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"50% of all innovation will come from outside our walls."
-A.G. Lafley, CEO P&G
P&G, the world's biggest consumer product goods company, has a huge R&D staff, facilities, and know-how. But like a growing number of businesses, they recognize the wisdom in a tenet that's fundamental to independent inventors: the value of open source innovation.
Open source innovation is the practice of going outside corporate walls and turning to resources, whoever and wherever they might be, to develop products and services. With so many other competitive advantages disappearing, innovation is one of the remaining corporate differentiators. And as a powerful new innovation model, open source is rapidly gaining interest.
Open source is a profound change from the traditional R&D system. While the old system undoubtedly employs smart, dedicated people, traditional R&D can suffer from significant shortcomings, including:
- Closed, vertical, rigid system: fixed procedures and hierarchies rule
- There are few market forces and little competition impacting which ideas move forward
- Considerable fixed, upfront costs: constant overhead of staff, space, material
- Incremental improvements are the rule rather than true innovation
- Progress is measured by size of the R&D budget--not market success
- Insular: "All the smart people work for us"
- Narrow & unquestioning: "Market research tells us what customers want and we develop it for them"
Contrast this to open source innovation, with virtues that include:
- Open, horizontal, organic system
- Variable cost, success-oriented
- Large networks of contributors
- Market forces drive the process
- Progress is gauged by market acceptance of concepts
- Open attitude: "Smart people are everywhere"
- Flexible and focused : "We work with networks of contributors and market-driven processes to develop products that do a job users want to get done"
Already open source innovation is proving to be a radically cheaper, faster, and better approach for creating new products and services. Given the ease with which we communicate electronically, why wouldn't a company want to select the best people to work on a project, wherever they might be located? And then assemble the best suited team of talent for their next project?
As I noted above, the power of independent thinking is old news to inventors. But a new thought to some might be this: you're no longer in the business of just pitching ideas. In fact, you're applying to become a founding member of a virtual project team, who will deliver finished product to the shelf.
Open source innovation is fundamental to Big Idea Group's business. And we're finding it's a model that resonates with CEOs everywhere. Our inventor network should take pride in the fact that the world has finally joined your revolution.
Think innovation. Think BIG.
Mike Collins |
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Big Idea Group was created by Michael Collins. Mr. Collins is an inventor and serial entrepreneur. Mr. Collins has an undergraduate degree in engineering from Dartmouth and an MBA from Harvard Business School. He founded Kid Galaxy, a specialty toy company and producer of the award-winning Bendos line. Mr. Collins is a frequent speaker on the business of innovation, appearing at industry conventions, university forums, and inventor groups. He can be contacted at