Week2, Day4:

Open Innovation, A mindset than a toolbox

Before the start of this course, I read an article about open innovation (http://www.openinnovation.eu/open-innovation) to get familiar with the stuff. The mobility and virtual existence of the workforce has make it impossible for organization to keep their knowledge based hidden from the outer world. So instead of fighting to keep it closed now companies are showing high tendency to share the knowledge  build on other works and open the untapped internal knowledge sources to outer world. In today's discussion we were discussing almost the same topics. The Insight video of Henry Chesbrough was really good in explaining the concepts in easiest possible way. The take aways of the day for me are

Benefits of Open Innovation

• Open innovation is allowing the organizations to build on the other work while promote the sharing of unused internal knowledge with external world
•  This helps in reducing the cost of development by a significant level. 
• Companies having valuable knowledge also make business through royalties of sharing knowledge. 

Challenges

• Leadership mindset is the biggest hurdle. There is always a fear in mind of company management that if somebody else will make their idea successful than it will show their incompetence.
• Most of the organizations think that most of smart people work for them. 

Trends in Open Innovations

• Usually companies look for getting knowledge from other but inside out knowledge transfer is being blocked   primarily because of the fear of competitions success.
• Universities on the other hand promote open innovation as it gives platform for sutends to establish themselves.

Open innovation Vs Open Source

• Both concepts are based on principle of wide spread knowledge.
• Difference is that open source is deliberately formed without business model while open innovation has the business aspect with it.