Open Innovation/Lead User Innovation
The Open Innovation is a term coined by Professor Henry Chesbrough, a new innovation strategy under which companies are going beyond the internal boundaries of your organization and where cooperation with external professionals have a key role .Open Innovation means to combine internal knowledge with external knowledge to move forward with the R & D It also means that companies use both internal and external channels to market their products and innovative technologies.
Traditionally, companies have managed innovation in closed form (closed innovation) system through which research projects are managed exclusively with the knowledge and resources of the organization. Under this classic model, the projects can begin only inside the company and end up in their own market. However, under the Open Innovation model, projects can originate both inside and outside the company can be incorporated at the beginning and at intermediate stages of the innovation process, and can reach the market through the same company or through other companies (patent licensing, technology transfer, etc).
User innovation is a term invented by Eric von Hippel (von Hippel 1986) and it refers to innovation by intermediate users (e.g. user firms) or consumer users (individual end-users or user communities), rather than by suppliers (producers or manufacturers).
Open innovation and user innovation nowadays are being combined by companies to try to be more competitive and meet the real demand of users.
A clear example of Open Innovation/Lead User Innovation is found in DHL, the company faces several challenges every day, as it seeks to optimize its logistics and transportation activities in urban areas while considering the traffic environment, traffic congestion and energy consumption in the context of a market economy - known as city logistics.
To help it stay on top of its game DHL Solutions and Innovations launched an open innovation contest in October 2011 for ideas to help the company reduce traffic bottlenecks and congestion, promote ‘green’ urban living and deliver efficient transport solutions.
“With the growing cities worldwide, the challenges of the logistics of the city and urban life are becoming more and more demanding,” said Steffen Frankenberg, Vice President of DHL. ”The solutions to reduce traffic and get more green cities are crucial to the future. DHL knows that the logistics industry plays an important role and we extend our approach to the logistics of the city by also inviting people outside the company to contribute their perspective. ”
The call was for academics, IT experts, public authorities, citizens and others interested in developing the concept of city logistics. DHL believes the Open Innovation offered the best way to bring together a diverse group of specialists from different fields and this will allow the company to better identify problems and create innovative logistics solutions.
The open innovation contest was conducted through a web-based platform into three categories. Each category has a number of well-focused questions to help guide the thinking and avoid presenting a lot of variety of brand ideas.
1) Logistics efficiency in urban areas, that is – which can improve the logistics flows of goods and services inside and outside the sandboxes? What new logistical challenges that may occur in the future? What kind of solutions can be developed to meet these challenges?
2) Green city and urban life, that is – what defines a truly green city and what it takes to become one?
3) Digital logistics, that is – that IT Solutions can improve logistics with regard to traffic management, traffic forecasting, warehouse management, etc?
The contest was open for six weeks and a panel of expert judges and then spent three and a half weeks to evaluate and revise ideas before they selected the winners.
Winning Solutions
There were two winners in each category and among the winning ideas were:
Of logistics centers of collaboration ‘, a winner in the category one is an idea that uses the collaborative logistics centers (HLC) on the borders of the city on the main roads traffic and employs green mobility for transport of the inner city. We hypothesize that DHL must operate transportation facilities and the city center. According to the jury, the idea is “to inspire and scalable”
“Earn as You Save” was the winner in the category and is a green city-based incentive scheme to encourage drivers to optimize their use DHL vehicles. Digital tachographs can collect information about your trips and prizes will be awarded to the driver’s efficiency. The jury said: “This idea, it just works.”
“DHL” CATCHING A SLAB “Smartphone application for cargo consolidation” was the winner in the Digital Logistics is an application that notifies the selected companies the percentage of free space on the DHL truck and where it will. It is based on an existing service and the jury said it could be used for “last-mile delivery and long distance transport.”
This example demonstrate that open innovation / user innovation is usefull for companies to be updated and can be competitive given the circumstances outside the company and of consumers.




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