Open Approach for the Fuzzy Front-End of PDP in Corporate Venturing

Abstract

Summary form only given. As innovations have become increasingly important the research on innovation management has intensified. Many researchers have identified the fuzzy front-end (FFE), also know as e.g. front end of innovation (FEI) or stage 0, as one of the main factors for innovation process success. Fuzzy front-end covers the first stages of innovation process. It precedes development phase, where the actual product development takes place. Main responsibilities of FFE are to process signals to identify product possibilities and to define idea for further development. The execution of these actions is often done improperly that lead to problems concerning the whole innovation process. FFE has been identified as one of the most lucrative points for development when considering the efficiency of innovation process. One method for tackling the problems occurred in FFE execution is to open innovation process boarders. To maximize the efficiency of the signal processing organizations must create working routines to scope their business environment. In such case opening the boarders of innovation process is natural and opens lucrative options for managers. In addition the open approach can be used as a leverage to help organization to cope with problems that cannot be solved internally as it offers an opportunity to access bigger resource pool. Approaching innovation process as an open model offers managers different methods for FFE execution that range from internal process to fully outsourced process. Corporate venturing can be seen as one plausible method for execution. Opening process boarders increases the challenges in process management. In open environment managers need to be able to manage both internal and external parts of FFE. The existence of this boarder adds another object that needs to be managed. Managers are forced to create routines for controlling work done in this interface. Management of open innovation process is crucial due to the confidential knowledge that is utilized in innovation process. If the process is not managed properly the risks of opening FFE boarders increase radically. Using open approach in FFE can be seen to have strategic implications. It opens an opportunity to execute innovation process more efficiently that before enabling better product development. Additionally good ideas that don't fit to organizations strategy can be transferred outside organizations enabling economical profits from projects that before were only discarded. However the risks involved are also significant that need to be acknowledged in the higher levels of organization.