Open Innovation: The New Imperative for Creating and Profiting from Technology

A very good book on Open Innovation.Open Innovation is not new - it has been around for around 50 years. Many companies used OI to give themselves and edge. it was not given a name until the 21st century when Chesbrough saw it, being used, described it, gave it the name Open Innovaton and cashed in with fancy words such as "The New Imperative For Creating & Profiting From Technology".Buy this book if you want to find out what Open Innovation is,from the guy who gave it a name, but don't expect anything practical to help you do it. The book is all about what OI is and why it is a jolly good thing, rather than anything.much you can use.Think of this as the Ladybird children's book on the subject written by someone who likes to use long words where plain Englsh would be better.Buy it though, because it is the primary work a spells out what Open Innovation is, but then buy another good book to tell you how to do it and make money.

Interesting material and spot on for my research. Would recommend as useful info on innovation and very easy to read

A classic. Need I say more. Referenced by so many papers, it's a must have for anyone in this area of academia.

This intriguing book proves just how right author Henry Chesbrough is ¬ and has been since its first edition in 2005. He devotes a major portion of his work to explaining the differences between "Open and Closed Innovation paradigms," and to arguing for the necessity of the open model. In the years since his book's publication, Open Innovation platforms have increasingly become the norm. Clearly, Chesbrough was forward-looking, and his studies of specific corporations' innovation successes or failures remain fresh and instructive. Firms grappling with Open Innovation models can benefit enormously from his guidelines on how best to use them. getAbstract recommends this informative standard in the field to inventors and innovators, those responsible for corporate knowledge management, and all leaders trying to design their organizations for innovation.

I recently re-read Henry Chesbrough's Open Business Models and then this book, first published in 2003. In the earlier work, Chesbrough explains that a business model "performs two important functions: it creates value and it captures a portion of that value. It creates value by defining a series of activities from raw materials through to the final consumer that will yield a new product or service with value being added throughout the various activities. The business model captures value by establishing a unique resource, asset, or position within that series of activities, where the firm enjoys a competitive advantage."Having thus established a frame-of-reference, Chesbrough continues: "An open business model uses this new division of innovation labor - both in the creation of value and in the capture of a portion of that value. Open models create value by leveraging many more ideas, due to their inclusion of a variety of external concepts. Open models can also enable greater value capture, by using a key asset, resource, or position not only in the company's own business model but also in other companies businesses."What we have in Open Innovation is a development of this concept in much greater depth. As Chesbrough explains, what he characterizes as "Closed Innovation" has a number of implicit rules such as "The company that gets an innovation to market first will usually win" and "We should control our intellectual property, so that our competitors don't profit from our ideas." As a result of several "erosion factors" that have undermined its logic, Chesbrough asserts, the Closed Innovation paradigm is rapidly becoming obsolete. (Please see Table 1-4, "Contrasting Principles of Closed and Open Innovation," on Page xxvi in the Introduction.) "When the innovation context shifts from Closed to Open, the process of innovation must change as well."Chesbrough carefully organizes his material within nine chapters. In the first, he examines one of the most familiar examples of a company (Xerox Corporation) that selected technologies from its research laboratory (Palo Alto Research Center) that fit its business model, and rejected others. Apple was among the major beneficiaries of that process. "Xerox's management of its PARC technologies illustrates in a nutshell the transition from Closed Innovation to Open Innovation. Chesbrough examines the Closed Innovation Paradigm is analyzed in Chapter 2 and the Open Innovation Paradigm in Chapter 3, then offers a business model in Chapter 5 that illustrates how to connect internal and external innovation. For me, some of the most valuable material in the book is provided in this chapter. Then in the next three chapters, Chesbrough focuses on three major corporations: IBM and its transformation from Closed to Open Innovation (Chapter 5), Open Innovation at Intel, (Chapter 6), and the New Ventures Group within Lucent Technologies organization (Chapter 7).In the last two chapters, Chesbrough first shifts his attention to a critically important subject, the management of intellectual property (IP) in the innovation process. "In a world of abundant knowledge, companies should be active buyers - and active sellers of IP." Earlier in his book, Chesbrough had explained why ideas that are not readily used could be lost. They and the people who create them "no longer can be warehoused until the companies' own businesses are ready to make use of them. Companies that do not use their ideas with alacrity risk losing them - and the people who thought of them - to outside organizations." Of course, as Chesbrough explains in Chapter 4, the value of an idea is determined by the given business model. "There is no inherent value in a technology per se. The value is determined instead by the business model used to bring it to market." Apple gratefully embraced technologies that Xerox had rejected.How to complete the transition to a more Open Innovation system? Chesbrough responds to that question in the last chapter, providing a number of strategies and tactics. He recommends devising a strategic map that identifies the given organization's recent innovative ideas as well as those within its industry. On Page 178, he provides a list of questions to ask while completing the map, a document best viewed as "a work in progress." He then offers rock-solid advice on how to proceed with the "roadmap." As I absorbed and digested Chesbrough's brilliant insights on these and other key business issues prompted me to recall my own involvement with a number of organizations that struggled - with mixed success - to complete that process. I now presume to share some of the most important lessons I learned:1. When designing and implementing an "open" business model, the first requirement is that everyone involved has both an "open" mindset (i.e. receptive to new ideas, whatever their source may be) and is not only willing but also eager to collaborate with others within and beyond her or his own organization. So-called "conventional wisdom" is often a justification for defending the status quo.2. When setting objectives, focus on the most serious problems to solve and on the most important questions to answer.3. With regard tracking progress, measure only what really matters...and do so with accuracy and consistency. Meeting deadlines, for example, as well as first-pass yield and cycle time. Be especially alert for variances.4. Have "open" communication, cooperation, and collaboration at all levels and in all areas throughout what should be viewed as an extended enterprise. There is so much of value to be learned from associates, of course, (especially in other departments), but also from customers, vendors, strategic allies, and other stakeholders within the given value chain. Moreover, Chesbrough cites examples of situations in which valuable information was obtained (legally) from competitors.5. Open Innovation is a journey of discovery. Therefore, view all problems as learning opportunities. Focus on determining their root causes rather than merely responding to their symptoms.The final paragraph of the Introduction offers an appropriate conclusion to this commentary. By then, Chesbrough has shared a new vision of the innovation process. "This vision eagerly seeks external knowledge and ideas, even as it nurtures internal ones. It utilizes valuable ideas from whatever source in advancing a company's own business, and it places the company's own ideas in other companies' businesses. By opening itself up to the world of knowledge that surrounds it, the twenty-first-century corporation can avoid the innovation paradox that plagues so many firms' R&D activities today. In so doing, the company can renew its current business and generate new business. For the innovative company in a world of abundant knowledge, today can be the best of times."

Libro molto interessante

The book primarily focuses on the concept of transforming a company from the methodology of closed innovation to open innovation. The author provides many examples in support of a closed to open innovation transition by walking through numerous case studies that show a benefit after implementing open innovation.The author begins by providing background for the test-case companies, Xerox and PARC. Afterwards, the author discusses the tactics (Chess and Poker games) that were implemented during the transition. Moving forward, the author discusses how to transform a firm with solely internal R&D (closed environment) into a firm that leverages both external and internal R&D (open environment). Three case studies are provided in support of the authors push for open innovation.The first case study focuses on how IBM overcame the pressures from market-dominating competition by using open innovation. IBM took the plunge and converted their methodology from closed to open innovation, yielding many benefits after switching. IBM is a legacy company that essentially created the underlying computer science used in both software and hardware for much of modern technology. One issue that IBM had to tackle was their complete vertical integration. To overcome their closed innovation and vertical integration, IBM turned to open innovation to broaden their capabilities. In doing this, IBM went from providing an end-to-end computing system in a closed environment to partnering with their clients to better meet the client’s goals. IBM stopped guarding their technology, and instead allowed other companies to leverage it, thus maximizing IBMs profits.The second case study reviews how Intel incorporated open innovation from the beginning, and the success that it brought them. The founders of Intel used lessons from prior employers and chose open innovation to close the divide between research and development from the start. Open innovation worked significantly better than traditional R&D as seen with IBM and Bell (AT&T). When companies like IBM and Bell significantly reduced their R&D budget, customers looked to Intel to continue improving to meet new customer demands.The third case study centers around the Lucent Bell Labs and how they created a new way of marketing through the establishment of venture capital firms. Lucent Bell adopted a systematic approach to designing a new business model for the company's internal technology after carefully studying Xerox's business model. Lucent Bell’s open success rule was to spread internal knowledge into the external marketplace, to commercialize the company’s internal technology through creating an external venture organization, and to create a new business model in the process.The author analyzes how the companies should use their internal and external intellectual property to create value through the study of business model. The author believes it crucial for a company to find a suitable model that maximizes the value of intellectual property by analyzing internal and external business model limitations. He goes on to assert that companies should first study the entire technology market, and then work on how to manage the intellectual property. He also briefly introduces the patent research and application process by citing case analysis of several large companies (Millennium Pharmaceuticals, IBM, and Intel).The conclusion recaps the concepts of how a company can make the transition from closed innovation to open innovation by defining a business model through the learnings of others, Launching the VC model, and most importantly, creating the relationship between company and knowledge source. In addition, there are key insights on advancing a current business by growing new business and discovering new opportunities to expand the current business. In summary, the author provides many facts to back the argument that companies should embrace Open Innovation.MAN6726.901F17

Me interesa mucho todo el asunto de "innovación abierta" y este libro es pionero en la materia tocando casos como Xerox, Intel o IBM. Es muy bueno para asentar conceptos aunque quizá le falta más "chicha" en el "cómo", más ideas. Pero bueno, la idea de fondo es muy importante, la innovación no sólo sucede dentro de las empresas, también fuera, por lo que hay que estar preparados para recibirla, con mentalidad abierta

In a nutshell: Before Henry Chesbrough wrote this book, most companies and institutions were convinced that internal R&D was the ultimate asset for getting innovation and, therefore, essential competitive advantage. Once they read it, they realized that another way was possible. And this involved a new business model.

Ich habe meine Abschlussarbeit über das Teilgebiet von Open Innovation verfasst und dieses Buch daher als ersten Einstieg angeschafft.Chesbrough, Begründer des Begriffes Open Innovation, stellt dabei sehr anschaulich und nachvollziehbar, unterstützt von vielen Firmenbeispielen, dar, wie es zu einer offeneren Innovationspolitik kam und welche Arten es gibt.Das Buch ist nicht wirklich wissenschaftlich geschrieben (mit empirischen Untersuchungen etc.), sondern gleicht fast einem Sachbuch. Dieses Format finde ich aber richtig, um in solch ein komplexes Thema einzuführen.Zu beachten ist jedoch, dass das Buch von 2003 ist und seitdem viele Papers zu diesem Thema erschienen sind, sich Open Innovation auch etwas gewandelt hat.Als ersten Einstieg, um einen Überblick zu dem Thema zu erhalten, empfehle ich es jedoch uneingeschränkt weiter, sowohl an Angestellte, wie auch Studenten oder Lehrpersonen.