Information Technology Reference
In-Depth Information
Table 7.5
Information technology functionalities and benefits
Open innovation
IT functionality
IT benefits
Intra-firm
•
Firm repository of intellectual
capital, competitive intelligence,
and industry protocol
•
Rapid information flow
•
Enhances knowledge generation,
sharing, and application
•
•
Integration and synchronization
of innovation processes,
activities, scheduling, design
parameters, and collaborator
efforts
Enhances creativity,
collaboration, and coordination
•
Creation of value-added
innovation
Inter-firm
•
Flexible innovation creation
•
More and better information flow
and knowledge application
•
Asynchronous and synchronous
collaboration
•
Minimizes the use of hierarchical
pathways to information access
•
Distribution and pooling of
global expertise
•
Enhances information timeliness,
accuracy, and
comprehensiveness
•
Knowledge integration
•
More seamless value chain
collaboration, capability
utilization, and contribution
•
Enhanced design efforts
“reviewed,” “partially implemented,” or “implemented.” This bi-directional com-
munication flow enhances Dell's idea generation, screening, and selection phases of
the innovation process.
The ability to integrate knowledge across networks of organizations is most
important, and yet it is difficult for a single organization to research, manufacture,
market, and service their product alone. This requires a heightened awareness of
people, technology, and capabilities and a commitment to open innovation such
that the organization and the technologies are seamlessly integrated into the innova-
tion process. IT as an enhancer to open innovation provides a host of collaborative
benefits (see Table 7.5 for detailed functionalities and benefits).
Several firms seem to have captured the essence of open innovation and have
experienced tremendous growth and success. We present a snapshot of the efforts.
7.5 Exemplary Examples of Open Innovation and the Use of IT
The success of The BBC, Toyota, Proctor and Gamble, and Boeing serves as a
backdrop to understand the many options available to firms implementing open
innovation models, and using IT effectively to support such product development
initiatives. To various degrees, these companies have enabled their boundaries to
become more porous by increasing the flow of internal and external knowledge,
increasing the amount and type of partners, and by changing the way they manage
relationships throughout the innovation process.
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