“No matter who you are, most of the smartest people work for someone else.”

Joy´s Law

In today´s world companies need to work with the knowledge that is outside of the company. Companies need also to look outside their boundaries

with the aim try to realize the potential of their solutions.

The answer to this inner challenge is open innovation approach.

Two modes of this approach are:

OUTSIDE IN and INSIDE OUT

OUTSIDE INWhat can companies get?

• breakthrough ideas,

• customer designs,

• inventions,

• solutions,

• technologies,

• patents

• benefits from

engagement of interdisciplinary

participants.

Why should companies think about open innovation?They can:

• allow their resources to accomplish multiple tasks,

• allocate their resources more efficiently,

• increase the chances of finding the right solution to their problems,

• introduce external knowledge into their organization,

• avoid „reinventing the wheel“ and consuming resources on problems that have already been solved,

• expedite the problem solving process and realize their strategic goals faster,

• get effective ideas, solutions, designs, technologies or patents faster and cheaper.

They will not spent their money on searching the solution or idea. They will rather spent their money for the best solution or idea they will choose from all the proposals.

INSIDE OUT

Open innovation approach will allow companies get more opportunities to realize the potential of their intelectual property.

WHAT HAS TO CHANGE TO FOLLOW THE OPEN INNOVATION WAY?

Top-down change of mindset in the companyShifts in Business Models will be required Cultural changes need to take placeNew reward systems will be neededNew relationships with growing network of

participants have to be developed and managed

Not an easy journey. But….

One example of unsuccessful innovation

Czech textile factory (3 thousands employees) proper R&D, rare outcome of their R&D: They found the solution to the problem: how to safely transfer a notebook on the plane. They invented new construction of the cover that eliminates the risk of li-ion battery explosion.

solution was tested at the laboratory – very good outcomes, solution was presented to FAA in USA, now it is already 3 years without any next action. The company expected concern about their technology in many countries. They tried to find applicants only in their network of contacts.

Unfortunately they didn´t realize the potential of their technology.

Basic reason: they relied only on their own contacts and resources.

One example of a success in a challenge based innovation – Tom Kruer´s solution for Malaria

This is also an example of the successful use of open innovation approach in CSR.

The company Sun Night Solar presented through open innovation intermediary - Innocentive their challenge.

They searched the best solution for malaria illness while using the solar power.

This challenge was very successful.

Tom Cruer presented his mosquito trap and the challenge submitter was amazed by Tom´s simple but very effective approach to their challenge.

Tom´s solution is already distributed in poor African villages.

Open innovation is an effective way to get access to external solvers and inventors who look for an opportunity to use their knowledge, creativity and

talent.

This open strategy is essentially WIN-WIN for both sides.

THE KEYSTONE OF THIS APPROACH (from the view of knowledge interemediary) IS IN MOTIVATION, SHARING OF KNOWLEDGE

NETWORKS AND CHALLENGES SHARING.