Exploiting Open-Market Innovations essay

ExploitingOpen-Market Innovations

ExploitingOpen-Market Innovations

Organizationalleaders have a critical role to play so that they can exploit andimplement open-market innovations, which need either organizationalor structural approach to realize changes. According to Vega-Jurado,Juliao-Esparragoza, Paternina-Arboleda and Velez (2015), successfulorganizations require their leaders to drive strategic changes neededfor transforming a business into productive, creative and effective.One of the strategies that a leader can use in tapping open-marketinnovations is hiring experienced staff. Recruiting professionals whowere working in an organization that has already implemented theopen-market innovations ensures quick and convenient adoption of thetechnology in an organization.

Onthe other hand, Steiner, Morel and Camargo (2014) states that leaderscan utilize open-market innovations through guiding internalknowledge into various external outlets to generate profits. Theapproach mainly involves licensing out patents to individualdevelopers who in turn develop unique products. The public developerspay loyalty to the company behind developing the patented technology.The researchers give the case of IBM that earned an extra income ofUS $1.5 billion through licensing out its patents to open-marketentrepreneurs (Steiner, Morel &amp Camargo, 2014).

Leaderscan also apply the “couple process”, which involves combininginside-out and out-side in knowledge (Steiner, Morel &amp Camargo,2014). The manager identifies organizations with the technology ofinterest. He or she then fosters good relationship with the otherorganizations so that they can share their knowledge. For instance,Procter and Gamble operates a Connect &amp Develop site that it usesin bringing together suppliers and users in a single platform(Steiner, Morel &amp Camargo, 2014).

Finally,Sørensen and Torfing (2012) recommend leaders to use collaborativeinnovation. The technique involves combining ideas gathered fromvarious sources, in some cases from international companies, in theproduction approach of an organization. For example, an upcoming carmanufacturing company can benchmark efficient manufacturingapproaches to help in maximizing returns. For instance, the carmanufacturing strategy Toyota developed is widely applied by othercar production companies (Sørensen &amp Torfing, 2012).

References

Vega-Jurado,J., Juliao-Esparragoza, D., Paternina-Arboleda, C.D. &amp Velez,M.C. (2015). Integrating technology, management and marketinginnovation through open innovation models. Journalof technology management &amp innovation, 10(4),85-90.

Steiner,A., Morel, L. &amp Camargo M., (2014). Well-suited organization toopen innovation: empirical evidence from an industrialdeployment.&nbsp&nbspJournalof Innovation Economics &amp Management1(13), p.&nbsp93-113. DOI : 10.3917/jie.013.0093.

Sørensen,E. &amp Torfing, J. (2012). Collaborative innovation in the publicsector. ThePublic Sector Innovation Journal,17(1),1-14.