Month: March 2016

Managing the Uncertainty of Open Innovation

One of the hottest topics in business management today is open innovation. The concept uses an open business model for companies to “co-innovate” with their partners, suppliers, and customers – in order to accelerate the rewards of innovation. For example, a small or midsized company develops a game-changing new idea and works with a larger company to bring the product to market.

Through the collaborative relationship of open innovation (OI), companies are able to leverage new ideas and products, and conduct experiments at lower risk levels. However, OI does bring up some concerns, like who owns rights to the intellectual property (IP). OI should be conducted in a manner that promotes mutual trust and respect. It can be a double-edged sword when the larger company insists on owning the IP in exchange for their investment. The OI relationship can be a tricky one to navigate.

Large corporations like Nestle, Kraft, Siemens, General Mills, and Clorox all participate in open innovation practices. Here is a case study of the open innovation process at Proctor & Gamble, one of the most respected consumer product companies in the world. P&G introduced their Connect + Develop program on their website at pgconnectdevelop.com. The site is a place where the general public can submit their innovations, read about successful business partnerships, and even scavenge current IP needs of the company.

“Historically, P&G relied on internal capabilities… We did not actively seek to connect with potential external partners. Times have changed, and the world is more connected. In the areas in which we do business, there are millions of scientists, engineers and other companies globally. Why not collaborate with them? We now embrace open innovation…” reads the P&G website.In just over two years, the program has received 7,500 submissions. P&G has established more than 1,000 active agreements with innovation partners, and claims more than 50% of their product initiatives involved collaboration from outside innovators.

In the Connect + Develop program, innovators must have their IP in place before they submit their idea. This protects the innovator while the IP adds value to the organization – the key is to build relationships and produce win-win deals. Through working together and developing effective ways to manage IP rights, OI can further advance innovative culture and produce favorable results for all parties involved.

Here are some tips for nurturing open innovation in your business.

It takes leverage, courage, and toughness to create a balanced open innovation relationship. In a balanced relationship, the IP or technology of the inventors or small business should remain theirs.
Develop both reactive and proactive ways to address open innovation. On the reactive side, invite the world’s finest innovators seeking open innovation opportunities to develop your IP needs.
Proactively, tap into local universities, companies, and venture capital firms to meet inventors, set up networks, and make connections that are not readily apparent to most people.

Tips to Help Manage Your Business Effectively

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Businesses are not easy to manage. In fact, setting up and running a business in itself is a big task, let alone managing it successfully. Many people get easily distressed and discouraged after suffering initial losses and leave their business plans and strategies for good. Some even totally change their career paths and instead try to get old style jobs where there is no opportunity to grow and excel in life.

If you are facing the same situation and thinking about abandoning your business plans, following tips might help you a great deal.

Plan a strategy

The best way to manage your business effectively is through an effective planning. You can easily do this by planning a defined strategy for business. You first need to etch out a great strategy that should focus on both the positive and negative outcomes of a potential business plan. The best way is to prepare for failure rather than success as most first ventures have limited chances of success.

The strategy should focus on disaster management after a failure and the ability to get out of financial mess. However, this does not mean that you should forget about success. The strategy should always be geared towards success, but with a significant attention towards possible failure. If you taste success in the first phase then it would certainly be a great achievement.

Gather resources

Even more important is the availability of monetary and human resources to carry out the business strategy. A business cannot run properly if it runs outs of finances at the very crucial stage. A budding businessman has to make sure that enough financial resources are available to sustain the first phase of business management.

The second, and more important factor, is the availability of good human resources. Most businesses do not care much about hiring good talent that can help the nascent business to get some success. This good human resource can either be a good working force at the lower level or a couple of good managers that know how to run a new business. Whatsoever maybe the case, a good human resource and a significant amount of money makes a business sustainable and profitable?

Innovation

This is the third most important factor in running a business. Although many people do try to have enough monetary resources and human resource, they do not try to evoke business innovation in their business strategy. Just consider a business starting its operations in a field that is already saturated by hundreds or even thousands of competitors.

Innovation can be done in a number of ways. The best possible way of innovation in a business can be in the form of launching a new product that is different from the others available in the market. Additionally, you can make it unique by adding some extra features or offering discounts. Advertisements, if catchy and innovative, can also play a great role in helping a business attracting more customers.

Contribution Of Innovation Strategies

In each industry, there are leaders and there are supporters. Leaders are people who are adaptive to switch, or to explain, they’re open to include new inventive systems in their enterprises and their products. A good innovation business model is composed of your capability to think up new and creative ideas and implement them to make state-of-the-art products. It’s all about making something new and better than the present products that exist in the marketplace today. It could be a totally new release developed from the start, or it could be something that’s made from an old product or idea.

Becoming responsive to changes in the business environment is a required feature if you’d like your company to consider new contribution of innovation strategies initiatives and put them into action successfully. Creativity systems are composed of consistently developing your products and invent new and exciting products to draw in users in this very tough market. Essentially there’s no other choice for you. Your business desires needs to keep on developing otherwise it’ll die a slow but sure death.

The primary reason is that the products have an intensely short life cycle. Look at any successful company or any product around you, and you may realize that only the cutting edge firms which constantly come up with a more recent product can survive. Look at any technological product from computers to cell phones and notice isn’t the same that it was a couple of years back. Set up a new team for innovation: Set up a no less than 4 to 5 members to control the innovation development of your organization. Please note that this team should be effectively managed by giving them clear cut aims every now and then.

Follow the steps of other thriving companies. This goes without saying because effective inventive ideas are one of the characteristics among all thriving businesses. Pick-up of a few of these firms and study their business process and attempt to adopt them in your business. Reward inventive concepts that are given by employees. The reality is that everybody enjoys being rewarded for their contribution in the cutting edge process, particularly when that is something they do out of their standard job routine. You can supply reward them by any means. Public recognition is among the handiest ways to boost employee morale but you may also consider financial rewards and promotions for the leading edge staff.

With effective management, we imply the contribution to innovative strategies need to be capable of making productive surroundings inside your company that incentivizes everybody from senior executives to the lower level staff to make a contribution towards the successfulness of your organization. The benefit does not end there. Developing a system will even enable you to foster competing spirit between your people which will effectively require them to work harder still. It is also critical to remember that innovation is a long-term process and may not offer you instant results, but it will foster an environment where you may ultimately reach your business objectives.

Innovation Management Tips for a Successful Business

Innovation is essential to a business’ success. Many companies simply do not know how to encourage and discover innovation, and can sometimes discourage it; although it may not be on purpose. Innovation management is the technology of managing the process of creativity and can be used for the development of new ideas, products, or organizational innovation.

Innovation management includes multiple tools and methods that enable professionals to work within a recognized understanding of the objectives, goals, and targets. In order to achieve a breakthrough development in innovation, the emphasis must be on research and development, almost entirely.

Innovation management discovers the practices and actions that can turn an idea into a reality for the purpose of business value. Some tips for innovation management are outlined below:

Take action immediately. Include collection and analysis of data as part of your innovative strategy. This makes you better capable of identifying needs and problems so that an appropriate solution can be devised. Welcome employee participation. Invite feedback from your customers as well as within the company. Know the difference between good and bad ideas.

Make your team more diverse. They can provide different outlooks and points of view. Sum up your staff of experienced, skilled, and academic qualities. Do not limit yourself to one set of ideas or opinions. Diversifying your staff increases your chances of success.

Know the difference between good and bad conflict. With the diversity of staff, expect conflicting ideas and opinions. However, as long as the conflicts do not escalate into a problem, conflict is good for coming up with a successful innovation strategy.

Select teams for who they know as well as what they know. This helps to develop a well connected team. For instance, an employee with connections to a media marketing employee may be able to provide useful pieces of innovative media strategy that can be utilized within your own corporation.

· Pick a leader and provide them with the tools necessary to be successful.

· Build a team to identify gaps in marketing or marketing in the gaps.

· Find team members that are good story tellers. Your team needs members that acquire the skill to communicate new business ideas.

· Set goals and measure progress.

· Think like a newbie entrepreneur in the sense that they have a heightened level of motivation and focus.

· Ensure members to dive in with both feet in the water. Let them know you want their all and not to be fearful to provide just that.

· Beneath the surface of media companies’ innovative media strategies lies a treasure trough of data. You may wish to partner with a media company in order to send the right messages that reach the right audience at the right time.

· Social media press is becoming a game maker in innovative media strategies. Also, reaching to the mobile audience.

These useful tips, in combination with further research, will give you a heads up on innovation management. This can be a difficult task, but with the correct education and research can prove to be highly rewarding.