“Competitive pressure to innovate is driving companies to seek new ideas well beyond their own walls. But sponsoring the occasional hackathon or having one-off, uncoordinated interactions with a startup accelerator won’t contribute much to boosting an organization’s innovation capabilities. Many companies are missing an opportunity that’s close to home by overlooking or failing to effectively tap innovation ecosystems in their regions”. This statement comes from an article of MIT Sloan Review, entitled “Strategically Engaging With Innovation Ecosystems” and emphasizes the critical role of innovation ecosystems in driving organizational innovation and competitive advantage. While the concept of seeking external ideas is not new, the approach to engagement often lacks the necessary strategic focus and coordination.
Innovation ecosystems, defined as hubs of concentrated activity involving research institutions, entrepreneurs, corporations, investors, and governments, offer a rich tapestry of resources and expertise. These ecosystems thrive on mutual interest, complementary resources, and a strong social fabric of trust, facilitating collaboration and innovation.
However, many companies fail to effectively tap into these ecosystems, resorting to sporadic and superficial engagements that yield limited results. This is often due to a lack of clear goals and a systematic approach to engagement.
To address this challenge, the article presents a framework for strategic engagement with innovation ecosystems. This framework revolves around three fundamental questions:
WHAT do you want to acquire from (and offer through) your ecosystem engagement?
WHOM do you wish to engage with, and who will engage from your side?
HOW will you engage, and will the approach ensure effective interactions?
By answering these questions, companies can identify their innovation priorities, assess their internal capabilities, and determine the most suitable partners within the ecosystem. This structured approach helps avoid common pitfalls such as spreading efforts too thinly or engaging in fragmented and uncoordinated activities.
The article also highlights the importance of sustained interaction and relationship-building within innovation ecosystems. There’s an absolute need for commitment from senior management and relevant managers across different units to ensure credible engagement and long-term success.
Drawing on examples from companies like MassMutual and Philips, can see how strategic engagement with innovation ecosystems can drive organizational innovation. These companies took a thoughtful approach to understanding their strategic gaps and needs, then identified and engaged with the right partners to address them.
In conclusion, the transformative potential of innovation ecosystems for organizations seeking to drive innovation and maintain a competitive edge is fundamental. By adopting a systematic and focused approach to engagement, companies can leverage the diverse resources and expertise within these ecosystems to fuel their innovation efforts and achieve their strategic objectives.
Mentioned article: Strategically Engaging With Innovation Ecosystems, Philip Budden and Fiona Murray, Mit Sloan Review
