Cost, Credibility, and Open Innovation

Innovation seems to be a mantra for a business survival, paving the path for prosperous future. In business, it's not just about technology nor something merely new. It's about positive change leading to increased productivity and business value.

Some put it that innovation sources out from creativity and, in proceeding with the implementation, involves some risks. As risk taking is in this equation, an undertaking that could put a business into liability, those launching a (radical) innovative change shall first earn credibility. As such, it would get management trust and proper funding to put it in place.

In this regard, it's interesting to read one CIO - those position responsible for IT for the business - shared his thoughts in a magazine (forgot the name and publication) about the role. First, it should become a Cheap Information Officer to build the credibility before functioning fully as a really Chief Information Officer as it's supposed to be. Once it gets all in order and serve the business purpose, you could then tranform into Chief Innovation Officer.

I have been, to some extent, seeing this in some organizations. It gone well for some. On another case at worst, it should have catiously been managed: some :innovation" initiatives went thru unchallenged, with fancy technology introduced, the chnages that sometimes be well understood to relate to building a landmark for the chief. A personal image building that incurred some hidden costs to the business.

The lanscape of innovation is now changing. And it changes very fast. Previously (and it is still now for some), innovation is a managed proprietary initiative (R & D, or even sacred activities for some) conducted largely inside the organization. Nowdays, it gets connect beyond corporate walls: the new face of innovation involving people outside from suppliers, customers, independent inventors, and university labs.

Internet technology, Web 2.0, and the need for best utlizing all creative talents available, more flexible work environemnt gave birth to Open Innovation unimagnibale before: collaborate inside-out and co-create product and services borderless and in real time. There would always be a lot more smarter people in the world outside the wall of corporate offices.

The game has been playing a lot more now. Wikipedia, the online encyclopedia, is a living and continually expanding global reference work. Wikinomics, abook written by Don Tapscott and Anthony D. Williams, becomes a new phenomena on how mass collaboration changes everything. A success story of Canada-based Goldcorp Inc., in finding more gold deposits after collaborating with outside experts by openning up their proprietary geological data for sharing. In March 2000, the "Goldcorp Challenge" was launched with a total of US$ 575,000 in prize money available to participants with the best methods and estimates.

Check out at Innocentive, Inc., where the world innovates: an Open Innovation community to earn money while solving some of the toughest problems facing the world today. Online marketplace with challenges to solve in a wide variety of disciplines, from Business and Entrepreneurship to Engineering and Life Sciences: awards from $5,000 to $1,000,000. Challenges are posted by corporations, government agencies, and nonprofit organizations. Many others are available to tap and utilize.

Henry William Chesbrough in Open Innovation: The New Imperative for Creating and Profiting from Technology, addresses that companies can no longer afford to rely entirely on their own ideas to advance their business, nor can they restrict their innovations to a single path to market.

What is CIO now ? Get the business to collaborate and craft a way to innovate by best utilizing outside experts.