Should You Outsource Your Innovation Process?
b'Outsourcing your innovation process is an exciting way to increase innovation competitiveness. Utilizing organizations like an innovation agency\\xa0can allow firms to focus on other business areas. The results are increased efficiency, improved quality, faster innovation implementation, reduced innovation risk, and increased flexibility.
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\\nOutsourcing innovation can be a powerful tool to help companies speed up their growth. By understanding the risks and challenges, companies can set themselves up for success.
\\n5 Outsourcing Models
\\n1.\\xa0\\xa0\\xa0\\xa0 Project-Based Innovation
\\nUseful for specific projects, specialized skills, or testing out new relationships.
\\n2.\\xa0\\xa0\\xa0\\xa0 Joint Venture for Innovation
\\nThis collaboration can benefit companies wanting to share the risks and rewards associated with innovation.
\\n3.\\xa0\\xa0\\xa0\\xa0 Innovation Strategic Alliance.
\\nBeneficial for companies wanting to combine resources and ideation expertise to create a competitive advantage.
\\n4.\\xa0\\xa0\\xa0\\xa0 Innovation Licensing Agreement.
\\nAgreements allow\\xa0access to another company\'s technology or expertise.
\\n5.\\xa0\\xa0\\xa0\\xa0 Innovation by Acquisition.
\\nAllows companies to add\\xa0innovation capabilities\\xa0or enter a new market quickly.
\\nInnovation Outsourcing: Successes and Failures
\\nIn Apple\'s work with Foxconn, it outsourced its product manufacturing. The outsourcing allowed Apple to focus on design and development, while Foxconn created innovations to produce the products. As a result, Apple could bring new products to market quickly and efficiently.
\\nOn the flip side, BlackBerry\'s work with TAT failed. TAT was supposed to take over UI/UX development, helping recapture market share from Apple and Android. TAT and Blackberry could not develop an operating system fast enough to keep up with the competition. BlackBerry lost\\xa0market share, and both companies had to fire staff.
\\nKeys to Successfully Outsourcing Innovation
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\\n* Have a\\xa0clear understanding\\xa0of what the company wants to achieve.
\\n* \\xa0Have a strong relationship and be able to work together effectively.
\\n* \\xa0Ensure companies can trust each other.
\\n* \\xa0Ensure both parties are willing to invest the necessary time and resources.
\\n* Look for companies with a proven track record of innovation.
\\n* Understand the company\'s business model and how it aligns with yours.
\\n* Understand their capabilities, including strengths, weaknesses, tools, and processes.
\\n* Understand their\\xa0team\'s culture\\xa0and skills.
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\\nTo know more about outsourcing innovation processes,\\xa0 listen to this week\'s show: Should You Outsource Your Innovation Process?
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