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131113 Ims8 Essay

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Collaborative and open innovation
Bart Leten (Vlerick Business School)
1 Introduction
Collab with external partners for a new product?
Phillips x Douwe E:
completenties to make such a machine
lack skills for making coffee
access to complementary knowledge

Nokia x Microsoft
long history of being market leader and making great phones in the past Why x software company?
Because they lack those skills in the software area
Wants to move into portable devices
Why? Very successful in portables and desktops
BUT that market is shriking and the market for iphones etc is strong iPod
Apple designed 10% of iPod
They looked for elements already designed already over the world Eg. the steering wheel < [Bangen-Olefsen] (Danish company)
Eg. the small hard disk < Toshiba
6 months from start to market  only possible < licensing and collaboration speed
one of the biggest success factors of new products
GM x PeugeotCitroën
Share costs
Purchase parts together  cheaper
Develop components together
Chassis: = most expensive component of car
=metal frame at bottom of car
Reused (=”leveraged”) in different generations of car
Technology platforms
Sales people want broad product scope
= very expensive to develop all separately
so think of product families = platforms
 reasonable time-to-market and development costs
so why collab?
speed up
reduce risks
access to skills you don't have

how successful are companies on R&D collaborations?

Why to these collaborations fail? Why is it so hard to collaborate? You have to really open up and share and often one of the two is not open enough (withholding knowledge) = opportunistic behaviour Different objectives/view of type of product to be developed, clash

What can we do about it?
1) select the right partners
someone with same goals & product in mind
partner you can trust
good partner  you know how to collaborate, negotiations are brief, know what to expect 2) use c...

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