Final answer:
HSBC, like other traditional banks, may face open innovation challenges including regulatory burdens, integration complexities, and data security concerns. Additionally, the rise of ICT and tech megafirms offers both competitive threats and opportunities for collaboration in the innovation landscape.
Step-by-step explanation:
The challenges in open innovation that HSBC might have encountered are likely similar to those affecting the broader financial industry. Given that financial institutions like Japan's banks experienced significant trouble during the 1990s, and similar trends continued globally, firms may be wary of external disruptions. In an open innovation context, larger, well-established banks such as HSBC could face difficulties in integrating external innovative solutions quickly due to regulatory constraints, the complexity of existing systems, and the potential threat to the security and privacy of customer data.
Moreover, the shift towards ICT and open source solutions, such as the development of open source operating systems like Linux, has reshaped the high-tech economic landscape. This has led to the creation of megafirms that have gained significant influence. The influence of these ICT giants poses a challenge to HSBC and other traditional banks as they try to innovate while facing competition from firms that are able to move at a faster pace due to their digital-native status.