The want-find-get model for open innovation

Increasingly, companies establish open innovation groups, allocate funds and measure results. Based on cooperative and collaborative relationships, open innovation is a catalyst for innovation for all partners involved. To help organizations effectively implement an open innovation strategy, certain established tools and processes can be used.

One such model is the “Want, Find, Get, Manage” (WGFM) model that companies in every industry are adopting, from foodservice to electronics, from chemicals to consumer products. By first asking what a company wants to meet its objectives, then how to find the necessary resources, and finally achieving it through collaborative relationships and managing those relationships, the WFGM model provides a framework on which to build open innovation.

Phase 1: Want

The “I want” phase asks what the organization needs to achieve its goals. This may include making improvements to existing products or gaining access to new markets. If you can get your “wants” through traditional channels or in-house development, there’s no reason to continue pursuing an open innovation relationship. But often the desired resources are not available internally and the organization has to look elsewhere. Sometimes this means buying it, of course, but a collaboration alliance is usually a more lucrative path for all involved.

During this phase, the organization must begin to incorporate external thinking into its planning process, keeping in mind that internal planning processes can result in product targets that are simply extensions of current product lines, limit the thinking of employees and rarely generate significant growth. This phase consists of determining what the organization needs and evaluating whether it is advantageous to develop it internally or to associate with external entities.

Phase 2: Find

Locating potential sources of external assets is what the “Search” phase is all about. There is a lot of variation in how companies do this. Some use third party agents; others appoint internal explorers. Many companies are now even using the Internet to get contributions from third parties. The decision is based on the company’s goals, your existing network of contacts, and your internal capabilities. Employees, databases, and consultants often have extensive knowledge that companies may not know about and can tap into.

When the search goes external, companies must realize that the process is a two-way street. The company wants to find the best collaborative partner, but at the same time, potential partners are looking to find the best fit for their own needs. Competition can be fierce, so the company must show itself as a promising partner, demonstrating that it is efficient, effective and committed to open innovation at all stages.

Stage 3: Get

At the end of the “Find” phase, the company will have compiled a list of potential sources; this list could include just one source or several. The “Get” process helps the company determine which source is the most promising and whether an alliance agreement can be negotiated. “Getting” is also a two-sided process, which means that while the company is deciding on a source, potential candidate partners are also participating in the same process.

Establishing the internal alignment and then maintaining it is a core element of the “Get” phase. Remember that each alliance is really three: the external alliance between the partners and the internal alliances within each company. One of the main reasons for failure at this stage is a lack of alignment within one or both companies. Structured processes for internal planning and negotiations are also key to this phase. Ultimately, the focus should be on how both parties can achieve their goals.

Phase 4: Manage

The “Manage” phase begins when the contract is signed. The coordination and integration of the resources of both parties define the objectives of the “Administration”. Making sure everyone understands who is expected to do what and how information will be disseminated is critical. Neglecting this key communication is a common pitfall and will breed distrust.

A kickoff session can teach managing partners how to integrate the contributions of both parties into the whole. Be prepared to find differences in systems and processes at this stage. The session can also be used to ensure that everyone shares an understanding of the basic principles of your agreement. Finally, making sure managers at both companies are trained in conflict resolution will help better resolve any thorny issues that may arise.

Developing and managing an open innovation relationship is a very complex process. Beginning with a clear definition of what the organization wants to achieve, the strategic planning group can move on to evaluating the best methods for satisfying those desires. Once a method is identified, the organization can begin establishing partnerships, clearly defining the role of each partner and establishing the foundation for managing intellectual property rights. Establishing and then managing these partnerships effectively will go a long way in keeping organizations’ open innovation initiative on a firm footing.