Introduction
Open innovation is becoming a central component of technological advancements for many firms. The approach allows organizations to develop new projects faster and more efficiently. It does so by enabling a higher flow of information to the inside by allowing internal knowledge to go outside of the firm. As such, researchers and business people throughout the world are recognizing the benefits of the approach and the necessity of adopting it to remain competitive. The United Arab Emirates is a nation concerned with staying on the leading edge of knowledge, and so its companies and scientists are studying and using the method. This essay discusses the relevance of open innovation to the country and its use.
Facts and Statistics
The process of open innovation involves cooperating with entities outside of the organization to produce new ideas and works. According to Gassmann and Enkel, there are three modes to the process: outside-in, inside-out, and coupled (6). The first benefits the company by allowing it to harness others’ knowledge for its benefit, and the second invert the trend by letting others exploit the company’s innovations. The third and final model combines the first two, creating a process that generates value for every participant. As such, it is more sustainable than the other two, and organizations should try to achieve it.
However, it is challenging to achieve the prerequisites for such a process with traditional business strategies. Ryan and Daly claim that the insular nature of UAE research creates biases in journal editors, partly causing the nation’s disproportionately weak contributions to science (52). As such, it is necessary to adopt a new paradigm, one that will facilitate open innovation without harming the organization. Chesbrough and Appleyard discuss the shift of traditionally essential items to secondary roles to accommodate the new process (62). However, a clearly defined approach to adopting open innovation has not emerged yet, and so it necessary to study examples of success and learn from them.
The UAE is interested in the latest approaches to innovation, both due to its lacking aspects as described above and its position and potential. According to LSE, the nation is positioned between two regions that are undergoing rapid growth, which makes it one of the most prominent hubs of the 21st century (The UAE 17). As a result, it has been able to obtain a significant advantage, in large part due to the wealth generated by the country’s oil reserves. LSE notes that the UAE is the 27th most competitive nation in the world, with excellent positions in most aspects (The Competitive Advantage 13). However, to retain its dominant position and potentially improve it, the country has to adopt the latest business methods continually.
Implementation in the UAE
The United Arab Emirates is aware of the importance of innovation in the current context and works to accommodate and foster creative initiatives. It has created projects such as the Khalifa Innovation Center, which helps new start-ups, particularly high-tech ones. According to LSE, such companies will often rely on programs such as Kickstarter, which expect complete consumer products and do not offer competent management (Innovation Process 70).
A large-scale initiative can help young companies address their most significant issues and create new products, whether controlled by companies or governments. As such, the Center can help foster open innovation through helping promising projects and letting them assist others in turn.
The UAE government does not restrict itself to the business side of innovation, as the Mohammed Bin Rashid Center for Government Innovation shows. The facility allows researchers a space to propose and test their ideas, which can be implemented in practice later if they succeed. The Center also features a project intended to help employees who have unique designs, which is known as the Afkari Initiative. It allows people who know the internal workings of a governmental facility and have an improvement proposal to have their ideas reviewed and possibly implemented. The unique format enables the UAE to create a potential advantage over other nations in the global environment.
Recommendation
The United Arab Emirates is an important hub, one that possesses considerable resources. It should use its current advantages to try to secure an advantage by targeting sectors that currently remain inadequately addressed. LSE defines the strategy as “Blue Ocean,” where the innovation captures a new space (Blue Ocean Strategy 7). For this purpose, it is necessary to interview stakeholders and identify needs that are currently not being addressed (LSE, Blue Ocean Strategy and the Concept of Customer Journey Mapping 7). The UAE should begin the process while it is among the world leaders to fortify and potentially improve its position.
Conclusion
Innovation is central to success in the modern environment, but the concept itself is not static. The idea of open innovation is emerging as a prerequisite for success, and it requires a rearrangement of traditional business practices to succeed. The United Arab Emirates is positioned well in the global market, and so it is adopting the paradigm to maintain its strengths. The nation’s government has created various initiatives to both support new businesses and improve existing structures through employee proposals and research. The country should capitalize on its high innovation potential by searching for blue ocean strategies.
Reflection
The LSE is an institution that aims to help students learn about the various aspects of modern business, which is evolving rapidly and can be challenging to comprehend. Its curriculum incorporates the importance of the global environment to a manager, both with regard to the company and the business environment as a whole. Once the students understand the influence of various factors on business, they can learn the skills necessary for working in these conditions. Strategic leadership and innovation management are essential components in a manager’s overall set of competencies.
Innovation is the focus of the course, and it has succeeded in explaining its mechanisms and their usage in everyday operations. The process of innovation can be somewhat unclear to a person who has not studied the topic in detail. Even if the organization can manage to establish a stream of ideas, it is necessary to determine which deserves implementation. It is necessary to understand the solutions that are currently being implemented, both in business and in government practices. The explanation of open innovation in the UAE was helpful in that regard.
Overall, the skills taught in the course are helpful in everyday operations, mainly due to their diversity. It was surprising to learn how complex the implementation of digital technology can be in a company. The digital strategy planning abilities taught in the course will be helpful in that aspect. Overall, the course was excellent and beneficial in aspects of business that are usually covered inadequately. Its respect for the participative and critical debate-style also helps students become confident and independent professionals. The information presented will likely be beneficial in future management work.
Works Cited
Chesbrough, Henry W., and Melissa M. Appleyard. “Open Innovation and Strategy.” California Management Review, vol. 50, no. 1, 2007, pp. 57-76.
Gassmann, Oliver, and Ellen Enkel. Towards a Theory of Open Innovation: Three Core Process Archetypes. Insert file link here.
LSE. Blue Ocean Strategy and the Concept of Customer Journey Mapping. 2019, insert file link here.
—. Blue Ocean Strategy. 2019, insert file link here.
—. Innovation Process & Open Business Models. 2019, insert file link here.
—. The Competitive Advantage of Nations. 2019, insert file link here.
—. The UAE in the Current Global Context. 2019, insert file link here.
Ryan, James Christopher, and Timothy M. Daly. “Barriers to Innovation and Knowledge Generation: The Challenges of Conducting Business and Social Research in an Emerging Country Context.” Journal of Innovation & Knowledge, vol. 4, no. 1, 2019, pp. 47-54.