Open Innovation is not always a success
Case : BP oil spill or the Macondo blowout.
Largest accidental marine oil spill in the history of the petroleum industry. (Killing 11 people and releasing 4.9 million barrels of crude oil ) Disappointed with the outcome of the quick response actions taken in the days following the disaster, the U.S. Federal Government and BP tapped into open innovation.
What went wrong with BP oil spill open innovation initiative?
Reason 1: Idea review and selection is as important as idea gathering.
With 20000 ideas in the basket, the amount of time required to review the ideas would definitely not be acceptable.
Reason 2: Alignment issues between the nature of the problem and solvers’ profiles.
Having analyzed more ways of reaching the right external skill-sets, this open innovation program would have been more successful.
Reason 3: The costs associated with failure are too high.
First attempts to solve the oil spill were not successful; BP started receiving criticisms. In such situations, one can imagine how severe the costs of dealing with another failed solution would be. This means that BP needed “The Best Solution” instead of having “Many bad, ok or good solutions”.
posted by Rupreet @ 11:03 PM
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