Analysis Of The “Not Invented Here” And “Open Innovation” Syndrome

In the article there were two topics being discussed, which were the “Not invented Here” and “open innovation” syndrome. The “Not invented Here” syndrome is a style that if its own company did not invent the product or item that it will not want anything to do with it. This was a problem at Sony, with having this mindset a lot of their own ideas that they tried to accomplish did not follow through as intent. With their model video tape recorder failing and their up to date technology, due to Sony not being able to cooperate with other companies, whether it be not making their products compatible to other devices or if the company just refuse to work with another company on a product, there stubbornness was a reason to the decline that Sony has had a pivotal time in advanced technology. Although for most of the twentieth century, “Not Invented Here” tactic has dominated the market with big corporation that spends million son research and development which lead to the advance technology that we have today.

The trend “Open Innovation” is a tactic for companies to stay competitive with so many companies spending tons of money and energy in innovating it’s hard to consistently outsmart the other. And with the complexity of ideas and technology that we have now, and to hold all that research under one roof, the spirit of collaborating with other companies or having another partner in the product development will bring bigger, better, more advanced ideas. There are some companies that encourage customer feedback to apply towards future projects, to have an open mind and to see what their audience feels about their product. While other companies that does not use the “Open Innovation” tactic like Sony, get left behind and doesn’t try to experiment with their product for example: “when a devoted user of the Aibo, Sony’s robot dog, wrote applications that would allow the Aibo to dance to music, Sony threatened the man with a lawsuit.”

The advantage for “Not Invented Here” is that if you have an elite research and develop team that is on their Ps & Qs, you will do successful because their will not be a fear of ideas being taken or stolen or any other legal mix up. Alexander Graham Bell was looking for a partner with his idea for telephone, he reached out to western Union an establish company that stings telegraph wires alongside railways tracks to link up the continent. However, relationship was frosty. The President of Western Union, William Orton, one of the best-informed electrical experts in the country said: “There is nothing in this patent whatever, nor is there anything in the scheme itself, except as a toy. If the device has any value, the Western Union owns a prior patent … which makes the Bell device worthless.” The advantages of “Open Innovation” is the ability to use ideas and innovate them, the working to get together with different companies to make an amazing product. With various research and development teams coming together working as a unit, and higher growth for a business, through incorporating new ideas the business. Another advantage is the higher profits from ideas, through licensing and spin-off ventures that turns underused technology into additional royalties and equity.