Innovation trends evolution: closed, open and lead-user innovation.
We can find many different definitions for “Innovation”. According to Wikipedia, Innovation is the creation of better or more effective products, processes, services, technologies, or ideas that are accepted by markets, governments, and society.
Considering that definition, that is in the main points similar to others, it is clear the big importance of innovation in the society, and particularly, for the companies. Which company won´t be interested in creating better products or processes that are accepted by markets, governments and society?
Of course, it is not easy to innovate, and there is not a clear path to follow. But in last times there have been some changes in the way in which companies are facing innovation.
Close Innovation: Traditional Innovation.
Looking for information about “Close Innovation” I discovered that, surprisingly, almost all articles I found were more related with “Open Innovation”. That happens because before open innovation appeared, close innovation was the only way to innovate and there was no need to introduce the adjective “close” to distinguish the concept.
Companies following this model integrate the whole innovation process inside the company, and their own experts are the only responsible of research and development. As a benefit, there is a strong control in new products and services, that suppose a barrier for new competitors and a differentiation of the company.
As a problem, companies are not keeping in touch with market and competitors: our world is changing very fast and it is easy for a reduced group of experts to get out of the market trend regarding new products or technologies.
Open Innovation
This term was coined by Henry Chesbrough in 2003, but it is considered that Open Innovation started to spread between north American companies during the eighties, and about fifteen years later between European companies.
Companies following this model consider that not all the innovation process should be done by their own experts, accepting that taking ideas and work from people outside the company can result very useful in order to improve that process. These people outside could be the employees or even the customers of the company: if they participate in the creation of new products, their loyalty will increase and the new products will satisfy them.
To connect them with the R&D department, frequently are used informatics tools called Innovation Platforms . Recently we participated in an innovation experience in EOI, using one of these tools, that allows the user to explain and develop their own ideas, as well as comment and discuss the ideas of the others. As a result, it is obtained a ranking of most voted ideas and most active users.
Lead User Innovation
Lead User Innovation term was coined by Eric von Hippel in 1986.
This model is a particular case of Open Innovation in which those experts out of the company are “Lead Users”, that means, users that, in a different field or due to a different reason, are facing (frequently in an extreme way) the same needing.
This kind of innovation is the one used by automotive industry when they learn from a Formula 1 team.
In racing cars some requirements like security or aerodynamics are extreme and provoke new inventions that are out of the market in the moment that are created, but are possibly a good opportunity some time later.
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12 feb 2012
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Arturo Del Fresno Rodriguez
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