Innovation Dilemma: Open Up or Shut Up?
In a recent post, Where Big Companies Fail on Innovation, I argue that big companies fail to communicate well on their corporate innovation capabilities.
I believe this is a problem as most industries have begun adopting open innovation practices in which a key goal is to become the preferred partner of choice. This requires a significant higher visibility for corporate innovation departments.
Michael Fruhling and Kevin McFarthing contributed with comments in which they argue that companies can still do well with innovation – even open innovation – without communicating much about their efforts.
As you read their comments, their reasoning makes sense and I agree that some companies do very well even though they stick to a low public profile. I just think most companies can benefit from having a more active communication strategy with regards to their innovation capabilities.
This dilemma most likely brings up lots of responses that suggest a mixed approach, but I still look forward to hearing what you think …
Should companies develop communication strategies in order to brand their corporate innovation capabilities?
YES: Why? Can you share some ideas on how companies should do it?
NO: Why not?
Let’s share some insights on this…
Hi Stefan,
My experience of working as an innovation partner with large corporations suggests that many of them have too many offers of partnership or ideas for new products. Companies will of course, in the best tradition of open innovation, often use several partners to help with the same problem in parallel. However, it is often more efficient for them to engage with innovation consultancies and business-to-business experts, rather than directly with the wider innovation community. They may use companies such as InnoCentive or NineSigma, for example, to access a wider pool of talent without having to interact with each individual. Ultimately innovation isn’t about quantity, but about quality.
Companies like Proctor & Gamble are open about their Connect & Develop methodologies, and have done well as a brand from them. However I’d be interested to see how many of the good ideas really came from this open field, and how that stacks up with the number of members of staff that have been poached by other companies eager to learn from them. There’s no doubt that companies can gain from having a reputation as a good innovator. However, perhaps shouting about your open innovation does more for your brand image than for your innovation capabilities.
Best wishes,
Megan
Yes, they should pay much more attention on using OI because collaboration is needed for survival and companies who wants to lead have to go first. An idea is to start using internal micro blogs and discussion forums where they could encourage their staff to come up with ideas how to increase their business opportunities using OI. It is important to communicate the strategies so the staff knows what is Open and what is Internal innovation and should not be discussed in Open spaces. I believe the delay for using OI is depending on unclear or a lack of communication strategies based on fear for being to open or showing they have not come longer in using Social Media for OI…
No, they should keep on with Internal Innovation while watching the market since it cost to much to go first with OI. It's better to participate and copy other companies and let them do the mistakes and learn from them instead. Focus on the Internal Innovation and make sure your own abilities and the staffs skills are strengthened before trying to lead with help of OI.