Co-innovation is a key strate
gy for market disruptors hoping to redefine how customers conceptualize a product or industry. In this approach, two separate business organizations collaborate with the goal of innovating within a specific area of common interest. With co-innovation, there is a particular product, service, or other deliverable that is the aim of the collaboration.
Ideally, the deliverable requires the unique, expert input of both organizations. In other words, the pair together creates something that would be impossible for either to do alone. This requires substantial effort from both sides, although the form of those contributions can change throughout the process depending on the collaboration's needs. Organizations may provide ideas, money, manpower, labs, and other resources during the co-innovation process.
The process of co-innovation can be challenging, as the two cooperating entities may be from very different industries. Co-innovation brings in expertise that your organization does not possess but needs to move forward with projects. Organizations from different niches may struggle to communicate effectively and thus must be very intentional with this type of teamwork. Conflict can sour relationships and derail projects that would otherwise revolutionize how consumers deal with a problem. To facilitate minimal, productive conflict, it is important to vet potential partners thoroughly, especially in terms of cultural alignment.
Driving Co-Innovation through Strong Cultural Alignment
Without cultural alignment, co-innovation can be extremely challenging. When organizations are more aligned with one another, they will communicate more effectively, improving the process and the outcome.
The first point to consider is organizational mission. If one organization is driven primarily by profits while the other is motivated to improve consumer experiences, tension is predictable. When organizations have the same end goal, compromise is much more feasible than it is when their objectives are incompatible. If both organizational missions align, that is a necessary but insufficient condition for a successful partnership.
The other important consideration is work culture. Organizations vary greatly in how they manage and support teams, as well as what they expect from them and when. If the teams from each side have vastly different processes, tensions may result. A team accustomed to receiving frequent direction and feedback may find it challenging to collaborate with one that is given a lot of freedom.
Organizations should also make sure their philosophies on customer service and marketing are synced, as this will also become an important shared responsibility with the new product or service. Any potential conflicts can be dealt with upfront to avoid unforeseen issues down the line that would inhibit co-innovation.
Defining a Leading-Edge Project with Mutual Dependency
If both organizations believe that they are culturally aligned enough for the project to be successful, it is time to define the focus area. Ideally, both organizations have already considered how they could work together most effectively, and they can simply further refine how each company can best contribute. While they may be from very different industries, businesses should have some degree of overlap; this is where the magic of co-innovation can happen.
For the duration of the project at least, it is important to facilitate a state of mutual dependency. Both organizations need to pull on their individual strengths for the final deliverable. If one can do the project alone, then that is not co-innovation. Ultimately, both organizations need a stake in the overlapping focus area and be confident they can bring value to the final project. This is the source of true innovation, something that blurs the line between two industries to deliver a completely novel product or service.
For example, Apple and Corning joined forces in developing the very first iPhone to create a glass screen sturdy enough for constant use. Originally, Apple used a plastic screen to avoid cracks, but this material scratched easily in a pocket. Corning created what would later become Gorilla Glass to address this issue and facilitate the unique touchscreen experience of that phone. Neither company could have produced that first iPhone independently of each other.
Facilitating a Continued Mutual Spirit of Collaboration
For co-innovation to be successful, constant communication between the collaborating stakeholders is necessary. Ideally, this relationship continues even after the project is complete, which means planning for the potential conflicts that can occur down the road. Most often, this means issues surrounding intellectual property.
Even if there was a conversation about this earlier, it needs to be revisited frequently as ideas and expectations can change. To avoid souring a relationship, it is often best to keep intellectual property from co-innovation simple while ensuring it is protected. Split licenses and patent sharing safeguard innovations while allowing both companies to benefit from the new technology.
Keeping the relationship positive is important to leave the door open for further co-innovation down the line. If both organizations were needed for the initial development of a product or service, then both will likely need to contribute to the next iteration of that deliverable. If nothing else, there is value in continued communication about best practices. Having a shared product or service helps maintain this relationship but having point people in regular communication will keep everyone on friendly terms.
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