Book Description
In his landmark book Open Innovation, Henry Chesbrough demonstrated that because useful knowledge is no longer concentrated in a few large organizations, business leaders must adopt a new, “open” model of innovation. Using this model, companies look outside their boundaries for ideas and intellectual property (IP) they can bring in, as well as license their unutilized home-grown IP to other organizations.
In Open Business Models, Chesbrough takes readers to the next step—explaining how to make money in an open innovation landscape. He provides a diagnostic instrument enabling you to assess your company’s current business model, and explains how to overcome common barriers to creating a more open model. He also offers compelling examples of companies that have developed such models—including Procter & Gamble, IBM, and Air Products.
In addition, Chesbrough introduces a new set of players—“innovation intermediaries”—who facilitate companies’ access to external technologies. He explores the impact of stronger IP protection on intermediate markets for innovation, and profiles firms (such as Intellectual Ventures and Qualcomm) that center their business model on innovation and IP.
This vital resource provides a much-needed road map to connect innovation with IP management, so companies can create and capture value from ideas and technologies—wherever in the world they are found.
Customer Reviews:
Fair.......2007-06-21
This is another pretty good book from the author. As in his earlier book, he starts with the motivation for open innovation, which is an old idea but that is not well practiced. In this new book he addresses many of the shorcomings of the first book, such as getting real value out of the partnerships that can be formed while overcoming internal issues, such as NIH. He then talks about different ways companies go about this. What drives you crazy is that he seems unaware that companies have been doing this forever. In the consumer electronics industry, for example, open innovation is mostly the model. Companies like GE, TI, and RCA were examples. In the case of GE and RCA they go back almost 100 years.
Well-written, concise, with specific examples.......2007-06-02
As with his previous book Open Innovation, Chesbrough provides a concise and easily read review of important new trends in high-tech management. In this book the focus is on the path an innovation takes to profitability in the marketplace. Among the topics reviewed are novel "intermediate markets" for ideas and technology.
I particularly appreciated the chapters of the book that provide nine examples of companies that are more-or-less "pure play" innovation intermediaries. Companies like Innocentive, Ocean Tomo, and UTEK are profiled in depth. I appreciate the specificity, which will allow the reader to evaluate Chesbrough's insights into the future: By following up on the progress of these companies, we'll see how well Chesbrough hit the mark. This specificity is rare in business books.
It will be interesting to see where Chesbrough's interests flow in future. I would welcome a focus on public sector research institutions. A comparison of the innovation and commercialization models among universities, NIH, NASA, ESA, etc. could be helpful to policy makers as Open Innovation ideas gain wider acceptance.
Open Business Models for Those Who Rely on Technology Innovation and Need Intellectual Property Protection.......2007-05-14
This book is misnamed. Rather than being about open business models, the book's topic is about how to open business models to benefit from access to more technological innovation and strengthen your competitive posture through intellectual property.
As a result, Professor Chesbrough creates a misapprehension that successful open business models are almost always linked to technological innovation as their main purpose and benefit. My own research (with Carol Coles in The Ultimate Competitive Advantage: Secrets of Continuously Developing a More Profitable Business Model) indicates just the opposite point: Technological innovation is rarely the most effective way to open up your business model to create improvements.
So, this book's value is mostly to those who work in achieving or creating more benefits from technology innovation. If that is your interest, you've come to the right book. If that's not your interest, skip this book.
Why do those involved in achieving or creating more benefits from technology innovation need to open their business models? Professor Chesbrough points to several influences:
1. Technological innovation is coming from more sources than ever before. As a result, you will be developing inferior technology without accessing the best of what the world has to offer.
2. Most intellectual property isn't used for any practical purpose. That's a waste of social and company resources.
3. The protections for intellectual property are stronger now, and your pathway to progress will be blocked without collaborating with those who have complementary IP.
4. Product cycles are shorter and costs of developing new technologies are higher; open business models offer the promise of getting to market sooner at lower cost so that your business has a better chance of earning a decent return on new technology.
5. Large companies need to make new product development more productive if they are to meet their growth goals.
Professor Chesbrough does a nice job of developing those themes. He balances theoretical arguments with case histories of recent practices.
Of even more value, he explains how companies will have a hard time finding all of the technology they need without help. As a result, he feels that intermediaries will turn out to be important to helping connect organizations. His case histories of such intermediaries are very interesting in showing how difficult it is to play such intermediary roles without deep pockets.
For those who are new to the subject of technological innovation in the context of business models, you will find his descriptions of what a business model is (see page 182) and types for assessing your business model (see pages 132-133) to be helpful. The only quibble I would make with his types is that in his examples he assumes relative undifferentiation in industries and business types where there are often large nontechnological differentiations.
I found the last chapter to be by far the most helpful, in describing three case histories (IBM, Procter & Gamble, and Air Products) for showing how large organizations went from closed to open business models for the purpose of technological innovation. In fact, the discussion of Procter & Gamble's practices is the best one that I have read. That point, by itself, is sufficient to commend this book to you. I suspect that almost everyone will be doing what Procter & Gamble is doing now ten years hence.
Excellent work, Professor Chesbrough!
Innovation requires an open mind...and the courage to challenge "the ideology of comfort and the tyranny of custom." .......2007-03-14
What is an open business model? In Chapter 1, here's Henry Chesbrough's response to that question: "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 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."
These two brief excerpts are provided because Chesbrough`s definitions of various terms are far clearer and more authoritative than mine could possibly be. Also, these excepts address the "what" so that in the balance of this brilliant book, Chesbrough can then focus almost entirely on the "why" and "how" concerning the design, implementation, modification, and performance measurement of open business models.
I was especially interested in what Chesbrough has to say about what several quite different exemplary companies -- including IBM, Qualcomm, Genzyme, Procter & Gamble, and Chicago (the musical stage show and film) -- share in common: "each started with an idea that traveled from invention to market through at least two different companies" which shared the work of innovation, and, all were assisted by effective management of an open business model. Chesbrough also devotes a substantial attention to IBM whose type 3 business model (i.e. multiple segmentations, "inside-out" mindset) reached a financial crisis in 1992. Had the IBM board not replaced its then CEO with Lou Gerstner and fully supported his leadership throughout an immensely complicated and equally difficult transformation , it is probable that IBM would not have survived. Gerstner deserves much of the credit for the success of that "cultural revolution" (as he once described it) but much credit should also be assigned to IBM's open source business model. Procter & Gamble is another company which completed an especially difficult transition from having internal staff members who protected (hoarded?) various technologies so that other companies, including potential competitors, could not use them to becoming a company with a much more open approach to innovation. Chesbrough notes that P&G began to pay much greater attention of external licensing of its technologies, (e.g. to BearingPoint), now strongly supports openly partnering for driving growth equity joint ventures (e.g. with Clorox), and an entirely new perspective on competitive advantage.
According to Jeff Weedman, vice president of P&G's external business development: "There are many kinds of competitive advantage. The original view here was: I have got it, and you don't. Then there is the view, that I have got it, you have got it, but I have it cheaper. Then there is I have got it, you have got it, but I got it first. Then there is I have got it, you have gotten it from me, so I make money when I sell it, and I make money when you sell it." To me, that in essence describes the primary competitive advantage of the open business model.
I also appreciate what is rarely provided in other business books: detailed notes (Pages 217-242) which are clustered per chapter. As I read them, it seemed as if Chesbrough were standing next to me, supplementing his narrative with additional comments that are always informative and frequently entertaining. What also struck me about Chesbrough's notes is that they enable him to acknowledge various sources with appreciation and admiration. His was obviously an open source approach to the research for this book and then to the writing of it.
To thrive in the new innovation landscape, change agents must have both an open mind and the courage to challenge what James O'Toole characterizes, in Leading Change, as "the ideology of comfort and the tyranny of custom." They would also be well-advised to absorb and digest the material in this book. Congratulations to Henry Chesbrough on a brilliant achievement.
The World It Is a'Changin.......2007-03-04
We have become accustomed to the fact that innovation has become a standard of the industrial world. Indeed companies like Microsoft market (very successfully) what is essentially nothing but an arrangement of bits. One of the things that this book brings to mind is that a lot of other companies (Procter & Gamble, Air Products) are innovative in a business that you wouldn't think of as being particularly innovative.
This book is exploring fairly new ground in its concept of 'Open Innovation,' that is creating a marketplace for innovation itself. You might not be able to capitalize on your new innovative idea, perhaps Air Products can, or perhaps you can use something that Procter & Gamble has done. And where that's a market like that, there are new specialty companies in the business of marketing innovation between companies.
We live in a time where the future is going to require major changes, peak oil and global warming to name two harbingers of change. Companies that continue to live in the old world are going to have a very hard time -- go look at Ford and GM
Book Description
In the world's harshest environments, the key to survival is adaptation. It's a simple tenet of biological life, but when you apply it to the business realm, it can yield fresh insights and innovative ideas for companies struggling to survive.
In this intriguing new book, Harvard Business School Fellow William Fulmer does just that. Drawing on ideas and concepts of biology, he provides a broad, sweeping look at the business environment today--one characterized by unprecedented volatility and constant uncertainty.
And the book supplies concrete advice on how to build an adaptive organization that's able to embrace constant change and thrive in today's highly competitive business landscape. Readers learn how to:
* Pinpoint which landscape they operate in, recognize how rugged it is, and gauge their own fitness for survival * Cultivate learning, the root of adaptive organizations, through strategic planning and organizational design * Emulate the leadership skills needed for creating adaptive organizations, both start-ups and established companies * Discover why "the edge of chaos" is the best place to be.
SHAPING THE ADAPTIVE ORGANIZATION is packed with powerful examples of how adaptive companies are coping in an unpredictable, ever-changing environment--as well as eye-opening stories of how successful businesses can quickly find themselves in serious trouble.
Customer Reviews:
Insightful!.......2001-05-08
Author William E. Fulmer uses a biological analogy to discuss how organizations form and evolve in an environment that changes through co-evolution with other organizations. Organizations must be ready to learn, and need leaders who can help participants understand change and adapt to it. Though strategic planning can help, Fulmer emphasizes preparing for continual adaptation. His thoughtful, in-depth discussion draws on research from biologists, philosophers and various academic and business writers to create a biological model. He weaves in examples of businesses that have thrived or failed based on their ability or inability to adapt. When Fulmer veers away from his biological analogy, he starts to sound much like many of the other adapt-or-die prophets out there today, but nevertheless, we [...] recommend this solid presentation of a complex subject to executives, top managers and academics.
The changing face of business strategy.......2000-04-01
While the coverage of some topics is slightly more cursory than I might consider appropriate, I have found this book useful in prompting new thinking about how we fashion strategy in the new business environment. This is an excellent book for anyone who has interests in the new understandings we are gaining in the sciences, and is wondering about how to apply the new thinking to shaping organizations, old or new. While one may question some of the corporations selected as exemplars, among the real benefits of this book is that the author steps far out onto the limb to suggest practices in current organizations that illustrate key points in the development of an organization that can thrive in the tumult of our times. I believe that this book is a must read for people interested in the evolution of business strategy.
Amazon.com
There's a belief that the rise of technology will make cities obsolete, as more people live where they choose and telecommute to work. The advent of portable cell phones, easy air travel, and hotel time-sharing encourages a sense of "placelessness"--and that bodes ill for urban clusters. But Joel Kotkin thinks this conventional wisdom is unwise: "The importance of geography is not dwindling to nothing in the digital era; in fact, quite the opposite. In reality, place--geography--matters now more than ever before," he writes. Cities will no longer be industrial or corporate centers, but rather magnets for intelligence and talent in a way they haven't been for quite some time. The paradigm is an old one:
Like the postindustrial metropolis, the preindustrial city, existing before the era dominated by mass production of goods and services, flourished by capitalizing on functions--such as cross-cultural trades, the arts, and specialized craft-based production--that could not be adequately performed by the far more numerically superior hinterland.
In this sense, the future city may have more in common with Venice during the Renaissance than Detroit during the Henry Ford era.
Kotkin does not believe all cities will thrive in this environment. He's particularly down on what he calls the "midopolis"--suburbs built mainly in the 1950s and 1960s to service the old-city model. They are now afflicted by crumbling infrastructures, rising crime rates, and declining schools. He cites Long Island and the San Fernando Valley as examples. New forms of city--Kotkin calls then "nerdistans"--are already rising in their place. They are self-contained suburbs that have few of the problems associated with urban cores, and they attract companies and workers tuned into the technological revolution. He names Austin, Texas, and Raleigh, North Carolina, as prototypes. Kotkin is a veteran business journalist who writes for The New York Times and other publications. He's written several other books, including Tribes, but The New Geography is his best yet: a smart combination of the reportage one expects from a top-drawer magazine article and the thoughtfulness one expects from a book. It may come to be remembered as a classic, an information-age groundbreaker with the influence of Jane Jacobs's The Death and Life of Great American Cities. --John J. Miller
Book Description
In the blink of an eye, vast economic forces have created new types of communities and reinvented old ones. In
The New Geography, acclaimed forecaster Joel Kotkin decodes the changes, and provides the first clear road map for where Americans will live and work in the decades to come, and why. He examines the new role of cities in America and takes us into the new American neighborhood.
The New Geography is a brilliant and indispensable guidebook to a fundamentally new landscape.
Download Description
In the blink of an eye, vast economic forces have created new types of communities and reinvented old ones.
In The New Geography, acclaimed forecaster Joel Kotkin decodes the changes, and provides the first clear road map for where Americans will live and work in the decades to come, and why. He examines the new role of cities in America and takes us into the new American neighborhood.
The New Geography is a brilliant and indispensable guidebook to a fundamentally new landscape.
Customer Reviews:
20/20 foresight.......2005-05-11
This book is a better read in 2005 than it was when it came out in 2000 because it's easier to understand the map Kotkin was drawing now that we can see it played out across the country. Creative and artistic people are just now moving into downtown Los Angeles; the traffic in Austin is awful because they didn't plan on the kind of growth they got; Detroit still has not cohesive plan in place for growth.
But the book also puts these changes into historical context, so we know that our change isn't the first of its kind and will likely not be the last.
Could sprawl be dying?.......2003-09-08
A thoughtful analysis of technology's impact on society with some ideas that are worth acting upon.
While the premise of this book is not new, Kotkin's thoughtful analysis of how technology has and is changing our geography puts this book securely in the "must read" category.
Kotkin's premise is that technology is changing America's landscape as much or more than did the Industrial Revolution. While, in some respects, technology has de-personalized our society (and there are many tangible examples; the malling and sprawling of America with "category killer" retail and soulless master planned communities), it has also emerged as a great unifier causing people to seek more connection, not less. Moreover, technology has enabled more choices, particularly on where one chooses to live and work. Consequently, the notion of "place" is more important than in the past and consumers of place are more demanding and sophisticated.
What all this means is that we are seeing a very positive evolution back to "Renaissance" type cites (populated by artisans, small business and niche players enabled with technology) where place and commerce are wed. Conversely, we are also experiencing the segregation of the "haves" of technology and subsequent wealth from the "have-nots". Further segregation, Kotkin argues, will erode the very positives that are emerging.
Kotkin takes pains to organize his argument and does so by citing both historical markers (i.e.-Fall of Rome, the Dark Ages and The Enlightenment/Renaissance) with geographical categories that describe our emerging urban landscape (ie-Valhallas, Nerdistans, Urban Cores and Midopolis).
My one complaint is that Kotkin didn't give enough airtime to the issues around how the segregation of the classes will potentially erode the more positive impacts of technology. This subject emerges only toward the end of the book with poignant comparisons to the Fall of Rome.
While some of the rosy "Internet Era" optimism (copyright 2000) is evident here, the gist of the message remains completely valid. This is an excellent book. This "New Geography" is worth thinking about and acting upon. Kotkin's last two lines are illustrative; "As people and advanced industries hunt the globe for locations, they will not necessarily seek out those places that are the biggest, the cheapest, or the most well favored by location. Instead they will seek out a new kind of geography, one that appeals to their sense of values and their hearts, and it is there that the successful communities of the digital age will be found." Do you live in one of these communities or not? Bravo!
Good book but heavy with PC stuff.......2003-05-05
Interesting and good book but he keeps telling us how wonderful immigrants are and how they revitalize cities. He mentions orientals and the businesses they start over and over but never about the Mexicans that are so much more common, with large families paying relatively little in taxes but putting a tremendous burden on local governments which in turn tax more and drive taxpayers to less "diverse" jurisdictions. Just look at California, the state with the largest portion of its population foreign born. Its a financial basket case. And New York can show you two smoking holes in the ground where mighty towers once stood. I wonder what Kotkin thinks about these immigrants' contribution to the new geography?
Fine book, but a little euphemistic.......2002-04-22
This is an even-handed, non-cheerleading account of how people are moving to different locations in America based on their "skill level" (by which I think Joel primarily means IQ): e.g., Nerds are moving to Nerdistans like Silicon Valley and Research Triangle, while Rich Nerds are moving to Valhallas like Aspen. Lots of good insights, although his celebrations of how immigrants are reviving cities kept me wondering how who caused them to die out. Reading Joel is kind of like talking to some wealthy liberal who has just bought a house in an all-white suburb but can't quite ever mention the name of the people who he's trying to get away from.
The new economy + new urbanism = new geography.......2001-07-14
You've heard it said that location is everything. City planning, urban geography, explanations of agricultural patterns, and the theory of industrial location all owe their existence to German geographers who were the pioneers of location theory; men such as von Thunen, Weber and Christaller. Edward Ullman introduced the concept of central-place theory to the US before WWII. The idea then has a long history of explaining the way things are.
All that will come to an end if it's up to Joel Kotkin. He sees the new economy with its emphasis on communication and technology as permanently seperating us from our dependance on place. This isn't revolutionary, or even a new idea. The belief that technology is more important than any physical space or location has long been the mantra of the netheads of the new economy. What else are we doing but proving the reality of this when we submit and read reviews at Amazon, and participate in a community that only exists in cyberspace?
Where THE NEW GEOGRAPHY truly breaks new ground is in the argument that the information economy has two "faces". These involve different processes and business that are beneficial to the "self-contained high-end suburds" or "nerdistans" but also, and very importantly, other elements have "taken on a decidedly more urban cast." It's a fairly good book that will be enjoyable to those with interests in geography, urbanism, and technology; it's therefore broad enough but unfortunately not deep enough to really satisfy all.
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Western Technological Landscapes (Halcyon, V. 20)
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Technological Landscapes (CRD Documents)
Richard Rogers
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Book Description
This digital document is a journal article from Structural Change and Economic Dynamics, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
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The biological evolution of complex organisms, in which the functioning of genes is interdependent, has been analysed as ''hill-climbing'' on NK fitness landscapes through random mutation and natural selection [Kauffman, S.A., 1993. The Origins of Order. Self-organization and Selection in Evolution. Oxford University Press, New York & Oxford]. In evolutionary economics, NK fitness landscapes have been used to simulate the design of complex technological systems as a trial-and-error process towards local optima. Interdependencies among a system's elements do not only render the optimisation of product design a difficult task, but also put constraints on the vertical disintegration of production. In this context, evolutionary economists introduced the concept of ''dynamic transaction costs'' [Langlois, R.N., 1992. Transaction-cost economics in real time. Industrial and Corporate Change 1 (1), 99-127; Langlois, R.N., 2001. The vanishing hand: the changing dynamics of industrial capitalism, Paper presented at the workshop Reappraising Production Theory: Concepts, Cases and Models, Max Planck Institute, Jena, November 29-December 1]. A system integrator outsourcing the production of elements to supplier firms not only transfers production, but to a large extent looses competence and control to bring about innovations in these elements. This is problematic when the element that is being outsourced is functionally interdependent with other elements in the system. The main aim of the paper is to theorise about modular product architectures that allow for outsourcing while reducing the constraints on possible innovation. The primary way to achieve modular architectures is to introduce elements that function as standards mediating interdependencies between other elements. It is argued that only a generalised version of the NK-model, which is developed in this paper, is able to represent this specific quality of standards that render architectures modular. It is also explained how the model of modular architectures differs from the model of decomposable architectures developed in a previous study [Frenken, K., Marengo, L., Valente, M., 1999. Interdependencies, near-decomposability and adaptation. In: Brenner, T. (Ed.), Computational Techniques for Modelling Learning in Economics. Kluwer, Boston, pp. 209-244]. A number of implications are derived from the generalised NK-model model that can be taken up in empirical studies on patterns of vertical disintegration in the life-cycle evolution of specific products. An evolutionary framework of vertical integration is needed to supplement the theory of the product life-cycle.
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This digital document is an article from T H E Journal (Technological Horizons In Education), published by T.H.E. Journal, LLC on September 1, 2004. The length of the article is 1355 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
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Title: "Smart" technology offers schools new solutions to save time and money in the changing landscape of education.(Industry Perspective)
Author: Kevin Hunter
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T H E Journal (Technological Horizons In Education) (Refereed)
Date: September 1, 2004
Publisher: T.H.E. Journal, LLC
Volume: 32
Issue: 2
Page: 28(2)
Distributed by Thomson Gale
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Changes in the Technological and Political Landscape
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