APAC More Open to Committing Resources for Innovation: Survey
Open Innovation is no longer a buzzword and while it draws global attention, companies in the Asia-Pacific region are going all out with this model.
Companies understand the advantages associated with developing emerging technologies but are reluctant to commit substantial resources to high-risk projects.Holly Lyke-Ho-GlandResearch Lead at Frost & Sullivan
A recent Frost & Sullivan report titled 'Open Innovation 2012' focuses on the role of Open Innovation in ideation, product development and R&D at organizations across the globe. They define Open innovation (OI) as a methodology based on the tenet that good ideas can come from anywhere—your clients, independent developers, or adjacent businesses. Ideas can be used throughout the new product development process, and that unused ideas can be utilized by other businesses, or new markets—or licensed externally.
"OI helps companies break the cycle of incremental innovation by capturing game-changing ideas and technologies. But establishing a model that effectively brings external and internal ideas and capabilities together is extremely challenging," mentions Holly Lyke-Ho-Gland, Research Lead at Frost & Sullivan in her blog.
According to this report, while companies around the world have embraced OI, some are more willing than others to commit sufficient resources to it. Asia-Pacific (APAC) companies lead the pack in regards to dedicating staff to OI. 72 percent of the companies surveyed in the APAC region dedicate a team for OI and have a median value of 10 members per OI team as opposed to global baseline of 3 members.
This is startling when compared to the global baseline where just 56 percent of the companies claim to have a dedicated OI team. The Americas fare slightly better than the global baseline at 59 percent but it's the European companies, who have stressed a need for Open Innovation for the past two years, which still lag behind their peers at 42 percent.
33 percent of the respondents from APAC feel that creating an effective OI collaboration framework is a major challenge associated with establishing an OI process.
While it is imperative for organizations to look at applying an Open Innovation (OI) Model to identify breakthrough product/service ideas they might have to overcome certain challenges. 33 percent of the respondents from APAC feel that creating an effective OI collaboration framework is a major challenge associated with establishing an OI process. The teams will need to get management buy-in and overcome the fear of lost IP. The report, however, points out that despite the increased risk of lost IP, Asia-Pacific companies are more inclined to use OI during the later stages of product development - concept testing and product launch. "They should also have a process to test the market potential and technical feasibility of the new ideas," says Lyke-Ho-Gland.
Another challenge facing organizations is that most bright ideas are considered spur-of-the-moment and the long hours of background work that goes behind it are often unnoticed. "Companies understand the advantages associated with developing emerging technologies but are reluctant to commit substantial resources to high-risk projects," says Lyke-Ho-Gland.
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