Collaborative Innovation: A New Dimension to Innovation

For consumer the world is changing, fuel prices are volatile, jobs & compensation are in jeopardy, loans are harder to get & debts are more difficult to pay off. For B2B customers, volumes & margins are shrinking, credit is tightening & suppliers are getting tougher. Under these pressures, the customers want new types of offerings, support & guidance from the companies. It's an ideal time to innovate & come up with the offerings which can guide the perplexed customer to go for the fairest deal.The paper illustrates the importance of collaborative innovation for sustainable development which remains a high strategic priority for most companies even in the current economic turmoil & recessionary phase. The companies are looking for innovative strategies to be 'near & dear' to their stakeholders avoiding putting more pressures on their already escalated costs. They are forced to think unconventionally i.e. 'discovering sources of competitive advantages, the competitor is not aware of'. They are in the mood to go for 'out of the box thinking' to give some cushion to the already depleting profit margins. In the current tightening & competitive scenario, the companies are interested in finding the relationships between the spending on innovation & shareholder values therefore the paper focuses on the different ways to derisk & capitalize on the innovation program through series of collaborative innovations The paper also highlights the importance of collaborative innovations to share the risk & rewards for the upcoming products & processes.