Challenges of open ovation and their resolutions

It has been noticed that while open innovation has numerous benefits it does have its hurdles to be overcome. This is particularly the steps taken before initiating the system in order for it to run properly and smoothly. Hence ignoring this steps will eventually cost more to the company and do more harm than good.

These challenges range from legal, operational and cultural challenges. And according to Peter von Dyck in innovation Management there are 3 main obstacle that precedes them all

1. Intellectual property

2. Efficiently idea processing

3. Efficient internal structure

Intellectual property

These are the rights on has over the creativity of work produced. Now the issues arise when open company supports another in the creation of a product and service and now there is the issues of who claims it as their own or how the ownership is divided.

There is also the problem of when selecting companies to work with. As one does not want to disclose too much information that they are kicked out but at the same time company need enough information from the other to know if the project is worth the time and investment

The solution to this is proper clear information from the onset. Information of how results will be handled should be advertise before even prospects sign up for initiatives or join your projects. Also the company should give a clear outline on what information will be needed and what information should not be disclosed at the begin for them to make their selection process

Efficiently processing ideas

As a company that opens itself to the ideas form the external world it could sometimes be numerous and limited resources will not permit you to back all of them and also you do not want to miss on the potential ones. How do you sift through all the numerous ideas and pick the best and most beneficial ones?

The solution is creating a system. Mostly automated with criteria set in place that could quickly and efficiently sift through the numerous ideas and pick the best. This will also ensure that all that pass will have the correct information and potential

Effective internal structure

This is mainly the flow chart of the project after it has been accepted. How is the project being manged and how it is being measured along the way? Who is in charge of what and who is responsible. This is the total organisation of the program.

This is efficiently done by having a dedicated submission portal, as mentioned before. It also must enforce company polies and procedures throughout the stages. Aside from this the structure must also ensure there is efficient communication between the investors, innovators and stakeholders


Of course there are many other obstacles that are faced as with organisation aspect and cultural aspect. There is also the mind-set of the people that are involved that must be aligned for the projects to work properly. But the ones mentioned above are crucial obstacles that should not be taken lightly. But if addressed open innovation could prove very beneficial.