Benefits of open innovation in your business

return Posted in 17 de March de 2021

Benefits of open innovation in your business

The benefits of open innovation are increasingly being noticed by companies, with the opening of the business to external innovations to broaden horizons, to provide more ways to continue developing and competing in a market that demands more and more inventiveness.
One of the main benefits of open innovation is the proximity to startups, which reduces the difficulty that large companies often have to innovate. They are good at processes, have efficient quality controls, have recognized brands, access to capital etc., but all that they do so well can hinder some types of innovation.

Typically, they are unable to develop more radical innovations or that question their own business model. Startups, on the other hand, despite having so many weaknesses, tend to be more agile, willing to invest in emerging technologies and take risks in new markets or even propose more disruptive business models. In the context of innovation, large companies and startups often complement each other.

Therefore, we came to tell you today what are the main benefits of open innovation for your company that wants to evolve in the market. Keep an eye:

1 – Receive external talent
When innovating, not all intellectual resources will always be within your company.

The idea of ​​applying open innovation is precisely to be aware that we must locate and explore the knowledge and experience of brilliant individuals who are outside their sector, their organization or even outside their area of ​​expertise.

This collaboration can be done with startups, technology-based companies, universities, research institutes, etc. As a two-way street, you also negotiate and sell your ideas to the world.

2 – Broaden the business vision
A major strategic change must occur in the way employees look at the company and its environment. Involving several teams in the development of new products and technologies will always be of great added value.

In open innovation, with the cooperation and sharing of ideas with other agents such as startups, the vision of the business model is broadened.

How and when external knowledge is needed is largely determined by the business model. It describes how value will be created from innovations and what elements must be acquired internally or externally.

3 – Avoiding vices in the organizational culture
When we open the door of our company to external knowledge, we can see the same problem from different angles and be open to the different ideas of each one. This ends up highlighting all the vices that exist in the corporate structure that we could not get rid of in the routine without practicing this exercise.

This impacts on a more entrepreneurial culture within companies, in which people and teams feel more motivated and confident to bring ideas to customers, even if they are not specialists in the field.

.The great advantage of Open Innovation is being able to invite specialists in various areas to bring solutions based on techniques and metrics.

4- Opens new markets and opportunities
Open innovation is done with the aim of discovering new innovative solutions to companies’ process problems, generally. Therefore, through these solutions it is possible to create new products, new markets and even new business opportunities.

While closed innovation only focuses on adding functions to existing products, open innovation focuses on generating disruptive solutions.

5- Reduce the time and cost to innovate
The innovation part of companies is usually the responsibility of the research and development team. But the truth is that not all companies are able to have the budget to invest in one, because the professionals for this area are scarce and generally need high salaries, due to high qualifications. Still, there is the expense with equipment and spaces, for example.

Open innovation is already a much more accessible option for companies that do not want to be without innovating in their processes. With it, it is possible to count on a wide network of partners in a collaborative way. The costs involved are low and even zero in some cases.

Other than that, the large number of professionals and organizations involved greatly speeds up the process. The experimental and decentralized character of the project also contributes to creativity and the exchange of ideas to flow more easily.

6- Reduces business risk
Developing innovation internally and testing them requires a lot of investment and it is not always known whether it will work and, if it works, it is not known whether it will generate profits to cover expenses.

The whole dynamic involves many risks that can be circumvented with open innovation. It will guarantee you a much more complete view of the market. After all, there are not only the ideas of the professionals of your company.

It is possible to know the views of other companies, startups, customers, suppliers, universities, among others.

In short, you can collect much more reliable and comprehensive data to make the best decisions.

Also check out what types of open innovation exist and which best fits your business moment.

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