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14 of 15 people found the following review helpful
4.0 out of 5 stars Service and Business Model Innovation
Henry Chesbrough literally "wrote the book" on Open Innovation years ago. Today (2011 timeframe) every firm is trying to understand how to gain more ideas from customers and business partners, and frankly, few have really figured it out. And that's just focused on product innovation and the pipelines and structures that Chesbrough introduced in his first book. Which...
Published on January 31, 2011 by Jeffrey Phillips

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10 of 10 people found the following review helpful
3.0 out of 5 stars Important topic
Service innovation is a very important topic and open innovation is a fashionable idea. Still this book only deserves three stars. The biggest problem is that we know so little about service innovation as opposed to product or process innovation. So the author is applying his ideas on open innovation to an area in which we do not have much knowledge. That makes the book...
Published on March 18, 2011 by Jackal


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14 of 15 people found the following review helpful
4.0 out of 5 stars Service and Business Model Innovation, January 31, 2011
This review is from: Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era (Hardcover)
Henry Chesbrough literally "wrote the book" on Open Innovation years ago. Today (2011 timeframe) every firm is trying to understand how to gain more ideas from customers and business partners, and frankly, few have really figured it out. And that's just focused on product innovation and the pipelines and structures that Chesbrough introduced in his first book. Which makes Open Services Innovation interesting and problematic at the same time.

Problematic because so many firms are just really beginning to understand "open" innovation, and taking small steps to understand how to best interact with customers and partners. That means that the graduate level class of open services innovation is valuable, but probably beyond many firms at this point. After all, asking a firm to innovate around services or business models is difficult, and asking them to use open innovation is difficult. Combining the two is a huge leap for many firms. I suspect that this book will become really popular in three to five years, once the frameworks for open innovation have been accepted and become more established.

The book is interesting because it assumes that the reader is familiar with and has implemented some aspects of open innovation, and it spends far much more of its time and focus on service and business model innovation. In fact it does a lot of what White Space Innovation by Mark Johnson did, only without Johnson's framework. The book is valuable because it discusses innovation in areas where many firms are only getting started - innovation in processes, services, business models and customer experiences. So in that regard, a firm or individual new to innovation can pick up the book and ignore the "open" aspects, which are relatively few, and learn a fair amount of innovation in services, business models and experiences, which is equally valuable and in fact is probably best suited for many firms.

The book also points out what I consider to be a real problem with book publishing. Chesbrough has a good idea and conveys it in four or five solid chapters. After that, he is forced to stretch the material to consider Open Services Innovation for Large firms, Open Services Innovation for Smaller Firms, Open Services Innovation for Services Industries, and so forth. I don't think these concepts add a lot to the discussion and they feel like filler in order to stretch the content to legitimate book length. You can get all the value you need from this book by reading the first 130 pages. That's not a critique on the content, but a comment on the format and the expectations of a publisher.

Chesbrough is to open innovation what Christensen is to innovation in general, and his concepts and ideas are spot on. What's possibly unfortunate about this book is that he is covering a subject that is akin to quantum physics for many firms, who are still trying to get the grasp of the Newtonian Physics of simple, open innovation. Many firms will buy this book, but I suspect most of them won't be able to use it effectively until they have a better grasp of "open" innovation, unless they toss out the open focus and think through innovation around services and business models.

One brief complaint - Many open innovation practitioners fail to communicate effectively that Open Innovation is a generic term for a number of different approaches to working with clients and customers to gather and manage ideas. You can see different types of Open Innovation in IdeaStorm, from Dell, IdeaJams, from IBM, Innovation Contests like the X-Prize, technology transfer organizations and solution providers like Innocentive. Be careful when considering Open Innovation, as it is only a catchall phrase for a lot of different tools and techniques, which have different applications and different downstream implications. I wish that authors writing about Open would address this. I've written a short chapter on this in the book A guide to Open Innovation and Crowdsourcing edited by Paul Sloane: [...]
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10 of 10 people found the following review helpful
3.0 out of 5 stars Important topic, March 18, 2011
By 
Jackal (New Hampshire) - See all my reviews
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This review is from: Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era (Hardcover)
Service innovation is a very important topic and open innovation is a fashionable idea. Still this book only deserves three stars. The biggest problem is that we know so little about service innovation as opposed to product or process innovation. So the author is applying his ideas on open innovation to an area in which we do not have much knowledge. That makes the book quite messy and certainly not a definitive read.

If you're new to the idea of open innovation I would go for the author's first two books instead (Open Innovation: The New Imperative for Creating And Profiting from Technology, Open Business Models: How to Thrive in the New Innovation Landscape). These books were more solidly built on research so they are better. Chesborough seems to be going down the same line as Christiansen, who started with a book based on his research ((The Innovator's Dilemma: The Revolutionary Book that Will Change the Way You Do Business (Collins Business Essentials)) and then wrote a number of additional increasingly shallow books without any real new content.

I still give the book three stars because it is an honest attempt to deal with an important issue for the modern economy.
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5 of 6 people found the following review helpful
5.0 out of 5 stars The "Next Practices" of Open Innovation, March 13, 2011
This review is from: Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era (Hardcover)
Every once in awhile, a business book comes along that is so timely, so helpful to the right audience and so filled with common sense principles that you kick yourself for not thinking of it! But being in the right place at the right time with what is most needed is why people like Dr. Henry Chesbrough, the "Father" of Open Innovation, are so successful. His latest book, Open Services Innovation, is just such a tool that is so needed for business today.

In a global economy stung by commoditization and a lack of differentiation, only those organizations that stand out via services, business models, operating processes and customer focus will succeed. The premise of Open Services Innovation is that, in a product-based economy, after the exchange of a product is executed between provider and consumer, the provider's "job" is essentially done. But in a services-based economy, the exchange of a service between provider and customer is not complete until the customer's need is fulfilled. This gives the provider much more time to interact with the customer, understand their needs, analyze trends, and study behaviors, all to simply discover ways to better serve that customer and their needs. And that results in a closer relationship. And that results in growth. Get it?

Not yet? Okay, how about this great anecdote from the book about a Wal-Mart data mining initiative that studied customer purchasing trends in the lead up to Hurricane Charlie. Wal-Mart, traditionally thought of as a simple product provider, noticed through their analysis of the purchase trending data that people tended to stock up on, among many "normal" survival products, Pop-Tarts and beer. Oh, and not just any Pop-Tarts, but Strawberry Pop-Tarts. So, fresh with this knowledge, and with Hurricane Frances taking aim on Florida, they sent added supplies to Florida stores, including more Strawberry Pop-Tarts and beer, which promptly flew off the shelves. The combination of customer insight and a service mentality sold more product. Get it now?

Look, unless you've been under a rock for the past few years, you know "open innovation" is hot. Opening up R&D to outside ideas, banishing "not-invented-here" corporate mindsets, reaching out to customers and interacting with them to learn about their "jobs to be solved" have all changed the innovation management landscape. But where this book steps clear of the other "open innovation" offerings is how it extends these concepts beyond current thinking and into the service-based economy.

Dr. Chesbrough takes us into places where there aren't typically R&D functions. Services don't typically evolve from prototypes and research experiments. But, despite these differences in traditional innovation models, some service organization have leveraged open innovation concepts to get closer to their customer's needs and thus, closer to their wallets. Cool ideas like experience point mapping, specialization, niche services, co-creation and business model changes now fill the open services innovation management space. This is key...because in a world rapidly being consumed by the commoditization of products, you only really have services left in which to interact, participate, share and otherwise wow the customer. If you can leverage the best of what we know from traditional open innovation strategy and transform the services-based experience, you just leapfrogged your competition. How cool is that?!

Dr. Chesbrough also delivers what few business writers can nowadays, and that is cold, hard examples from not just the "big guys" like Xerox or KLM, but smaller firms that you've never heard of...yet, and global firms that are just starting to emerge. Remember that great Gary Hamel quote that basically says "somewhere, in some garage, someone is crafting a bullet with your organization's name on it?" Well, these emerging market service providers, who are learning to master the concepts of open innovation and customer observation, are those "someone's" and "somewhere's."

Please, do yourself a favor and get this book. Sit down and dedicate some time to really study it. Fold the corners...highlight it...write in it. Its only 200ish pages. But it is chock-full of information you need to keep pace with, and then lead, the transition from a product-based economy to a services-based economy.
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4 of 5 people found the following review helpful
5.0 out of 5 stars Bringing service innovation to a new level, February 13, 2011
This review is from: Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era (Hardcover)
This is perhaps Henry Chesbrough's best book. While his first, Open Innovation (2003), already is a classic that entirely changed the way how many companies think about innovation and technology management, Open Service Innovation has a much broader and more strategic impact that not just covers R&D and technical problem solving, but a firm's business model and value proposition in general.

As much as the book is about open innovation of services, it is about service innovation in general - a practice that in most companies (even in pure service companies) is still not fully understood nor executed. In this way, readers may get a double profit from reading Henry's book: First, they learn how to increase productivity of the development process of a new service by connecting with the outside world. But secondly, they also learn how to design their service business model in the first place in a way so that it can create sustainable competitive advantage. I also liked that in this book, Chesbrough finally has an entire chapter on customer co-creation and the role of customers and users in an open innovation process.

As always with Henry Chesbrough's books, this one is equally routed in the literature and in his strong experience of interacting with many companies and managers directly. Easy to read but a lot to think about!
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1 of 1 people found the following review helpful
5.0 out of 5 stars henry Chesbrough is synthesizing his open innovation thinking, June 3, 2011
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This review is from: Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era (Hardcover)
In Henry Chesbrough's book "Open services innovaton - rethinking your business to grow and compete in a new era" he offers a synthesis of his preceeding works on the same theme. The author successfully addresses a wider circle of readers, not only experts in business economy and administration but also social and organizational psychologists who would find in this book relevant contextual approaches in studying psychological implications of innovation strategies.
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1 of 1 people found the following review helpful
5.0 out of 5 stars Scalable Services and New Business Models, May 15, 2011
By 
Francisco E. Barguil (Sao Paulo, SP Brazil) - See all my reviews
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This review is from: Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era (Hardcover)
Prof. Chesbrough has brought his vision from Open Innovation to the services arena, and have shared his privileged sight and years of reflection with everyone involved in the development of new services, and specially to managers of product firms who are engaged in transforming a product-centric thinking to a service-centric one. The basic question that the book offers is "How to escape the commodity trap?". To answer this question, Prof. Chesbrough proposes an "Open Services Innovation Concept Map" based on four elements:
1) Think of Your Business as a Service Business
2) Co-Create With Your Customers
3) Embrace Open Innovation
4) Exercise the Transformation of Your Business Models
After establish this foundation on solid and rigorous academic bases, illustrated by real market examples, the book discusses how to apply this framework to different contexts - larger and small companies, services businesses and emerging economies.
It's certainly a must read to managers and entrepreneurs of all industries.
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1 of 1 people found the following review helpful
4.0 out of 5 stars A company should become a knowledge-intensive service provider that sells products that other companies will want to expand on., January 22, 2011
This review is from: Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era (Hardcover)
Interesting book. I liked it. I did not find it particularly well written. I had to step back from it after I read it in order to figure out exactly what I thought it was talking about. As a result, I cannot say I loved the book. My take on the main points to garner from this tome is as follows:

I. Become a service oriented company that sells a product. [Chapter 2]
II. Don't just serve your customers, service them. [Chapter 3]
III. Encourage other companies to use your products in their business. [Chapter 4]
IV. Think outside the box to get better at points 1-3 above (tinker with your biz model). [Chapter 5]

The problem the US faces today is a lack of economic growth. Historically the US has been a country dominated by companies that were product oriented and merely served their customers. We thought the products up, we built them, and then we sold them. Economic growth was easy as long as the products we sold were popular. Lots of people in the US were employed as assembly line workers when the US was king at manufacturering. Then globalization started to take root and most of the manufacturing jobs dried up in the US. Today 80% of the US economy depends on service oriented companies rather than product (manufacturing) companies. Unfortunately, service oriented companies do not lend themselves that easily to economic growth, at least the ones that are not "knowledge-intensive services."

This book suggests that the US should think in terms of becoming a country dominated by companies that provide knowledge-intensive services along with a product or products. We still should think in terms of selling products, but not make that the focus. However, we should emphasize products that can be used as a platform for unrelated companies to use to peddle their own goods and services. The author suggests that the more a product becomes a platform for other companies, then the less likelihood that product is going to become a comodity and or outdated quickly. And business cannot succeed if the wheel has to be continuously reinvented because of comoditization or obsolescence.

In theory the author makes some good points. Whether or not it is practical in the existing framework under which the world operates is another question. Maybe the framework has to be changed? In any event, what the author suggests can be implemented by savvy entrepreneurs. And in my humble opinion such savvy entrepreneurs should do so. 4 stars!
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5.0 out of 5 stars very good read, January 28, 2014
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Great read that shares many ideas in common with outside thinking, which could be used for approaching a customer centric modern approach to providing services and innovation.
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2.0 out of 5 stars not that brilliant comparing to the previous, June 9, 2013
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This review is from: Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era (Hardcover)
not that brilliant comparing to the previous, I got felling that author recycle his previous success and simply earn more money.
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5.0 out of 5 stars Title, January 22, 2013
One of the best books i've read. Very interesting and easy to read. I recommend to all the people who is interested in innovations
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Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era
Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era by Henry William Chesbrough (Hardcover - January 18, 2011)
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