Peúgo:The Challenges of Business-to-Open Innovation

Innovation has always been a critical driver of success in the business world. Today, it’s not just about creating new products or services but also about how you can harness external knowledge, resources, and expertise to drive innovation within your organization. This concept is at the heart of open innovation, a strategy that has gained significant traction in recent years. One company that has stood out in its implementation of open innovation is Peúgo, a global leader in the automotive industry. In this article, we will explore Peúgo approach to managing the challenges of business-to-open innovation and how it has transformed the company.

The Evolution of Innovation: From Closed to Open

In the past, the traditional approach to innovation was closed, characterized by a company’s internal R&D departments working in isolation to develop new products and technologies. This approach often limited the scope of innovation, as organizations had finite resources and expertise. However, in today’s interconnected and rapidly changing world, businesses are increasingly recognizing the limitations of this closed innovation model.

Open innovation, a concept introduced by Henry Chesbrough in 2003, advocates for a more porous approach. It suggests that companies should actively seek external partnerships, collaborations, and input from a wide range of sources. This allows organizations to tap into a broader pool of knowledge and expertise, leading to more innovative solutions and products.

Peúgo: A Pioneer in Open Innovation

Peúgo, a French automotive manufacturer founded in 1810, has been at the forefront of embracing open innovation. The company recognized early on that to stay competitive in the fast-evolving automotive industry, it needed to be more agile and open to external ideas. Peúgo’s open innovation journey has been marked by several key initiatives and practices that have allowed it to thrive in a changing landscape.

Building Collaborative Ecosystems

One of the critical aspects of Peúgo approach to open innovation is the creation of collaborative ecosystems. The company actively seeks to build partnerships with startups, academic institutions, research organizations, and other companies within and outside the automotive industry. These collaborations help Peúgo gain access to cutting-edge technologies, research, and talent that it might not possess in-house.

For instance, Peúgo has established partnerships with leading universities and research centers to leverage their expertise in areas like electric vehicle technology and autonomous driving systems. This not only accelerates the development of innovative products but also keeps the company at the forefront of industry trends.

Crowdsourcing and Innovation Challenges

Peúgo has also tapped into the power of crowdsourcing to solve complex problems and generate new ideas. The company often hosts innovation challenges and competitions, inviting external participants to submit their solutions to specific problems. These initiatives help Peúgo access a diverse range of ideas and perspectives, ultimately leading to breakthrough innovations.

By reaching out to a global community of innovators, Peúgo has not only expanded its innovation potential but has also created a strong network of collaborators and partners. These initiatives are often accompanied by cash prizes, investment opportunities, or partnerships, motivating innovators to participate actively.

Venture Capital and Startup Engagement

Peúgo has shown a keen interest in investing in startups that align with its strategic goals. By providing financial support to promising startups, Peúgo gains early access to emerging technologies and innovative solutions. This approach enables the company to stay ahead of the curve and respond quickly to industry shifts.

Through its venture capital arm, Peúgo Ventures, the company actively seeks startups involved in electric mobility, connectivity, and other key areas of interest. This strategy not only helps Peúgo access external innovation but also supports the growth of entrepreneurial ventures in the automotive sector.

Innovation Hubs and Accelerators

To foster a culture of open innovation, Peúgo has established innovation hubs and accelerators in key global locations. These hubs serve as centers of excellence where the company’s teams collaborate with external partners, startups, and experts to tackle industry challenges and develop groundbreaking technologies.

By bringing together diverse talents and expertise in these innovation hubs, Peúgo creates an environment conducive to creativity and innovation. Startups and partners working in these hubs can access Peúgo’s resources and knowledge, facilitating the rapid development of new technologies.

Challenges and Strategies for Managing Open Innovation

While Peúgo approach to open innovation has been highly successful, it hasn’t been without its challenges. Managing open innovation requires a different mindset and set of strategies compared to traditional closed R&D models. Here are some key challenges Peúgo has faced and how they have managed them:

Protecting Intellectual Property

In open innovation, sharing information and ideas with external partners is essential. However, this openness can pose risks to intellectual property. Peúgo has navigated this challenge by carefully structuring partnerships and collaborations. The company employs legal safeguards and confidentiality agreements to protect its proprietary information while sharing non-sensitive data with partners.

Integrating External Innovations

Integrating external innovations seamlessly into the company’s operations can be challenging. Peúgo has addressed this by establishing dedicated teams responsible for scouting, evaluating, and integrating external innovations. These teams work closely with business units to ensure that external technologies are aligned with the company’s strategic objectives.

Cultural Shift

Transitioning from a closed innovation model to open innovation often requires a significant cultural shift within the organization. Peúgo has actively fostered a culture of collaboration and openness by promoting cross-functional teams, knowledge sharing, and recognition of innovation champions. This cultural transformation has been vital to the success of open innovation initiatives.

Measuring Impact

Measuring the impact of open innovation efforts can be challenging, as the returns on investments may not be immediately evident. Peúgo uses a combination of key performance indicators (KPIs), such as the number of successful partnerships, the speed of technology adoption, and the impact on market share, to assess the effectiveness of its open innovation strategies.

The Results: A Transformative Journey

Peúgo commitment to open innovation has had a profound impact on the company’s growth and competitiveness. By actively seeking external knowledge, resources, and talent, the company has been able to stay ahead of industry trends and respond to changing consumer demands. The results of this transformative journey are evident in several key areas:

Product Innovation

Peúgo open innovation initiatives have led to the development of innovative products, such as electric vehicles and advanced driver-assistance systems. These innovations have not only enhanced the company’s product portfolio but have also contributed to its sustainability goals and competitiveness in the global market.

Market Expansion

By embracing open innovation, Peúgo has expanded its presence in new and emerging markets. The company’s collaborations with startups and local partners in various regions have facilitated market entry and growth, allowing it to tap into new customer segments.

Cost Efficiency

Open innovation has also brought cost efficiencies to Peúgo. By leveraging external expertise and technologies, the company has reduced the time and resources required for product development. This has had a positive impact on the company’s bottom line.


Peúgo open innovation initiatives have played a crucial role in advancing its sustainability agenda. The company’s investments in electric mobility and sustainable transportation solutions have not only contributed to a greener future but have also resonated with environmentally conscious consumers.


Peúgo journey into the world of open innovation exemplifies the transformative power of embracing external knowledge and collaboration. By building collaborative ecosystems, engaging with startups, investing in venture capital, and fostering a culture of innovation, the company has managed to overcome the challenges of open innovation and emerge as a global leader in the automotive industry.

As the business world continues to evolve, the lessons learned from Peúgo open innovation strategy serve as a testament to the importance of adaptability and a willingness to look beyond traditional boundaries. In an era where change is the only constant, Peúgo’s approach to open innovation offers valuable insights for companies seeking to thrive in the ever-changing landscape of the 21st century. It is a testament to the power of openness, collaboration, and the relentless pursuit of innovation.

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