MARCH 2017 • Vol. 23 No. 3
New York Society of Cosmetic Chemists
Table of Contents The Future of Open Innovation Page 1 Letter from the Chair Page 2 Product Innovation— Think “Open Iteration” Page 5 NYSCC Open Innovation Symposium Pages 6-9 Globalization of the Emerging Markets – Bric ‘N Brexit Pages 10-13 91st ACS Colloid and Surface Science Symposium Pages 14-15 Suppliers’ Day Information Pages 16-18
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www.nyscc.org
The Future of Open Innovation by Doug Berger
pen Innovation has been an increasingly hot topic since 2003 and the publication of Henry Chesbrough’s book, Open Innovation. Open innovation began with the realization of this disturbing insight: companies relying solely on internal activities to identify, develop, and commercialize new products were losing ground to those companies that tapped the vast external ecosystem of knowledge, skills, and technology. Open innovation ignited a paradigm shift conceptualizing innovation as a field of enterprise activity, distinct yet allied with research and development. The innovation paradigm was cast as a growth engine— a new pathway forward for sustained competitive advantage, bigger commercial success, higher profitability, and increased productivity. Innovation has now evolved into a discipline in its own right complete with skills, processes, and practices that can be taught, transferred, and executed. However, this innovation paradigm challenges organizational traditions and orthodoxies around how ideas are originated, evaluated, developed, commercialized, and scaled. Therefore, implementation requires established business organizations to stretch and operate in the context of a complex external ecosystem; to collaborate with non-traditional players; to tap external expertise no matter where it is located; and to morph the organization to be porous and agile rather than tightly bounded and rigid. Changing mindsets has never been easy and fourteen years into open innovation people continue to underestimate the challenge of implementation.
Looking at Innovation Investments— What are the Pluses and Minuses as Seen from the C-suite? Top-of-mind for executives is the elusive answer to the questions: What does my company have to show for our innovation investment? Where have open innovation and more broadly innovation been a significant value-add? Where am I disappointed with returns? 1. Open innovation has improved time to market, product features, solving technical challenges, and product cost. These are all vital metrics for R&D effectiveness. This enthusiasm, rightly so, comes from continued delivery of incremental gains in the productivity of R&D. 2. True innovation is rare. Executives typically see products that just renew and sustain the brand or product line. Product variety continues to increase in markets that are already crowded. Consumers are confused. Shelf space is harder to earn.
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OPEN INNOVATION—THE BUSINESS OF COSMETICS March 23 • Pleasantdale Chateau, West Orange, NJ