Open Innovation Impact to Samsung Tech Business Paper Example

Paper Type:  Essay
Pages:  3
Wordcount:  573 Words
Date:  2022-10-20

Introduction

Open innovation can be defined as a process of coming up with the best ideas with other organizations for shared reward to mutual benefits and risks (Chesbrough & Vanhaverbeke 2014). The collaboration with other companies makes work easy and quicker as compared to achieving alone, it also makes production cheaper and more efficient (Blonstein & Chaney, 2000). This process helps make use of both internal and external sources such as the big customer reach, more academic institution reach, intellectual property, and resources through numerous networks (Huizingh, 2011). This paper will assess how open innovation affects Samsung technology innovations and the risk involved in the use of open innovation as an innovation strategy.

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Samsung Open Innovation

Samsung has adopted the open innovation and have used some in their Samsung Accelerator program, it has divided them into four categories: partnerships, ventures accelerators and acquisition (Kohler, 2016. For example, Samsung has invested in Mobean mobile company, also it has collaborated with startup, and Samsung has acquired a SmartThing in order to have a LoT stage without spending money and time on Research & Development (Vanhaverbeke et al., 2008).

Advantages and disadvantages of Open Innovation

Advantages

The use of open innovation reduces the cost of research especially for technology organizations such as Samsung by using resources that are already developed and cost sharing with other organizations (Jeon, Kim, & Koh, 2015). Samsung is taking advantage of the already developed concepts by startups which reduces the overall time required to create new products and solutions (Penin et al., 2011). Using open innovation, Samsung is able to create a network with institutions and universities to jointly develop technology products which is an opportunity to identify and develop talents in the organization research and development.

Disadvantages

Open innovation has its cons in that it leads to the loss of control of key information or knowledge which is behind the short lifecycle of products and the high cost incurred. Besides, there is high organization dependence on external organizations and knowledge which reduces flexibility and independence in decision making (Ullrich & Vladova, 2016). The intellectual property management and control in open innovation becomes a challenge because an innovation can be claimed by many entities.

Conclusion

Open innovation is a collaborative approach of innovation that involves many organizations which come together to share technology knowledge. Samsung has embraced the open innovation due to the reduced cost and time taken to create products but it is faced by disadvantages such as overdependence on external knowledge as well as the liquidity of the intellectual property control which shortens the lifecycle of products and reduces overall income due to lack of intellectual advantage.

References

Huizingh, E. K. (2011). Open innovation: State of the art and future perspectives. Technovation, 31(1), 2-9.

Jeon, J. H., Kim, S. K., & Koh, J. H. (2015). Historical review on the patterns of open innovation at the national level: the case of the roman period. Journal of Open Innovation: Technology, Market, and Complexity, 1(2), 20.

Kohler, T. (2016). Corporate accelerators: Building bridges between corporations and startups. Business Horizons, 59(3), 347-357.

Penin, J., Hussler, C., & Burger-Helmchen, T. (2011). New shapes and new stakes: a portrait of open innovation as a promising phenomenon. Journal of Innovation Economics & Management, (1), 11-29.

Ullrich, A., & Vladova, G. (2016). Weighing the pros and cons of engaging in open innovation. Technology Innovation Management Review, 6(4).

Vanhaverbeke, W., Van de Vrande, V., & Chesbrough, H. (2008). Understanding the advantages of open innovation practices in corporate venturing in terms of real options. Creativity and innovation management, 17(4), 251-258.

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Open Innovation Impact to Samsung Tech Business Paper Example. (2022, Oct 20). Retrieved from https://proessays.net/essays/open-innovation-impact-to-samsung-tech-business-paper-example

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