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Evaluating the open innovation concept—and real examples—is fundamental to understand how this practice became popular among large companies and how it can benefit your growth.

In the past, people believed corporate knowledge should be kept secret to avoid plagiarism and other actions that could compromise a company’s results.

However, with the advancement of technology and new communication formats, more and more companies value information sharing and collective collaboration.

In addition to enabling the construction of more complete and efficient projects, this initiative is responsible for the growth of many startups that are just getting started.

For that reason, it’s worth learning more about open innovation and examples of organizations that became successful through this development model.

With that in mind, we prepared special content with the main information you need to understand this concept. Keep reading to learn:

• ● What is open innovation?
• ● Types of open innovation
• ● Characteristics of open innovation
• ● Benefits of open innovation
• ● 5 successful examples

What is open innovation?

Open innovation is a development model that proposes collaboration between multiple people, teams, and external companies in order to generate more value for what is being built.

This concept was created by Henry Chesbrough, a professor at the University of Berkeley (USA), and started being implemented in the early 2000s—marked by the presence of new technologies and the internet, which made corporate communication easier.

This approach encourages connection between different companies and collaborators to create an innovation ecosystem, through:

• ● partnerships;
• ● new ideas;
• ● different skills;
• ● suggestions;
• ● analysis of errors and what can be improved.

This external perspective can involve different agents, such as:

• ● customers;
• ● suppliers;
• ● research institutes;
• ● public bodies;
• ● startups.

The goal is to generate more value for what is under development, expanding the company’s limits through horizontal and democratic exchanges.

Types of open innovation

Today, there are two main types of open innovation (and common successful examples): the inbound model, known as inbound open innovation, and the outbound model, or outbound open innovation.

Inbound happens when a company interested in new external perspectives seeks agents for that purpose, looking for third-party proposals and knowledge that can be useful for its project.

Meanwhile, outbound open innovation is when the organization offers its collaboration services to work with clients and third-party companies, without necessarily having an initial project or solution.

In addition, it is also possible to adopt mixed open innovation, which consists of the union of companies and external collaborators who share a common problem and seek to develop a satisfactory integrated solution.

Characteristics of open innovation

To understand open innovation and successful examples, it’s essential to know the characteristics that guide this concept.

First, it is marked by the integration of internal and external resources, allowing outside agents to use the company’s technologies—and vice versa.

Also, the development process is more agile and horizontal. In other words, it does not happen through hierarchy, but through equal collaborative participation.

Elements such as competitiveness and the search for profits are replaced by a focus on collaboration and results.

In addition, goals are usually clear, and communication must be transparent to create a safe space for everyone involved.

Finally, even if it is not a requirement, this concept often brings disruptive innovation to companies, replacing old solutions with new and more technological ones.

Benefits of open innovation

Knowing open innovation and examples of companies that adopted this practice can bring several benefits to your company.

Below are some of the most positive points of investing in this initiative:

Greater reach

By contributing with other companies to generate a shared solution, your organization can reach a broader audience and a wider set of collaborators.

The idea will reach more people, and with more companies involved, it becomes possible to reach other segments more efficiently, bringing the solution to the customers of those companies.

That’s how open innovation and examples became so famous in their niches: by reaching more people.

Cost reduction

Another attractive benefit is the possibility of reducing costs within your company. That’s because this concept is often practiced voluntarily—or with compensation that can be more accessible than hiring permanent employees, for example.

In addition, partnerships can have a lower cost without compromising the efficiency and agility of the proposal.

Feedback

With open innovation, it becomes possible to collect more feedback about how your process is going.

The solution will be tested by more people, who will try it and talk about their experience.

In addition, you gain a broader view, with external suggestions about what can be improved to meet expectations and encourage innovation in your company.

Brand recognition

By engaging in open innovation with other companies, your brand has more chances to be recognized in the market.

That’s because it will connect with established organizations, and it is also an opportunity to meet other investors and influential people in the area.

As a result, your business becomes better known, expanding your network and the audience you can reach.

5 successful examples

After understanding more about open innovation, it’s worth knowing some examples of companies that were successful by implementing this initiative. See the details:

1. LEGO

LEGO is a toy company famous for its building and connecting pieces.

However, in the 1990s, it faced difficulties due to falling sales. So it decided to explore innovative alternatives in partnership with consumers to understand what they were looking for.

This became known as LEGO’s Shared Vision (Visão Compartilhada LEGO), collecting ideas based on co-creation with other collaborators.

On its website, customers could draw their own projects and submit them for voting and discussion in forums. The best proposals were produced as new products, and the creator received a small share of the profits.

This initiative helped LEGO innovate with an open contribution platform, in addition to feedback on launched products, helping increase sales and raise public satisfaction.

2. Samsung

Another company that is part of open innovation and promising examples is Samsung, which, to compete with its main rival Apple, created an external contribution channel known as the Samsung Accelerator program.

The initiative sought to promote different solutions for its technologies together with designers and programmers. The program offered workspaces, resources, and support for agents to work on software and services.

This project expanded to work with startups, helping them grow while working with experienced collaborators to identify and fix problems in its technologies.

It was this program that contributed to Samsung starting to launch products based on the Internet of Things (IoT).

3. Mozilla

The Mozilla Firefox browser is also one of the main examples of open innovation in the industry, pioneering external contribution for open-source code.

Basically, external agents can work on its programming sources and propose solutions and other resources that improve the software.

Anyone can contribute to the web browser through its global community of programmers and product developers.

Mozilla promotes projects and shares its code for free in exchange for contributions, bringing together volunteers and paid workers to improve the user experience.

This proposal was successful because it is one of the most used browsers in the world, and many beginners have the opportunity to access entire databases to gain experience, contributing their skills to be part of the community.

In addition, there are various rewards, such as participating in Mozilla events and receiving exclusive browser extensions.

As a result, many users contribute—helping Mozilla build open innovation and examples of what to implement.

For people who want to start, you just need to join the platform and register. At first, it is possible to contribute by reporting errors or giving ideas that would make the site more optimized.

After being a volunteer, the user can apply for internships and collective open innovation projects—and get paid for it.

4. Facebook

For those interested in open innovation and successful examples, Facebook is one of the companies that grew through this approach.

Mark Zuckerberg’s social network promotes numerous events, workshops, and talks for all types of programmers and developers—including from other companies. This allows its employees to discuss ideas and solutions for its products.

It also integrates different teams for initiatives that reward the best ideas or the development of the most innovative solutions.

More recently, the proposal has also been opened to the public, attracting millions of people interested in Facebook’s code, with ideas to improve it, or seeking professional experience.

Promoting these events for free not only contributes to open innovation, but is also an opportunity for developers and encourages innovation in corporate IT.

5. Natura

There are also examples of open innovation from companies that are not necessarily in technology, such as Natura.

The cosmetics company was one of the pioneers in working collaboratively with startups to seek shared solutions and build networks that generate meaningful results.

It does this through the Natura Startups program, the entry point for entrepreneurs who want to work with the corporation.

The initiative accelerates the development of organizational solutions and the launch of new products through innovative and sustainable formulas.

Through the partnership, Natura helps new companies with resources and workspace, as well as events that connect collaborators.

Over the years, more than 5,000 startups were analyzed, more than one hundred tests were run, and more than 40 partnerships were formed.

In 2019, the program was recognized as the 2nd most engaged initiative in relationship with startups in Brazil.

In addition, during the Covid-19 pandemic, Natura’s open innovation proposals allowed collaborators to join forces to create an action plan to reduce the social effects of the disease.

This was done through safety measures for workers, psychological support sessions, and the provision of protection materials. Hygiene products and strengthened formulas also came out of these partnerships.

Why should you know open innovation and successful examples?

Many people may believe that collaborating with other companies does not bring efficient results, but learning more about open innovation and successful examples helps change this view.

This concept has been applied by thousands of companies worldwide for more than two decades, and successful cases prove that integrating with external teams to seek more assertive solutions can work.

In addition, it is a way to offer opportunities and experience for people who are starting to learn more about the topic—whether in programming or another segment.

It’s also a way to make the public feel engaged and valued by sharing their ideas and receiving real feedback.

Finally, knowing more about open innovation and examples that worked can be an incentive for you and your business.

Contact with other views, skills, and people helps build more complete projects in less time and at lower costs.

It is also a way to access new technologies that help the company stand out in the market.

That’s why it’s worth investing in companies that have this kind of program.

With X-Apps, your business benefits from innovation and stays a market leader. Talk to our specialists here.

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