How does business strategy influence innovation?
What is the right balance of open versus closed innovation to maximize company performance? To answer this question, companies’ strategies and leadership styles need to be considered because a company’s approach to collaborative innovation seems to be dependent on business strategy. It follows, therefore, that companies can derive the balance between open and closed innovation formats from their business strategy.
The article maps the competitive landscape by using three distinct, proactive strategic archetypes, namely the opportunity-driven “Prospectors,” the market segment-securing “Defenders” and the dual-oriented “Analyzers,” which act as hybrids between the two.
Collaborative or open innovation leads to a diversity of knowledge that positively fosters innovation.
In order to illustrate some successful strategies and the subsequent balance of open and closed innovation management, the article highlights two case studies.
EADS, Europe’s largest aerospace company, and Henkel, a worldwide leader in fast-moving consumer products, together demonstrate the characteristics of all three strategic archetypes.
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Constant innovation leads to long-term business success and growth. In order to leverage your company’s innovation performance, the right innovation strategy, innovation culture and capabilities are needed. Zeppelin University’s innovation study 2012, in collaboration with Ernst & Young, focuses on these requirements and shows how your company is able to innovate its products, services and business models sustainably. In this context, the analysis of radical innovations is emphasized, particularly across established industry boundaries.
Your participation in the innovation study 2012 is free of charge and enables your company to improve its innovation performance through a focused benchmarking that you will receive at the end. Moreover, it allows you the possibility of contact with leading R&D experts and enables you to become familiar with what is state of the art in open innovation.
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