Real World Examples of Open Innovation by Global Organizations - ALCOR FUND

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Real World Examples of Open Innovation by Global Organizations

  • October 8, 2020
  • AF Bureau
Real World Examples of Open Innovation by Global Organizations

Introduction

In these days of digital transformation, new startups are emerging every day. As collaborative working becomes the norm, some companies are welcoming external organizations involvement. These external involvements are open innovation examples.

 

Open innovation is an alternative to the conventional innovation process. Here information does not have to stay within pre-set confines. A mindset, if you will, of being open to sharing and receiving information.

 

 

In this article, there are some open innovation examples.

 

We will find out how open innovation has been implemented in the real world. In addition, you will see the benefits that it has had for some of the largest global businesses.

 

Examples of Open Innovation

  • NASA

NASA adopted open innovation to build a mathematical algorithm. It can determine the optimal content of medical kits. The kits would be used for NASA’s future crewed missions. Additionally, it wanted to create innovative software that can solve this problem.

 

So, NASA collaborated with TopCoder, Harvard Business School, and London Business School. In this collaboration, TopCoder members provided 2,833 code submissions. It is helping NASA build the intended algorithm.

 

The winners are offered $24,000 in cash prizes. They also have seats to watch remaining shuttle mission launches.

 

Open innovation created a time-effective and cost-effective solution. So, it could not have been reached using the internal team alone.

 

  • Coca-Cola

An open innovation model presented by Coca Cola is the Freestyle dispenser machine. It allows users worldwide to mix their flavors. It also allows them to suggest a new flavor for Coca-Cola products.

 

The new product records the consumer flavor to get it from Freestyle machines. This is done using the Coca-Cola mobile application. So, this open innovation model puts the consumers in the heart of the production process.

 

The company uses the suggested flavors as part of the external ideas. Therefore, these can be evaluated and processed as a new product line.

 

  • LEGO

LEGO’s Shared Vision focused on the consumer by linking both business and creativity. LEGO started the LEGO Ideas to get open innovation LEGO sets.

 

LEGO consumers can design their own LEGO sets. This is done either using LEGO bricks or computer 3D applications on this online website. Other users discuss the idea and vote for it.

 

Once the idea reaches a targeted vote, LEGO can consider it a new product. They give a small part of the revenues to the set’s creator.

 

This contributes to putting the consumer in the heart of the innovation process. It helps the team target sets that can achieve success based on the LEGO Ideas votes and comments.

 

This co-created platform can also reduce the risk of innovation. This feedback from the website can give business analysts an idea. Hence, it helps them analyze the viability of the new product.

 

Conclusion

Organizations want to be at the bleeding edge of innovation. They are doing that by partaking in corporate venturing. They invest in external projects and startups.

 

Open innovation involves collaborating with external parties. There is potential for the birth of lucrative partnerships. Businesses can try to get new investors too. They can get comprehensive assesments on the presecreening stage from their companies to aid them.

 

Organizations can detect emerging threats and integrate potential disruption tools. They can do this by keeping one eye on the mother ship while scouting the environment. So, this helps them to stay ahead of the competition.

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