An illustration of open development is like a case of Chrysler motor company, which had a poor customer service and marketing (Daft 372). The company was famous for its innovation although the products were described as outdated. The market share declined and it had high losses. However, after the implication of organization development, a program of cultural change known as Customer One was created and the company improved. The results were improved and the company became profitable. Richard Daft emphasizes that organizational development is important since it has expanded its focus in the coalition of organizations, with their rapidly changing and complex environments. According to the illustration, organization development is essential since it results to the success of a deteriorating company. This is achieved through organizational erudition, knowledge management, and upheaval of organizational customs and values. Through organizational strategies, the organizations manage to categorize problems that may interfere with its effectiveness and they evaluate their major causes.
Open innovation is the utility of purposive inflows and outflows of associations to improve innovation. Based on the current knowledge on open innovation, companies fail to rely solely on their own research. This means that they should acquire inventions from other companies so that they can improve their business models. This also results to the expansion of markets for external utility through their originality. According to the theory, the firm is assumed to utilize the external ideas from other companies. Open innovation focuses on the surfacing model of discovery that a certain organization utilizes on both research and development. It is noted that in various cases, for example open source software the theory occurs in a non-proprietary aspect.
An illustration of open innovation initiative is the case of IBM