner will then get a large amount of revenue as well as become a part of their business. Overall it will be a win-win situation for everyone.

Reason for Choosing Other Paths

Though open innovation programs are beneficial, not all the businessmen and companies go for it. As there are some reasons behind it. One of the biggest factors is that the outcomes are not always fruitful. The second big reason is the investment that does not secure the success for the companies, especially those who are new. 

On the contrary, open innovation is only used for encountering the right solutions as well as its proper implementation of a particular problem. Even it is doubtful whether the solutions will add value for all parties who are involved in it.

The hard part is that sometimes a great idea might not work that ultimately can lead to open innovation towards failure. But in hundreds of ideas, there could be one idea that gets the winning crown and justifies the costs of the entire program. Instead of focusing on individual ideas, companies are recommended to emphasize ROI which has also been built up with the open innovation approach.

Secrets of Improving Speed

Today’s business world has become a competitive business world. More you gather innovative and unique ideas and implement faster, more good results you will get. Otherwise, it will be left behind. This is the basic concept that every businessman needs to understand. The businesses that understand this concept are growing faster compared to those who hardly make any efforts.

We often think open innovation is only used for technology solutions but most of us are unaware of the fact that it can also be used for various other purposes for example industrial settings. Even other fields like pharmaceutical companies, food, and beverage companies are using the open innovation process immensely.

Where pharmaceutical companies have tied up with scientists in order to invent new drug compounds, food, and beverage companies focus on delivering disruptive products. Even logistic companies are also taking innovative steps and use open innovation for the betterment in packaging materials and robotics.

Though the open innovative concept helps in the development of the companies, it could be even better if the R&D process had been implemented. To deal with patents and intellectual issues, companies prefer to implement open innovations in order to find out the solutions as well as to get the best result and benefits and ensure that the contributors are also getting their rewards properly.

Varieties Lead Towards Better Results

As a businessman, you should always be open to new ideas and open your doors for everyone and this is the basic and powerful concept of open innovation. As there is no border of the global economy, all companies are allowed to gain knowledge from a worldwide community of experts. 

There are many companies that organize several contests where people can all over the countries participate and share their proposals. Even these contests help the companies to achieve a number of effective solutions to their problems. 

This is the best opportunity to explore various backgrounds and meet companies from different geographies and cultures and hence they get their viewpoint from different angles. But sometimes two different companies can offer you the same solutions which might not be helpful for you.

There are several benefits of working with entrepreneurial firms and employees. As they often come with a wide range of effective and unique solutions that you are as a businessman never been introduced to. Even if you make a partnership, it will provide you more opportunities to get along with the companies that are getting trouble or fail to gain success altogether.

Future of the Open Innovation Concept

In today’s world, companies play major roles in providing social life as well as the environment. In doing so, they have to face many challenges. Fortunately, with the help of open innovation, businesses can deal with these challenges effectively.

Whether you want to use eco-friendly materials or want to reduce energy usage or support the trade economy, taking help from the outside contributors can be helpful for you. Moreover, they will help you by providing fast-track solutions which ultimately help your businesses overall growth.

According to Henry Chesbrough, an adjunct professor of UC Berkeley, as well as the father of open innovation, assumes that in future open innovation will not be used as a beneficial approach for the company rather it will become a way through which all business will be done.

It can also be predicted that by using open innovation, companies can produce outstanding products and services and try their best to make this world a better place for future generations.