Full article: [[Henry W. Chesbrough, “Why companies should have open business models”|/static/files/MBI/Module%208/why%20companies%20should%20have.pdf]]

Innovation more and more becomes a collaboration between multiple parties. The article suggest that companies should open up their [[Business Model]]. Open business models enable an organisation to be more effective in creating and capturing value. They help leveraging more ideas because of their inclusion of a variety of external concepts.

Companies rarely utilize their full innovation potential. In a survey conducted by the author he investigated the [[Patent utilization rate]]. This percentage of 'patents used' was in the range of 5%-25%.

As a result of two trends - rising development costs and shorter product life cycles - companies find it increasingly difficult to justify investm
ents in innovation:
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To offset the trends of the rising development costs and short product life cycles, companies must experiment opening up their business models by using outside ideas and technologies in internal developments. Furthermore companies should allow inside intellectual property to be commercialized externally.

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bag
businessmodelling_public
created
Sat, 25 Sep 2010 19:56:34 GMT
creator
dirkjan
modified
Sat, 25 Sep 2010 19:56:34 GMT
modifier
dirkjan
tags
Article
Business
M8
Modeling
S3
creator
dirkjan