Open Versus Closed Innovation free essay sample

Open Versus Closed Innovation BY celestel 979 A Critical Look at the Effects of In the Innovative Firms of the Twenty-first Century June 17, 2010 Abstract In todays fast paced business world, which innovation method should companies adopt, open or closed innovation? In this paper we will explore the methods of closed and open innovation. Then we will explore the pros and cons of both innovation methods and discuss which method works better in the business world of the twenty-first century. After reviewing the results this paper explores the particle implications that innovative firms should be aware of regarding Open and Closed nnovation and recommendations will be made for future research in this area. Introduction Background Looking back even a few decades companies viewed innovation strategies very differently then they do today. It was believed that successful innovation needed internal control and secrecy from others in the market. Large corporations used to dominate the field of innovation because they were the only ones who could afford to invest it large scale RD. We will write a custom essay sample on Open Versus Closed Innovation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Any company that tried to enter the market would have to find large amounts of resources to be able to even attempt to compete with the RD f the large corporations (Chesbrough, 2003; Herzog , 2008; Aylen, 2010; Kodama, 2005; Trott Hartmann, 2009). In the current economy start-up companies have found ways to bypass the large RD investments of the past. Instead of doing their own research these new entrance are getting their knowledge and technology from outside their company by either investing in relevant startup companies, or partnering with other companies up, down or horizontally on the value chain (Chesbrough, 2003). With the expanding options on how to obtain innovative ideas, processes, and products the big question remains should companies used a closed or open pproach to innovation? And does the open and closed methods work for all companies? (Almirall Casadesus-Masanell, 2010) In this paper we take a critical look at what closed and open innovation is, what the pros and cons are to both options, and try to determine if one method is better then Closed Innovation The main theory behind Closed Innovation is the belief that successful innovation requires control (Chesbrough, 2003). Companies that follow the Closed Innovation (C) model (see Figure 1) believe in self-reliance and that they should follow these rules to succeed: A firm should hire the best and smartest people Ђ Profiting from innovative efforts requires a firm to discover, develop, and market everything itself Being first to market requires that research discoveries originate within the firm Being first to market also ensures that the firm will win the Leading the industry in RD investments results in coming up with competition the best and most ideas and eventually in winning the competition Restrictive IP management must prevent other firms from profiting from the firms ideas and technologies (Herzog, 2008) Cl companies attempt to do everything on their own from innovative ideas, evelopment, manufacturing, advertising, promotion, distribution, service and even financing. If the innovative ideas or projects are not pursued or are discarded part way they are stored internally and will not be pr ofitable to the company or useful to the rest of the world unless they are used internally at a later date. This creates a great loss of many potentially great innovative ideas, products, services, and processes. If a company chooses Cl it can be expect that many innovations will be lost as companies do not have the ability or resources to turn every idea or technology nto a successful innovation the market can use. The main reason a company would choose Cl would be because they are scared of having their intellectual investments stolen by their competitors (Herzog , 2008; Chesbrough, 2003). [pic] Open Innovation Companies have reached the understanding that not all innovations have to originate internally and that if they do have an internal innovation and do not have the ability to act upon it they can still profit from it by partnering, Joint ventures, licensing or selling the innovation to another company. In Open Innovation (01) companies must ind a balance between keeping important internal secrets and still working with other companies to gain and produce valuable ideas, processes, resources, finances and support (Herzog , 2008). Companies that follow the 01 model (see Figure 2) believe in the following principals: Not all of the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company External RD value We dont have to originate the research in order to profit from it Building a better business model is better than getting to market first If we make he best use of internal and external ideas, we will win We should profit from others use of our intellectual property, and we should buy others intellectual property whenever it advances our own business model (Chesbrough, 2003) 01 encourages the Joining of resources from firms across all aspects of the value chain. Companies now realize that innovations they cant use or can be used further by other companies can lead to additional profits that they could have never obtained on their own (Almirall, Casadesus-Masanell, 2010). Kodama, (2005) expands 01 even further to talk about creating strategic communities See Appendix 1), a convenient process of speeding up a firms innovation. To be able to quickly acquire a variety of knowledge of great use, managers from different areas, from inside and outside the firm, can make a strategic community with internal and external members, which could involve customers. A huge benefit is that strategic communities are not bound by the same limitations as the official organization. Now that we have explored what Cl and 01 is we will now go on to look at why one of the methods might be better then the other for companies competing in the twenty- irst century and why companies decide to choose one either Cl or 01. Open versus Closed Innovation 01 involves risk such as knowledge and sensitive information leakage and the risks must be weighed against the benefits that would be gained from participating in 01. One more trouble with 01 is that well some areas open up to help the flow of knowledge it has been found that to keep sensitive information secure there has actually been a reduction in the amount of information being share between internal departments which could effect the companies internal innovation (Trott Hartmann, 2009). It has been found that 01 is especially needed in fields such as knowledge-intensive industries where competition is strong and companies need to work together to be able to gain a competitive advantage in the field (Trott Hartmann, 2009). Almirall Casadesus-Masanell, (2010) study showed that 01 works better then Cl for partnerships that are fixed and have low to medium complexity levels but they also found that when there is high complexity involved that Cl is the best method to follow. Another discovery was that the benefits can be greater in flexible partnerships over fixed partnerships. The model of flexible partnerships effectively says, If you cant fgure out how to put the pieces together internally (confgure two subsystems optimally), it is critical to have lots of different pieces (complementary subsystems) to choose from and know how to put them together externally. (Almirall Casadesus- Masanell, 2010) Chesbrough and Crowther (2006; as sited in Aylen, 2010) said that 01 traditional and mature industries. A big contrast between 01 and Cl is how they go through their idea lists. Cl managers go through and proceed with the ideas they see as beneficial to their company and iscard what they see as bad ideas or ideas they know their firm does not have the resources to accomplish. Whereas a 01 manager would go through their idea list and sort them into three categories, innovations their company can pursue internally, ideas they can approach other companies about, and ideas that will not work at all. Therefore the 01 model gets to profit from the ideas that the Cl model would have otherwise discarded or stored for a later date (Chesbrough, 2003). Even though 01 has been adapted by many organizations as the best way to be successfully innovative the theory is not perfect. Trott Hartmann, (2009) point out that 01 is very linear and does not suggest any feedback or feed-forward mechanisms unlike the newer innovation models such as the Cyclic Innovation Model (Berkhout, A], Patrick van der Duin, Dap Hartmann Roland Ortt,(2007), cited in Trott Hartmann, 2009). This newer model suggest feedback and feed-forward techniques and also that the innovation process is cyclic, meaning new innovations grow from older innovations. Cl has been very successful for some companies such as Apple they swept the market with the iPod and this strategy and product put them back into the playing ield after have been struggling for years to catch up with the innovations of other major players. Another example of Cl is the Wii by Nintendo which was extremely innovative with their new product features (Almirall Casadesus-Masanell, 2010). Some very large companies have tried Cl techniques and had some devastating effects as a result, such as IBM and Xerox but both these examples were able to overcome these problems with the help of 01 techniques. Procter and Gamble and Philips have successfully adapted 01 and have gone so far as to hold conferences on he topic and even published their own reports on the subject. Trott Hartmann, (2009) provide a list of companies and the reasons they choose to become part of a strategic alliance (See Appendix 2). It has been noted by Chesbrough, (2003) that near the end of the 20th century a number of things happened that caused Cl to be taken into question by many firms.

Free Essays on Oedipus Tyrannos

â€Å"Oedipus Tyrannos†: Responsibility, but Not Guilt â€Å"Oedipus Tyrannos†, the classic Greek Tragedy written by Sophocles, possesses all the ingredients necessary for a good tragedy, including a tragic flaw in the main character. The story of Oedipus is captivating indeed, but it has been debated as to whether or not Oedipus actually has an error in judgment, or is he just a victim of fate who could not avoid the tragic end that the gods had in store for him. Oedipus plays a part in fulfilling the oracle by making certain choices along the way. He is not, however one looks at it, guilty of any wicked or heinous crimes that deserve such harsh punishment by the gods. Aristotle chooses to use Oedipus as an example of the perfect tragedy in his writing Poetics. It has been questioned whether or not Aristotle manipulated Oedipus to fit his mold, or does Oedipus truly meet every demand made for a good tragedy. Aristotle outlines the requirements of a good tragedy in Poetics. First, the tragedy must be an imitation of life in the form of a serious story. It must be realistic and narrow in its focus. The purpose of a tragedy is to evoke a sense of fear and pity from viewers. Experiencing these emotions will leave a viewer with a feeling of catharsis. Archer 2 The word catharsis is Greek for â€Å"purging† or †purification†. The effect is similar to that of a â€Å"good cry†. Aristotle also outlined the requirements for a good tragic hero. He must, first of all, be a great man. He must be superior in some way to the average man. At the same time, he must be able to evoke fear and pity from the viewers. The best way to achieve this, according to Aristotle, is if the hero is imperfect. The hero suffers because of his hamartia. Hamartia is a Greek word that is often translated as â€Å"tragic flaw† but actually means â€Å"error in judgment.† The question of the guilt of Oedipus has been much discussed over th... Free Essays on Oedipus Tyrannos Free Essays on Oedipus Tyrannos â€Å"Oedipus Tyrannos†: Responsibility, but Not Guilt â€Å"Oedipus Tyrannos†, the classic Greek Tragedy written by Sophocles, possesses all the ingredients necessary for a good tragedy, including a tragic flaw in the main character. The story of Oedipus is captivating indeed, but it has been debated as to whether or not Oedipus actually has an error in judgment, or is he just a victim of fate who could not avoid the tragic end that the gods had in store for him. Oedipus plays a part in fulfilling the oracle by making certain choices along the way. He is not, however one looks at it, guilty of any wicked or heinous crimes that deserve such harsh punishment by the gods. Aristotle chooses to use Oedipus as an example of the perfect tragedy in his writing Poetics. It has been questioned whether or not Aristotle manipulated Oedipus to fit his mold, or does Oedipus truly meet every demand made for a good tragedy. Aristotle outlines the requirements of a good tragedy in Poetics. First, the tragedy must be an imitation of life in the form of a serious story. It must be realistic and narrow in its focus. The purpose of a tragedy is to evoke a sense of fear and pity from viewers. Experiencing these emotions will leave a viewer with a feeling of catharsis. Archer 2 The word catharsis is Greek for â€Å"purging† or †purification†. The effect is similar to that of a â€Å"good cry†. Aristotle also outlined the requirements for a good tragic hero. He must, first of all, be a great man. He must be superior in some way to the average man. At the same time, he must be able to evoke fear and pity from the viewers. The best way to achieve this, according to Aristotle, is if the hero is imperfect. The hero suffers because of his hamartia. Hamartia is a Greek word that is often translated as â€Å"tragic flaw† but actually means â€Å"error in judgment.† The question of the guilt of Oedipus has been much discussed over th...

Women's Studies. Barbie Doll as the Model for Little Girls Essay

Women's Studies. Barbie Doll as the Model for Little Girls - Essay Example Though the patterns of dolls cannot be adopted completely by the girls, yet an overwhelming majority of them observes the same in one way or the other. Hence, the movements launched by the Barbie dolls designers and developers go a long way in respect of introducing and modifying the physique and appearance fashion trends within the social establishment, predominantly for the women folk, which maintain higher level of inclinations regarding adopting and following the fashion patterns in the light of the material objects being introduced by the fashion designers. Introduction: It has pertinently been viewed that Nature has created men and women in two entirely different patterns, where the difference between the members of both the genders is not confined to physical appearance only; rather, the people of the two genders also appear to be divergent ones in thoughts, views and exposure with regards to life and society (Crenshaw 54). It is due to these differences that their liking and disliking, as well as tastes and flavors also witness dissimilarities since the early childhood of the individuals belonging to the two opposite genders. It is therefore it is aptly argued that the girls are more idealistic and less practical in comparison to their male counterparts, and develop role models for them to imitate the same up to they seek the perfection point (Crenshaw 19). It is particularly the case while girls’ adopting the prevailing fashion-styles and manners in order to look attractive, fascinating and dandy eventually. The same can also be witnessed by witnessing the love and passion of the girls for their Barbie dolls. The researchers demonstrate the very fact that girls generally keep Barbie dolls of various kinds with them by taking them to be an ideal play-mate as well as a beautiful object to imitate their features and characteristics; it is therefore, they look for reducing their weight to such a great extent so that they could grow as thin as they o bserve their dolls having the smartness and slenderness with regards to their physiques at large (Dittmar et al. 283). It is perhaps in the nature of the girls that they care the dolls in such a manner as their mothers take care of the children (Schwarz 296); it not only reflects their innate motherly sentiments and desire to play the role attributed to mothers, but also demonstrates their hidden longings for mating and having a companion that exclusively belongs to themselves only. Hence, some invisible and unconscious sexual desires also urge the girls to keep a smart and captivating mate in the form of Barbie doll with them (Kuther & McDonald 42). In addition, sense of security and escape from loneliness and being unprotected also force the girls for keeping the dolls with them. The girls’ imitating the Barbie actually reflects their passion for espousing the cultural traits that have been in vogue in their social and physical environment (Kuther & McDonald 40). One of the most imperative reasons behind establishing the Barbie to be a model for smartness and beauty includes the (mis)conception by viewing it to be the symbol of perfect attractiveness the smart and good-looking girls must contain. Consequently, the girls attempt to keep the physique of the dolls in view in order to maintain their smartness and remain under-weight in order to capture the attention of the public in general, and their lovers in particular. Somehow, the medical specialists and healthcare

The competitive nature of the big supermarket chains in the UK Essay

The competitive nature of the big supermarket chains in the UK - Essay Example It will further discuss whether the market structure is beneficial or has a negative impact to the customers. The four brands take more than seventy-five percent of the market shares with Tesco enjoying the largest share of the UK market. The supply of commodities is always on demand; hence, the production scale tends to be large to have space to accommodate the economies of scale. When the issue of economies of scale comes into play, the variable cost is always low due to the advanced technology that results to full utilization of the investment. The consumers get more products at lower prices. The oligopoly market structure tends to attract large manufacturers. In addition, the manufacturers are required to have higher levels of technical and financial strength in production of commodities (Obitz, 2009, p. 59). It results to more benefits to the people as evident in the large quantities of low price products. The oligopoly market in United Kingdom supermarket chains does possess an aspect of interdependence. If a company makes a price or market strategy that has influence on the other companies, the whole market particularly the firms, become interdependent (Leahy & Neary, 2010, p. 25). This means that if one supermarket decreases or increases the price of its commodities, the other supermarkets will also adjust their price. The supermarkets, in most instances have a common agreement of how they make changes on the output and the price. In addition, most of their strategies seem to be similar in order to maximize on their profits. This results to a non-price competition in oligopoly market and price rigidity. The supermarkets in the UK avoid engaging in price wars. The prices are relatively same in all the large supermarkets. In the business world, some firms will tend to lower their price than the others while the quality of their goods is not securitized. This makes the consumers buy t he products at low prices and

Aristotle Term Paper Example | Topics and Well Written Essays - 1000 words

Aristotle - Term Paper Example One of his biggest accomplishment as was the classification of knowledge into disciplines such as mathematics, biology and ethics (Iep). Aristotle is considered the father of the field of logic. He was the first person to develop a formalized system of reasoning. Based on Aristotle’s philosophy the validity of any argument can be determined by its structured rather than by its content. The scientific method was used by Aristotle in his reasoning arguments. Aristotle founded a school in Greece called Lyceum. He taught in this school for thirteen years where he developed his philosophical treatises. During his discourses Aristotle would always walk around. His followers imitated his walking around and as a consequence they became known as peripatetics which meant â€Å"to walk about† (Iep). The writings of Aristotle were held by his student Theophrastus. Eventually the writings were given to Theophrastus protà ©gà © Neleus. Neleus protected the books from being stolen by keeping them locked in a vault. The dampness and moths of the vault damaged some of the books. The books were in hiding for over a century. Then in 100 B.C. they were discovered by Apellicon who brought them to Athens. A few decades later the books reach Rome. It was in Rome that Aristotle literature caught the attention of scholars. The Aristotle writings studied in Rome are the same literature today’s academic community is studying. The works of Aristotle is classified into three categories: dialogues and works of popular character, collections of fact and material from scientific treatment, and systematic works (Iep, 2005). One of Aristotle most famous writings is One the Polity of the Athens. The systematic treaties of Aristotle were group into five divisions which are logic, physical works, psychological works, works on human history, and philosophical works (Iep). The aim of Aristotle logical treatises was to develop a universal of reasoning by it which it could be

This Experiment Marcet Boiler Engineering Essay

This Experiment Marcet Boiler Engineering Essay In This experiment a Marcet boiler was used to conduct the relationship between a saturated pressure and temperature of water in the range of 0-14 bar indicating in the gauge and also to determine the temperature of a body when being heated or cooled. When the temperature increases pressure also increases in this case the relationship between pressure and temperature is directly proportional. Assumption was made that the temperature is uniform throughout the boiler and the outside surface temperature of the boiler is the same as the steam temperature. Theoretically, the values from the steam table should almost be the same with the recorded values. In this case, if the values are not the same then this is due to error that was made in the experiment. The experiment was performed carefully and all procedure was followed to get accurate result. First of all the startup procedure is to fill water in Marcet boiler and the water level is half of the boilers height. Then the supply switch was turned on. It is important to remove the air in the boiler in this case the valve would be open from the start up of the experiment When the temperature increases to 100Â °C, the steam is allowed to come out from the valve for few seconds and close the valve. Record the steam temperature and pressure reaches 14 bars. Introduction Thermodynamics is the study of heat and in relation in other form of work and energy between a system and its surrounding; in this case the property in the system will change. Generally ideal gas obeys the equation of state which is showed below. PV= When energy is increased in the water .the molecules in the water that is increasing will enable the molecules to escape from the surface until it is in equilibrium (boiling point). The state of equilibrium depends on the pressure in the surface of the water. When the pressure is low it is easier for the molecules to leave the water with less energy. The Marcet boiler is used to investigate the relationship pressure and temperature in saturated steam for comparison with the steam table .the experiment slope (dT/dp) is obtained water at saturated temperature Theory The Marcet boiler is used to investigate the between pressure and temperature of saturated steam, in equilibrium with water, at all pressures between atmospheric and a 14bar An ideal gas can be characterized by three state variables: absolute pressure (P), volume (V), and absolute temperature (T). The relationship between them may be deduced from kinetic theory and is called the Ideal Gas law. The ideal gas law was originally determined empirically and is simply. and hf + hfg = hg Æ’Å ¾ hf as vg >> vf In which, vf = specific volume of saturated liquid vg = specific volume of saturated vapor hf = enthalpy of saturated liquid hg = enthalpy of saturated vapor hfg = latent heat of vaporization Equipment Procedure Fill up water half the height of the boiler Ensure the valve is opened Connect the boiler to the electrical switch The boiler is heated up to 100Â °c and the steam will come out of the open valve Close the valve after 1 minutes to ensure that the air in the boiler is out and continues heating When the pressure start rising , start the stop watch Record all the temperature readings at different pressure with time Pressure must not exceed 14 bar Discussion The theory can be compared with the experiment where pressure and temperature are directly proportional to each other When a water is heated in a container to a boiling point the tempreture increases and presussre also increase in the case where the steam is closed in a cylinder, Their will be internal pressure in the container and also internal forces. it is shown in the graph that tempreture is relatively proportional to pressure In the table error was zero because the decreasing tempreture of the boiler was not noted down therefore erro is unknown . assuming the decreasing tempreture is considered the the error percentage would now exceed 10% because the experiment was done in a closed system so no amount of volume will escape It was important to remove the air from the boiler to avoid flaws of readings . Marcet boiler is used in plant steam industries, power plant, cooking utensil and so on Conclusion in the experiment, it shows from the table and theory that temperature and pressure is relatively proportional in balance with water Disgracing some negligible faults, this experiment can be consider successful, to improve the result of the experiment, it should be carried out at room temperature switching off all the air-conditions, and also by repeating the experiment and taking the average value. If some insulation were kept on theMarcet boiler to reduce heat loss, the experiment could be more accurate

FDR: New Deal Essay -- American History, New Deal, Franklin Roosevelt

Franklin Delanor Roosevelt (FDR) is responsible for creating and establishing the New Deal which saved the United States after the Great Depression. The New Deal was important because the United States was in a major financial hole and had to get itself out. After the stock market crashed in 1929 there were millions of people who were struggling just to get something to eat and have a roof to sleep under. The program that FDR created made it possible for the U.S. to get up and dust itself off. It created jobs and many organizations that were responsible for a lot of the public works and state department organizations that we still use today. The new deal also set the U.S. up for success if something financially wrong happened again by establishing many fail safes such as federal bank guarantees, stock regulations, social security, unemployment and other programs that would allow this country to recover. These programs allowed unemployment to rise from a whopping 25% to 1.9% giving millions of Americans the chance to start over. (Location 146-52, American-Made: The Enduring Legacy of the WPA: When FDR Put the Nation to Work, Kindle Version; Nick Taylor) This New Deal also came just in time for the U.S. to help out and eventually defeat the Nazi communist party.The New Deal was started by Franklin Delano Roosevelt on Thursday, March 9 1933, the same month he took office. (Location 5557-64, FDR, Kindle Version; Jean Edward Smith) This contribution was started because of the Stock Market Crash twice within 5 days difference on Thursday, October 24 1929 and Tuesday, October 29 1929. The New Deal wasn’t initiated until nearly 3 and a half years after the Stock Market crashed because President Hoover didn’t take the initiative to ... ...aced by the WPA (Works Progress Administration) and helped give millions of Americans jobs. As president of the United States I would say that FDR wanted to do everything in his power to fix the nation that he vowed to assume responsibility for. I understand from Smith’s book that FDR was a very popular and man of power that many agreed with and had the backing of congress and senators all over the nation to do whatever was needed to get done. With the backing he received FDR must have thought that people had a lot of faith in him and as long as he used his better judgment and gave everything he did his full attention that he would do his best and the country would reap the benefits. Works Cited Page 1. FDR, Jean Edward Smith, Amazon Kindle 2. American-Made: The Enduring Legacy of the WPA: When FDR Put the Nation to Work, Nick Taylor, Amazon Kindle