Open Innovation in the Construction Sector: Do’s and Don’ts

By Sébastien Wiertz, July 15, 2024

Recently, I was invited to give a keynote on “Open Innovation”. As always, I aimed to match the audience’s interests and experience. This time, I was speaking at an engineering company in the construction sector during their open innovation day. I briefly introduced the various types of innovation and focused on Open Innovation, providing examples from the field. However, I didn’t have time to dive into the do’s and don’ts of Open Innovation within a consortium in the construction sector, and I promised my audience a detailed blog post on the topic. So, here it is.

Let’s first start with the definition of “Open Innovation.” I will take the one from Henry Chesbrough in a book I highly recommend, “Open Innovation: Researching a New Paradigm”:

“The use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. This paradigm assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology.”

My context for this post will be an engineering company specializing in structural calculations, working closely with architects and a project management firm. Each construction project is unique, involving custom architectural designs, structural solutions, and project management strategies. In other words, each project can be considered innovative.

Do’s for This Consortium

1. Collaborate Broadly: The engineering firm should collaborate not only with architects and project managers but also with other stakeholders such as material suppliers, technology providers, and even universities for cutting-edge research and development.
2. Focus on Strategic Needs: Align the consortium’s efforts towards sustainable building practices, which is a strategic need in the construction industry today.
3. Leverage External Ideas: Use external expertise for innovative materials or construction techniques. For example, incorporating 3D printing technologies or sustainable building materials developed by startups.
4. Establish Dedicated Teams: Form specialized teams within the consortium focused on innovation, such as a sustainability team or a technology integration team.
5. Integrate Processes: Make sure that the innovation process is integrated with regular project workflows, ensuring all innovative solutions are practical and feasible.
6. Recognize Contributors: Reward innovative ideas from all partners. For instance, if a new structural calculation method proposed by the engineering team leads to significant cost savings, recognize their contribution.
7. Maintain Flexibility: Stay adaptable to different project requirements and partner capabilities. Flexibility can lead to better-tailored solutions for each unique project.
8. Communicate Clearly: Keep all partners in the loop with regular meetings and updates to ensure that everyone is aligned with the innovation goals.
9. Capture and Share Learning: Document lessons learned from each project to improve future collaborations. For instance, creating a shared knowledge base that details successful innovations and methodologies.
10. Support from Leadership: Ensure top management (and the customer of course) from all companies in the consortium are involved and supportive of the innovation initiatives.

Don’ts for This Consortium

1. Don’t Rely Solely on Internal Ideas: Avoid assuming that all solutions must come from within the consortium. Seek ideas from external experts and other industries.
2. Don’t Ignore IP Issues: Clearly define intellectual property rights for innovations developed within the consortium to avoid future disputes.
3. Don’t Underestimate Change Management: Implementing innovative solutions requires managing changes in workflow and culture. Plan for this.
4. Don’t Isolate the (Open) Innovation Teams: Ensure the innovation teams ( if any) are not working in isolation but are integrated with the overall project teams.
5. Don’t Overlook the Need for Clear Goals: Define what success looks like for innovation initiatives in each project. Whether it’s cost reduction, sustainability, or efficiency improvements.
6. Don’t Ignore External Competencies: Leverage external expertise, such as consultants or technology firms, who can bring new perspectives and skills.
7. Don’t Assume One Size Fits All: Tailor your innovation approach to each project’s specific needs and constraints.
8. Don’t Neglect Proper Scouting: Continuously scout for new technologies and methods that can be applied to your projects.
9. Don’t Overcomplicate Processes: Keep the innovation process straightforward to ensure it’s easy to implement and follow.
10. Don’t Forget to Measure and Improve: Regularly measure the impact of innovative practices and refine your approach based on feedback and outcomes.

Following these recommendations will be efficient only if you foster an “open” consortium and engage with an architect who is willing to collaborate. In my experience, architects often prioritize the creative aspect of projects, which is typically an individual pursuit. However, true innovation thrives in a collaborative environment, where collective efforts and diverse perspectives drive groundbreaking solutions. Working together as a team is essential for transforming creative ideas into innovative, tangible outcomes.