Open innovation (OI) has become a mainstream management reality for firms in many sectors, sizes, and technologies since the publication of Chesbrough’s book in 2003.
The adoption of OI by a firm is now a matter of strategic choice but is contingent upon its internal and external environments. Managers may ask, is this for us? This report outlines the benefits, risks and factors required for the successful implementation of OI within an established technology-based company. In addition, managers and academics may ask, what are the organizational structures, systems, processes and skills, attitudes and behaviours required of innovation staff within the firms’ innovation ecosystem? The answer to this question requires a systems-perspective that unlocks the sum of the parts. Firms have choices on the extent of openness it wishes to see; the term systemic-OI is used to capture organizational-wide implementation to maximise the rewards.
Having designed the new system, how can an organization move from the current state to its new OI future state? The school of soft-systems change management is appropriate to organizational changes centred on shifts in politics, power, culture, leadership and behaviour. Identifying the managerial action needed to unfreeze-move-institutionalize the change is important to increase the probability of success.
The highest OI performance is realised from an integrated approach to the innovation system to secure best-in-class total shareholder returns