Open Innovation

Dear Readers,

New entrants in specific technology segments are shaking up various product and service markets, prompting technology firms to step up their R&D efforts and to involve entities outside their companies in the R&D process.

Economist intelligence unit says that over the past five years, 64% of telecom and technology companies have had a new rival enter their market with innovative products and services. A case in point is Apple’s entry into the handset sector via the iPhone.

According to data, these disruptive innovators will prompt shorter product lifecycles, with technology firms now planning to churn out more products but tiwh shorter life spans. Half of the technology firms surveyed say product lifecycles will continue to shortened, with 20 % saying product life will go down by at least 30 % .

Technology companies, in their quest for more new ideas, are now increasingly adopting the principles of “Open Innovation”, which seeks to involve suppliers, corporate partners, the academe and customers in the R&D Process.

Customers , in particular, will increasingly play a key role in R&D, with 78% of those polled agreeing that their customers have a much greater impact on their innovation process now than in the past.

But this “open innovation" approach will not be that easy for companies to adopt, as embracing a more open approach brings major organizational challenges.

Bottom line is, this means good for the consumer.

Thank you, Readers
JS
source for statistics:www.telcomasia.net