ROLE OF NON COLLABORATIVE RELATIONSHIPS IN STIMULATING AND ENHANCING INNOVATION IN UK SMEs: IT CONSULTING INDUSTRIES

ABSTRACT In this case study the relationship between the non collaborative (informal external relationships) innovative performance between the SMEs in UK and the IT industry is analyzed. As per the discussions in literature review, SMEs delivers services and products that are unique and innovative in their own perspective, when collaborated with informal external relationships. Each small organization (SMEs) has their own strategies in implementing innovation through collaboration, which in turn affects the growth swiftly. In todays market-competitiveness, SMEs have to compete with their rivalries by offering new innovative products and services; this is where open innovation plays its role. The SMEs in UK has similar organizations which implemented strategies based on non collaborative relationships and succeeded, yet there are similar studies which proved that, all SMEs cannot boom up with formulated strategies and succeed in their informal external relationships collaboration.

INNOVATION THROUGH COLLABORATION-IT SECTOR Non collaborative relationships (informal external relationships) in small organizations (SMEs), has its own perks and downs. The main characteristics of the non collaborative relationships, which could eventually affect the performance of an organization, are as follows: Various forms of participation, Collective intelligence, Contamination, Focus on the people and Emergence. Here in this case Luxottica & Co is taken as an evidence for innovation through collaboration in IT sector. Various forms of participation: This system consists of valuing the idea or the strategies implemented in different situations under different culture. For example: voting, commenting, criticizing the ideas of strategies implied in their organization in public HUB / internet, or through proposing new ideas to fellow suppliers. Thus the small and medium enterprises in the UK like Luxottica, implemented different phases in their organization through non collaboration and collected data which unfortunately changed their work flow and affected the profit. Hence they reconsidered the strategies and formulated a new innovated plan for gaining more income. Collective intelligence: In an IT sector the open innovation is a very tactful strategy, which could be a boon or bane according to the intelligences collected. The proposals made by the SMEs can evolve if the knowledge and intelligence is duly supported and exploited in a proper way. For instance, the Luxottica & group gathered their strategies from the comments and critics of non professionals in open discussions and ended up with major loss but later on the company executives, reconsidered their strategies i.e. they gathered and analyzed the best strategies to be implemented.

Contamination: The ideas proposed by colleagues and peer members should be sliced into several dimensions and analyzed before implementing. The idea which is not concrete can affect the standards and the efficiency of the growth of an organization. Innovation is necessary in the proposed ideas, though the company generates open innovation, it has to be management concentrated by bridging the gap between the suppliers and the customers, rather it should not contaminate the companys growth. Focus on the people: The main characteristic in the non collaborative relationships is the focus on the people; instead of focusing particularly on one player-factor, the company should focus on: suppliers, customers, stake holders, the top players, vendors, competitors and the extensive market. The social approach of a company, i.e. innovative open readiness, to accept the change is what required in the current trendy market. Even if any one of the player-factors is missed out in open innovation stimulation, then the SMEs can be affected by the same openness/transparency, which eventually helped them to develop new and innovative strategies. Luxottica reconsidered their strategies through non collaboration relationships which helped them to compete innovatively with other SMEs. Emergence: As per the study conducted by NIC (2012), the repetitive influence/impact of ideas through open innovation in a healthy non collaborative business relationship, has positive impact on SMEs in UK. Luxottica is the best example for this characteristic factor. The company faced several issues through open innovation in non collaboration relationships, yet they managed to restructure their flaw into strength. The emergences of new competitors in IT sector have made Luxottica to move to new strategy in their existing model, thus they created a model that encompasses three phases: Phase 1: Mapping

and setting of objectives and scenarios; Phase 2: Idea generation; 3: Idea evaluation and integration. They formulated a new model which could enhance the factors involved in the existing model which encompass: Choice of topic (openness), Level of management (motivating factors: leadership, multi-level participation and communication) and Change of the leadership model. SUMMARY Luxottica learned the following from collaboration through innovation: understanding the existing methods to collaborate the new ideas, mapping the communication and collaboration dynamically, making use of best collective-intelligence, utilizing efficient tools and delivering knowledge through open innovation. Hence it is inferred that through non collaborative innovation there exists a refined relationship between the IT industry and informal external relationships. This open-innovation relationship in SMEs can be utilized for creating positive impact in entrepreneurship; the factors can be restructured / reformulated as per the requirements of SMEs in IT sector by developing quantitative model which incorporates the positive factors. 1. What are the characteristics of Non collaborative relationships that could affect the speed and standard of open innovation in SMEs?

2. What could be the probable sources /characteristics of factors affecting healthy noncollaborative business relationships that have intense positive impacts on the stimulation of open innovation in SMEs and can a quantitative model be developed which incorporates these positive factors?