NineSigma Report Benchmarks State of Open Innovation


CLEVELAND, OH--(Marketwire - April 29, 2009) - NineSigma, the leading provider of open innovation solutions, today released the results of its first open innovation (OI) study that establishes a benchmark on the state of open innovation today. NineSigma surveyed more than 100 OI practitioners from a variety of diverse, global industries, and the results provide insights into the role of open innovation in companies today and in the near future, from types of OI activities and internal drivers, to the barriers and benefits of OI adoption. The entire Open Innovation Practices & Outcomes 2009 Benchmark Survey Report can be downloaded by visiting http://www.ninesigma.com/Register.aspx?link=/Uploads/Resources/NineSigma%20OI%20Benchmark%20Survey%20Report%20Spring%202009.pdf.

"In today's environment, companies simply can no longer go it alone," said Matthew Heim, president of NineSigma. "The results of our survey were very clear that within the next five years, external partnerships will become increasingly more important to companies. The not-invented-here attitude of the past is being replaced by an emphasis on sharing the costs and risks associated with innovation with solution providers that have the needed knowledge and capabilities."

Among the highlights of the survey results are the following:

--  Stage of OI program development: Most respondents (49%) felt that
    their companies were in the early stages of open innovation. Forty percent
    of the companies were considered to be in the optimizing stage.
--  Types of open innovation initiatives practiced by companies in early
    and optimizing stages: Companies in the early stages of OI adoption focused
    on only a few core activities, while those in the optimizing are more
    likely to embrace a broad approach to open innovation.
--  Driving force behind OI participation: The driving force behind open
    innovation among early stage companies is R&D middle management (41.5%) and
    leadership (34.1%) teams, while less than a quarter of the OI mandates are
    begun by company leadership.
--  Results of adopting open innovation: The majority of respondents (77%)
    felt that the most significant benefit of open innovation for their
    companies was an increase in the richness of their technology portfolio.
--  Metrics used to measure open innovation: More than 50% of those
    surveyed reported that they do not use metrics at all.
    

Heim added, "While historically open innovation has been a key strategy for R&D departments in large companies, we firmly believe that open innovation will become embedded in all development areas as a natural component of the innovation process for companies of all sizes. This report provides an accurate snapshot of the expanding role of open innovation, and we look forward to continuing the survey in an effort to gain additional insights into the anticipated evolution of the industry."

The research was conducted independently by NineSigma. Of the more than 100 respondents, nearly one quarter of them represent the consumer products industry, 18 percent work in the food and beverage industry and 13 percent are in the chemical industry. Other industries represented in the respondents included biotech, medical and pharmaceutical, automotive, industrial products, materials and energy. The majority of the companies (77%) represented in the survey earned in excess of $1 billion in revenues; 36 percent of the companies have revenues in excess of $10 billion. Eighty-two percent of the survey respondents represented the research and development function of their business.

About NineSigma

NineSigma helps Global 1000 companies develop and maximize value from their open innovation programs. Companies such as GlaxoSmithKline, Kraft, L'Oreal, Philips, Unilever and Xerox engage NineSigma to build new knowledge and capabilities that accelerate the innovation cycle and increase productivity. A leader in expert-sourcing, NineSigma has the largest open global network of solution providers and an extensive database of existing solutions that spans all industries and technical disciplines. In 2008, NineSigma ranked among the top 20 percent of companies on the Inc. 5000 list of fastest growing private companies in the United States. The company also has operations in Europe and Asia. For more information, visit www.ninesigma.com.

Contact Information: Media Contact: Dan Dyer 513-478-7818