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Volume 1 · Number 3 · 2009 131 Paths to Accomplish a Successful Open Innovation 2.0 Strategy Almeida, F. L. 1 , Oliveira, J. M. 2 , Cruz, J. M. 3 1 Faculty of Engineering of University of Porto, DEEC, [email protected] 2 Faculty of Economics of University of Porto, INESC Porto, [email protected] 3 Faculty of Engineering of University of Porto, DEEC, [email protected] Abstract The adoption of Web 2.0 by companies facilitates the implementation of an open innovation strategy. Web 2.0 applications provide an excellent pool to leverage internal and external knowledge and ideas which will accelerate technological innovation. This paper looks to the actual impact of Web 2.0 technologies in the business environment and analyzes the motivation drivers to participate in open innovation communities, exploring the increased importance of knowledge networks in the business ecosystem. Additionally, it presents seven guidelines that business leaders should consider to conduct an open innovation 2.0 strategy. Among others, businesses should provide an adequate IT infrastructure, capture tacit knowledge, provide training and coaching sessions and establish an effective evaluation system of their enterprise idea management solution. 1. INTRODUCTION For most companies, innovation is a proprietary activity conducted largely inside the organization in a series of closely managed steps. Over the last decade, however, a few consumer products, fashion, and technology businesses have been opening up the product-development process to new ideas hatched outside their walls, namely from suppliers, independent inventors, and university labs. Executives in a number of companies are now considering the next step in this trend towards more open innovation. They are looking at ways to delegate more of the management of innovation to networks of suppliers and independent specialists that interact with each other to co-create products and services [1]. At the same time, they hope to get their customers into the act [1]. In fact, if a company could use technology to link these outsiders into its development projects, potentially it could come up with better ideas for new products and develop those ideas more quickly and cheaply than it is possible to do today. In the software industry we already can see a brilliant example of the application of the open innovation concept. The Open Source offers an example of how the concept of open innovation can be exploited in the software industry. Open Source Software (OSS) has rapidly shifted from a model driven purely by the developer community and university support to one where a main driver is industry and commercial firms. Open Source also offers an approach to address what J. West [2] refers to as an “essential tension” in information technology innovation: appropriating the returns from an innovation versus winning adoption of that innovation. Open Innovation is similar to OSS, except the content is Information Technology (IT) business solutions instead of code. Open Innovation is used to describe the business equivalent of Open Source, where open refers to collaboration and innovation is the result. Considering multiple enterprise collaboration, the concept of Open Innovation, initially proposed by Chesbrough [3], can be extended from research and development to IT, where the notion of trusted relationships of social networks, provided by the advent of Web 2.0 technologies, can be combined and used for business. This model can be referred as Open Innovation 2.0 [4]. This article describes the Web 2.0 approach in the business environment, explains the appearance of open innovation 2.0 concept and presents the major challenges of an open innovation 2.0 strategy inside corporations. In the following, it proposes seven tips for the implementation of an open innovation 2.0 strategy.

Paths to Accomplish a Successful Open Innovation 2.0 Strategy by Almeida Oliveira Cruz

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The adoption of Web 2.0 by companies facilitates the implementation of an openinnovation strategy. Web 2.0 applications provide an excellent pool to leverage internaland external knowledge and ideas which will accelerate technological innovation. Thispaper looks to the actual impact of Web 2.0 technologies in the business environment andanalyzes the motivation drivers to participate in open innovation communities, exploringthe increased importance of knowledge networks in the business ecosystem.Additionally, it presents seven guidelines that business leaders should consider toconduct an open innovation 2.0 strategy. Among others, businesses should provide anadequate IT infrastructure, capture tacit knowledge, provide training and coachingsessions and establish an effective evaluation system of their enterprise idea managementsolution.

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Page 1: Paths to Accomplish a Successful Open Innovation 2.0 Strategy  by Almeida Oliveira Cruz

Volume 1 · Number 3 · 2009

131

Paths to Accomplish a Successful OpenInnovation 2.0 Strategy

Almeida, F. L.1, Oliveira, J. M.2, Cruz, J. M.3

1Faculty of Engineering of University of Porto, DEEC, [email protected] of Economics of University of Porto, INESC Porto, [email protected]

3Faculty of Engineering of University of Porto, DEEC, [email protected]

AbstractThe adoption of Web 2.0 by companies facilitates the implementation of an openinnovation strategy. Web 2.0 applications provide an excellent pool to leverage internaland external knowledge and ideas which will accelerate technological innovation. Thispaper looks to the actual impact of Web 2.0 technologies in the business environment andanalyzes the motivation drivers to participate in open innovation communities, exploringthe increased importance of knowledge networks in the business ecosystem.Additionally, it presents seven guidelines that business leaders should consider toconduct an open innovation 2.0 strategy. Among others, businesses should provide anadequate IT infrastructure, capture tacit knowledge, provide training and coachingsessions and establish an effective evaluation system of their enterprise idea managementsolution.

1. INTRODUCTIONFor most companies, innovation is a proprietary activity conducted largely inside the organization in aseries of closely managed steps. Over the last decade, however, a few consumer products, fashion, andtechnology businesses have been opening up the product-development process to new ideas hatchedoutside their walls, namely from suppliers, independent inventors, and university labs. Executives in anumber of companies are now considering the next step in this trend towards more open innovation.They are looking at ways to delegate more of the management of innovation to networks of suppliersand independent specialists that interact with each other to co-create products and services [1]. At thesame time, they hope to get their customers into the act [1]. In fact, if a company could use technologyto link these outsiders into its development projects, potentially it could come up with better ideas fornew products and develop those ideas more quickly and cheaply than it is possible to do today.

In the software industry we already can see a brilliant example of the application of the openinnovation concept. The Open Source offers an example of how the concept of open innovation can beexploited in the software industry. Open Source Software (OSS) has rapidly shifted from a modeldriven purely by the developer community and university support to one where a main driver isindustry and commercial firms. Open Source also offers an approach to address what J. West [2] refersto as an “essential tension” in information technology innovation: appropriating the returns from aninnovation versus winning adoption of that innovation.

Open Innovation is similar to OSS, except the content is Information Technology (IT) businesssolutions instead of code. Open Innovation is used to describe the business equivalent of Open Source,where open refers to collaboration and innovation is the result. Considering multiple enterprisecollaboration, the concept of Open Innovation, initially proposed by Chesbrough [3], can be extendedfrom research and development to IT, where the notion of trusted relationships of social networks,provided by the advent of Web 2.0 technologies, can be combined and used for business. This modelcan be referred as Open Innovation 2.0 [4].

This article describes the Web 2.0 approach in the business environment, explains the appearance ofopen innovation 2.0 concept and presents the major challenges of an open innovation 2.0 strategy insidecorporations. In the following, it proposes seven tips for the implementation of an open innovation 2.0strategy.

Page 2: Paths to Accomplish a Successful Open Innovation 2.0 Strategy  by Almeida Oliveira Cruz

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