One of the best ways to preserve bargaining power in an ecosystem and blunt imitators is to continue to invest in innovation. I recently visited a furniture company in northern Italy that supplies several of the largest retailers in the world from its factories in its home region. Depending on a few global retailers for distribution is risky from a value-capture perspective. Because these megaretailers have access to dozens of other suppliers around the world, many of them in low-cost countries, and because furniture designs are not easily protected through patents, there is no guarantee of continued business. The company has managed to thrive, however, by investing both in new designs, which help it win business early in the product life cycle, and in sophisticated process technologies, which allow it to defend against rivals from low-cost countries as products mature.
Innovation is becoming an increasingly open process thanks to a growing division of labor. One company develops a novel idea but does not bring it to market. Instead, the company decides to partner with or sell the idea to another party, which then commercializes it. To get the most out of this new system of innovation, companies must open their business models by actively searching for and exploiting outside ideas and by allowing unused internal technologies to flow to the outside, where other firms can unlock their latent economic potential.
Open Business Models: How to Thrive in the New Innovation Landscape books pdf file
To appreciate the potential of this new approach, consider the following names: Qualcomm Inc., the maker of cellular phone technology; Genzyme Corp., a biotechnology company; The Procter & Gamble Co., a consumer products corporation; and Chicago, the musical stage show and movie. This assortment might appear to be random, but they all have something in common: Each required an open business model in which an idea traveled from invention to commercialization through at least two different companies, with the different parties involved dividing the work of innovation. Through the process, ideas and technologies were bought, sold, licensed or otherwise transferred, changing hands at least once in their journey to market.
In other words, open innovation is a business model that encourages you to connect with outside sources so you can profit from exciting new startups and product opportunities, get broader pool of talent, collaborate with others to come up with innovation that you could never do just by yourself.
It is one company in particular that has really embraced the ideals of open innovation. It has developed labs where open innovation thrives. It has created an open innovation team that links collaborators that are researchers and entrepreneurs in business, government and academia, to come up with innovative solutions to hard problems with a goal of developing breakthrough technologies.
In his book, author demonstrated that because useful knowledge is no longer concentrated in a few large organisations, business leaders must adopt a new, open innovation model. Using this model, companies look outside their boundaries for ideas.
Chesbrough shows how companies in any industry can make the critical shift from product- to service-centric thinking, from closed to open innovation where co-creating with customers enables sustainable business models that drive continuous value creation for customers. He maps out a strategic approach and proven framework that any individual, business unit, company, or industry can put to work for renewed growth and profits. The book includes guidance and compelling examples for small and large companies, services businesses, and emerging economies, as well as a path forward for the innovation industry.
Authors Alpheus Bingham and Dwayne Spradlin draw on their own experience building InnoCentive, the pioneering global platform for open innovation. Writing for business executives, R&D leaders, and innovation strategists, Bingham and Spradlin demonstrate how to dramatically increase the flow of high-value ideas and innovative solutions both within enterprises and beyond their boundaries.
Open innovation has been widely implemented in small and medium enterprises with the aim of influencing business promotion, value gain, and economic empowerment. However, little is known about the processes used to implement open innovation in SMEs and the associated challenges and benefits. This book unites knowledge on how SMEs can apply open innovation strategies to development by incorporating academic, entrepreneurial, institutional, research, and empirical cases. This book discusses diverse policy, economic, and cultural issues, including numerous opportunities and challenges surrounding open innovation strategies; studies relevant risks and risk management; analyzes SMEs evolution pattern on adopting open innovation strategies through available measurable criteria; and assists practitioners in designing action plans to empower SMEs.
The concept of open innovation has become quite a popular topic along the last decade, with an increasing number of SMEs embracing open innovation practices to gain competitive advantage. In this book, author Wim Vanhaverbeke seeks to provide an in-depth study for both business managers and graduate-level students using rich case studies from successful companies developing practical guidelines for implementation.
Authors Alpheus Bingham and Dwayne Spradlin draw on this book their own experience building InnoCentive, the pioneering global platform for open innovation. Writing for business executives, R&D leaders, and innovation strategists, Bingham and Spradlin demonstrated how to dramatically increase the flow of high-value ideas and innovative solutions both within enterprises and beyond their boundaries.
This study explores the applicability of open innovation in different industry and business settings. The field research among 15 innovation managers and experts provided an insight into which factors are essential for the successful of open innovation and what are the challenges that companies may face during this process.
Open innovation has been widely implemented in SMEs with the aim of influencing business promotion, value gain, and economic empowerment. However, little is known about the processes used to implement open innovation in SMEs and the associated challenges and benefits. This book unites knowledge on how SMEs can apply open innovation strategies to development by incorporating academic, entrepreneurial, institutional, research, and empirical cases.
Trusted by leading innovators worldwide, Innoget commercializes an hollistic suite of business solutions, including the awarded open innovation Innoget.com, the modular open innovation software InnogetCloud, the top ranked platform Innovation Events, and the industry trusted open innovation challenge programs.
The term was originally referred to as "a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology".[3] More recently, it is defined as "a distributed innovation process based on purposively managed knowledge flows across organizational boundaries, using pecuniary and non-pecuniary mechanisms in line with the organization's business model".[4] This more recent definition acknowledges that open innovation is not solely firm-centric: it also includes creative consumers[5] and communities of user innovators.[6] The boundaries between a firm and its environment have become more permeable; innovations can easily transfer inward and outward between firms and other firms and between firms and creative consumers, resulting in impacts at the level of the consumer, the firm, an industry, and society.[7]
Because innovations tend to be produced by outsiders and founders in startups, rather than existing organizations, the central idea behind open innovation is that, in a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, but should instead buy or license processes or inventions (i.e. patents) from other companies. This is termed inbound open innovation.[8] In addition, internal inventions not being used in a firm's business should be taken outside the company (e.g. through licensing, joint ventures or spin-offs).[9] This is called outbound open innovation.
This type of open innovation is when a company freely shares its resources with other partners, without an instant financial reward. The source of profit has an indirect nature and is manifested as a new type of business model.
In 2014, Chesbrough and Bogers describe open innovation as a distributed innovation process that is based on purposefully managed knowledge flows across enterprise boundaries.[25] Open innovation is hardly aligned with the ecosystem theory and not a linear process. Fasnacht's adoption for the financial services uses open innovation as basis and includes alternative forms of mass collaboration, hence, this makes it complex, iterative, non-linear, and barely controllable.[26] The increasing interactions between business partners, competitors, suppliers, customers, and communities create a constant growth of data and cognitive tools. Open innovation ecosystems bring together the symbiotic forces of all supportive firms from various sectors and businesses that collectively seek to create differentiated offerings. Accordingly, the value captured from a network of multiple actors and the linear value chain of individual firms combined, creates the new delivery model that Fasnacht declares "value constellation".
Bogers, M., Zobel, A-K., Afuah, A., Almirall, E., Brunswicker, S., Dahlander, L., Frederiksen, L., Gawer, A., Gruber, M., Haefliger, S., Hagedoorn, J., Hilgers, D., Laursen, K., Magnusson, M.G., Majchrzak, A., McCarthy, I.P., Moeslein, K.M., Nambisan, S., Piller, F.T., Radziwon, A., Rossi-Lamastra, C., Sims, J. & Ter Wal, A.J. (2017). The open innovation research landscape: Established perspectives and emerging themes across different levels of analysis. Industry & Innovation, 24(1), 8-40. 2ff7e9595c
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