Open Innovation and Strategy

The article discusses a process of business innovation known as open innovation and its relation to traditional business strategy. The competitive strategy developed by Michael Porter emphasized rivalry, buyer power, and barriers to entry as forces that could enhance a producer\u27s surplus. The authors discuss the impact of the Porterian value chain, the processes of production through to the consumer, on subsequent business practices. However, this theory does not account for external sources of value to a company, such as innovation communities, volunteer contributors and surrounding networks, including social networking web sites, open source software and the Wiki model of open contributions. The concept of openness requires shifting from ownership to value creation and value capture

Customer Interaction and Innovation in Hybrid Offerings:Investigating Moderation and Mediation Effects for Goods and Services Innovation

Hybrid offerings are bundles of goods and services offerings provided by the same firm. Bundling value offerings affects how firms innovate, interact with customers, and customize their goods and services. However, it remains unclear how customer interaction might drive the innovation performance of various bundled components. Therefore, this study investigates the effects of customer interactions and service customization on both goods and services innovations in a hybrid offering context, using a unique data set of 146 information technology and manufacturing firms. Customer interaction appears beneficial to both goods and services innovation in a hybrid offerings context, but service customization has different direct effects on goods versus services innovation. As a potential mediator, customer knowledge mobilization resources exert different effects on the goods and services elements of hybrid offerings. Furthermore, for high-interaction customers, medium levels of technical modularity lead to most favorable innovation outcomes for services innovation. The results thus suggest that providers of hybrid offerings should foster customer interactions, to drive the innovation performance of the good and service components, while still making sure to implement service customization strategies. These findings have notable implications for service innovation research

Open innovation in public management: analysis of the Brazilian action plan for Open Government Partnership

Este estudo objetivou analisar o Plano de Ação brasileiro para o Governo Aberto, baseado na teoria da inovação aberta na gestão pública. Utilizou-se de uma pesquisa documental, com vistas a aprofundar o conhecimento do fenômeno em questão. O documento foi escolhido intencionalmente, por ser exemplo basilar das políticas públicas relacionadas à inovação aberta brasileira. Os resultados mostram que os compromissos firmados pelo governo brasileiro estão consoantes com o processo de inovação aberta pública. As ações previstas no Plano estão especificamente relacionadas a transparência, abertura de dados e preparação do corpo estatal para o processo aberto de inovação. _________________________________________________________________________________________ RESUMEN: Este estudio tuvo como objetivo analizar el Plan de Acción de Brasil para el Gobierno Abierto con base en la teoría de la innovación abierta en la gestión pública. Se utilizó una investigación documental, con el fin de profundizar el conocimiento en el fenómeno en cuestión. El documento fue elegido intencionadamente porque es fundamental para las políticas públicas relacionadas con la innovación abierta brasileña. Los resultados muestran que los compromisos asumidos por el gobierno brasileño son compatibles con el proceso de innovación abierta pública. En concreto, las acciones contenidas en el plan están relacionados con la transparencia, los datos abiertos y preparación de la estructura de gobierno para el proceso abierto de innovación. _________________________________________________________________________________________ ABSTRACT: This study aims to analyze the Brazilian action plan for Open Government, based on the theory of open innovation in public management. Documentary research was used, in order to deepen of the knowledge the phenomenon being discussed . The document was intentionally chosen because it is essential for public policies related to Brazilian open innovation The results show that the commitments made by the Brazilian government are compatible with the public open innovation process. The actions in the Plan are related specifically to transparency, open data and preparation of the governance body for the open innovation process

The Dynamics of Open Strategy: From Adoption to Reversion

Innovation has become more open in recent years. Yet the decision to become more open and the challenge of sustaining that openness are not well understood. This is the concern of the “content” branch of Open Strategy, defined as the branch that addresses an organization\u27s open innovation strategy. We examine the initial motivations to adopt an open strategy, and then consider when organizations choose to maintain that open strategy or revert to a more proprietary approach. Similarly, we examine motivations to open up a previously proprietary strategy. We find that these dynamics depend on the organization\u27s desire to either foster greater growth (which favors a more open strategy) or secure greater control and profit directly from the innovation (which favors a more proprietary strategy). Crucially, these choices can shift over the life cycle of a market and are dependent on the competencies amassed by the organization. In early phases, when there are relatively few legacy customers and many new arrivals, open strategies attract customers at a faster rate. In later phases, as the market matures and new arrivals have slowed, there are few new customers to attract with an open strategy and reversion to a more proprietary strategy becomes quite attractive. This suggests that the longevity of open initiatives might be curtailed as organizations opt for value capture over cooperative value creation

The Era of Open Innovation

Is innovation dead? Actually, innovation is alive and well ¿ as underscored by the recent advances in the life sciences, including revolutionary breakthroughs in genomics and cloning. But the way companies generate ideas and bring them to market has been undergoing a fundamental change. In the old model of closed innovation, enterprises adhered to the following philosophy: Successful innovation requires control. In other words, companies must generate their own ideas, then develop, manufacture, market, distribute and service those ideas themselves. For most of the 20th century, that model worked well, as evidenced by the spectacular successes of central R&D organizations such as AT&T's Bell Labs. Today, though, the internally oriented, centralized approach to R&D is becoming obsolete in many industries. Useful knowledge is widely disseminated, and ideas must be used with alacrity. If not, they will be lost. Such factors create a new logic of open innovation, in which the role of R&D extends far beyond the boundaries of the enterprise. Specifically, companies must now harness outside ideas to advance their own businesses while leveraging their internal ideas outside their current operations. That fundamental change offers novel ways to create value ¿ along with new opportunities to claim portions of that value