Balancing Internal and External Innovation - Corporate Innovation

Message from discussion Balancing Internal and External Innovation

MCT

More options Feb 20 2005, 10:28 am

From: "MCT" <mark_turr...@imaginatik.com>

Date: Sun, 20 Feb 2005 07:28:02 -0800

Local: Sun, Feb 20 2005 10:28 am

Subject: Balancing Internal and External Innovation

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It is difficult to guess the right model for future innovation
programs. On the one hand we have the current model of R&D, centralized
inside the company with some tentacles into the outside world (and
occasionally into the internal businesses they support ;)

On the other hand, you have the Marketing Department which in many
organizations is really an outsourced department. Marketing leaders set
direction (often guided by consultants and agencies), gather market
data (agencies and market research firms), interpret data (agencies and
consultants), identify projects and opportunities (internal - supported
by agencies), and embark on projects (outsourcing the work to
externals).

It is possible that the right role for innovation in R&D is to set
direction and manage projects...

... and yet I cannot help feeling that this would abrogate the future
direction of an organization to a loose, non-connecting network of
outsiders who do not share the overall organizations goals. Moreover,
to your point, Hannah, this new network structure does not get away
from the need to manage effectively - in fact the problem is worse. It
means managing completely new types of relationships, in the way that
few companies ever have managed to achieve.

Now, I am a middle ground person, so I believe both models are likely
to co-exist, and the bext companaies will combine elements of the two.
I think, therefore, we will continue to live in interesting times.

Mark

mark_turr...@imaginatik.com
www.imaginatik.com

Hannah McBain BBC Creative R&D wrote:

> I also fear that the issue with this trend, which is otherwise a
> positive one for the spread of innovation, is that companies will
> outsource their innovation simply to divest themselves of a complex
and
> difficult managment role. The value of innovation is much harder to
> measure than other core business areas. The fall-out from this may be
> an expectation that internal innovation is no longer necessary. That
> all markets are best leaving their innovation to external groups,
> rather than finding a balance between the two depending on the scale
of
> projects or where they fall betwen radical and incremental

development.

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