Essay Sample on Innovation Process: Open & Closed Approaches to Problem-Solving

Introduction

Innovation is the drive that an individual possesses to ensure a solution to a particular hiccup is solved using conceptualized ideas. The innovation process involves identifying the problem that exists, evaluating its causes, and possible means to address it most appropriately. Innovation may be either open or closed based on the ways and knowledge gathering towards problem-solving. Closed innovation involves the evaluation of a problem and individually or personally develop the ideas to solve the crisis without consulting the external sources. Consequently, open innovation involves engaging both external and internal sources in development solutions towards a particular gap with the firm operation system. Open innovation, to some extent, is always crucial in the enhancement of the company innovation and advancement of its operations (Spithoven et al., 2013). Consequently, it provides a solid base for a long-lasting solution that, indeed, is to improve the net profit of firms. The paper, therefore, will discuss the impact of the open innovation practices on firm innovation

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Open innovation involves a hugely collaborative activity. It examines the problem and the core source of it. Under such a solution found, the external and internal sources of the firm are engaged. The primary contest of engaging the external partners of innovation is to develop a systematic perspective and ideologies that might be an oversight by internal evaluators. The collaboration, therefore, becomes a vital tool of gathering research perception of others and how they derive or view the critical problem in the discussion (The Importance of Open Innovation and Collaboration | London Business School, 2020). Generally, the open innovation enables the firm innovation to combine a variety of research views which in return help the firm develop accurate and valid solution towards the existing problem.

Open innovation enables the firm to establish a sustainable solution that incorporates different ideologies. The evaluation and conceptualization of the ideas from the external partners create a measure that can be taken to solve the problem, prevent, and also advance the current situation of the firm. Technology, at times, may act as an external source or even a baseline to innovation, thus influencing compacting the solution that is to manipulate the invention and development of sustainable innovation performance effectively. For example, Xerox PARC developed its software through a series of the advancement that involved the development of laser printer up to PDF file format (Lecture on Open Innovation - Marcel Bogers - Innovation Forum 2013, 2020). Generally, it is through collaboration and engagement of outside sources that the company was able to come up with an effective and efficient file format that is portable and easy to transfer. That way, the firm innovation was advanced and developed to attain work efficiency at its production.

Improvement of the product within a firm is also a product of open innovation. Primarily, a research question is always prepared and presented to the external world. They enable firms to gather relevant information and knowledge required to develop specific criteria within the domain of production. At that particular point, technology is captured to initiate innovation and improvement that is crucial for firm success. Similarly, using the multidimensional model of absorptive capacity, it induces the ability over the firm to realize the coherent measures that are necessary for solving particular challenges they face (Benefiting From Open Innovation: A Multidimensional Model Of Absorptive Capacity, 2020). The collaboration effect leads to coercive analysis and conceptualization that demonstrate the impact of a particular problem such as management and supervision by incorporation of a wide range of ideologies to achieve its objectives effectively. However, open innovation may misguide the firm information, especially when the internal evaluators are not keen about the external bias partners. For that reason, failure in the development and integration of the innovation plan may fail, thus reduction in profit margins of the firm.

The effect of thought of outside information on the presentation of open innovation is imperfect. A social event of studies shows that external information improves the showcase of open headway, anyway another party of specialists proposed a negative affiliation and fought that the developing responsiveness makes the innovation continuously costly. Despite the scrappy association, it's now certified from the making that model out of progress has been changed; before long, affiliations are working contrastingly on conceptualization and commercialization because of which the limitations of affiliations are getting powerless (Zobel, 2017). It is seen that diverse outside bodies are looking into the improvement technique, for example, clients, merchants, providers, examine related affiliations, contenders, and so forth. A lot of outer information is required to bring an innovative psyche, which could lead to new thoughts. Besides, SMEs have primary contacts with different wellsprings of external position, for example, information ensuring about, displaying, consultancy, subcontracting, and so forth besides depicted that, on an essential level, outside affiliations are crucial for open improvement, in any case, close progress framework may be refreshed as opposed to open headway (Dahlander and Gann, 2010). Extension information is a crucial factor of open improvement, and it is one of the difficulties for open innovation.

Internal headway growth is one of the earnest troubles for open improvement. It requires correspondence with all accomplices, especially among the laborers. The inflow of outside data required and a flood of inside data required is a component of the level of inside data any affiliation methodology. In an open headway, structure firms need to keep up a nice blend of in-stream and overflowing of data (Xia and Roper, 2016). Nevertheless, in most by far of the cases, the activity of inside data because of firm-express factors, for instance, inside R&D, a joint exertion between laborers, the board, etc. undermine the outside knowledge.

Moreover, firms that have a joint objective in both internal improvement and external relationships with suppliers strongly influence creativity when stood out from various firms. Inside R&D of any firm is a critical resource by which development could be accomplished (Laursen and Salter, 2006). Organization's inside ability overall raises the negligible return with the help of adequate outside data joining techniques.

Conclusion

In conclusion, open innovation is very victor in ensuring that reliable decisions are made in meeting the solution of the firm problem. It enables and the firm to conceptualize and institutionalize innovation to bridge the gap and development. Primarily, the development of an innovation system is defined by both external and internal sources. Therefore it is the effect of sustainability, and success is attained.

References

Dahlander, L., and Gann, D.M., 2010. How open is innovation?. Research Policy, 39(6), pp.699-709. [Online] Available at: [Online] https://onlinelibrary.wiley.com/doi/pdf/10.1002/smj.507

Laursen, K., and Salter, A., 2006. Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms. Strategic management journal, 27(2), pp.131-150. [Online] Available at https://onlinelibrary.wiley.com/doi/pdf/10.1002/smj.507

Spithoven, A., Vanhaverbeke, W., and Roijakkers, N., 2013. Open innovation practices in SMEs and large enterprises. Small business economics, 41(3), pp.537-562. Available from Google Scholar

Xia, T., and Roper, S., 2016. Unpacking open innovation: Absorptive capacity, exploratory and exploitative openness, and the growth of entrepreneurial biopharmaceutical firms. Journal of Small Business Management, 54(3), pp.931-952.

YouTube. 2020. Benefiting From Open Innovation: A Multidimensional Model Of Absorptive Capacity. [online] Available at: <https://www.youtube.com/watch?v=MTTIVTTAeas>

YouTube. 2020. Lecture On Open Innovation - Marcel Bogers - Innovation Forum 2013. [online] Available at: <https://www.youtube.com/watch?v=gLsNQ0yjdNo>

YouTube. 2020. The Importance Of Open Innovation And Collaboration | London Business School. [online] Available at: <https://www.youtube.com/watch?v=05QZQIf8mPg>

Zobel, A.K., 2017. Benefiting from open innovation: A multidimensional model of absorptive capacity. Journal of Product Innovation Management, 34(3), pp.269-288. [Online] Available at https://onlinelibrary.wiley.com/doi/pdf/10.1111/jpim.12361?casa_token=0Qv6ZNJ0d0EAAAAA:Ikp8COlgBF7EpE8jaHqBjT28wx7pB1SsCy6OBst--j0A097aLtXaHRQwbMjwQ68aUzaaf5ZIhmH-Rg