SAP Basis UNDERSTAND AND SHAPE DIGITALISATION STRATEGY - SAP Corner

The Open Innovation Model approach comes into play in the idea creation, evaluation and selection phase, which can also be divided into the three eponymous sub-steps. In a closed innovation model, innovation is created only from the company itself. The Open Innovation Model allows for different sources of idea generation. So it is about opening up the innovation process, as shown in Figure 2, which was presented earlier. The figure shows the company boundaries through the dotted lines and the ideas that can be generated both within and outside the company. The Open Innovation approach can be divided into the three core processes of the Outside-In process, Inside-Out process and Coupled process. The Outside-In process involves knowledge from external sources in idea generation. This happens, for example, through cooperation with companies, suppliers or even customers. The inside-out process supports development, commercialisation, and deployment to markets outside of the organisation itself if there is little chance of success in implementing the idea internally. The Coupled process links the two strategies mentioned above. This is an attempt to generate cooperation successes through joint development and subsequent commercialisation in networks. In terms of the SAP basis, the Outside-In process plays an essential role in generating ideas within the framework of the Open Innovation approach.