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How to Implement Open Innovation Charter in the Organization
How to Implement Open Innovation Charter in the Organization

October 31, 2022

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How to Implement Open Innovation Charter in the organization

“Open Innovation” - a not so common word in the industry but it’s a powerful activity that many corporates actively adopting, some are learning to adopt while some are completely unaware about it.

Open innovation is defined as the purposeful harnessing of external sources of knowledge / innovation beyond the internal resources and integrating the external resources into an organization’s internal innovation process. This is now a "must have" thing that somehow needs to penetrate more not only to support innovation growth in our country but also push collaboration culture in our country.

The major issue in implementing open innovation in India is the proper guidebook, which is not available anywhere due to the ecosystem stakeholders' struggle to implement the same. NASSCOM, through its recent report on "State of Open Innovation in India", briefly describes the best practises and playbook needed to implement the same. I will briefly summarise the playbook below.

Key steps to open innovation engagement:

  1. Organizational Readiness:  Implementing or adopting open innovation programs is a huge step that shall require paradigm shifts internally which cannot be attempted without ensuring readiness for embracing this change. open innovation programs can have lasting impact only when there is synchronization across the various functions within the organization to accept a set of coherent organizational interventions.  The most prominent issues:
  • Organizational culture, behaviour, and psychology
  •  Resource availability
  • Resistance to change
  • Timeline for results
  • Transparency and trust

 

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  1. Strategic mandate, trust & stakeholder management:
  • Sponsorship from the leadership team is a must for every open innovation program
  • Trust is a very essential component for open innovation relationships
  • Internal and external stakeholder management is key to the smooth functioning of the open innovation engagement.
  1. Right leadership & team:
  • Interaction and involvement are key to success for any open innovation collaboration
  •  Companies need to build strong capabilities in interconnectivity and interdependence
  • An organization’s open innovation program leader needs to be a thought leader with entrepreneurial mindset and execution mentality.
  1. Defining the objectives, engagement terms and measurement metrics
  • Identifying the problem statement and making clear cut definitions for the expected outcome
  • Having intermediary milestones helps in reviewing the progress at predetermined intervals
  • Mutually discuss with the open innovation partner and determine the KPIs for the engagement.
  • Agreement covering all key contention areas including IP, resources, timelines, budgets etc..
  1. The Right Partner
  • Leveraging the services of ecosystem enablers such as VCs, incubators, open innovation service providers
  • Time investment to know the partner
  • Identifying the most suited partner
  • Understanding of the objectives /outcomes of the engagement

Implementing the above steps can somehow bring an organisation to a comfortable level of open innovation and help them build a new innovation charter.


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