Open innovation

As we all know, Haier adopts the open innovation strategy in the global market. It established a Haier Open Partnership Ecosystem(HOPE) that is a network platform can help Haier to interact with global partners to create new needs and seek excellent solution.

Haier attained many advantages and benefits when it adopts the open innovation.

Firstly, this HOPE helps Haier reduce the costs of conducting research and development.

Secindly, Haier could improve its speed to market and the potential in development productivity. Apart from, open innovation is beneficial to attract more customers in the early development process.

Thirdly, the hope. haier.com could help Haier increase its accuracy in market research and customer targeting.

Fourthly, through the  Haier  Open Partnership Ecosystem, it could increase the mutual dependence and trusts, reduce the competitive pressure.

Finally, the open innovation could help Haier strengthen the synergism between internal and external innovation.

However, apart from the benefits, Chinese entrepreneurs and established Chinese firms might face lots of challenges in adopting open innovation in the business development processes.

Firstly, the open consciousness of some demestic enterprises is not strong, lack of mutual communication and exchange between employees; lack of external communication and exchange. So the enterprises should change from the staff's thought, the transformation of enterprise culture, encourage open innovation, encourage open enterprise culture.

Secondly, Chinese enterprises generally pay more attention to productivity rather than the science and technology. Besides, their may have many disadvantages in R&D. So when enterprises adopt open innovation, they should also strengthen the establishment of intenal research and development, improve the levels of their technology and management. Apart from, they should enhance the ability to cooperate with external reaources.

Finally, in China, the awareness of intellectual property protection is still weak, enterprises lack of legal protection. So Chinese enterprises should strengthen the ability of independent innovation and patent applications to increase their core competitiveness.