Case Study : Fiat Mio

COURSE : Innovation
Management
NAME : NATASHA
BLOEMENVELD

Date : February 27, 2022

 Asignatura Datos del alumno Fecha
Innovation Surname: Bloemenveld 27 February
Management Name: Natasha 2022

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Contents
Section 1: Introduction 3
Section 2: Questions 4
2.1 Analyze the open innovation used by Fiat Mio. What
evidence within the case study indicates that Fiat Mio used
this innovation? Discuss the evidence and justify why the evidence
indicates that it has open innovation features. 4
2.2 What are the main differences between the crowdsourcing
projects managed by Innocentive and Fiat Mio? 4
2.3 What types of innovation are addressed in this case study?
There are four types of innovation according to the classification
in the Oslo Manual. Base your response on these types and justify it. 6
2.4 If Fiat Mio was simply a prototype that would never be produced
or marketed, what would be the actual innovation? 8
Section 3: Bibliography: 9
Section 1: Introduction
The term open innovation means a situation where an organisation doesn’t just rely
on their own internal knowledge, sources and resources (such as their own staff or
R&D for example) for innovation (of products, services, business models, processes
etc.) but also uses multiple external sources (such as customer feedback, published
patents, competitors, external agencies, the public etc.) to drive innovation.
There are two types of open innovation
There are considered to be two types of open innovation: Inbound open innovation,
and Outbound open innovation.
Inbound (or inward) knowledge flows occur when a firm acquires and absorbs
externally sourced knowledge in its innovation activities. In this process, outbound
knowledge can be also recognized. Outbound (or outward) knowledge exchanges
occur when a firm intentionally enables other firms or organisations to use,
combine, or further develop its knowledge or ideas for their own innovation
activities.

Section 2: Questions

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2.1 Analyze the open innovation used by Fiat Mio. What evidence within the case study
indicates that Fiat Mio used this innovation? Discuss the evidence and justify why
the evidence indicates that it has open innovation features.
The list of benefits drawn by Fiat and the participants through the Fiat Mio project:
- The project started as an marketing survey to collect data, because Fiat celebrated
30 years of doing business in Brazil, but there was so much interest that this project
transformed into a marketing campaign.
- The marketing campaign got more then 10.000 ideas; 45.000 comments; 17.000
internet user from 160 nationalities.
- The brand image became very popular and reached the news and social media, and
the person who came up with the most original idea would win a car.
- To make the people of the globe get trust in this project they came up with the
name Fiat Mio, which means in English “My Fiat”
- The comments and valuable input of customers made it clear what customers are
expecting on future cars and products of the project ‘Fiat Mio’.

2.2 What are the main differences between the crowdsourcing projects managed by
Innocentive and Fiat Mio?
Crowdsourcing is the act of a company or institution taking a function once performed by
employees and outsourcing it to an undefined (and generally large) network of people in
the form of an open call. This can take the form of peer-production (when the job is
performed collaboratively), but is also often undertaken by sole individuals. The crucial
prerequisite is the use of the open call format and the large network of potential laborers.”
The 4 types of crowdsourcing:

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The first two types are probably the most applicable to a defendant. For invalidity
contentions - "crowd wisdom" fits well as it relates to prior art analysis and "crowd
creation" makes sense as it relates to prior art searching.
For "crowd voting" and "crowd funding," each of these may work for both plaintiffs and
defendants. As to defendants, non-related industries could target, via voting, particularly
troublesome patents to pursue.
Innocentive is a collaborative web platform on open innovation in which companies, called
seekers, ask a team of PhD educated Challenge Experts to structure all aspects of an
innovation idea that is intended to be developed by web users called solvers, who
contribute to the Project by giving their ideas. We will analyze the differences between the
projects that this platform manages and the Fiat Mio from various points of view. The object
of innovation: Fiat Mio developed a concept car that is not yet in mass production and
commercialization. However, Innocentive covers all kinds of open innovations, both
product, process, marketing or organizational, which makes the object of the proposed
innovation much broader. Structure of innovation: in the Fiat Mio project the origin of the
structure was found in the automobile company and in Innocentive there is a team of PhD
Experts who break down the project into parts and relationships between them.
Contribution of ideas: Fiat Mio had a website open to the public, where Internet users
contributed with their ideas. Within
Type of contribution: the Fiat Mio project involved conceptual and more generic
contributions that would later be worked on within the automobile company and in
Innocentive necessarily more technical developments carried out by specialists in the field.
Awards received by the solvers, in Innocentive there is a catalog of awards that are defined
at the beginning of the project, which are economic or intellectual property and the rights
derived from it. Product license: the product developed with Fiat Mio resulted in a Creative
Commons license, in which the users who actively participated have common ownership of
it, while intellectual property for the platform's solvers Innocentive and the rights derived
from it are a substitutable option for an economic award that is previously known, at the
beginning of the project.

2.3 What types of innovation are addressed in this case study? There are four types of
innovation according to the classification in the Oslo Manual. Base your response on
these types and justify it.

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Innovation is the practical application of ideas that results in different new types of new
offerings, like products, services, processes, and business models, intending to improve or
disrupt existing applications or creating new solutions.
It won't matter if you are getting the ideas from outside the organization, combining of
existing ideas, or radical new thinking within your field. But it should be at the heart of your
business and it should constantly be done to ensure business survival.
Types of innovation:

According to the Oslo manual there are 4 types of innovation:

The implementation of a new method in organizational innovation means changes in the

work atmosphere and workplace that are not rigid. It involves changes in the hierarchical

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structure work methods and introduction of other innovations to the organisational
structure and involving all the employees to sit down at different desks.

OTHER OPTIONS ARE INCORRECT BECAUSE:

A) Product innovation means introduction of new types of goods and services.
B) Process innovation implies the introduction of new methods and technologies for the
production of goods and services.
C) Marketing innovation involves changes in the distributional aspects as well as the
advertisement aspects so as to promote the sales of the organisation.

2.4 If Fiat Mio was simply a prototype that would never be produced or marketed, what
would be the actual innovation?
Before Fiat Mio was launched in 2010, in 2006 Fiat created the Fiat Concept Car (FCC I) and
two years later, in 2008, Fiat Concept Car II (FCC II) was presented. They knew that both
prototypes were models that would never work or be marketed. Fiat Mio was not the
exception. Although this was neither mass-produced nor marketed, Fiat used Open
innovation to create this project.
The innovation involves the identification of the human resources from over the world,
which can be recruited and used for helping to build the future products.
In this case, we can see that Fiat proceeded with a crowdsourcing method that recollected
more than 10,000 ideas and 45,000 comments from around 17,000 people around the
world. The project was to prove that it was possible to manage design through a
collaborative web-based platform with the help of thousands and thousands of Internet
users.
We can refer to the outbound perspective of open innovation in the fact that the Fiat Mio
project was available to everyone. This way, they clearly externalized the information that

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had been recovered to any user that wanted to use it at no cost and without asking for
permission.

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Section 3: Bibliography:
1. https://oxford-review.com/oxford-review-encyclopaedia-terms/encyclopaedia-
open-innovation-definition-explanation/
Naqshbandi, M. M., & Kamel, Y. (2017). Intervening role of realized absorptive
capacity in organizational culture–open innovation relationship: Evidence from an
emerging market. Journal of General Management, 42(3), 5-20.
Chesbrough, H., & Bogers, M. 2014. Explicating open innovation: Clarifying an
emerging paradigm for understanding innovation. In H. Chesbrough, W.
Vanhaverbeke, & J. West (Eds.), New Frontiers in Open Innovation: 3-28. Oxford:
Oxford University Press. Page 17.
2. https://www.patdek.com/blog/2011/06/23/four-types-of-crowdsourcing-outside-
in-marketing-by-steve-keifer
June 23, 2011,Jay Guiliano
3. https://www.crowdfundport.eu/for-supporters/crowdfunding-abc/
Jeff Howe: The Rise of Crowdsourcing, 2006
4. https://www.viima.com/blog/types-of-innovation
Oct 04, 2019, Julia Kylliäinen
5. https://www.google.com/search?
q=The+types+of+innovation+according+Oslo+manual
%3A&tbm=isch&ved=2ahUKEwjeqaKxi5n2AhUEB98KHV2_CVIQ2-
cCegQIABAA&oq=The+types+of+innovation+according+Oslo+manual
%3A&gs_lcp=CgNpbWcQAzoHCCMQ7wMQJzoGCAAQBxAeOgQIABAeOgoIIxDvAxDq
AhAnUKkHWJIwYMA7aAFwAHgEgAHHAYgB8AmSAQMwLjiYAQCgAQGqAQtnd3Mtd2
l6LWltZ7ABCsABAQ&sclient=img&ei=dN4XYt6fLISO_Abd_qaQBQ&bih=577&biw=12
80&rlz=1C1GCEA_enSR958SR958#imgrc=ooDjcVAYP7ovUM
Anna Golejewska; Economics of European Integration Department
6. https://innovationcloud.com/blog/where-to-innovate-organizational-innovation-
explained.html
By Jovana
7. https://www.coursehero.com/u/file/94419790/Innovation-Group-6-case-study-
1pdf/#question
By José EnriqueRamos, Laura Garcés, Josué Cardoso and Dieudonné Kum

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