Interestingly, I had a chance to look at two Open innovation networks sites of P&G and Innocentive last week are raised a question on the longevity, impact and value of these networks on my blog article: http://insightful-journey.blogspot.com/2008/06/open-innovation-networks-does-it-have.html
It was interesting to see Mckinsey Quarterly article on "The next step of open Innovation article" yesterday taking an agnostic view of Open network and potraying an Uncertain future. I really believed Mckinsey had a foresight on what will be the next step of Open Innovation networks! While, I was disappointed on not getting the right answer from Mckinsey :-) (as usual) but atleast it provoked me to think ahead on what trends can emerge out of Open Innovation networks
1. Consumerism and mass customization will reach a tipping point. This will force companies to produce unique product/service that caters to needs and wants of just one customer at a time (Read the latest Prahalads book on Co-creation where he mentions this as N:1 scenario)
2. Companies will be forced to reshape/redesign/realign their resource and capabilities dynamically to meet "A" customer need & want (R:G case in Prahalads co-creation model)
3. Shifting of paradigms where value capture will be premised on how networked and closely knit a company is in its eco-system and how quickly it can leverage it to deliver on customers need & want (My own thesis!)
4. Shifting of organizations P&L centricity from product/service lines to customer (Similar to what is happening in Telcos & Utility companies)
5. Emergence of new sets of business laws & practices: stakeholders, privacy, ownerships, contracts, IP....??? (My own thesis)
Any more trends that you think of and can suggest?
Subscribe to:
Post Comments (Atom)
Hi Sunil, you make some interesting comments about Open Innovation which are worthy of follow-up. I think your point about mass customization reaching a tipping point is accurate, and it leads to your notion of the emergence of new business practices. Speaking as someone who works for an open innovation intermediary (www.innovationexchange.com), we believe that fragmentation of consumer desires will lead to faster product lifecycles, which will in turn emphasize time-to-market, as opposed to IP protection as a company's key success factor.
ReplyDelete