The Luxury of ‎Open ‎Innovation: a ‎Case Study of ‎Whirlpool

Only available on StudyMode
  • Download(s) : 131
  • Published : March 19, 2013
Open Document
Text Preview
The Luxury of Open Innovation: A Case Study of Whirlpool

Karlstad Business School|
Handelshögskolan vid Karlstads Universitet|

TITLE OF THE WORK:
The Luxury of Open ‎Innovation: A Case Study ‎of Whirlpool

Prepared by:
Family name| Given name|
Shurrab| Hafez|
El Bouassami| Mohammed|

TABLE OF CONTENTS
1.INTRODUCTION- 1 -
2.BACKGROUND- 2 -
3.THEORY- 2 -
4.DISCUSSION AND ANALYSIS- 3 -
4.1.Whirlpool- 3 -
4.1.1.Idea Generation- 3 -
4.1.2.Idea Development- 4 -
4.1.3.Commercialization- 5 -
5.CONCLUSIONS- 6 -
6.REFERENCES- 7 -

1. INTRODUCTION
In the past, all companies almost depended on their own R&D centres for developing and launching new innovative solutions and products ideas. Therefore, most of corporations relied mainly on their researchers and developers in order to keep their ability up for getting new innovations to the market annually. However, nowadays, and because of the tough competition, companies are forced to change their strategies so that to speed up the integration of new ideas to the company, and then into the market (Chesbrough, 2003). For many years ago, a methodology called close innovation method arose. Firms had been always defending the idea that states, to achieve a successful innovation; all processes should be complied under total control. In other words, companies must be in control of its own ideas from the development phase until the end user. But due the increased speed of delivering new ideas to the market, more and more innovative ideas or products are outsourced from different partners or independent research centres. In order to survive under the fierce competition, it is almost impossible for companies to rely only on their innovations developed within its own researches centres. Firstly, because of time pressure to react quickly to the market needs, and secondly, the lack of enough resources dedicated for research and development that require massive funds. That is why companies tend to adopt new operation models based on open innovation, which aim for a better and effective product development management (Fowles & Clark, 2005). The concept of open innovation is based mainly on the principles of exchanging ideas and innovations between companies, by importing external innovations from outside, while exporting unused ones to other companies who might be in need of it. This report is dedicated to discuss how open innovation can create new value, and how such innovation model can lead to create innovation network includes customers, suppliers, distributers, and researchers. Therefore, in order to convey a realistic insight about this era, a relevant case study of Whirlpool is used to study how they could manage to create new value to the overall business. ‎

2. BACKGROUND
‎‎ Whirlpool is a worldwide company, headquartered in Boston, United States, for home appliances. In 2010, they recorded $3.6B as return from innovation, which accounts for 20% of the overall revenue. We find their experience very interesting to discuss and analyze since they managed to take the advantage of innovation in terms of different perspectives, especially the marketing one. Generally, Whirlpool adopted open innovation perceptive. In 2010, Whirlpool was named one of the ten most innovative companies in consumer products by Fast Company magazine (Whirlpool 2013).‎ 3. THEORY

‎ The process innovation can be explained by the opportunities and ideas that the market offers for companies, and also the process of the creation of its related business model. Before any idea goes through development, there is always a need to set a number of fundamental questions that must be answered before setting a suitable business model to be followed. Such questions include asking for information about target customers, goods or services to be offered to customers, how the offered products and/or services create competitive advantage...
tracking img