Open Innovation

The opening of the “innovation funnel” is not just an option to attain innovation leadership. In many industries – especially in the metal industry – Open Innovation is a requirement for staying in business because of the fundamental changes of principles in innovation management

Six megatrends create new realities for innovation managers:

  • Knowledge explosion
  • Globalization of knowledge
  • Shortening of product life cycles
  • new scientific borders
  • Convergence of industries
  • Internet-based social networks

Leading companies do not limit themselves in just optimizing their existing innovation management systems. They use the global pool of ideas and expertise for their innovation work. They have strategies, systems and cultures which are built on openness and collaboration”and with this they achieve enduring advantages in competition. Leading companies gain the following as return for their investments in Open Innovation:

  • More innovation impulses
  • More and different ways of solving scientific and technical problems
  • Diminution of time-to-market
  • Reduction of the innovation risk
  • Decrease of the fixed development costs
  • Increase of the chance for successful radical innovations (game changers)
  • Multiplication of the innovation resources
  • Conversion of fixed R&D costs into variable costs
  • Enlargement of the supplier base