And now coming to the Bigpoint, I would suggest



And now coming to the Bigpoint, I would
suggest that, it should mainly focus on
the absorptive capacity. I suppose that from the case, it has already shown the
ability of being ambidextrous. Absorptive breaking point is an affiliation’s
ability to recognize, assimilate, change, and use external data, research and
practice. It should be considered as an important factor to focus on.


If we talk about Sony, according to me, Sony should focus on the ambidexterity and dynamic capability because it
would help it in the coming future as well as with competing in the market. Shockingly,
in this day and age, not very many associations can stand to have free
structures to concentrate exclusively on investigation. This was the case with
Sony too. It is additionally recommended that building up shared objectives, and
giving individual significance to people’s commitments to the general
motivation behind an association all adds to ability to use both hands. Additionally,
learning and capabilities controlled by the association are the huge
wellsprings of business accomplishment in the present worldwide world.

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Successful innovators
have the ability to learn and connect this learning to their current knowledge
basis. The focal start is that learning is total, so the more an individual or
an association knows, the less demanding it is to obtain new information.
Earlier information is viewed as pivotal to the absorption of new information,
which intends to state that the learning limit of people and associations is
way reliant, i.e., an outcome from the past learning endeavors and abilities.
It is a dynamic and combined process, as in the information picked up in the
present will be all the more proficiently got to later on.


Absorptive limit is an
association’s capacity to distinguish, absorb, change, and utilize outer
information, research and practice. At the end of the day, absorptive limit is the
measure of the rate at which an association can learn and utilize logical,
innovative or other information that exists outside of the association itself. It
is a measure of an associations capacity to learn.

Absorptive Capacity





Dynamic Capabilities




Particular authoritative
and vital procedures by which directors modify their asset base.


Best practice with some
particular points of interest.


Depending advertise dynamism, unsurprising or unusual.


Remarkable way formed by
learning instruments, for example, practice, codifications and oversights.



Defined by: Eisenhardt and Martin (2000)

The firm’s processes that
use resources – specifically the processes to integrate, reconfigure, gain and
release resources – to match or even create market change. Dynamic capabilities
thus are the organizational and strategic routines by which firms achieve new
resources configurations as market emerge, collide, split, evolve and die.

Dynamic Capabilities


If an organization is
able to pursue two different things at the same point of time, for example, effectiveness
and adaptability, minimal effort and separation, steadiness and flexibility and
here and now benefit in addition to long haul development, at that point it is
called as Ambidextrous Organization


Ambidexterity is not simply about whether
a firm can pursue efficiency and innovation or compete in multiple markets but
about developing the capabilities necessary to compete in new markets and
technologies that enable the firm to survive in the face of changed market
conditions (O’Reilly & Tushman, 2008).



Let’s first discuss the meaning of the
terms before giving a suggestion for the case.


















































Forms of Open Innovation-




According to my understanding, the
collaboration of Sony is definitely considered as the form of Open Innovation. The coordinated effort of Sony with other little firms can be taken
under the model of item stage. Under this model, the organizations work
together to build up another item. It requires joint effort for the improvement
of in part entire or new item.


Coming back to the case study now, let’s
discuss whether the cooperation of Sony is a form of open innovation or whether
this term describes new aspects beyond the classical cooperation.


Open innovation
allows your company to extend the
broadness of ideas, opportunities and know how while
minimising and limiting the
technical and market dangers
associated with the innovation and

An open innovation
community can give your company a upper
hand. This is especially important in
challenging financial

It is a profitable
way to innovate and enhance.
It results in decreased
costs, accelerate time-to-showcase,
increase differentiation in the market and also create new income streams for your company.

Benefits of Open Innovation-


The advantages of open innovation projects are widely discussed in
innovation management research and practice (e.g., Man & Duysters, 2005).
Particularly, small and medium-sized enterprises (SMEs) are expected to gain
most from open innovation collaborations due to their inherently limited
capabilities (Lee et al., 2010; van de Vrande 2009).


Building a better
business model and superior action plan
is better than getting to market first.

External R
can create significant and
critical esteem whereas internal R is needed
to claim some part
of that value.

In open
innovation, there is a need to work with smart individuals inside and
outside of the firm.

Principles of Open Innovation-


Coined by Berkeley professor Henry Chesbrough,
the term “open innovation” refers to
the collaboration between companies, individuals and public agencies to create
innovative products and services and, in the process, share its risks and


Randall Rothenberg, President and CEO of the Interactive
Advertising Bureau, believes that building upon knowledge from internal and external
ideas will result in an “ongoing, evolving community of users, doers, and


It is a paradigm
that assumes that firms can and should utilize
ideas as well as internal ideas, and internal and external case to market, as the organization look to advance
their technology.

Open Innovation-











According to the
case, currently the Bigpoint is very much focusing onto the integration of new,
purchased games than on their own developments because the fans want fresh
supply. After the successful translation into 28 different languages, they for
sure will achieve more new and fresh customers and thereby it would also
increase the risk of copying. Therefore, I would like to again focus on the
importance of patenting as discussed in the point no. 1 and 4 of the motives of


Another benefit
that Bigpoint could have is mentioned in point no. 3 in motives of patenting.
Any company, whether a small or a big firm, ultimately want to increase their
revenue and gain more and more customers. With the help of patenting, a company
itself says that their product is innovative and has a high quality and that is
also a reason that they are able to afford patenting.


Bigpoint is
profiting from the trend towards online games. The success is unpredictable and
they have more than 65 million users in Europe and the USA. Bigpoint should
patent their new technology because if they do so, they can either sell the
technology or use it themselves only. There are multiple benefits of patenting
as already discussed in the answer 1(a) above. The motives of patenting seem to
be strong enough. One of the reasons for its success is also the alliance with
other companies like RTL and MTV.













Sony is deeply in
the red in the quarter from April to June. 3 months and a loss of million
Euros. Tokyo headquarters of Sony crossed their limits of job cuts by
dismissing 16000 employees at once. Sony is also aiming to buy the liquid
crystal displays.







Infringement implies the terms of the cases which illuminate individuals about what isn’t permitted to utilize or
duplicate without the assent of the holder)

also acts as a barrier to entry for the competitors. Competitors may consider
the risks of patents infringement higher than the rewards of potential profits.

4.      Reduce competition


It is a sort of showing of the creative state of specialization and
aptitude inside your organization. It also fills in as a marker of
accomplishments in R&D establishments and casing the business procedure as
per the new pattern of innovation.

3.      Higher profit margins


A good thing about
patenting is that you can license it so that others can also use it or even
sell it. This could be a vital
wellspring of income for your association.

Increases overall
corporate value


It gives the privilege to stop others from manufacturing,
selling or copying your invention without your consent. It thereby rewards
originality as well as innovation.






“… the inventor’s contribution is not the
invention itself—which eventually would have been made by someone else—but the
time of the invention. The patent should reward not the whole value of the invention,
but for the value of being first.” 

According to Kitch 1977:285,


Methods of

Species of animals


Patent protection is excluded for:



Based on inventive


A patented invention can be used in
different ways. A technical invention can be patented if it is:


Government grant to
an inventor
assuring him the sole right to make, use, and sell his invention for a limited
period. It is a form of protection.


Question 1(a)