Summary: Outsourcing your innovation process is an exciting way to increase innovation competitiveness. Utilizing organizations like an <a href="https://killerinnovations.com/why-do-organizations-hire-an-innovation-agency/">innovation agency</a> can allow firms to focus on other business areas. The results are increased efficiency, improved quality, faster innovation implementation, reduced innovation risk, and increased flexibility.<br> <br> Outsourcing innovation can be a powerful tool to help companies speed up their growth. By understanding the risks and challenges, companies can set themselves up for success.<br> 5 Outsourcing Models<br> 1. Project-Based Innovation<br> Useful for specific projects, specialized skills, or testing out new relationships.<br> 2. Joint Venture for Innovation<br> This collaboration can benefit companies wanting to share the risks and rewards associated with innovation.<br> 3. Innovation Strategic Alliance.<br> Beneficial for companies wanting to combine resources and ideation expertise to create a competitive advantage.<br> 4. Innovation Licensing Agreement.<br> Agreements allow <a href="https://killerinnovations.com/stephen-key-of-inventrighttv-on-licensing-inventions/">access to another company's technology or expertise</a>.<br> 5. Innovation by Acquisition.<br> Allows companies to add <a href="https://killerinnovations.com/innovation-from-mergers-and-acquisitions/">innovation capabilities </a>or enter a new market quickly.<br> Innovation Outsourcing: Successes and Failures<br> In Apple's work with Foxconn, it outsourced its product manufacturing. The outsourcing allowed Apple to focus on design and development, while Foxconn created innovations to produce the products. As a result, Apple could bring new products to market quickly and efficiently.<br> On the flip side, BlackBerry's work with TAT failed. TAT was supposed to take over UI/UX development, helping recapture market share from Apple and Android. TAT and Blackberry could not develop an operating system fast enough to keep up with the competition. BlackBerry lost <a href="https://philmckinney.com/continue-innovating-during-an-economic-downturn/">market share</a>, and both companies had to fire staff.<br> Keys to Successfully Outsourcing Innovation<br> <br> * Have a <a href="https://philmckinney.com/the-overlooked-secret-to-innovation/">clear understanding</a> of what the company wants to achieve.<br> * Have a strong relationship and be able to work together effectively.<br> * Ensure companies can trust each other.<br> * Ensure both parties are willing to invest the necessary time and resources.<br> * Look for companies with a proven track record of innovation.<br> * Understand the company's business model and how it aligns with yours.<br> * Understand their capabilities, including strengths, weaknesses, tools, and processes.<br> * Understand their <a href="https://philmckinney.com/innovation-culture-mean-matter/">team's culture</a> and skills.<br> <br> To know more about outsourcing innovation processes, listen to this week's show: <a href="http://traffic.libsyn.com/philmckinney/Should_You_Outsource_Your_Innovation_Process.mp3">Should You Outsource Your Innovation Process?</a><br>
