Attractive as it may to implement innovation culture into the company. However, why not many enterprises adopt one? What are the biggest challenges that companies who want to adopt Open Innovation may have to face? Let’s find out with Innolab Asia 7 most common challenges confronted by early adopters of all business sizes adopting Open Innovation
01. Knowledge barrier – The fear of losing the secret of know-how by sharing it or to imitation by competitors is the biggest fear for knowledge-intensive and MSMEs. This prevents them from nurturing innovative culture and letting external solution providers to come and support them.
02. Collaboration barrier – The fear of partners’ opportunistic behavior and the difficulties in finding the right partner both in knowledge and cultural terms constrain the company’s Open innovation. Since Open innovation is the collaboration between both internal and external solution providers.
03. Financial – strategic barrier – Micro small, small and medium enterprises (MSEs) usually have unclear goals or focusing on the wrong segment, which ultimately leads to diminishing returns. Hence, they tend to be afraid of overcost of adopting Open Innovation.
04. Organizational barrier – The capacity of the company might hinder the adoption of Open Innovation. It can be the lack of managerial skills needed to establish an effective collaboration with external players or the resistance to change of the organization.
05. Operation & structure barrier – Ineffective process, and communication channels or Highly hierarchical process will be a setback for corporates/SMEs to adopt Open Innovation.
06. Technological barrier – Technological barrier comes from the people, data, and technology perspective. People’s reluctance in new technology, lack of instructions, underqualified employees / Lost in tremendous amount of data degrades critical thinking and incumbent technologies creates barriers to the adoption of new technologies can be some common technological barrier faced by corporates & SMEs.
07. Cultural barrier – Last but not least, negative attitudes towards Open Innovation as well as a lack of commitment is the foremost and most critical barrier to any corporates/SMEs.