Innovation for all
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Innovation for all
Innovation Management, Business Model Innovation, Globalization and Innovation
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Rescooped by Tania Kowritski from Business change
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Outsourcing Business Processes for Innovation

Outsourcing Business Processes for Innovation | Innovation for all | Scoop.it
Many companies pursue business process outsourcing to trim costs. But it can evolve into much more.

 

The number of companies that outsource critical business processes to outside suppliers has been growing significantly worldwide. In 2012, companies outsourced some $309 billion of services — activities including finance and accounting, human resource management, procurement and legal services — and the overall volume has been growing at a rate of around 25% annually.

 

Although many organizations initiated business process outsourcing (BPO) as part of an effort to reduce costs or acquire new skills, it has since evolved into much more. In relationships companies classify as high-performing, service providers deliver substantial long-term improvements to the client’s operating efficiency and strategic performance.

 

These types of innovations require companies and service providers to work together. BPO providers do not need incentives to improve their own revenue or margins, but they do need them to focus on the client’s performance. While partners may incentivize innovation by using mechanisms such as productivity targets, allocating innovation days and agreeing to gain share on innovation projects, innovation won’t happen unless clients and providers implement a more comprehensive process that combines acculturation across different organizations, an engaging method for generating ideas, adequate funding and a system for managing change.


Via Vicki Kossoff @ The Learning Factor, David Hain
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MTD's curator insight, April 29, 2013 4:11 AM

Can you ever truly outsource innovation? Should you? 

Vicki Kossoff @ The Learning Factor's comment, April 30, 2013 4:55 PM
Good question. Dynamic innovation in BPO is an intensely collaborative endeavor. In high-performing business-process outsourcing relationships, companies and service providers work together to foster innovation.
MTD's comment, May 2, 2013 2:17 PM
You're absolutely right, of course. The target of pure savings is ultimately a short-term goal and often backfires. If you're outsourcing processes that are core to your business, you had better be certain you'll achieve those savings as well as topline growth - as you say, through real innovation and positive change.
Rescooped by Tania Kowritski from Innovation really matters
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Bigger company, more innovation? Scale matters!

Bigger company, more innovation? Scale matters! | Innovation for all | Scoop.it

New research speculates that most innovation is more likely to come from larger companies more so than from small entrepreneurial startups.

It simply comes down to a matter of scale. Larger organizations have the resources, and can afford more failures and greater risk, than startups or small businesses. They simply can afford to innovate more.


Via Adam Adamek
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Rescooped by Tania Kowritski from The Business Innovation Suit
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Small Business Innovation Lessons From 3 Big Companies

Small Business Innovation Lessons From 3 Big Companies | Innovation for all | Scoop.it
Google, GE and DreamWorks set valuable examples in innovation that businesses of any size can learn from.

Via Alva Innovus
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Rescooped by Tania Kowritski from Innovation really matters
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A CEO's guide to innovation in China

A CEO's guide to innovation in China | Innovation for all | Scoop.it

China is innovating. Some of its achievements are visible: a doubling of the global percentage of patents granted to Chinese inventors since 2005, for example, and the growing role of Chinese companies in the wind- and solar-power industries. Other developments—such as advances by local companies in domestically oriented consumer electronics, instant messaging, and online gaming—may well be escaping the notice of executives who aren’t on the ground in China.


Via Adam Adamek
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