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