Key Points
- Enterprises are becoming digital businesses that personalize products and services using outside technology.
- Open innovation means using external technology, knowledge, and resources early in the innovation process.
- Companies use venture capital investments and partner ecosystems instead of relying only on internal R&D budgets.
Enterprises today are embracing new ways of doing business to reimagine and reinvent themselves in an increasingly technology-driven world. They are becoming “digital businesses,” using new technology to provide customers with better products and services, more relevant information, and personalized and seamless experiences. They are also developing new technology and leveraging the advancements of others to disrupt existing markets and penetrate new ones.
This trend toward digitalization has raised customer expectations across every industry, with enterprises increasingly influenced by and interconnected with innovations outside their traditional industry. Companies are seeking many different partners to create innovative solutions and together position themselves at the forefront of this new market. In other words, they are participating in Open Innovation. Open Innovation is a model in which organizations utilize external technology, solutions, knowledge capital and resources early in their innovation processes. In many cases, organizations will partner with a range of players in a global ecosystem to jointly develop new platforms and applications, enhance core offerings, or expand into new markets. This concept allows enterprises to look beyond their four walls to bring in ideas more quickly and frequently in order to enhance their operations—and also save time and money. Rather than using their own budget in research and development, enterprises can leverage the investments of venture capitalists and integrate a technology solution in an accelerated time frame.
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