Bringing Open Innovation to Services

By: Material type: ArticleArticleLanguage: ENG Series: ; 52Publication details: Winter 2011 0Edition: 2Description: 85-90 PpSubject(s): DDC classification:
  •  Che
Online resources: Summary: The author discusses open innovation to improve product development. He recalls a conversation with Paul Horn, who was then senior vice president of research at the International Business Machines (IBM), about his difficulty in sustaining a significant research activity at the company. The author observes that companies know less about how to innovate in services than about how to develop new products and technologies. He cites Michael Porter's depiction of a value chain in his book "Competitive Advantage." The two types of open innovation are discussed, including greater use of external ideas and technologies in the business and allowing some ideas, technologies or processes to be used by other businesses.
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The author discusses open innovation to improve product development. He recalls a conversation with Paul Horn, who was then senior vice president of research at the International Business Machines (IBM), about his difficulty in sustaining a significant research activity at the company. The author observes that companies know less about how to innovate in services than about how to develop new products and technologies. He cites Michael Porter's depiction of a value chain in his book "Competitive Advantage." The two types of open innovation are discussed, including greater use of external ideas and technologies in the business and allowing some ideas, technologies or processes to be used by other businesses.

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