From outsourcing to Open Innovation: a case study in the oil industry

This paper describes the experience of Eni, from the awareness of its weakness against external actors (mainly service companies) to the definition of a structured approach to partnership, i.e., Open Innovation (OI), to overcome such weakness. Implementing OI is complex, and the Majors' position is not easy to change. In particular, the strong appeal to outsourcing geophysics, drilling, onshore and offshore operations and well activities by Eni Exploration and Production (E&P) division led to a technological trajectory that proved to be difficult to correct in the short term. Indeed, E&P innovation is in the hands of services companies, thereby compromising Eni's ability to innovate.