Industry Commons

Open Innovation Methodology, Toolkit and Ecosystem

Context

Disruptive innovation is both an inherently risky and a potentially threatening force for established business. Startups have arisen from within the tech sector to challenge and attempt to supplant incumbents from within more traditional and less agile organisations, for instance the taxi industry (Uber, Lyft…), Hotels (Airbnb, HomeAway…) and travel agencies (Expedia, Kayak, Skyscanner…).

A potential self-preservation response might be to engage in disruptive innovation internally, to undermine an existing product or business model with a radical new one. An example of this is Netflix, who made their own DVD delivery service obsolete by providing a streaming television and movie service. However, disruptive innovation is too precarious for most large organisations, too expensive to invest in internally, and with far too many unknown variables and unforeseeable outcomes. As a result, industry typically relies on a two pronged approach: incremental innovation as an internal strategy, and a constant wariness for external innovation that may challenge, threaten or cannibalise existing markets.

Of course, industry’s key advantage is that they have assets – products, data, etc. – but generally relies on traditional and linear approaches to exploitation of these assets through (often antiquated) marketing and sales strategies in proven, static markets. However, industry also exists within a context of profound digital transformation with rapidly changing markets and core technologies such as Blockchain and Crowdfunding.

Context

Disruptive innovation is both an inherently risky and a potentially threatening force for established business. Startups have arisen from within the tech sector to challenge and attempt to supplant incumbents from within more traditional and less agile organisations, for instance the taxi industry (Uber, Lyft…), Hotels (Airbnb, HomeAway…) and travel agencies (Expedia, Kayak, Skyscanner…).

A potential self-preservation response might be to engage in disruptive innovation internally, to undermine an existing product or business model with a radical new one. An example of this is Netflix, who made their own DVD delivery service obsolete by providing a streaming television and movie service. However, disruptive innovation is too precarious for most large organisations, too expensive to invest in internally, and with far too many unknown variables and unforeseeable outcomes. As a result, industry typically relies on a two pronged approach: incremental innovation as an internal strategy, and a constant wariness for external innovation that may challenge, threaten or cannibalise existing markets.

Of course, industry’s key advantage is that they have assets – products, data, etc. – but generally relies on traditional and linear approaches to exploitation of these assets through (often antiquated) marketing and sales strategies in proven, static markets. However, industry also exists within a context of profound digital transformation with rapidly changing markets and core technologies such as Blockchain and Crowdfunding.

Industry Commons emerges from the #MTF innovation ecosystem

Industry Commons Foundation (Insamlingsstiftelse)
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