Innovations Unchained. Open innovation within a closed system

Abstract

Purpose The following master thesis addresses research on and around the topic of open innovation within a closed system. This paradox will be analyzed upon a corporation which is part of a group of brands that act and operate in a similar industry. It addresses the opportunities and possible synergies which could be captured if the underlying group would open up their innovation processes towards each other. The thesis aims to provide understanding of how innovations and ideas at the different brands are managed and outlines how a transfer of innovations could be established. The focus lies on the transfer of innovations to and from BRAND A towards other brands within the group. Background The following thesis is part of the Master Degree Project within the M.Sc. program “Innovation and Industrial Management” at the University of Gothenburg – School of Business, Economics and Law in Sweden. The thesis was conducted within a thesis work employment at the Innovation Management department of BRAND A. Literature Review The research conducted for the thesis includes a literature review which assessed and analyzed relevant academic as well professional literature. The literature review has the purpose of providing a theoretical overview as well as identifying research white spots, from which theory and practical implications for the transfer of innovation, were derived. These theoretical findings were later used and consolidated with the empirical findings in order to draw a general conclusion. Methodology For the empirical research a qualitative method approach was chosen. Hereby, a focus group interview was performed, which was used to develop an interview guide in order to carry out semi structured qualitative interviews with key employees at different brands. The empirical data collected was analyzed, by applying an analysis, inspired by the grounded theory. The outcome helped to verify or falsify the implications drawn upon the theoretical research, and led to a general conclusion, implication and recommendations for BRAND A. IV Main Results The master thesis has shown that open innovation is not just a tool or method which firms can apply in order to integrate external ideas within their own innovation process. Open innovation can be considered a philosophy rather than a method. The theoretical research has shown, that open innovation can be used to explore and internalize new sources of innovation. Moreover, the master thesis has revealed that open innovation within the closed system of the GROUP can be an applicable framework which helps to use synergies and increase the success of innovation activities. In conclusion, there are three main ways to implement open innovation within the closed system and to transfer innovation: (1) an innovation data-base, (2) multi-brand-workshops, (3) an online innovation community.