Discuss about the Innovation of Auckland University.
Open innovation has got a lot of fame and recognition because additional companies are changing themselves from close to open innovation. This report depicts the process of innovation from companies like Auckland University and Sistema. If the comparison comes between Auckland University and Sistema then it is evident that Auckland University is a big scale organization whereas Sistema is a small scale organization, therefore the difference of innovation process in the purpose will be there. The report gives an insight on the process followed by each of the organization and the divergence between the two. Globalization has led to the enlargement of the market competition all over the world and the life cycles of a variety of products have diminished significantly. The organizations both large and small are gradually shifting from closed innovation to open innovation models so that they gain competitive advantage in the market.
Innovation in Auckland University
Auckland University is one of the organizations that have adapted to the open innovation and have started centers for open innovation research and development. This University fully focuses on innovation and has a formal approach to it. The university has developed documents, which includes all the strategies that will be used for applying open innovation. The university uses tied innovation, which combines both the inbound and outbound innovation process. The organization is very open about the knowledge they use and they have gained a lot from it. They share it with other organizations as well so that they gain outbound knowledge from other universities as well (Gaziulusoy, Boyle & McDowall, 2013). It comprises of various programs that ensure so that can find new dimensions in innovation and contribute to the society by applying to these courses. The organization has started other programs which will ensure them that they receive outbound innovation from other parts of the world (García-Peñalvo et al., 2015).
The conviction of this organization is that there are lots of innovative people with innovative ideas outside the organization, and which can help to improve the innovation process of the organization. The organization therefore thinks that the beginning of the research does not have to be an internal process and the organization can take the help of external sources to earn profits or improve the internal process of innovation. The organization believes in budding a policy and model which will be far better and effective than the models of the other organizations (Vanhaverbeke et al., 2017). Nonetheless, that does not mean the company will be the first one to enter the market, because market profit is not entirely dependent on the market. The rapid change of the meaning of innovation only happened because of the completion of the process of the open innovation (Bogers et al., 2017). This organization believes in sharing the intellectual property and in order to help the strategic standards they are keen to buy intellectual property of other organizations. This clearly points out the willingness of this organization and to share intellectual property with other organizations focuses on the long-term sustainability of the organization. However, the organization knows that a strong paradigm for the business will be the key to gaining competitive advantage in the market and is capable in understanding the importance of a business model and knows that a strong example for the business will be the key to gain competitive advantage in the market.
Innovation in Sistema Plastics
Sistema Plastics is a company, which deals in storage of food and is mainly focused on the process of closed innovation. The type of innovation process used by the Sistema Plastics Company is totally different from the University of Auckland (Cassiman & Valentini, 2016). The company has ethnicity which always has been protective about their intellectual property and mainly focuses on their closed innovation. The company also had issues with the companies they worked with regarding the use of their intellectual property. The company believes that the best of the smart minds works in their company and inbound innovation process (Du, Leten, & Vanhaverbeke, 2014). The company wants to use their own profit and develop their own machinery. They untested the products before launching so that the intellectual rights of the product can be protected. The company itself wants to be the innovator in the market section and want to be the first one to launch a technology in the market. They feel that the gain will always be because of the innovators in the market with competitive advantage and make most of the profits in the company. The Sistema plastics are one of the leading businesses. Sistema plastics which are an Auckland based storage company is being purchased by US based Newell Brands. This product of have been proved useful and good in several household. The organization also feels that the company who has the most advanced idea and more innovation will be the company gaining the competitive advantage in the market. It also believes in having full control over their intellectual property because this will stop their rivals from taking advantage of their innovations (Stanko, Fisher, & Bogers, 2017).
Barriers to Open Innovation
Barriers are always there to open any new system; any good things come only after facing big challenges. Humans are known as opposing any new things. Even though there is most of the company who have successfully adapted open innovation, still there are some which face problems. Managing performance of an open innovation is very difficult as it faces a lot of problems by its employees as well as the competitors. As the idea comes in a collective way and there are many minds that help to establish the ideas therefore there is often a problem that is faced because of ownership (West & Bogers, 2014). The process of using open innovation is a time consuming process as it consists of chain of command and every decision has to go through various process phases. However, the organization is being focused only on open innovation and is also very much careful about the risk in the market.
Discussion of the Barriers
It is difficult to provide an even leadership. This is one of the key challenges which most of the organization faces. Open innovation can often go through imbalance, when different types of organization comes together. In that case the leading organization comes into power but however it creates a lot of problems in the companies (Markman, 2016). Both the organization faces this problem. Though Auckland University is gaining more knowledge by using the outbound innovation method, they can develop a business model which is better than the other competitors in the market. However, the strategy of Sistema is to be the market innovator by launching their technology first in the market. Auckland University believes in establishing a good relationship with the rival organizations so that they can trade their technological values to gain a better model. However, Sistema believes in creating patents of their products before launching into the market so that they can ensure that their technology remains safe. The organization being a small-scale organization believes in protecting their intellectual property (Erokhina, 2013).
Both the organization is facing similar problems regarding open innovations. Even though the barriers can seem to be as serious problems yet the need to overcome this is important as open innovation helps the company in a much superior way. There will be many barriers but to realize its full potential the company has to see itself as a larger bionetwork than a small remote island (Manzini, Lazzarotti, & Pellegrini, 2017). Through the communication action and the leadership of the company these companies have to create a culture where open innovation is considered as a smart and strategic option in respect of knowledge and creativity (Chesbrough, 2017).
The innovation process in both the companies has matured and is certainly providing the company with market lead which should be kept closed. This is the case for Sistema Plastic and the process of innovation. Innovation processes are always complicated and it involves several great minds. A mixture of those great minds can create a miracle as well as chaos. Therefore to adapt open innovation an organization has to be bold enough to do so. Thus, it can be said that the open innovation process is a complementary process and even after facing several barriers, it worth taking this risk. However, the companies which have a strong inbound innovation method be it Auckland University or Sistema Plastics it will be able to carry out and benefit from this process.
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