From Closed to Open Innovation: The Evolving Nature of Teams and the Use of Information Technology - Information Technology and Product Development - page 123

Chapter 7
From Closed to Open Innovation:
The Evolving Nature of Teams
and the Use of Information Technology

Elisa Fredericks and Dawn R. Schneider

Abstract Innovation is both rewarding and risky. However, external environmental
pressures resulting from increasing globalization, rapid technological advance-
ments, increasing competitive pressure, and a fluctuating marketplace force firms
to continually rethink their innovation models. Newer models suggest more open
collaboration, increased interdependence between firms, shared resources, and
network-centric practices. As firms adapt to more openness, boundaries blur
between intra- and inter-organizational teams. Challenges surface regarding how to
manage new relationships within the firm as well as those with customers, suppliers,
and even competitors. Firms must now reassess their capabilities and the associated
risks and rewards of moving to more open forms of innovation. In this chapter, we
characterize closed and more open innovation models and compare and contrast
factors facilitating the use of each one. We explore the role of the team, a pivotal
force spearheading innovation, and the role of information technology (IT) in sup-
porting both teams and teamwork. While IT makes it possible to structure, facilitate,
and manage open innovation, increasing demand for alternative and more adaptive
innovation models will spur an increased demand for new forms of technology that
can make it all possible. We provide in-depth case study analysis with several large
multinational firms and an extensive review of the literature to enhance our under-
standing of innovation success. The chapter concludes with several suggestions for
future research on this topic.

7.1 Introduction

Innovation has always been at the forefront of organizational initiatives, with firms
often adhering to the “innovate or die” mantra. Product innovation activities have
frequently been shown as the cornerstone for increasing market share and cus-
tomer value, and have been the primary long-term survival mechanism for most
firms. Many firms find that new product development (NPD) efforts contribute to