lauditta larissa

open innovation and business model

In Creativity and Innovation on October 9, 2010 at 3:26 pm

in the latest post i asked you guys one simply yet confusing question -what is open innovation and open business model?- in these two days i frequently asked Mr. Google about these things then i found one video from Prof. Henry Chesbrough. He is a Professor from High School Business of  U.C Berkley and writer of Open Business book. In the video he talked about the differences between Close Innovation and Open Innovation. he also gave example of companies that use the open innovation model.

Close Innovation is the old model of innovation. In close innovation the idea was come from science and technology base, then take it to the market. this was very famous and success in the last decades. this model also called push model. But now, there are too much useful knowledge available in too many areas in all over the world. and what we need is open model.

Now we have the open innovation model. in the open innovation model there will be more pathways to idea for come in. the idea is not only come from internal but also external. and when idea taking to the market, some of them goes to company processes, and other goes to other processes like license or join venture to get to the market. in short, in open innovation model it much more coming in and much more coming out.

in the other hand, open business model represent the concept of doing business in transparent way by intimately integrating an ecosystem of participants, collaborating in public space. this approach claims to be for the benefit for all, not just one group or stakeholders. more over, open innovation and open business model create for the God sake. Here is the example of company which run the concept of open innovation and business model.

Intel is a company with great internal research and development division, but in addition they leveraging internal RnD with an extensive program to identify, recognize, and then transfer external ideas from technologies, universities, and start ups. and they bring lots of external staffs to complete their internal RnD. and the innovative one, they built platforms for others to built the pound and take advantages of their technology. so they tried to create an ecosystem around their technology.

what i got is when you are creative and seeking for business (making new business, perhaps) you have to implement this things. you don’t have to be afraid to join or use external source in order to develop the business, speak up and let the others know. when you make a good relation with the ecosystem, your business will become higher and more profitable. so, create an intimacy with the ecosystem! ciao.

big thanks for Mr. Goggle, Mrs. YouTube, and especially Prof. Henry Chesbrough.


lauditta larissa


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