Myths of Open Innovation

While there is lots of curiosity and discussion around this topic, there are also some major myths which need to be shattered before this is adopted fully by all organisations. The topic of this post is to discuss these myths and show how they are wrong.

1. Myth: Open Innovation is difficult to start and the organisation needs to implement many changes before it can be taken up.


Reality: Definitely a myth or an excuse. Actually an open innovation project can be started on any project initiative. If privacy is a huge concern, suggest you start with your less secretive projects. Ideally select projects which have been attempted before internally with limited success. You will be surprised by the responses. Changes are inevitable in any innovation initiative but open innovation needs more a change in mindset rather than any major organisational change.


2. Myth: I have a large internal R&D team and they will be jobless if I go with open innovation initiatives.


Reality: This could qualify as one of the biggest myths. Open Innovation initiatives do not totally eliminate internal R&D staff. Your internal R&D staffs are invaluable since they understand your internal environment the best. However they will be able to get some important perspectives and directions from the external world through open innovation. Open Innovation is NOT outsourcing.


3. Myth: All my innovation projects are very private and should not be visible to the outside world. Also I don’t want to run into patenting issues.


Reality: Definitely a myth. While some innovation projects are truly dealing with trademark and copyrighted information which cannot be disclosed to the outside world, the vast majority of them do not fall into this category and so can benefit from the experience of the outside world. Also it is possible to remove the confidential information from most of the secretive projects and present in such a way that the outside world will not be aware of the true application of this. This is additional work but well worth the effort. Patenting issues are a concern but am sure your company lawyer will be able to handle this by Non Disclosure Agreement and other patent agreements. As long as you involve the right legal experts from the beginning, this is definitely not a show stopper.


4. Myth: The suggestions/ideas from the outside world are not really applicable in our scenario since our company requirements are unique.


Reality: A myth again. Even though not all the ideas from outside will be always applicable, it is indeed surprising if all the ideas/suggestions from the outside world are not applicable especially on a repeated basis. This only means that maybe they are not being considered seriously enough or the people evaluating them are not “open” enough to consider the outside ideas/suggestions seriously.


5. Myth: Open Innovation initiatives are only applicable to very large organisations. Most of the small or medium organisations cannot benefit from this.


Reality: This is a myth. It is definitely true that large organisations, by the nature of their size and problems, can benefit more from open innovation initiatives. But that does not mean that the small or medium organisations need to be left out. All it requires is that the small and medium organisations choose the niche area they want to focus on and then work on innovating in that space. Of course, they would need to make it worthwhile by investing both money and resources. In fact due to their agility and with prudent use of Open Innovation, small and medium firms will be able to spring a good surprise on large organisations through open innovation.

This is by no means exhaustive but covers some of the top reasons I believe why organisations do not progress open innovation initiatives. The main difference or catalyst required, which will make a difference, is the buy-in of the top management team. All open innovation needs is a few members of the leadership team to embrace this whole-heartedly and believe in this completely. Once organisations discover the true strength of the external teams, they will be transformed forever.

Are you ready to tap the potential of the outside world and work out win-win relationships? So what are you waiting for? Go forth and break all barriers and boundaries. The world truly deserves innovative products and this will not happen until the best minds collaborate together.

Together, we can do it!!!! We owe it to our tomorrow!!!