From Closed to Open Innovation: The Evolving Nature of Teams and the Use of Information Technology - Information Technology and Product Development - page 142

of an organization that has embraced virtual workspace technologies. A team of
nine from Israel, the Philippines, and the US, with members crossing both human
resource and IT functions, routed all information through a virtual workspace ver-
sus using e-mail. The workspace included functionalities ranging from links, search
features, and discussion threads, to document annotation capabilities. The team also
made extensive use of synchronous tools, using an electronic whiteboard for real-
time brainstorming and synchronous application sharing for collaboratively editing
documents on screen. They also used technology-based meeting aids, such as a
raise-hands function when someone had questions during a virtual presentation, a
silent-voting function to determine if there was consensus among meeting partici-
pants, and a feature to end discussions and progress to the next topic (Malhotra &
Majcrzak, 2005).
7.4.4 IT Enhancements to the Value Chain
Open innovation models emphasize internal as well as external collaboration, and
firms are cashing in on the rewards of knowledge creation and application. The
movement from closed to open innovation is not apparent in one specific area or
process; shifts take place across the entire value chain as companies are increasing
inflows and outflows from concept to commercialization with partners ranging from
consumers to competitors. Chesbrough (2003) identified the biggest weakness of
closed innovation as the ignorance of the wealth of knowledge that can be found on
the other side of the wall. Many companies appear to be listening and are breaking
down borders to increase communication flow both internally and externally.
The concept of an “idea marketplace” is one of the more recent ways technology
has been incorporated to foster open innovation. This forum provides a reservoir
for idea generation and exchange. Companies such as Whirlpool, Estee Lauder, and
Royal Dutch/Shell have created internal idea markets to harvest and evaluate ideas
for new processes, products, services, and markets (Yamada, 2001). Companies
seeking to collaborate with the outside can go to a variety of third-party idea mar-
kets, including NineSigma, YourEncore, and InnoCentive (Tapscott & Williams,
2006) and tap into a rich source of information.
Likewise, companies seeking solutions to R&D challenges can access the
95,000 plus scientists from 175 countries who have registered with InnoCentive
(InnoCentive, 2006). Registered companies such as Boeing, Dow, DuPont, Novartis,
and Proctor & Gamble (Tapscott &Williams, 2006) anonymously post problems on
the InnoCentive website. “Solvers” submit solutions via a bidding process. Once
selected, solution winners are provided with a cash reward.
Dell is actively using Salesforce.com's Ideas product to gather and filter ideas
and comments from customers. On Dell's Ideastorm, customers tell the company
what new products or services they would like to see. Through Ideastorm, Dell has
a two-way communication with its customers by responding to comments and sug-
gestions. Customer submitted ideas receive responses indicating “under review,”