Table 4: Which are the 3 biggest barriers to Open Innovation in your organisation?
Finance Resources (costs, time, human resources needed)
Organisation / culture: balancing innovation and daily tasks, (communication problems, aligning partners, organisation of innovation) Lack of knowledge, lack of competent personnel
Marketing: insufficient market intelligence, market affinity, marketing problems with new products
Administration: bureaucracy, administrative burdens, conflicting rules
61% 54%
31% 29%
24% 22%
Quality of partners: partners do not meet expectations deadlines not met 17% Idea management: employees have too many ideas, no management support, no formal process for innovation
Commitment: Lack of employee commitment, resistance to change
16% 12%
Customer demand: being too specific, innovation does not fit the market 11% Intellectual property rights User acceptance
Competent employees: lack of knowledge, no flexibility
9% 7% 6%
Conclusion
SMEs do not always know that they are making use
of Open Innovation methods when
innovating within their organisations. For them it is more about doing things that comes logically to run their business. As stated by Jeff Bellairs13
, director of General Mills Worldwide
Innovation Network, “open innovation is not an abstract academic concept. In fact, at its core, it
Table 5: The understanding of Open Innovation in our organisation is sufficient to pursue relevant initiatives without assistance?
Agree strongly Agree slightly
Neither agree or disagree Disagree slightly Disagree strongly
10% 32% 31% 17% 12%
Table 6: Who would you consider as an ideal collaboration partner to develop new innovations with?
Answer:
Customers Suppliers
universities and other academic institutions Consultants
Non-competitor companies Technology transfer offices
Government Development Agencies Competitor companies
Highly unlikely 1% 15% Unlikely Likely Very 9% 37% 53%
4% 16% 47% 33% 22% 35% 28%
14% 15% 45% 26% 11% 27% 45%
17%
23% 38% 28% 11% 39% 35% 16% 10% 24% 37% 32% 7%
is common sense. It is about finding smart people inside and outside the company who can positively impact your business. It is tremendously exciting as you discover new technologies and partners that can drive your business forward”. The research conducted suggests that some SMEs are eager to get involved in Open Innovation or already making use of the approaches available to them within Open Innovation. SMEs are however still learning the concepts of Open Innovation and apprehensive to implement without any assistance. It should be interesting to see how Open Innovation will grow as an innovation practice within South African SMEs and how that will change the current innovation landscape. Following international trends, Open Innovation is set to become more standard practice within South Africa, opening up new opportunities for SMEs to supplement their own innovation capabilities and benefit from selling or out- licencing their intellectual property.
likely The Innovation Journal September 2012 | Management Today 73
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