OPEN INNOVATION ECOSYSTEM STRATEGY
OPEN INNOVATION ECOSYSTEM STRATEGY
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Introduction
Innovation is fundamental for a business to survive and thrive in the ever-changing business environment. Companies use innovation to develop new products and services, generate and apply knowledge, develop new business models, and obtain results. In the past decade, the concept of open innovation gained momentum as businesses recognize and acknowledge the benefits of looking beyond organisational boundaries for innovative business ideas, business collaboration in developing ideas, and validation of the business ideas in the market. By definition, open innovation refers to the ability of businesses to use collective knowledge and resources of external parties in developing different areas of their business. Companies can use resources and creative professionals outside the business to gain a competitive advantage and achieve organisational objectives.
Open Innovation Ecosystem Strategy for Open Pages
Open Pages is an innovative digital platform established in 2018 to assist refugees and immigrants in accessing critical services and information necessary for their settlement and survival in Australia. The previous recommendations to help Open Pages establish itself in the Australian market and effectively link immigrants and refugees in Australia with critical services and access to information are brand awareness and domestic scaling.
Finding and developing new ideas is essential for business growth and performance; with the rapid change in the business environment and prompt communication, businesses adopt open innovation. Unlike traditional closed innovation, where companies own and commercialise innovation, open innovation treats innovation as a commodity that firms can create, buy, sell or lease (Spender et al., 2017). Open innovation relies on business cross-boundary collaboration, investment in technology, and scouting practices to build links between insiders and outsiders such as customers, competitors, and investors (Bogers et al., 2018). Companies planning to invest in open innovation should consider the goals they tend to achieve and if open innovation is an effective means of achieving the goals and the audience needed to accomplish them.
Open Pages aims to create brand awareness in the Australian market and increase access for all migrants and refugees in Australia. Brand awareness shows the level of recognition of a product, brand, or service among customers, and it is essential in improving market outreach and reaching new audiences. Open pages platform is still a new concept in Australia; therefore, it needs to develop measures that enhance its establishment in the market. On the other hand, domestic scaling involves increasing the number of local individuals who can access a service or program. Open Pages aims at creating a platform that includes all migrants and refugee communities in Australia. The founder of Open Pages, Mohsen, can adopt several open innovation ecosystem strategies to achieve these objectives.
Research and Development Open Innovation Strategy
Open Pages can adopt a research and development open innovation strategy to research what migrants and refugees in Australia need so the platform serves all their basic needs. Research and development strategy entails developing ideas and products that accurately meet customers’ needs and requirements (Marcolin et al., 2017). A sound system implies an excellent service that attracts customers’ attention ultimately, increasing its brand recognition among refugees and immigrants. Additionally, with correct information, Open Pages can improve its services to serve Australia’s entire migrants and refugees’ community.
Marketing Open Innovation Strategy
The marketing open innovation strategy involves finding new ways to boost the business brand, making the products and services sell among consumers. It consists of getting information about the product and service across the market (Marcolin et al., 2017). Open Pages should engage in vigorous marketing to sell their brand across the Australian market so that their customers can be aware of the services they offer. Building a brand as an online platform that provides services for a specific group of people is challenging. Therefore, to establish their brand in the Australian market and increase the number of migrants and refugees using their services, Open Pages should find better ways to pass information about their existence to the market.
Talent Open Innovation Strategy
Talent open innovation strategy involves finding individuals with unique knowledge and skillset and invoking their interest in working with the company. According to Bogers et al. (2018), having qualified members in the team means high-quality output. This translates to better products for customers, which eventually translates to an increased customer base. Open Pages can scout and outsource for talented individuals in information technology and business management to join the firm. These individuals will bring new ideas to the company that will translate to better services, eventually increasing the recognition of the Open Pages brand and services among customers and the general public. Additionally, the company will provide a platform that includes all migrants and refugees in Australia with qualified individuals.
Intercompany Open Innovation Strategy
Intercompany open innovation strategy involves sharing information between two or more collaborative partners working on the same field or related field. Businesses can enter into partnerships with different companies in different parts of the supply chain for mutual benefits (Bogers Et al., 2018). Open Pages provides migrants and refugees with a digital platform to access critical services and information in Australia; the company can partner with international organisations that deal directly or indirectly with migrants and refugees and the Australian government institutions such immigration department that provides different services to migrants and refugees. For instance, it can partner with these organisations to offer essential services that these organisations provide in its platform; this will mean that every refuge or migrant in Australia will have to access the platform to enjoy the service, ultimately increasing its brand awareness and domestic scaling.
Implementation of Open Innovation Strategies for Open Pages
Open pages should directly engage with potential customers to understand their needs. Understanding customers’ needs create and develop products that fully satisfy customer demands (Spender et al.,2017). Open Pages should engage with migrants and refugees directly to understand what services they urgently need as they settle in Australia, what services are difficult to access physically, and the kind of information they would like to access from the system. This will imply that as the company engages with experts, do their research on product creation, or scout for talents, the services will be what the migrants and refugees need, eventually establishing their brand in the Australian market and improving their domestic scaling.
Secondly, Open Pages should engage with the public to understand their opinion about their services. Businesses should engage with all individuals, regardless of their level of knowledge and stature, who are willing to contribute to getting information about a product or service. Companies can utilise any channel to inform and get information about the product (Spender et al., 2017). Open Pages can provide a nationwide survey seeking information about improving the platform or asking customers what they know about the company. This will mean a more extensive audience, ultimately increasing its brand recognition among consumers. Additionally, information gathered from the feedbacks can be beneficial in developing the platform to accommodate all refugees and migrants in Australia.
Additionally, Open pages can invest in individuals outside the company with the relevant knowledge to give additional and relevant input on the digital platform. Companies tend to outsource professionalism with experience and expertise in their production line to provide further information on the product, market, or service (Bogers et al., 2018). Mohsen, the founder of Open Pages, can outsource Information Technology gurus to provide insights on how the digital platform can serve refugees and migrants better and additional information on areas that Open pages can improve. A better system equals better services, which translates to more customers eventually, increasing the recognition of the brand and services among migrants and refugees, the customers, and the general public and increasing the number of customers who can access services.
Furthermore, Open Pages can invite well-known business owners, human rights activities, and leaders of institutions that deal directly with migrants and refugees to look at the system, what it provides, and how it operates. This will create awareness of the system’s existence and offer insights into how best to run the system and what services to provide. For instance, business experts can provide information on how the service can serve all migrants and refugees in Australia and still profit. As a start-up company, Open Pages can benefit immensely from the impact and insights of experts.
Impact of Open Innovation Ecosystem Open Pages
Modern business is shifting to open innovation at a higher rate. Unlike closed innovation, open innovation encourages collaboration, implying that an organisation does not have to fully invest in technology or skilled individuals to benefit from these resources. Open innovation significantly impacts the business environment and contributes to organisation productivity, growth, and profitability. Open innovation will be beneficial to Open Pages in various ways.
Open Pages can benefit from lucrative partnerships. When businesses collaborate with external companies, there is a possibility of building lucrative partnerships. Different companies have different strengths; collaboration brings these strengths together to improve the creative potential at disposal (Nambisan et al., 2018). If Open Pages adopts an intercompany open innovation strategy, it can benefit from lucrative deals from external partners. As a company that deals with migrants and refugees, Open Pages can benefit from partnerships with internal organisations that directly or indirectly deal with these groups’ welfare.
Secondly, Open Pages can leverage its investment in open innovation to improve its public relations ad brand value. Open innovation marketing and publicly open strategies offer the business a broader outreach that they can use to improve their public relations and brand recognition (Pustovrh et al., 2020). Positive brand recognition enhances brand value. If Open pages adopt marketing and publicly open strategy, they can benefit from brand awareness. This will imply an increase in its brand value and public relations.
Additionally, Open Pages can find new talents through open innovation. Open innovation provides an excellent opportunity for businesses to find talents outside the company as it allows businesses to outsource experts and talented individuals (Pustovrh et al., 2020). Companies can take this opportunity to recruit individuals that are a perfect fit for the organisation. If Open Pages adopts a talent open innovation strategy, they can use the opportunity to recruit individuals with knowledge, experience, and skill set that meets organisational requirements. For instance, it can recruit information technology gurus that can contribute immensely to creating a seamless digital platform.
Open Pages can also leverage open innovation to engage a larger audience. Open innovation provides businesses with a large audience compared to close innovation. Publicly open, open innovation strategy provides businesses with a large audience that they can use to gain insights about their products and services (Nambisan et al., 2018). If Open Pages adopt a publicly open, open innovation strategy, it is likely to benefit from insights and feedback from a large audience. This will help build a system that provides all the essential services migrants and refugees may need in Australia.
Furthermore, Open innovation help companies reduce cost. Unlike closed innovation, where companies have to cover the total cost of innovation, open innovation provides businesses with an alternative of collaborating, which is cheaper (Nambisan et al., 2018). For instance, companies can outsource excerpts instead of full employment, which is costly as experts are expensive. Employing experts on a full-time basis can be costly to Open Pages, being a start-up business. Therefore, adopting open innovation can help Open Pages reduce costs.
Part Two: Reflective Essay
In today’s business environment, the ability of a business to thrive and remain competitive depends on its investment in innovation. Innovation in the business environment has gone through many transformations, from traditional closed innovation to open innovation. Closed innovation involves businesses generating, developing, and commercialising their ideas, products, and services to gain a competitive advantage. On the other hand, open innovation is like a commodity that companies can buy, sell, loan or lease. My research experience in the innovation and entrepreneurship group project was one of the most insightful experiences in my studies. I have always known that innovation is essential in the business environment. However, I did not realise that innovation is a precondition for a business to excel in the market.
Listening to guests and clients speak on innovation and entrepreneurship was insightful in understanding the place and impact of these processes in the real world. Although reading books equip learners with knowledge listening to people with first-hand experience is more insightful. The lectures on the importance of innovation to businesses, the transformation of innovation in the business environment, and the practices and impact of open innovation were valuable and exciting. I learned that the success of a business depends entirely on its investment in innovation as innovation is crucial in knowledge generation and application in the business, improvement and the development of new products and services, creation of new business models, and ultimately the ability of firms to obtain results.
Secondly, I learned the transformation in the business innovation process. Over the years, the innovation process has changed; most businesses continue to abandon traditional closed innovation and adopt open innovation. The absence of technology in closed innovation results in incomplete internal generated knowledge. Sometimes the knowledge takes too long to make it to the market or does not make it completely, and the priority is to survive on the same budget and resources. The significant driver of open innovation is the collaboration and competition between firms to deliver products and services within the innovation process. It assumes that firms can and should use both internal and external ideas and market paths as they strive to advance in technology. Companies such as Samsung and NASA employ open innovation to widen their value creation.
Additionally, the innovation and entrepreneurship group project built my curiosity about the difference between large established corporates and small start-up innovation processes. I learned that innovation is easier for start-ups as compared to large, established corporate firms. Unlike the start-ups with a single product o focus on, the large corporates have looked into several considerations due to their complicated business structures and product portfolios. Still, large corporates easily succeed in innovative processes compared to start-ups as they have tremendous resources from the capital, labour, and customers to data.
Individuals and companies cannot overestimate the impact of innovation on business success, but questions arise on who is an innovator? What qualities and skills must they possess? Many people assume that innovators are individuals who invent products and hold patents. However, this is not the case; many innovators do not have products or patents to their name; instead, some generate business ideas while others bring these business ideas to reality (Griffin et al., 2020). Griffin et al. (2020) documents that an innovator should have an opportunistic mindset essential in identifying gaps in the market. The individual should possess formal education or training, which is vital in identifying and interpreting promising opportunities. The individual should be proactive and persistent, which helps exploit the identified opportunities. The individual should have a healthy dose of prudence and social capital as essential for the entrepreneurial process. These qualities and skills propel an individual to be a successful innovator. However, true innovation occurs when an individual has a meaningful and clear mission and vision.
Collaborative learning can be daunting, but it can also be fulfilling. My experience working on the innovation and entrepreneurship project was fulfilling. Interacting with the group members, listening to members present their ideas, and completing the task on time present different learning. Apart from gaining classroom knowledge, it was also a platform for personal learning. My time management and planning improved; collaborative learning removes incidences of procrastination. Our groups comprised individuals from different communities and with different beliefs; as we interacted, I found myself challenging my assumptions and beliefs about individuals and communities. Group work provides a comprehensive learning platform; learners gain classroom knowledge and also develop their understanding.
Additionally, working with my peers in the innovation and entrepreneurship project was a learning experience for me. I discovered skills I did not possess and identified some weaknesses that I am working on to be a better team member and induvial in the future. I was the group leader in the project; I have always shied off from responsibilities, managing this group and ensuring we completed the assignment on time; I realised I possess leadership skills. Our group sessions involved individual presentations where a group member discussed a subtopic and answered members’ questions; through this activity, I discovered that I could comfortably speak in front of my peers and effectively engage them. I did not know I possessed these skills; therefore, I plan to take an online course to sharpen them and put them into practice.
Similarly, I also discovered a weakness that I should work on; I quickly became irritated and bored during the presentation; I would switch off in the middle of group presentations. I am working on my social skills to improve how I interact with people and my concentration when listening to others. Instructors should employ more collaborative learning; aside from presenting a wide range of ideas to learners, it also assists learners to understand themselves better.
My experience in innovation and entrepreneurship group project remains one of the most insightful experiences in my studies. I gained insights on innovation and entrepreneurship in the real world and also as presented in learning materials. I learned the impact of innovation in the business environment and the transformation in the business innovation process. Additionally, collaborative learning was crucial in my personal development. I discovered strengths and weaknesses that I did not possess. Collaborative learning is essential in both the intellectual and personal development of learners. Therefore, learning institutions should employ more group work.
Conclusion
Innovation is a fundamental part of business operations. Companies’ ability to change their products to meet customer needs contributes to productivity, growth, and profitability. Most businesses globally are shifting from traditional closed innovation to open innovation as it provides a broader market outreach and a more comprehensive value creation. Companies can adopt different open innovation strategies depending on their functions or goals. These businesses can adopt research and development, marketing, talent, intercompany, and open innovation strategies. Open innovation provides firms with a large audience, allows finding talents, reduces innovation cost, lucrative partnership, and an opportunity to improve their brand value and public relations. The global market is changing rapidly; therefore, businesses should invest in open innovation to remain competitive.
Bibliography
Bogers, M., Chesbrough, H. and Moedas, C., 2018. Open innovation: Research, practices, and policies. California management review, 60(2), pp.5-16.
Griffin, A., Price, R.L. and Vojak, B., 2020. Serial Innovators. Stanford University Press.
Marcolin, F., Vezzetti, E. and Montagna, F., 2017. How to practise Open Innovation today: what, where, how, and why. Creative Industries Journal, 10(3), pp.258-291.
Nambisan, S., Siegel, D. and Kenney, M., 2018. On open innovation, platforms, and entrepreneurship. Strategic Entrepreneurship Journal, 12(3), pp.354-368.
Pustovrh, A., Rangus, K. and Drnovšek, M., 2020. The role of open innovation in developing an entrepreneurial support ecosystem. Technological forecasting and social change, 152, p.119892.
Spender, J.C., Corvello, V., Grimaldi, M. and Rippa, P., 2017. Start-ups and open innovation: a review of the literature. European Journal of Innovation Management.