The concept of open innovation enables a company to draw on ideas and resources from its customers, partners, suppliers, start-ups and research institutes. Social web platforms inspired by Facebook, LinkedIn or YouTube are the ideal tool for connecting communities that want to share, co-create, discuss and modify self-generated content.
Unlike the traditional approach, open innovation values the diversity of contributions to enrich internal processes. Some brands have shown that the interaction between companies and their consumers via social networks is a real source of innovation. However, unlocking the full potential of this approach requires many changes in attitudes and methodologies on the part of companies - which is why this potential is largely under-exploited at present. Fortunately, solutions do exist. Here are just a few ones from recent research.
A promising duo
There are different categories of social network that can be used for open innovation, and each type may represent an optimal choice depending on the target audience (for example, ‘public’ social networks such as Facebook or X for customers/users and corporate social networks such as MS Teams or Slack for interacting with employees).
Some companies have also chosen to deploy their own solutions, such as Lego with the Lego Ideas collaborative platform, where fans of the little bricks submit ideas for new products, which are then evaluated by the community.
The most popular proposals become real products, such as sets of Apollo 11 or the Titanic, or inspired by successful TV series such as Big Bang Theory or The Office. With this crowdsourcing strategy, Lego not only reduces its research and development costs, but also aligns its creations with real market expectations.
Several companies have successfully chosen a similar route, such as Dell (IdeaStorm) or Starbucks (MyStarbucksIdea), while others have also sought to interact with researchers, engineers or even competitors, such as Procter & Gamble or Bosch. Some companies may therefore choose to create their own platforms in order to better ‘control’ the process and maximise the benefits, or to call on the services of an intermediary specialising in open innovation, such as WazokuCrowd or 9 Sigma.
As well as seeking to co-develop products with the public, brands are at least using social networks to monitor market trends in real time and obtain immediate feedback on certain prototypes. But despite these successes, many companies are still reluctant to incorporate social networks into their innovation strategy. One of the major obstacles? A lack of resources and skills.
Barriers to overcome
Many organisations are struggling to mobilise dedicated teams or equip themselves with the tools they need to make full use of the data produced on these platforms. This limits their ability to analyse the information collected or establish relevant connections with external partners.
In addition, the issue of intellectual property is a real source of concern. Some companies are afraid of losing control over their ideas if they embark on collaborative approaches. This is sometimes a cultural distrust, particularly in organisations with rigid hierarchies that are not very keen on inter-departmental exchanges, let alone with the outside world!
Other companies are trying to leverage social networks for innovation, but are encountering technological barriers. Identifying the right tools, extracting relevant data or ensuring the security of shared information can be real challenges to overcome.
A gradual approach is essential
It is essential that companies wishing to make this choice of combining social networks and open innovation do not rush into it, but proceed in stages. The easiest method to implement is to use social networks mainly in marketing departments to gather feedback on products and generate ideas for future developments. This is an inexpensive approach, but it has limited benefits because it only mobilises part of the company's resources.
The next step would be to encourage closer collaboration between departments, such as marketing and R&D. This is ideal for improving the circulation of ideas and data, but at the cost of greater efforts to coordinate actions. What's more, it's vital to link the open innovation approach based on social networks with other existing innovation dynamics. Here, integration plays a key role in setting up channels to ensure that the results are not only relevant, but also exploitable.
To be lucky, you have to prepare!
Some pioneering companies are integrating social networks into several phases of the innovation process, from idea generation to commercialisation, adopting a holistic and comprehensive approach. Forward-thinking organisations are going even further by involving a majority of departments in collaborative approaches, taking advantage of a judicious combination of different types of social networks in a high-level open innovation strategy. While this approach promises significant results, it requires massive investment in technology and team training, as well as overcoming internal resistance and the challenges of mobilising resources.
So, to fully exploit the potential of social networks for innovation, it is essential to define clear objectives, align actions with a strategic vision, train teams and develop in-house skills. Collecting, measuring, analysing and exploiting the data generated by these networks means creating a culture of openness, exchange and collaboration between departments and with external partners.
In innovation, luck favours the bold, of course, but above all those who prepare carefully.
This article by Pierre-Jean Barlatier, Associate Professor at EDHEC, has been republished from The Conversation under a Creative Commons licence. Read the original article (in French).
