Developing an innovation strategy - Open innovation - Strategic issues
3 important questions on Developing an innovation strategy - Open innovation - Strategic issues
What are autonomous innovations?
Autonomous innovations affect only part of the product. Autonomous innovations can usually be safely and efficiently outsourced.
What are systemic innovations?
Systemic innovations affect several parts of the design simultaneously. Systemic innovations tend to relate to the architecture of the product and require coordination among several suppliers.
What are the strategic issues with autonomous innovations and systemic innovations?
- A company may not wish to relinquish control of an autonomous innovation if it a particularly important competitive feature and the company has a special competence in it.
- Control of systemic innovations is valuable only as long as the underlying design has a chance of emerging as a dominant design.
- The value of controlling systemic features declined when these are no longer a source of performance improvement.
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