7 tips for successful open innovation in China

[et_pb_section bb_built=”1″ background_color=”rgba(0,0,0,0.76)” fullwidth=”on” _builder_version=”3.0.77″ custom_margin=”||-30px|” custom_padding=”0px|0px|0px|0px”][et_pb_fullwidth_post_title categories=”off” comments=”off” featured_placement=”background” text_color=”light” module_class=”insight-header” _builder_version=”3.0.77″ title_font_size=”60px” title_line_height=”1.2em” meta_font_size=”19px” meta_line_height=”2em” background_color=”rgba(0,0,0,0.55)” background_blend=”multiply” custom_margin=”|||” custom_padding=”|200px||” custom_css_before=”h1.entry-title {text-transform: capitalize;}” custom_css_main_element=”h1.entry-title {text-transform: capitalize;}” custom_css_after=”h1.entry-title {text-transform: capitalize;}” /][/et_pb_section][et_pb_section bb_built=”1″ _builder_version=”3.0.47″ custom_padding=”0px|0px|54px|0px”][et_pb_row custom_padding=”30px|0px|27px|0px” _builder_version=”3.0.47″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” _i=”0″ _address=”1.0″][et_pb_column type=”3_4″][et_pb_code _builder_version=”3.0.77″ /][et_pb_text] An increasing number of Multinational Companies are turning to China as a template for successfully orchestrating open innovation within their organizations. Supportive government programs, more and more foreign-educated expats returning to Chinese shores and a thriving venture capital culture are all some reasons why open innovation lives in China. Not to mention the fact that China is becoming a rapidly growing market for international corporations as consumers become more demanding of goods that meet their unique tastes and habits. Also, China has a long and proud history of its people becoming quite resourceful and creative to improve their lot in life and they are now applying these skill sets in creating new technologies and business models in a very practical attitude in the marketplace. Innovation Management has listed 7 steps to successful open innovation in China. We will briefly deal with each here, but do go and visit the IM site as it is a fascinating article.

1. Know your objectives and have internal processes aligned with these Companies could have many different objectives for open innovation in China. Businesses could be looking for innovations that could work well back home, ideas that could work well in China and other emerging economies, to forge strategic partnerships and gain a foothold in networks with major organizations and influencers and to complement their own research and development. Whatever the objectives are, make sure key stakeholders back home are aware of them to help the process run more smoothly and to allow a clearer path to these goals. 2. Have a clear three-year plan Slow and steady wins the race. Hurrying in and out of an open innovation strategy in China is worse than not starting the effort at all. Chinese society is built on relationships and earning trust, so take your time. This is something that must be approached carefully and thoughtfully, not at lightning speed. 3. Carry out follow-ups quickly and keep potential partners in the loop “Crossing the river while touching the stones” is a popular Chinese proverb. Chinese executives make decisions quickly and with the limited amount of information at hand. Their decisions are much more fluid and can change based on more data coming in, compared to their Western counterparts, whose judgements tend to be a little more rigid. It is also important to follow-up after discussions have taken place, even when a working partnership did not arise. 4. Share your knowledge and benchmarks of success Better-informed partners come up with better ideas. It is beneficial for foreign companies seeking to establish a foothold within China to disclose as much non-confidential information of their businesses as they can, including background information and innovation needs and desired outcomes. 5. Break it down to build it up One-stop shops that house all innovation capabilities and talents under the one roof are rare in China. It is still an emerging economy and, as such, many businesses may not have huge resources to turn into innovation giants overnights. However, such is China’s population that one small business that focuses on one key product or service can do well in a given market sector. 6. Train and lead Once you have found suitable business allies in China that have long-term allegiance prospects, it may be beneficial to invest in some training with your new peers. Foreign businesses should show that they want to share and learn and they will be much more enriched from the experience thanks to their Chinese partnerships. 7. Innovation can come in different forms Consider technological, product, marketing and business model innovation. Chinese consumers are open to new experiences and as the country’s population is so large, new products and initiatives can be trialled without impacting negatively on the business as a global brand. [/et_pb_text][et_pb_social_media_follow _builder_version=”3.0.77″] [et_pb_social_media_follow_network social_network=”facebook” url=”https://www.facebook.com/pages/The-Strategy-Group/269022486450054″ _builder_version=”3.0.77″ background_color=”#3b5998″ link_shape=”rounded_rectangle” follow_button=”off” url_new_window=”on”]facebook[/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”twitter” url=”https://twitter.com/TheStrategyGrp” _builder_version=”3.0.77″ background_color=”#00aced” link_shape=”rounded_rectangle” follow_button=”off” url_new_window=”on”]twitter[/et_pb_social_media_follow_network] [/et_pb_social_media_follow][et_pb_code _builder_version=”3.0.77″ saved_tabs=”all” global_module=”28430″][wpautbox authorid=”1″][/et_pb_code][et_pb_social_media_follow _builder_version=”3.0.77″ /][/et_pb_column][et_pb_column type=”1_4″][et_pb_sidebar orientation=”right” area=”et_pb_widget_area_1″ _builder_version=”3.0.77″ /][et_pb_image src=”https://www.thestrategygroup.com.au//wp-content/uploads/2017/09/CTA-newsletter.jpg” url=”/contact/subscribe/” _builder_version=”3.0.77″ /][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built=”1″ admin_label=”section” _builder_version=”3.0.77″ background_image=”https://www.thestrategygroup.com.au//wp-content/uploads/2017/10/bg-blue.jpg” parallax=”on” custom_padding=”68px||75px|” transparent_background=”off”][et_pb_row admin_label=”row” _builder_version=”3.0.47″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” _i=”0″ _address=”2.0″][et_pb_column type=”4_4″][et_pb_cta title=”Need help to get your business to the next level?” button_url=”/contact/” button_text=”Contact Us Now” use_background_color=”off” _builder_version=”3.0.77″ /][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built=”1″ _builder_version=”3.0.77″ background_image=”https://www.thestrategygroup.com.au//wp-content/uploads/2017/09/hero-videos.jpg”][et_pb_row _builder_version=”3.0.77″][et_pb_column type=”4_4″][et_pb_text background_layout=”dark” _builder_version=”3.0.77″]

More related articles on innovation

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”3.0.77″][et_pb_column type=”4_4″][et_pb_blog_extras _builder_version=”3.0.77″ posts_number=”3″ offset_number=”0″ post_order=”DESC” include_categories=”471″ show_content=”off” excerpt_length=”150″ show_thumbnail=”on” show_more=”on” read_more_text=”Read full article” show_author=”on” show_date=”on” show_categories=”off” show_comments=”off” show_load_more=”off” blog_layout=”block_extended” show_social_icons=”off” image_position=”top” category_meta_colors=”off” use_overlay=”on” overlay_icon_color=”#ffffff” hover_overlay_color=”rgba(0,160,227,0.78)” hover_icon=”%%52%%” border_style=”solid” animation=”top” header_font_size=”20″ /][/et_pb_column][/et_pb_row][/et_pb_section]