From Closed to Open Innovation: The Evolving Nature of Teams and the Use of Information Technology - Information Technology and Product Development - page 140

As both intra- and inter-firm communication increases, “new technologies
are providing the means for dispersed (different place), asynchronous (different
time), and virtual work” (Massey, Montoya-Weiss, & Hung, 2003). Advances in
technology continue to enhance collaborative environments - making networked
workspaces increasingly comparable to face-to-face experiences (see Table 7.5 for
more technology benefits). McAfee (2006) notes that newer technologies “can
potentially knit together an enterprise and facilitate knowledge work in ways that
were simply not possible previously.” While it is debatable whether networked envi-
ronments can replace face-to-face interaction, companies are increasingly adopting
newer technologies and providing virtual collaborative environments for their
development teams.
Thus, we see IT as a dynamic collaborative vehicle through which internal
and external firm innovators funnel project information. In this digitally cre-
ated environment, projects move seamlessly from concept generation, screening,
design, analysis, prototyping, and manufacturing, while incorporating customer and
market-based information. This dynamic integration system utilizes intranet and the
Internet to integrate tasks, synchronize project design changes, and capture evolving
customer information. IT affords firms the ability to integrate knowledge across net-
works of organizations by building alliances with third party developers, to engage
in joint development projects, and to foster an open product architecture and modu-
lar design. The goal is to capture a rich understanding of customer needs and develop
alternative solutions as the project progresses and integrate knowledge frommarkets
and technologies. The shift to open innovation provides an opportunity for IT tools
to increasingly become the “glue for a new, more distributed innovation process”
(Koch, 2007). This opportunity does not come without its disadvantages. As a firm
opens its boundaries, it increasingly invites customers, suppliers, and even competi-
tors into the innovation process and collaboration becomes an increasingly crucial
aspect of success. New business models involving these diverse individuals can be
less productive than old ones without effective communication, collaboration, and
sharing of information (Koch, 2007).
7.4.3 Open Innovation: Redefining the Role of IT
Not only do firms adopt new forms of IT as they move toward more open forms
of innovation, but they also continue to use existing IT infrastructure. Firms use
intranets and the Internet to support more open forms of innovation and often
transform the way work is done. An intranet represents a depository of a firm's intel-
lectual capital, industry benchmarking data, and competitive intelligence, all useful
for successful innovation. In addition, intranets may also facilitate the location of
industry experts with relevant skills and past experience and allow developers to
apply information to current projects. Intranets allow for integration of tasks, syn-
chronize design changes, and capture customer information as the project evolves.
The project team is able to keep track of relationships, schedules, and design
changes in a dynamic and time-efficient way.