Managing Multiparty Innovation

In an increasingly digital and connected environment, leaders of established companies frequently find themselves facing opportunities that they—or even their industries—cannot seize alone. Instead of relying on start-ups to create innovations and then buying in to them, organizations are taking part in a process that the authors call ecosystem innovation, collaborating to develop and then commercialize new concepts.

Cisco Hyperinnovation Living Labs (CHILL) differs from seemingly similar approaches, such as R&D alliances, because it focuses on the fast and agile commercialization of ideas without a complicated intellectual property agreement. It also differs from traditional partnership efforts, because it brings multiple partners together at a very early stage all at once.

In this article the authors discuss how large companies can develop their own ecosystem innovation capabilities, using Cisco’s process as an example. They describe the basic principles and the process, identify the most common traps, and explain how leaders can capture valuable opportunities. The process allows companies to bring extremely diverse ideas, skills, and resources together to solve ecosystem-level problems at an astonishing speed.