The concept of Open Innovation (OI) has gained tremendous traction in recent years, as companies realize the potential offered by capabilities, technology and resource outside the organization’s borders. The OI principles outlined in Henry Chesbrough’s eponymous book from 2003 fall into two main areas, “inside out” when your assets are used by others; and “outside in” when you use other people’s. Most OI uses the latter approach, and companies who employ it well need to consider many different things, one of which is how to structure and organize their OI efforts.
The organization of OI is best addressed from two perspectives, structural and human. Starting first with the options for how you draw your organogram on paper, there are three basic models. The first has a central group acting as a centre of excellence, spreading good practice throughout the rest of the corporation. The second is a devolved structure with OI people in each operating division. Finally, the hybrid model has both a central core team and OI people spread around the “coalfaces” of the company.
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