Innovation: Opening doors to ideas

The importance of innovation has never been so critical as it is today. In today’s fast paced world, where new technologies, new trends, ideas, social media platforms and companies of all sizes come and go, it is vital for any organization to be flexible. Learning to adapt to the latest trends, the needs of the clients and demands of the market, determines whether one survives or is buried under a pile of everything “new”.

At the moment, there are two main techniques with which an organization, individual or a company can stay ahead and be innovative. These techniques are ‘lead user innovation’ and ‘open innovation’.  The first technique, lead user innovation, relies on the employment of users who are well educated in the market they are working on. These users will have the following two characteristics, they will: “ face needs that will be general in a marketplace – but face them months or years before the bulk of the marketplace encounters them; and expect to benefit significantly by obtaining a solution to those needs”.  (von Hippel)

The second technique, open innovation, relies on the companies implementation of outside inputs when creating a new idea. These inputs can come from consultants, other organizations and most importantly, directly from the clients. There are three ways of implementing these different ideas, “crowd-sourcing, user-driven innovation and co-creation, all tools and techniques that are used within the paradigm of open innovation.” (Lindegaard)

The three techniques of open innovation address the different aspects of implementing outside sources in the creation and execution of a new product. Firstly, the use of crowd-sourcing relies on the marketing of an idea, and the utilization of the clients ideas for the creation of a product. The user-driven innovation comes from analyzing the behavior of the user, and addressing their needs through gathering information and pattern of product use. Finally, co-creation is the process where the company and the client work together to update an existing product and make it more efficient.

Whether a company or an organization rely on open innovation or lead user techniques, the bottom line is, the birth of good and brilliant ideas come from networking. It is the exchange of thoughts, ideas, and spur of the moment creativity that lead to market changing products. These products are created not only by the company, but also by the clients who use them on a daily basis and have a good vision of what can be added or taken away to make their favorite product even better.

In a world of cut throat competition, and ever changing ideas, staying ahead of the pack determines the survival of a company. By not being afraid of opening ones doors to new ideas and changes, and through the correct utilization of these techniques, any company can see a successful and profitable future.

Work Cited:

Hippel, E & Riggs, W. (1996). “A Lead User Study of Electronic Home Banking Services: Lessons from the Learning Curve.” MIT. Accessed on February 7, 2012 from http://web.mit.edu/evhippel/www/papers/evh-01.htm.

Lindegaard, S. (2011). “Making Open Innovation Work.” Stefan Lindegaard. Accessed on February 7, 2012 from http://www.15inno.com/2011/10/28/free-book-making-open-innovation-work/.

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