Question

What are some companies that failed at open innovation and why?

Answer 1

Ans :

Here famous companies that falied at open invitation.

GENERAL MOTOR (1908-2009) :

After being one among the most necessary car manufacturers for over one hundred years, and one among the biggest companies within the world, General Motors additionally resulted in one among history’s largest bankruptcies. Failure to introduce and blatantly ignoring competition were key to the company’s dying. As weight unit targeted predominantly on making the most of finance, the business neglected to boost the standard of its product, did not adapt weight unit to changes in client wants and did not invest in new technologies. Through a significant bailout from the us government, this company, General Motors Company ("new GM"), was formed in 2009 and purchased the bulk of the assets of the recent weight unit, together with the brand "General Motors".

COMPAQ (1982-2002) :

Compaq was one amongst the most important sellers of PCs within the entire world within the 1980s and 1990s. the corporate created a number of the primary IBM laptop compatible computers, being the primary company to lawfully reverse engineer the IBM notebook computer. Compaq ultimately struggled to stay up within the value wars against holler and was noninheritable for US$25 billion by HP in 2002. The Compaq whole remained in use by HP for lower-end systems till 2013 once it absolutely was interrupted.

KODAK (1989-2012) :

At only once the world’s biggest film company, Kodak couldn't carry on with the digital revolution, for concern of cannibalizing its strongest product lines. The leader of design, production and selling of equipment had variety of opportunities to steer the corporate within the right direction however its hesitation to completely embrace the transition to digital diode to its end. as an example, Kodak endowed billions of bucks into developing technology for taking pictures using mobile phones and different digital devices. However, it command back from developing digital cameras for the mass marketplace for concern of eradicating its all-important film business. Competitors, like the japanese firm Canon, grasped this chance and has consequently outlived the large. Another example is Kodak’s acquisition of a photograph sharing web site referred to as Ofoto in 2001. However, rather than pioneering what might need been a forerunner of Instagram, Kodak used Ofoto to try to induce additional folks to print digital pictures. Kodak filed for bankruptcy in 2012 and once exiting most of its product streams, re-emerged in 2013 as a way smaller, consolidated company centered on serving business customers.

- Why inovaton are failed :

Here the some reason why some inovaton failed

Wrong decisions :

Wrong decisions can affect the prioritization of ideas, product strategies for new products, selection of variants in development, etc.

The reasons behind this are:Lack of corporatea innovation strategy as a basis for decision-making.

Insufficient or insufficient information as a basis for the decision.

But it also happens that management's own beliefs dominate instead of facts, and decisions are made from the gut, which later prove to be false.

Low priority for innovation ;

Despite a strong anchoring of innovation in the strategy papers and the articulated importance of innovation by corporate management, things can look quite different in everyday life: The day-to-day business takes priority. And innovation remains a lip service.

If day-to-day business topics appear on the management's agenda, they have priority. These are the ones you earn the money with today and they have to be solved as quickly as possible. But how do you earn the money tomorrow? Urgency is unfortunately more important than urgency.

In addition, innovation is something "new" and brings with it changes that many people cannot identify with or that cause insecurity and resistance.

In addition, employees are awarded prizes according to annual and sales targets, which means that innovation does not have much room for innovation. Another problem is that innovation tasks do not always appear in job descriptions and are therefore perceived as additional work for some employees.

Lack of market orientation :

The product does not offer a true and convincing customer value or differentiate itself from existing products.

Only those who really know their customers and users, their processes and wishes, can develop products that inspire enthusiasm and set themselves apart from the competition. Since the run around design thinking, this has become ever more conscious and clearer that innovative products can only be created with an extensive understanding of the customer.

The lack of market and customer orientation has multiple causes:

Too much focus on technology.

Too little time for customer analysis and the development of specifications. On the one hand, you don't want to take control of the costs (e. g. for travel expenses to the customer) and on the other hand, you don't want to waste any time and start developing.

No access to customers and customer information because, for example, the sales department does not want its customers to be "harassed" or because of the tension between technology and sales.

Slow structures :

The larger an organization is, the slower the processes often become. Sluggish processes with long decision-making cycles can be a death sentence for innovations.All this has a negative effect on the quality and efficiency of innovation projects. This becomes more and more aware when you see how quickly start-ups can innovate.

A closer look at start-ups reveals how the organisation itself influences success.

They have no lethargic hierarchies and bureaucracies and can therefore act more quickly.

They are internally well interlocked and networked, everybody knows everyone. This improves collaboration and accelerates processes.

There are also cultural factors such as greater openness, risk appetite and willingness to change.