In an increasingly networked and globalized world, it is becoming more and more important for companies to open up their innovation processes and integrate external ideas and expertise. This approach, better known as open innovation, aims to incorporate knowledge and creativity from outside into the company’s own innovation processes. But what makes open innovation so valuable and what are the benefits for companies?
What is open innovation?
The term open innovation describes the collaboration between companies and external stakeholders such as scientists, start-ups, suppliers or even customers in order to develop new ideas, technologies and products. Unlike conventional, closed innovation processes, in which companies rely exclusively on internal research and development, open innovation allows access to external sources of knowledge and creativity.
Advantages of Open Innovation
Companies that use open innovation benefit from several advantages:
- Faster access to new technologies: By exchanging ideas with external partners, companies gain early access to innovative technologies that they might not have developed themselves.
- Diversity of ideas: External partners bring in new perspectives and fresh ideas that are often overlooked in internal research. This diversity encourages creative solutions and ground-breaking innovations.
- Cost savings: Open innovation allows companies to conserve resources by bringing in external experts instead of investing time and money in developing their own solutions.
- Reduction of innovation risks: By collaborating with external partners and sharing ideas, the risk of misinvestment in innovation can be reduced.
- Increased speed: The involvement of external partners can speed up development processes, as existing technological solutions can be adopted and further developed without having to start from scratch.
An example: Beiersdorf’s TRUSTED NETWORK
An illustrative example of the successful use of open innovation is the TRUSTED NETWORK project developed by Beiersdorf, powered by PEARLFINDERS. Beiersdorf, as one of the world’s leading skin care companies, has recognized that the key to sustainable innovation lies in collaboration. These partnerships extend across various industries and enable the company to integrate ideas and technologies from outside.
The vision behind TRUSTED NETWORK
“We are convinced that the combination of our expertise with the ideas and technologies of external partners is a driver for effective innovation along the entire value chain. It is our top priority to offer our consumers the best possible solutions and deliver superior skin care products that always take their specific needs into account,” explains Gitta Neufang, Vice President of Global Research & Development at Beiersdorf.
The TRUSTED NETWORK offers external technology partners access to Beiersdorf’s confidential scientific challenges. In a protected environment, these partners can propose innovative ideas and solutions that help Beiersdorf to develop the skin care products of the future.
The added value for external partners
For Beiersdorf’s external partners, the TRUSTED NETWORK is a unique opportunity to work with a global market leader in a confidential environment. They gain insights into Beiersdorf’s technical search fields and have the chance to contribute to future innovations in a long-term, partnership-based relationship. Trust plays a particularly important role here: Beiersdorf guarantees that the partners’ ideas will not be used to register their own patents.
The role of inno-focus: secure exchange in a protected environment
A special feature of the TRUSTED NETWORK is the security and protection of the know-how of the idea providers. The software basis for the network is provided by inno-focus. Thanks to a sophisticated roles and rights concept, this ensures a secure environment in which confidential information can be exchanged and protected. This is crucial for strengthening the trust of external partners and ensuring that intellectual property and patents are not used or compromised without authorization.
Conclusion: Open innovation as a driver for groundbreaking developments
The example of Beiersdorf shows impressively how companies can break new ground through open innovation in order to develop innovative products and minimize risk at the same time. The TRUSTED NETWORK is an excellent example of the implementation of an open innovation strategy that benefits not only the company but also its external partners.
By using technologies that enable the secure and confidential exchange of ideas, a win-win situation is created: Companies gain access to external know-how and expertise, while partners gain valuable insights into the company’s innovation processes.
For companies that want to survive in a highly competitive market environment, open innovation is the key to setting themselves apart from the competition and strengthening their innovative power at the same time.
Picture by Matt Ridley via Unsplash