open vs closed

Comparison between the development of a new product of open and closed innovation

	Origination Phase	Development Phase
Closed	In-house research Creative teams Mergers and acquisitions Design or innovation agencies	In-house development and marketing Outsourced development
Open	Open source Competitions Creation nets	Spin-offs Joint ventures Licensing

The above table from Nesta, highlights the difference between open and closed innovation. It is important to note that whilst in a closed innovation scenario outsourced development the Intellectual property remains in the ownership of the client. In an open innovation scenario the IP remains with the supplier, which encourages the supplier to provide excellence.

One of the main advantages of Open innovation is that it allows access to other fields of expertise. NineSigma is a forerunner in providing solutions to problems that in a closed innovation scenario would be near impossible for  an in-house researcher to supply. NineSigma are able to do this through a network of 1.5 million experts, if a problem need solved they will provide a scientific breakdown to these experts and examine what is returned. In one case a client of Ninesigma who was having a problem with prepackaged pouches of laundry detergent, these were splitting open and spoiling the rest of the packs. The solution was found after a search of their network, it came from a agricultural firm that was packaging their agricultural concentrates in a similar pouches. They had had a similar problems and had been able to solve it. This goes to show how a solution can  come from a different industry and how open innovation can supplement a firms own R&D. the full article from Business Week can be found here.

Futhermore from the above table, we can see that many of the factors of a closed source are inherently capital hungry, merger and acquisition actions are incredibly expensive and can tie a firm into a field that may not be that beneficial, the same can be said for in-house research teams. Whilst a level of specialised expertise can be reached, often solution can be found outside a realm of expertise, as seen from above.

Whereas some of the factors of an open innovative company will actually provide an income, such as converting a companies redundant discoveries into revenue through spin-offs.   

  

Social Networks: Products Vs.Benefits

In previous cases it has been reported that there has been reductions in the usage of the major players within the social networking scene. It is clearly evident if you have been a member of any of these sites, there just doesn’t seem to be the same activity or buzz on them. In most cases this has simply been because some of the initial members haven’t received the social capital gain that was reported by their friends and colleagues. the vast majority though do gain social capital from the use of on-line social networks, with the sites supplementing their ‘real world’ social networks

For an in-depth report on the impact of Facebook on social capital the full report from Michigan State University’s department of Telecommunication, Information Studies and Media is available here.

 It is my belief that for a great deal of people there is value to be earned from belonging in an online Social Network, and that while the users for the big networks are dropping we will see the smaller more specialised social networks flourish. perhaps using the larger generic sites as a springboard into specialised ones. Take for an example the case of Saga Zone, created in October 2007, now has a membership of 30,000. Even more suprising when you consider that this social network caters for the over 50’s.
For more information try
here.

It is this exclusivity that will emerge more in the following year, how about the network asmallworld where you might find the following post “If anyone is looking for a private island, I now have one available for purchase in Fiji.” Asmallworld.net is an exclusive social network for the social elite, where you can only join by invite. As I’m unlikely to invite the rest of you plebs onto this site you can read about it here

Besides the warm and glowing feeling you can get from building a social network for yourself, how about using one for more tangible gains. Linked.com can provide you with the tools to further you career, it will allow you to create and maintain powerful business contacts for either career advancment or advice. What about, your looking for a partner and poking people on facebook isn’t working you could try OkCupid, answer a couple of questions about yourself and your ideal partners and get dating.

For a full list of the most recent Social Networks you could try here. It is by matching the network with your interests that you can gain the maximum amount of benefit that on-line social networking can bring. There is bound to be something you fancy.

  

Blogging software…what are the benefits of it?

I’ve already mentioned and demonstrated some of the features of existing blogging software in my previous post so it is time to focus on the benefits of this technology.

There are two different perspectives we could consider. Firstly, there is everyday users like ourselves who setup blogs with the intention of waffling away about our daily lives. Then there are businesses who use blogs as an effective form of communication, advertising and general promotion about the company in question. If we take a look at the business benefits to be achieved from maintaining an active blog and having a considerable volume of unique users visit it, they could be summarized into ten bullet points:

1. Increase your website traffic
2. Maintain a rapport with your customers
3. Update your information more easily and quickly
4. Market your expertise
5. Increase your credibility and visibility
6. Let your visitor know you better
7. Have higher search engine ranking
8. Convey your idea across more easily
9. Easily create a group of followers
10. Reach a bigger market

http://www.internetstrategyblog.com/archives/the-10-benefits-of-blogging/2006/12/14

The benefits for everyday consumers of using blogs firstly involve the community which is created by people being able to visit your blog, read the articles you have posted, comment on posts and link back to your articles from their blog. Secondly, some people use blogs as a means to reflect on matters in their lives by writing particular articles which bare some meaning to them. This in turn can help lead them to like minded individuals which I’ve already mentioned and also blogs can often disclose information far in advance of printed media.

People running their own blog also has similar benefit to that of a business blog as many people seek to attract publicity and attention about their own lives whether it be music they have created, a unique talent or talent at journalism. The fact is that due to the large volume of blogging software alternatives, there is usually at least one that provides the features and usability to make it a beneficial experience.