Written By: Gary P. Pisano & Roberto Verganti
December: 2008
Summary
Firms team up with a variety of
partners in a wide number of ways to create new technologies, products and
services. But what is the best way to leverage the power of outsiders.
There four basic modes of
collaboration say the authors. An elite
circle is a closed network with hierarchical governance: One company
selects the participants defines the problem and chooses the solution. An
innovation mall is hierarchical but open: Anyone can post a problem or propose
solutions in it but the company posting the problem chooses the solution.
An innovation community is open
and decentralized: Anyone can propose problems offer solutions and decide which
ideas to use- as happens in the Linux open-source software community. IBM has
set up a number of consortia with other companies to develop next generation
semiconductor technologies.
No one approach is superior each involves
strategist trade offers. When choosing among modes firms must weigh their
advantages and challenges and assess which will work best with their strategy
capabilities, structure and assets.
Ref –Page, No 78HBR
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