Radical Collaboration

"...In an era of fierce competition, it pays to innovate communally

IBM's decision to invite in outsiders and open up the innovation process reflects one of the most intriguing concepts in corporate strategy today. Many major companies have concluded that succeeding in the 21st century requires teaming up with other companies—or even individual researchers—to create so-called innovation networks. "These networks allow companies to seamlessly weave internal and external innovation capabilities to optimize profits and speed products to market," says Navi Radjou, an analyst with Forrester Research.

Companies no longer compete simply against one another. Now alliances devoted to innovation go head-to-head. bt Group, basf, Boeing, Eli Lilly, Procter & Gamble, and IBM are the pioneers. They all have revamped their strategies to expand collaboration with outsiders. Forrester estimates that while most major companies are aware of innovation networking, only about 20% to 30% are experimenting with it, and a mere 5% have mastered the practice..." (sigue)