Benefits management of open innovation, what is open innovation?

Open innovation corresponds to closed innovation. An enterprise or organization, in production and operation.

In the process, there will be many innovative technologies, products or models, but among these technologies, products or models, there are very few that can really enter the market and bring income to the enterprise. But do we just say that these technologies, products or models themselves have no market value, the reason why they have not entered the market, a large part of the reason is that the organization can not provide enough growth resources for these technologies, products or models, if we open our minds and introduce resources and capabilities from the outside, can we make full use of these to create market value and avoid the waste of resources for internal innovation in the enterprise. If we go further, we can introduce external resources and capabilities to achieve more technology, product and model innovation within the organization, whether it can bring more value to the enterprise; If we go further, can we export our own resources and capabilities to other enterprises to achieve internal and external linkage, and can we also achieve more innovation?

This is open innovation, and the innovation activities within an organization are not limited to the internal fighters of the organization, but fully interact with the external models.

The following diagram illustrates this:

There are two core things in product innovation: one is to do the right thing, that is, to do the right product; The second is to do things right, that is, to do a good job in product quality and reduce costs. Many companies have a foundation in the second half, but if you ask him to develop the right product, he is at a loss, and often runs to the market to simply imitate it.

To get rid of this situation, it is necessary to establish a set of scientific and systematic product planning methods, find trends from the messy and complex market environment, find the direction that meets the core competitiveness of enterprises, carry out appropriate product positioning, and develop suitable products.

For example, Huawei's MM system (Marketing Managing) starts with front-end market research, analyzes the market environment and competition, and then obtains its own market opportunities, and then gradually finds product positioning and product planning direction based on customer needs. The products thus curated are market-oriented. Many companies make products, often 9 out of 10 are wrong, because they do not meet the market demand.

To take a typical example of making TVs, the company has developed 100 TVs, but only 3-5 of them are really good to sell, and the others either can't be sold into stock, or they are not mass-produced at all. This is planning a product that should not be made, and a lot of resources are wasted. In fact, many enterprises are still in the stage of raw material cost and personnel cost reduction, and in fact, they make the right product decisions to avoid products that should not be planned to be developed, which is better than anything else in reducing waste.

The product project development of many enterprises in China is straight-barreled, how many items are established, and how many products are developed. In mature companies abroad, there will be a ratio, about 7 ideas, and only 1 is really developed. According to statistics, this can lead to a cost reduction of 40%-60%.

Therefore, it is very important for enterprises to have a mature product research and development system as a support.

in order to be able to effectively open up innovation activities. The coarse slag of the enterprise needs to be evaluated in terms of its own characteristics and market demand to determine whether it is suitable for open innovation.

The boundaries of open innovation can be defined in several ways:

Identify the right partners: Open innovation can be done with a number of suitable partners who share similar cultures, values, and strategic goals.

Determine the scope of open innovation: Businesses need to determine where open innovation can be done and where it needs to be closed.

Determine the time and resource investment of open innovation: Enterprises need to allocate time and resources reasonably in the open innovation process to ensure the efficiency and effectiveness of innovation activities.

Determine the risk control strategy for open innovation: Enterprises need to develop and implement risk control strategies to ensure that risks and losses can be effectively controlled in the open innovation process.

Yes, Haier's Tianzhu air conditioner, no-clean washing machine, water purification water heater, Haier Magic Mirror, and dry and wet separation refrigerator are all successful cases on Haier's open innovation platform, especially Tianzhu air conditioner, which has more than 670,000 users participated in it and was finally developed.

There is an open innovation platform, called Liquid Space, which provides intermediary services based on open innovation, both supply and demand docking!