What is open innovation and how can organizations leverage it? This open innovation infographic sums up eight best practices for driving an open innovation project.First some backstory about open innovation (tl;dr: the infographic is below). Open innovation occurs when companies use both internal and external sources of ideas to innovate whereas closed innovation occurs when companies only use internal resources to innovate. By nature, open innovation typically involves more stakeholders but it also creates a collaborative environment whereby competitors might even come together to create new solutions.
Getting diverse stakeholders on board and working together through open innovation can reap rewards for all. Stakeholders become the champions of the open innovation solution and in some cases, the customers.
The result of an open innovation project has potential to transform an entire industry and create a better future for consumers.
In the blog post, 8 Imperatives for Managing an Open Innovation Project, APEXA CEO Tonya Blackmore shares how her team used open innovation to bring together nine leading companies in the Canadian life insurance industry to create a platform to standardize and simplify life insurance advisor compliance across the country.
The Problem-Solving Power of Open Innovation [Infographic]
Open Innovation leverages the knowledge, expertise, and resources of all stakeholders to build large-scale solutions to solve industrywide challenges.
Think about the opportunity for improvement in these areas alone: legal, regulatory, and inter-party inefficiencies.
8 Keys to Driving Successful Open Innovation
- Solve a problem that benefits all. Structure the solution so none are put at advantage or disadvantage.
- Engage a senior-level sponsor in each organization. Find a champion who can direct and defend the vision as well as provide financial resources.
- Establish metrics for success. Use these as guides when participants’ individual goals conflict.
- Form a board that represents all. Make sure independent agents and consumers are represented.
- Involve experts on the board and the team. Secure specialized expertise in the industry area your solution targets.
- Consider how participants work differently. Invest time to understand how they envision projects, set requirements, and test output.
- Anticipate the level of change you may create. Success may depend on all participants embracing change management.
- Recognize the limitations of early user input. Avoid building more than is needed to facilitate input from actual users.
APEXA, a subsidiary powered by RGAX, is the product of open innovation in the Canadian insurance industry by bringing together nine leading companies to standardize and simplify insurance advisor compliance.