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Open Innovation: Opportunities and Challenges for
Business Models
CeDEM 2015, Krems
Karl-Heinz Leitner
Innovation Systems Department
The evolution towards open innovation
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Eric von Hippel (1978): Customer-Active Paradigm
Richard Stallmann (1983): Free Software
Eric von Hippel (1984): Lead Users
Bengt-Ake Lundvall (1988): User-producer interaction
Henry Chesbrough (2003): Open Innovation
Henry Chesbrough (2010): Open Business Models
Neue Formen der Innovation
We may end up in an Open Source Society...
What if open source development is no longer limited to software development but
becomes an all compassing innovation pattern?
Many products and services are provided by people contributing bits and pieces to
various technological and social innovation projects. Open source business models and
coordination mechanism abound.
Open Innovation and Science
Trend towards using Social Media and the Internet (Open
Science) as well as for an involvement of citizens (Citizen
Science)
New forms of publication and presenation (open access)
Participatory Sensing: Individuduals and communities
started to collect and store data in very different areas
ranginf from medicine to arts
Daten-driven research methods - ‘‘The quest for knowledge
used to begin with grand theories. Now it begins with
massive amounts of data“ (Wired)
Examples:
„PatientsLikeMe“, „23andMe“, “Whole Brain Catalogue”,
„Science Starter“, „Road Kill“ …
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Open Innovation offers huge opportunities für business,
governments and society with new challenges …
How to involve customers and citizens in the development? (Incentives and motivations)
What is the optimal level of participation? (too much participation and to little coordination may slow down the innovation process or result in „consensual solutions“ with low innovativeness)
Organisations have to initiate self-organisational processes which are more difficult to control
Companies still have to define their core competencies and protect specific knowledge bundles and routines
Profit as the main driver of innovation activity is being challenged: Individuals contributing for pleasure, social entrepreneurship and social innovation are more relevant, too
Profit and non-profit organisations have to develop new (hybrid) business models: (dealing also with IPR) e.g. 3P Business Models: Profit, People, Planet
Business Models
Add-on Additional charging for extras, basis product plus add-
ons Ryan Air, SAP, Dell
Fractionalized Ownership Shared use, shared ownership, sell partial use of something
Time Sharing, HomeBuy, NetJets
Guaranteed Availability Customers buys availability (e.g. tool availability),
often in combination with pay per use Hilti, OTIS, Schindler
Freemium Choose between a free basis and paid premium
service LinkedIn, Sykpe,
Dropbox, gmx
Hidden Revenue Seek alternative sources, e.g. by advertising Facebook, Twitter,
Slideshare,
Metro newspapers
Pay per Use Specific usage of a service or product by the
customer is metered and charged; Pay per click (in
internet)
Rolls Royce, Car2Go
Razor and Blade The basic product is offered at a bargain price below
cost or even for free, additional products needed are
priced higher.
Gillette, Nespresso,
Standard Oil
Rent instead of Buy Pay for the temporary right to use, e.g. Rent per
minute Car2go, avis
Revenue Sharing Individuals or forms work together and share resulting
revenues, someone operates a platform App downloads,
Apple app store
Source: Gassmann, Osterwalder
Elements:
Customer
Value Proposition
Value Chain
Profit Mechanism
Summary
Open Innovation is an evolutionary process which will move on in
the future
There is increased competition between private, public, profit and
non-profit actors; new forms of monopolies will emerge, too
Profit as well as non-profit organisations have to define and adapt
their business models (how to generate revenues covering the costs
(and making profits))
Information und Kontakt
Priv.-Doz.Dr. Karl-Heinz Leitner
AIT Austrian Institute of Technology
Innovation Systems Department
Donau-City-Strasse 1
A-1220 Vienna
www.ait.ac.at
Mail: [email protected]; [email protected]
Projekt Homepages:
www.rif2030.eu www.innovation-futures.org
