The Future Of Innovation ... New Ways To Innovate

Mr Flavio Grynszpan

The future of innovation will be influenced, in the Coming years, by three main factors:

The competition of Asian companies, especially from India and China, which globally offer low-cost products and services, are moving Western companies toward innovating and competing in high-technology and higher added-value markets. Initially, Indian and Chinese products and services displayed low quality, but currently they also competing in the higher technology intensity sectors.

Scarcity of highly qualified manpower in the main centres to meet the growing demand by high-technology companies, thereby creating global competition for talents.

The current economic crisis, which will substantially affect the way of innovating. R&D budgets will decrease, forcing companies to innovate with lower costs. At the same time, market demand will shrink, leading to a need to reduce “time to market”, as only companies which quickly meet its consumer’s desires will survive. Technology-Based Companies will suffer on account of shrinking venture capitals market. The TBC’s will have to search for the industrial and service companies for their capitalization. These factors, coupled to the new information and communications technologies, such as web 2.0, virtual communities, VoIP, IPTV, will be promoting new methods of innovation, such as:

Innovation Outsourcing – some Indian companies, which started to offer IT Outsourcing, have improved their competence and are currently also rendering innovation services on demand. This tendency will expand ,because from the point of view of several companies, the important point is to have the product or service to compete in the market, not the innovation process that created these products or services. For these companies, innovation is not a “core” function , and, therefore, can be outsourced.

Open Innovation – using this strategy, companies may have access to innovations developed by others, even by competitors. Outside innovations complement in-house innovations. The best example of this strategy is Procter & Gamble’s.

Innovation 2.0 – using tools from enterprise 2.0 some companies have already taken advantage of this technology to encourage participants from inside and outside of their organizations to contribute to their innovation. Several ways exist:

Companies discover new ideas, using their employees, customers, and partners, who place their suggestions in one site, comment and evaluate – e.g. Innovation Marketplace – HYPERLINK ""

Companies request and receive ideas from customers/market for new products and services , e.g. Dell.

Companies seek access to global talent, through promotions, awards, paid problem solutions – e.g. HYPERLINK "" and HYPERLINK ""

Group Knowledge Creation – in social and/or community interest areas – this is a form of non-competitive collaboration (without remuneration) in which talents from several companies and organizations get together to solve a problem of collective interest – e.g. in the health area, Innovation Learning Network – HYPERLINK ""

Article © 2009 Mr Flavio Grynszpan. All rights reserved.

about the author...

Mr Flavio Grynszpan

Mr Flavio Grynszpan

affiliation:   Grynszpan Projetos E Servios Empresariais

position:  Founder Partner

country:  Brazil

area of interest:  Innovation; outsourcing

contact author

keywords for “The Future Of Innovation ... New Ways To Innovate”