Customers attentions spans are growing shorter. They need variety. Increasing their product portfolio, is a key growth source for most companies. However, developing a new product has it’s own inherent risks. Yet companies still need to come up with new innovations to keep pace with rapidly changing consumer tastes and technology.
Alan G. Lafley, CEO of Procter & Gamble, an industry leader in technology scouting and open innovation, has often been quoted as saying “Half the company’s ideas must come from the outside”. So, how does one effectively manage to garner innovation from the outside?
Technology Scouting Holds a Key
With reduced resources, time and expertise, companies can’t solely rely on internal idea generation. They are increasingly adopting open innovation in their new product development strategy. Businesses are trying out many ways – acquiring companies, getting patents or licenses to produce someone else’s product, and even motivating customers to come up with new ideas!