|
|
Like this article? PLEASE +1 it! |  |
|
Open Innovation vs Outsourcing
| Guest post by: John Heap |
Article Overview: Open Innovation and Outsourcing both involve the use of external organisations to 'get things done'. However they are not the same thing. This article explains the differences and explains when to use each of them.
 |
Free Download - Do you need a Corporate Social Responsibility (CSR) Program By John Heap |
Open Innovation vs Outsourcing
Open Innovation involves the exploitation of ideas and intellectual
property from outside of the organisation.
As such it is a kind of ‘cousin’ of outsourcing. However there are clear differences.
Firstly, outsourcing is a means of providing regular,
repeatable services – which are not the core skills of the organisation and are
therefore better – and almost certainly more cheaply – carried out by others
who have specialist knowledge, and equipment. Thus, an outsourcing partner is
likely to be a partner over the longer-term as part of a long-term contract or
agreement. The services provided are fully
specified, agreed and predictable – both in concept and in volume; the job of
the outsourcer is to add reliability and consistency.
Open Innovation, on the other hand, focuses on a particular one-off
task – solving a problem, designing a new product, creating a new marketing
strategy or whatever. We are still using external agencies because they offer expertise
and experience we do not have, but we are now looking for ‘disruption’, new
ideas and novelty (rather than predictable supply).
We might be looking for a short-term association with a new
partner ... or we might be looking to collaborate with several partners at
once.
The ‘service’ we are looking for IS designed but the
outcomes are not necessarily fixed …. We are looking for someone to create an
idea that changes the way we think and the things we are going to do. There is no guarantee that the exercise will
be successful … but if it isn’t, we are probably looking ‘at the wrong thing’
or ‘in the wrong place’.
So, if you are looking to obtain a regular supply of
specific goods or services over the longer-term – and you do not have the in-house
expertise to provide them yourself – select an outsourcer.
If you want to import new ideas and new thinking to solve a particular
problem or create new opportunities, think about open innovation.
Outsourcing ‘has become a mandate’ for recession-hit firms
Study: U.S. outsourcing pace doubled in three years
Top 5 Qualities in an Outsourcing Company
38% of software development professionals use outsourcing
Actions for Successful Remote Freelance Work
A Brief Overview of Today's Outsourcing Buzz Words
How to Conduct Effective Outsourcing Interviews
News for Software Outosourcing Development
Outsource your marketing to a “Virtual Marketing Department” and set your mind at ease
Open Innovation
Integrating Your Virtual Freelance Staff with Your In-House Team
10 tips for an Eye-Catching Freelance Profile
Are you Freelance Ready?
Outsourcing – “Been There, Done That” – But Did You Try “Right Shoring”?
TIDE Innovation Series-Self Innovation
10 Critical Factors to Consider Before Engaging in HR Outsourcing
Human Resources Outsourcing & Small Employers: A Perfect Match in a Tough Economy
100 Ways to Succeed #93
Outsourcing Accounting: Easy Accounting Outsourcing to India for Small Businesses in USA
3 Deadly HR Outsourcing Mistakes You Must Avoid
Article Tags: collaboration, open innovation, outsourcing
|
About the Author: John Heap RSS for John's articles - Visit John's website Click here to visit John's website  
 Count more than the money Reducing Energy Costs and saving the planet Waste Not PokeYoke prevents errors Productivity Improvement via Method study |
Related Forum Posts
Re: What is your biggest challenge? Today?
- Outsourcing and time management, but I'm continually making progress.
Re: High price of entertainment
- [quote="TheAnonymousMan":dadh8m1p]Kevin, I went to a Justin Timberlake concert recently where the bottled water was selling for $4 a bottle! I'm talking about the average 600ml bottle that sells for about $1.20 in the supermarket, now that's a rip off but people were buying it because they needed water.[/quote:dadh8m1p]
Hi TheAnonymousMan,
Can I ask how much you paid for the concert tickets? And more importantly, was the show worth the price?
At the Tennis US Open, I had to pay $3.25 for a 500ml bottled water, $8.00 for a "travel size" Hawaiian Tropic bottle of sunscreen, and $13.00 for a Carnegie Deli pastrami sandwich, $4.25 for fries and $2.77 for a Sharpie pen (for autographs), etc...
And to make things worse, they don't allow you to carry a backpack for security reasons, so it's very inconvenient to bring your own things to the event (keep in mind I was at the US Open for 7 hours). I mean who wants to carry around 10 lbs worth of stuff (if I were to bring my own necessities like food/water/sunscreen/etc. and have to carry a bunch of souvenirs) in a plastic transparent bag for the whole day?!
It's an obvious scam for more profit.
Re: Should a start-up outsource early?
- Hello and welcome to the forum!
I agree with Ideasuniversity. Outsourcing is a good way to leverage your time, provided you keep within your budget!
Best wishes,
David H
Re: LEADERS
- Nice post, i like the Doers and the listeners comments
from my handbook 8.5 HOW MUCH DO YOU KNOW ABOUT LEADERSHIP?
Planning
Problem Solving
Vision
Innovation
Leadership
Emotional Intelligence
Delegation
Communication
Self-Development
Relationship Building
Commercial
Financial skills
Personal Energy
Ethics
Transparency
Even there I see that we are missing "PASSION"
Re: Using PR in the Franchise Business
- Outsourcing in any business can be a good thing, provided you can afford it and do your due diligence on the company that you outsource to. It is very easy to be taken for a ride if you don't know what you are doing.
MichelleJ
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
How To Use Carbon Copy Pro As A Strategic Tool For Your Business
Best Automated Forex Trading Strategy
Build Your List with Joint Venture Giveaway Events
May 2012 Top 100 Social Media Experts to Follow on Twitter
What to measure to be phenomenally successful in business
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.