Open Innovation in the Twenty-First Century

2019 ◽  
pp. 28-50
Author(s):  
Henry Chesbrough
Keyword(s):  
Intellectual Property ◽  
Business Model ◽  
Open Innovation ◽  
Business Models ◽  
Technology Development ◽  
First Century ◽  
The Core ◽  
Inside Out ◽  
Current Business

This chapter reviews the core ideas behind Open Innovation, discusses what it is and is not, and shows how it can deliver more value to organizations and to society. Outside-in Open Innovation strengthens the current business and current business model, while inside-out Open Innovation searches for alternative businesses and business models. The chapter explores the connection between technology development and the business model, and examines the use of Open Innovation in intellectual property and in services. However, Open Innovation is not a panacea. Its boundary conditions and limitations must also be acknowledged. As with Chapter 1, the processes of generation in innovation must also be supported by equal attention to innovation dissemination and innovation absorption within the firm, in order for organizations to create and capture value from Open Innovation. Finally, Open Innovation is moving beyond collaborations between two actors, to a broader ecosystem focus that connects many actors together.

scholarly journals THE WORLD DEVELOPMENT OF THE DIGITAL ECONOMY: THE MAIN DEVELOPMENT STRATAGEMS

2021 ◽  
Vol 2 (1) ◽  
pp. 91-96
Author(s):  
Olena Taranukha
Keyword(s):  
Business Model ◽  
Business Models ◽  
New Technologies ◽  
Technology Development ◽  
Well Being ◽  
Digital Economy ◽  
The Other ◽  
Innovative Solutions ◽  
The World ◽  
New Business

The digital economy allows to compose the new business models, digital platforms and services, which create new types of economic activity, as well as the transformation of traditional industries. Due to the industries transformation to the digital economy there is the transformation of the world economy, or rather the economy itself is being digitized The purpose of the paper is to reveal the essence and features of the digital economy formation and to consider what significant transformations will take place in the world by the analysis of major trends in the near future. Accumulating all the concepts, we can say that the digital economy is the rather complex term, but we can assume that its development is based on the key components According to forecast estimates, the most advanced retail companies will begin implementing the service of virtual and voice search of goods by 2022. This will require from the company the better understanding of the consumers wishes, their interests and intentions. Consider the main technological development trends for 2020-2025 based on the data of the major consulting agencies and the consulting company "Cartner" Figure 2 shows the forecast curve of the new technologies development. Innovative development triggers that will actively influence the technology development include the following: the Authenticated Provenance, Low-Cost Single Board Computers at the Edge, Self-Supervised Learning, BMI (Brain Machine Interface), active development of "Packaged Business Capabilities" services, Digital Twin of the Person and Composible Enterprises. The peak of disappointments will be Social Distancing Technologies and Secure Access Service. The source of expectations will be the development of Carbon-Based transistors technology and Human digital Ontologies. The formation of a productivity platform will be based on trends in Self-Development and Self-Education. Digital IT trends grow, evolve and acquire new properties of social technologies that can influence the structure of the community, form dependencies and demand. Therefore, companies, large corporations and government need to move to more flexible composite business architectures. The modular business model is based on four basic principles: modularity, efficiency, continuous improvement and adaptive innovation. This business model allows to move from rigid traditional planning to a flexible response to rapidly changing business needs. In general, it creates opportunities for innovative approaches, reduces costs and improves partnerships. It is important to pay attention to the other technologies in the new business model such as bundled business services, data factories, private 5G networks and embedded artificial intelligence. Thus, as a result of the research it is proved that the digital world is a completely new order of life, which requires to change our thinking. The person should be always focused on the new technologies and methods in order the enterprises remain competitive and constantly developed, it will promote the economy development and the growth of well-being of the society. So, taking into account the global trends in technology development, Ukraine has to adapt to the new standards quickly and implement innovative solutions for the economic development. The digitalization of the economy, on the one hand, is the key to economic success, on the other hand, it is the driving force in the conditions of the conceptual understanding of the digital economy essence. The growth of the quality and innovation level of domestic goods and services should provide not only sustainable economic growth, but also competitive advantages with further integration into the EU. At the same time, there is the relevant need of the scientific and technological research, the formation of a certain business ("digital") culture, the implementation of smart city ideas in Ukraine based on the development of local communities and the emergence of new initiatives and proposals for innovative solutions.

scholarly journals Mobile Technology as Part of Banks’ Business Model

2019 ◽  
Vol 1 (340) ◽  
pp. 73-90
Author(s):  
Monika Klimontowicz ◽  
Janina Harasim
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Mobile Technology ◽  
Business Models ◽  
Technology Development ◽  
Banking Market ◽  
Information And Communication ◽  
New Challenges ◽  
Further Development ◽  
Theoretical Considerations

During the last few decades, the banking market has changed significantly making banks face new challenges. Mobile technology development has had a powerful impact on all human activities including banking. Mobile technology has changed both the information and communication sharing, as well as customers’ market behaviour. All these changes should be taken into account in the process of searching for competitive advantage factors and designing banks’ business models. The purpose of the paper is to propose the framework for banks’ business model that incorporates using mobile technology and creating a competitive advantage. The foundation of this framework is based on theoretical considerations. The paper analyses contemporary business models used by banks, their value proposals and their relation to customers’ needs and expectations. The research highlights the routes for using mobile technology in the further development of banks’ business models from the perspective of the process of creating and delivering value for customers.

Why do organizations share their most important capital? The provision of an open innovation model based on human capital

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elham Sahami ◽  
Ali Safari ◽  
Reza Ansari ◽  
Ali Shaemi Barzoki
Keyword(s):  
Human Capital ◽  
Open Innovation ◽  
Design Methodology ◽  
Social Aspects ◽  
Structured Interviews ◽  
Final Model ◽  
Content Type ◽  
The Core ◽  
Innovation Model ◽  
Inside Out

Purpose In this study, an open innovation (OI) model was designed in which the organization’s human resource systems comprise the main core. To identify the various dimensions of the model, this study aims to investigate how and under what conditions the organizations update and upgrade their knowledge and experiences in the human capital (HC) systems domain within the OI framework and in line with sharing them with other organizations. Design/methodology/approach In this qualitative study, the data were collected by means of semi-structured interviews and analyzed through grounded theory, which led to the extraction of the final model. Findings The implementation of the HC-based OI helps upgrade knowledge in the organization and industry knowledge, create win-win relationships and increase the interaction capital, power and credit of the organization. Originality/value In this study, HC systems have been regarded as the core of the OI model (rather than an intervening factor in OI). This is the main innovative aspect of the current study. In addition, the special attention paid to the inside-out approach to OI and the examination of the human and social aspects of inter-organizational knowledge sharing – particularly in the light of the fact that the study was carried out in a developing country – are the other innovative aspects of this study.

The Business of Journalism and Studying the Journalism Business

2021 ◽  
pp. 137-150
Author(s):  
Nikki Usher ◽  
Mark Poepsel
Keyword(s):  
United States ◽  
Business Model ◽  
Business Models ◽  
The United States ◽  
Is Research ◽  
Different Types ◽  
Social Landscapes ◽  
Current Business

This chapter challenges the conventional assumption that journalism can be saved through a singular business model. We argue, using examples from the United States, that scholars and journalists need to be more holistically engaged with the economics of media more generally, and different types of journalism beyond newspaper and digital-first outlets. Second, scholars and journalists need to be more intellectually honest about their aims in conducting this research: Is research on news business models aimed at propping up corporate-funded journalism? What is the purpose of critiquing current business models, and are the solutions proposed really tenable or equitable within current political and social landscapes? Third, universities should consider their strengths and limitations in serving as potential “bubbles” for innovation, experimentation, and insulation from commercial pressures.

scholarly journals Measuring the Efficiency of U.S. Pharmaceutical Companies Based on Open Innovation Types

2018 ◽  
Vol 4 (3) ◽  
pp. 34 ◽  
Author(s):  
Kisoon Shin ◽  
Daeho Lee ◽  
Kwangsoo Shin ◽  
Eungdo Kim
Keyword(s):  
Open Innovation ◽  
Business Models ◽  
Group Analysis ◽  
Pharmaceutical Companies ◽  
External Resources ◽  
New Business ◽  
Enterprise Level ◽  
Inside Out ◽  
New Business Models ◽  
Level Analysis

The pharmaceutical industry, where research and development (R&D) efficiency is central to company survival, has recently faced significant challenges. To increase efficiency, companies must implement strategies such as open innovation (OI), wherein they sell their intellectual property, maximize their use of external resources, adjust their structures, and implement new business models. In this study, we divided 701 U.S. pharmaceutical companies according to their OI strategies to measure and compare their R&D efficiencies between 2001 and 2016. We analyzed the deal data of companies by first dividing them into four groups (inside-out, outside-in, coupled, and closed) to calculate R&D efficiency using stochastic and meta-frontier analyses. In the first group analysis, the coupled group shows high technical efficiency, but in an overall comparison, the inside-out group achieves the highest efficiency values. These values increased between 2005 and 2010, when the R&D crisis in the industry was great at its highest. We thus identified the characteristics of each group based on our results, and presented extensive analyses using a time-series comparison and enterprise-level analysis. We claim that pharmaceutical companies can still cope with the current R&D crisis by implementing different OI strategies.

scholarly journals MERCHANDISING OF PERSONALITY RIGHTS: A Distinctive Sign for Business Models in the Fashion Field / MERCHANDISING DE DIREITOS DA PERSONALIDADE: Um Sinal Distintivo para Modelos de Negócios no Ramo da Moda

2018 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Rosalina Corrêa de Araújo ◽  
Patrícia Peralta ◽  
Bárbara Aime
Keyword(s):  
Intellectual Property ◽  
Business Model ◽  
Business Models ◽  
Model Based ◽  
Personality Rights

This introductory study aims to assess the personality rights as a distinctive sign and also the constructionof its protection in the intellectual property scope. It has been pursued to demonstrate that the merchandisingof personality rights has been evolving to become a usual business model based on the commercial exploitationof fame that its holders have, therefore, reorienting the engagement of names related to luxury fashion.

Innovation in Takaful

2020 ◽  
pp. 623-641
Author(s):  
Najmul Hussein Rassool
Keyword(s):  
Business Model ◽  
Business Models ◽  
Primary Objective ◽  
Financial Security ◽  
Mutual Assistance ◽  
The Core ◽  
Steady Growth ◽  
Rules And Principles ◽  
Core Issue ◽  
Mutual Responsibility

Takaful, an alternative to conventional insurance, is based on Shari'ah principles. It is founded on the concept of ta'āwun, which means “mutual assistance”. The practice of Takaful is to provide participants financial security based on mutual responsibility and assistance. The primary objective of Takaful is not to maximize profits as in conventional insurance but rather to help participants—in a spirit of solidarity—to face well-defined risks. Despite its steady growth, the Takaful industry faces many challenges. The core issue remains, the structure and application of the Takaful business model. This chapter critically analyzes the main business models and proposes a Takaful business model that matches the expectations of both the shareholders and the participants in line with Shari'ah rules and principles. The model is structured on Musharakah principles at both the shareholder and participant levels and has been termed “The Musharakataan Business Model.”

Developing Business Models for the Underground Labs

2020 ◽  
Author(s):  
Päivi Aro ◽  
Helena Ahola
Keyword(s):  
Business Model ◽  
Business Models ◽  
Service Design ◽  
Research Process ◽  
Professional Services ◽  
Management Approach ◽  
Value Proposition ◽  
The Core ◽  
Business Model Canvas ◽  
Value Propositions

<p><strong>DEVELOPING BUSINESS MODELS FOR THE UNDERGROUND LABS</strong><strong> </strong></p><p>The purpose of this case study is to describe the process of developing business models for the underground labs (ULs) and their network in a Baltic Sea Interreg project (BSUIN). The RQs are the following:</p><ul><li>What kind of business models the ULs in the project have?</li> <li>How could their business models be developed by focusing on specific customer segments and services and their value propositions?</li> <li>What kind of business model(s) could serve best the network of ULs?</li> </ul><p>Professional services, such as ULs also offer, can be characterized by high labour content, high customization and high customer contact. The distinguishing feature of these services is also their knowledge-intensive nature. Business model describes the logic of how a company intends to make money.  Business Model Canvas is a useful tool for describing, analyzing and designing business models. At the core in the business model is Value Proposition. The value proposition describes the benefits customers can expect from the services and products.</p><p>Service Design was used as an approach in the project. It is a mindset, a process, a toolset, a cross-disciplinary language and a human-centred management approach. Data was gathered by facilitating Service Design workshops and analyzed by qualitative methods. The research process consisted of three phases: 1) describing and analyzing the existing business models of the ULs 2) developing business models of the ULs focusing on specific customer segments and services and their value propositions, and 3) developing business models for the network of the ULs.</p><p>In the Exploration workshops the business models of the ULs were described and analyzed. It can be concluded that paying customer segments are few in number, and fixed costs are significant. Each UL is unique having specific know-how, expertise and infrastructure. </p><p>In Creation workshops the focus was on specific customer segments and services and their value propositions. The outcomes of the workshops were promising and recommendations for the ULs were made. ULs should look for new customer segments and create new services and value propositions. In addition, they should create and describe business models for the chosen customer segments and services.</p><p>In Reflection workshops business models for the network of the ULs were developed. The focus was particularly on core, supporting and additional services of the ULs. The core (essential) services are research infrastructure, underground infrastructure, site characterization and wide expertise for underground projects. A generic business model for the network was described based on the data, results, analyses and feedback of all the previous workshops.</p><p>It is challenging to develop business models for the ULs because they have not been business oriented. Every UL is unique, and the expertise is related to underground sciences. Business orientation would offer them an opportunity to boost underground scientific research which is the key element in the business model.</p>

scholarly journals How leaders manage their business models using information

2018 ◽  
Vol 31 (2) ◽  
pp. 150-167 ◽  
Author(s):  
Brett Parnell ◽  
Merlin Stone ◽  
Eleni Aravopoulou
Keyword(s):  
Public Sector ◽  
Business Model ◽  
Business Models ◽  
Theory Approach ◽  
Large Firms ◽  
Content Type ◽  
Theoretical Contribution ◽  
Sector Decision ◽  
The Uk ◽  
Current Business

Purpose The purpose of this study is to explore the information leaders keep their organisations competitive by determining if their business model is under threat and/or needs changing and whether business model innovation is needed. Design/methodology/approach This study uses a grounded theory approach to probe an area which has been so far researched very little. Findings The paper identifies that while quality of management information affects leaders’ decisions about whether their business model is under threat or needs changing, leaders may or may not choose to use it. Research limitations/implications The research was carried out with large firms in six sectors in the UK. Research in other sectors, in smaller firms and in other countries, should be carried out to test generalisability. Practical implications Although many large firms have made very large investments into areas such as customer insight in the past few years, there may be resistance to using this information even if it indicates that a firm’s current business model is under threat, because of straightforward denial or because of the inertia associated with factors such as difficulties in changing business models or the extent to which the firm’s financial situation is based upon exploiting its current business model, no matter how much that model is under threat from firms with other business models. Therefore, in strategic reviews, firms should factor in these risks and seek to mitigate them. Social implications In public sector organisations, these risks of denial or inertia may be stronger because of conservatism and lack of willingness to take the risks of change, so public sector decision makers need to be particularly aware of these risks and seek to mitigate them. Originality/value The theoretical contribution of this research is to add to business model and strategic management literature by explaining the role that information plays in business model choice and how its role depends on whether and how the information is used by senior management.

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