Digital Strategy to Reimagine Your Business
The Innovation Excellence website noted that open innovation can work in many but not all situations. Open innovation is best suited for well-defined problems that can usually be broken into smaller tasks with a clear goal. An ambiguous problem such as “what is the future of banking” is not well-suited for open innovation. In contrast, NASA successfully leveraged the power of the crowd by posing a challenge to develop an algorithm for positioning the space station to harness solar power. Even if the problem is well defined open innovation is not likely to work if the potential investment in hardware or infrastructure needed to solve the problem is too large for any individual. Finally, when the potential commercial value of a solution is huge, small prize money is not enough of an incentive for external parties to participate in open innovation.
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