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Openness is the key to every successful innovation, thus the importance of opening up the innovation process to a greater number.
Most smart entrepreneurs offer their services to other people due to their limitation of resources. Therefore there is a need for any managerial body in any firm to practice open innovation and support all the relevant ideas brought up by employees. Open innovation will allow the firm in creating innovation ideas for improving their products and production process.
Open innovation is the effort of forming a partnership to transfer and co-develop early stages of technology with organizations, which can then market and develop a commercial product or service. Open innovation seems to have been reserved for the big and established businesses, and long-time establishments with atrocities such as IBM, as well as Proctor and Gamble. But open innovation is a hypothesis which assumes an organization uses both internal and external ideas in its advancement in technology and creativity.
Startups are entrepreneurs, businesses or firms of different sizes which are mostly devoted to creating something innovative under all conditions of uncertainty. It enhances the creation of an entirely new product or service, or a new product to improve upon an existing one. Startups today play an increasingly important role in the business environment today, with their disruptions coming from unexpected corners of firms. These organizations embrace external sources of knowledge as a measure of an open innovation strategy.
Why open innovation?
Open innovation permits many people from numerous disciplines to handle an identical problem at the same time. Most startups are underfunded and therefore, need to be creative in their resource allocation. Challenges faced by startups today are more complex and sophisticated thus requiring identification and combination of other higher knowledge of innovation. Open innovation for startups may mean collaborative work with other startups, developing business partners and relationships to jointly develop new products and services, for customer satisfaction and revenue maximization. The partnership where startups provide their clients or technology to an organization is a great win-win concept to both parties.
Participation of employees in innovation.
Open innovation is usually based on listening and taking into account everyone’s opinion in the organization. Every opinion and idea of any employee in the firm regardless of his/her position, is of paramount importance to the progress and growth of the business, unlike the tradition pattern where only the top management opinion counted.
Lean startups through the involvement of customers
A lean startup is an approach used by entrepreneurs to innovate and be creative. Lean startups focus on finding out all that the client or customer needs before finalizing on the product or service to provide. Most organizations are regularly faced with the challenge of a decrease in the number of customers and brand loyalty. Lean startups encourage the involvement of customers, and building a relationship that is meant to improve on a product or service according to what the customer wants. Lean startups emphasize open innovation as a tool that brings solutions to a problem faster.
Engaging the community
Entrepreneurs and business engagement with the community are also part of an open innovative process. Their involvement guarantees the success of the innovation since it is in line with the beliefs and cultural practices of a community. There is no, or rather there is minimum resistance hence the success of the business. Availability of open source creates unity and an opportunity to identify any creative communities that are usually overshadowed and encounter challenges in getting noticed.
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