6.1 Allocating the OI models to the Fugle stages
6.1.4 Deployment Stage and Refinement & Formalisation Stage
The Deployment Stage and the Refinement & Formalisation Stage are viewed in combination when referring to the inclusion of Open Innovation in the Fugle model to facilitate the iterative nature of this part of the process.
The primary focus of this phase, as described in sections 0 and 3.5.1, concerns the detail development, testing, implementation and then refinement as the product is brought into operation. Once again, it is not recommended that all activities of these stages be opened up. It is recommended that the initial project planning, implementation and formalisation processes should be internally completed and controlled. These activities are the raison d‟être of the organisation, as they constitute the core to what gives the organisation hierarchical control over its customers and competitors; therefore it is crucial that full control is kept over the identified activities.
It is however suggested that the detail design and testing, as well as the operation and refinement activities, are opened up by using the following Open Innovation models:
Innovation networks
Collaborative product development Customer immersion
Idea competitions
If the project planning is commenced using innovation networks to assist in the detail design activity of the project, this model could be used. The important factor here is to plan for its inclusion and to ensure that the necessary resources are available to fully manage the model’s usage. Innovation networks will thus satisfy, at least in part, the requirements relating to the detail design of the project. When the project progresses to the detail design activity, collaborative product development can also be used to further satisfy the detail design requirements of this phase. This model, as described in section 5.5, and the practical implementation shown in section 5.5.2, provide room for collaboration and create the opportunity to share the responsibility of the detail design of the product.
Although the overall responsibility is still the onus of the organisation, it is also recommended that the testing activities of this phase be done in a collaborative manner, through the use of customer immersion.
The level of openness associated with the use of customer immersion during this phase is the choice of the organisation, although a well-marketed and “open-to-all” approach is recommended. The advantage would be increased awareness and exposure for the product, which will be advantageous once the product is formally launched. Also, the risk of exposure would be minimal as the product is at
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this stage so far developed that it would be difficult for competitors’ imitations to be realised before the product is formally launched.
Once the product is brought into operation, customer immersion and adapted idea competitions can be deployed to further exploit customer recommendations to refine the product. The onus of the refinement review process is on the organisation, although it is suggested that the customer base be included to provide the suggestions (which will be more beneficial, as they are the end-users).
The aforementioned models thus satisfy the requirements of specific stages of the Fugle model. Innovation networks and collaborative product development will assist in the detail design phase, and customer immersion and idea competitions in the testing and refinement activities.
6.1.5 Exploitation Stage
The final phase of the Fugle process concerns the further exploitation of the developed innovation. It is intended to increase the revenues generated from the innovation by identifying new markets, new business processes or altering the product to fulfil these new requirements and objectives.
Therefore, the primary requirement for this phase, as described in section 3.5.2, is to identify means to further exploit the developed product.
The Open Innovation model that best adheres to the requirements is the
platforming model, as discussed in section 5.2. The platforming model is
ideal to sustain the increases in revenue generated from a new product, as it provides the breeding ground for sustained product alterations, to the advantage of all parties concerned.
Although the platforming model is only realised during the last phase of the Fugle model, the planning and actualisation for it has to be deeply integrated throughout the entirety of the Fugle process iteration.
The model’s description and requirements, as set out in section 5.2, will thus have to be fully grasped when it is decided to include it in the innovation process, even though it will only be realised in the final stage of the entire innovation process.
The inclusion of the platforming model in the Exploitation Stage offers various advantages. The prosumer-generated alterations will positively influence the demand for the base product, which will result in increased sales and thus increased revenue. The increased revenue from further exploitation does thus not only refer to the value derived from the actual platforming, but also to the increase in revenue from the base product.
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The model will thus succeed in addressing the relevant requirement of the Exploitation Stage by increasing the likelihood of identifying new exploitation techniques to advance the revenue generated from the innovation.