Outsourcing Innovation: The New Engine of Growth Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Innovation today requires complex knowledge that only an extensive network of professionals to offer. That is why many companies are starting to outsource innovation. The inclusion of the four forces of change: The demand is doubling every 15 years, the supply of knowledge workers is growing rapidly, increased interoperability, and new stimuli appeared. The most efficient companies, however, have a core business competence in house, outsource the rest of the world's best suppliers. Successful outsourcing of innovation involves scanning capabilities. And outsourcing companies have problems. As noted, that "the key to success is to get both sides of the relationship right from the start." To attract partners, the company should have some features that are vendor-inventors can not duplicate, to get to the desired markets. Companies should also: "The process of masters" who keep innovation moving along, open and interactive software, common goals are or "figures of merit", and a way to share achieved by exceeding targets and to reward those who make alliances to work. Moreover, when the company assesses past practices of suppliers, it must give them freedom. No manager has complete control. People who work together have a better chance of success. "Hide
by James Brian Quinn Source: MIT Sloan Management Review 18 pages. Publication Date: July 1, 2000. Prod. #: SMR046-PDF-ENG