Effective Practices for Sourcing Innovation

Abstract

OVERVIEW:Even large firms cannot mobilize all the ideas, technology, business expertise, and market channels they need to deliver breakthrough products. A new model is rapidly emerging in which firms collaborate with other world-class organizations in an open model to jointly develop the next generation of goods and services. From interviews with managers who are responsible for the external technology efforts at 12 leading firms, innovation-sourcing practices were identified in three key areas: 1) linking external innovation to strategy, 2) defining what the firm wants to access externally, and 3) leading cultural change. These practices range from working with suppliers to applying the “Want, Find, Get, Manage” model.