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Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era Hardcover – January 18, 2011

4.4 out of 5 stars 13 customer reviews

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Editorial Reviews

Review

thoughtful new book on innovation . (Economist.com, January 2011). this is a book I can only recommend as an essential read Chesbrough has certainly raised the bar on service innovation. (InnovationManagement.se, January 2011). looks beyond product and technological platforms to a world where consumer-facing services provide the strategy for high-value, high-growth employment. (Guardian.co.uk, February 2011). ...offers a great vision for the future and provides inspiration for how companies in both developed and developing economies could create more high value and satisfying jobs. (Anatello, November 2011)

From the Inside Flap

OPEN Services INNOVATION

The father of "open innovation" is back with his most significant book yet. Henry Chesbrough's acclaimed book Open Innovation described a new paradigm for management in the 21st century. Open Services Innovation offers a new approach that demonstrates how open innovation combined with a services approach to business is an effective and powerful way to grow and compete in our increasingly services-driven economy.

"Whether you are managing a product or a service, your business needs to become more open and more inclusive in order to be more innovative. Open Services Innovation will be an invaluable guide to intrepid managers who commit to making that journey."
—GARY HAMEL, visiting professor, London Business School; director, Management Lab; and author, The Future of Management

Chesbrough shows how companies in any industry can make the critical shift from product- to service-centric thinking, from closed to open innovation where co-creating with customers enables sustainable business models that drive continuous value creation for customers. He maps out a strategic approach and proven framework that any individual, business unit, company, or industry can put to work for renewed growth and profits. The book includes guidance and compelling examples for small and large companies, services businesses, and emerging economies, as well as a path forward for the innovation industry.

"Chesbrough shows how innovating openly with a services mindset can make you a market leader."
–CHARLENE LI, author, Open Leadership, and founder, Altimeter Group

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Product Details

  • Hardcover: 256 pages
  • Publisher: Jossey-Bass; 1 edition (January 18, 2011)
  • Language: English
  • ISBN-10: 0470905743
  • ISBN-13: 978-0470905746
  • Product Dimensions: 6.4 x 0.9 x 9.3 inches
  • Shipping Weight: 15.2 ounces (View shipping rates and policies)
  • Average Customer Review: 4.4 out of 5 stars  See all reviews (13 customer reviews)
  • Amazon Best Sellers Rank: #922,336 in Books (See Top 100 in Books)

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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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Format: 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.
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Format: 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.
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Format: 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.
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