By Alpheus Bingham
The Open Innovation market introduces groundbreaking suggestions for leveraging a global of innovators to strengthen step forward items swifter, with cheaper price and threat. Drawing on their event construction InnoCentive, the pioneering open innovation platform, the authors convey easy methods to dramatically raise the circulation of high-value options your company can discover—and convey.
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Extra info for The Open Innovation Marketplace: Creating Value in the Challenge Driven Enterprise
Thus, the novel development practice of being “open to the source of ideas” didn’t actually have a name of its own. There were a few examples near the turn of the century, such as Hello Brain, InnoCentive, TopCoder, BountyQuest, and X-Prize; although, X-Prize is a not-forprofit foundation that also fits the category of prize philanthropy. As this approach was replicated at varying levels of complexity, rapid-fire, problem solving and consulting appeared in models such as e-Lance: a website that matches freelancers and work assignments; Gerson-Lehrman, a website that says it “connects the world’s leading institutions with the world’s leading experts”; and later Amazon’s Mechanical Turk, a website that matches software developers with businesses and entrepreneurs who want mechanical tasks done; and Google Answers, an “online knowledge market” offered by Google that enabled users to post bounties for well-researched answers to their queries.
A $200 digital camera, may require $80 of parts and labor to assemble. The $120 is the profit representing a gross profit margin of 60%. A higher gross profit margin is usually perceived as providing greater latitude in the use of the cash (price minus COGS) for purposes of investment in future products, investment in marketing, distribution as profit to shareholders, or for capital acquisitions. Affiliates and sales forces are usually mindful that the gross margin differs from product to product, and thus that the overall corporate gross margin is enhanced by selling a disproportionately larger number of products with the smallest COGS.
Although we know of no rigorous studies, it is tempting to put forth a hypothesis that software assembled without centralized guidelines might even be more likely devoid of systematic risks. Such risks arise where a single architectural flaw (grounded in accepted corporate norms) could creep in and cross between modules and subroutines. As learnings from the open source movement have migrated into other products, some of the barriers mentioned earlier have been tackled, and in some cases obviated.