Last post I commented on the Is Innovation Dead? Interview with Edward Goldman.
If it is dead (which it’s not), it is because, in Goldman’s opinion, the latest “pioneering approach” is Direct Innovation.
Direct Innovation much like Open Innovation in terms of developing a “proprietary product that meets a distinct market need,” but where the two differ is in who is involved in the process, Direct Innovation involved innovating “in a defined space with a unique product in mind.” Direct Innovation starts at the end of the chain, with the market and the customer and the specific need and then works almost backwards through R&D to create the product that will meet the need.
Goldman says that Direct Innovation works best for companies “that have identified an unmet market need and are striving to create the next breakthrough market success - an advanced product that is truly unique.”
Direct Innovation also usually does not require IP-related legwork and it is more easily kept as a secret because of the closed process, all of this of course reducing the chances of the product being copied or replicated.
Without getting too caught up in terminology, I think both approaches are fitting and productive for the right situations and company cultures. And, ultimately, the end-product is all the better for these processes, no matter which is chosen.