| The term "Open Innovation" can is often used in a | | | | be able to meet this goal. |
| very subjective manner, so measuring its degree of | | | | 2)The Organization Structure Supports Open |
| implementation in one organization compared to | | | | Innovation on the Project. Roles such as Global |
| another is difficult. | | | | Competitive Technical Intelligence and Technology |
| However, Open Innovation does have a less | | | | Brokerage are staffed and available as matrixed |
| subjective definition per Henry Chesbrough. It is the | | | | business functions to the project. These experts |
| organization's ability to use "purposive inflows and | | | | participate iteratively in the full product development life |
| outflows of knowledge to accelerate internal | | | | cycle. They assist and enable the product |
| innovation, and expand the markets for external use of | | | | development team to source and commercialize |
| innovation, respectively." Joel West, one of | | | | technology ideas using the external ideas market. |
| Chesbrough's key open innovation collaborators, | | | | 3)The Company's R&D Ph.D.s Are Using Open |
| restates it as "using the market rather than internal | | | | Innovation Business Intelligence Tools to Support Their |
| hierarchies to source and commercialize innovations." | | | | Ideation Process. Global IP strategy workups |
| In our work at Oval Ideas, Inc. with | | | | implement Chesbrough's recommendation of rendering |
| technologies-products companies that have | | | | IP in terms of how it fits to add value to a specific |
| implemented "Open Innovation" or "Connect and | | | | Business Model, ie, a visualization of each patent in |
| Develop" behaviors, we find a number of key best | | | | terms of how it fits the specific technology stack. |
| practices in place that fit with and support | | | | R&D staff can rapidly mine for IP in terms of the |
| Chesbrough's definition and model. | | | | problem to be solved, and who best to buy it from or |
| In terms of results, these companies are finding 2-3 | | | | sell it to. |
| times more viable product ideas outside now versus | | | | 4)The Company Has a Business Practices in Place |
| their results 2-3 years ago. | | | | that Rapidly Resolve Open Innovation Go or No-Go |
| We have observed four key behaviors as indicators | | | | Decisions. Technical and Business Risk Scoring Grids |
| that a project is an open innovation paradigm project. | | | | of candidate Open Innovation Ideas are in place that |
| 1)The CEO Supports Open Innovation Practices on the | | | | enable rapid cross-functional rating of viability and |
| Project. The CEO has set a stretch goal for the | | | | priority for in-sourcing and out-sourcing of product |
| percentage of R&D ideas to be sourced from | | | | ideas. |
| outside the company, and has funded the business to | | | | |