Lean Startup and Open Innovation

2019 ◽  
pp. 86-102
Author(s):  
Henry Chesbrough
Keyword(s):  
Open Innovation ◽  
Business Models ◽  
Senior Management ◽  
Large Company ◽  
Business Opportunities ◽  
New Business ◽  
Reduced Costs ◽  
Speed To Market ◽  
New Business Models ◽  
Lean Startup

Lean Startup is a new and exciting process to discover new business opportunities and new business models. However, the concept must be adapted before it can work effectively inside established companies. Just as startups are not tiny versions of large companies, so too are large companies not simply large versions of startups. Lean Startup inside large companies requires careful internal negotiations with senior management, as well as getting out of the building to find customers. Open Innovation can complement and extend Lean Startup processes. Both use resources efficiently, while Open Innovation also leverages other people’s resources and shares risk. Telefonica provides a good example of Lean Startup inside a large company. It has reduced costs by 48 percent per project, increased its speed to market by 260 percent, and pursued 45 percent more chances to innovate within the same budget.

scholarly journals 5G Business Opportunities – New Business Models, Pricing, and Use Cases

2021 ◽  
Vol 2 ◽  
pp. 79-84
Author(s):  
Peter McCarthy-Ward ◽  
Andy Valdar ◽  
Stuart Newstead ◽  
Stuart Revell
Keyword(s):  
Business Models ◽  
Use Cases ◽  
Business Opportunities ◽  
New Business ◽  
New Business Models

How do SMEs Use Open Innovation When Developing New Business Models?

2018 ◽  
pp. 179-209 ◽  
Author(s):  
Robert William Anderson ◽  
Nuran Acur ◽  
Jonathan Corney
Keyword(s):  
Open Innovation ◽  
Business Models ◽  
New Business ◽  
New Business Models

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.

Recommendations to Enhance Communication With Users Through Prototypes and to Assist Open Innovation

2019 ◽  
pp. 147-167
Author(s):  
Thiago Bertolini dos Santos ◽  
Luiza de Castro Olivan ◽  
Luísa Cagica Carvalho ◽  
Lílian Neto Aguiar Ricz ◽  
Janaina Mascarenhas Hornos da Costa
Keyword(s):  
Open Innovation ◽  
Business Models ◽  
New Products ◽  
Innovation Process ◽  
New Business ◽  
Market Needs ◽  
New Business Models

Innovation has been increasingly becoming a major competitive differential for companies. However, innovation alone is not enough. Innovations encompass new products to new business models, but they need well-defined strategies to deliver value according to the market needs and to be well accepted. Innovations looking at differentials for the users should consider their problems, including products and services, so that they can promote solutions to meet the users' expectations. Therefore, the involvement of stakeholders in the innovation process who are beyond the organisation's frontiers, such as users, is important as it allows the inclusion of new abilities, resources, and knowledge in the process of development.

Web-Based Services and Future Business Models

2013 ◽  
pp. 1-13
Author(s):  
Valentina Ndou ◽  
Pasquale Del Vecchio ◽  
Giuseppina Passiante ◽  
Laura Schina
Keyword(s):  
Social Networking ◽  
Open Innovation ◽  
Business Models ◽  
User Perspective ◽  
Web Based ◽  
New Business ◽  
New Business Models ◽  
Computing Approach ◽  
Future Business ◽  
Technology Trends

A paradigm shift is taking place today that provides a compelling value proposition for organizations and requires the adoption of new business models for the management of their core activities in a competitive way. The new emerging business models are related with open innovation, cloud computing approach, as well as social networking, which creates opportunities for firms to harvest the resources and knowledge that could be found outside the firm’s boundaries. However, in order for firms to grasp most of the emerging technologies, they should reconfigure their activities to tackle the challenge and opportunity presented by new innovations and technology trends. In this chapter, the authors demonstrate the changes that these new trends are witnessing for the business models of firms from a provider and user perspective.

scholarly journals How Does a Social Open Innovation Succeed? Learning from Burro Battery and Grassroots Innovation Festival of India

2018 ◽  
Vol 24 (1) ◽  
pp. 122-143 ◽  
Author(s):  
Jinhyo Joseph Yun ◽  
Abiodun A. Egbetoku ◽  
Xiaofei Zhao
Keyword(s):  
Open Innovation ◽  
Business Models ◽  
Social Innovation ◽  
Innovation Policy ◽  
Success Factor ◽  
First Case ◽  
Grassroots Innovation ◽  
New Business ◽  
New Business Models

As people pay attentions to social innovation as the source of innovative ideas and the repository of new business models, this study poses the following research questions: How does a social open innovation succeed? What is the success factor of social open innovation? What are the successful dynamics of social open innovation? This article selected two case studies: one is the Burro Battery Company in Ghana and the other is grassroots innovation enterprise of India known as the Honey Bee Network and its collaborator, National Innovation Foundation (NIF), Ahmedabad. The first case is a social open innovation firm case while the second case is a social open innovation policy case. Through deep case study, we found out the ways of success of social open innovation strategy and social open innovation policy.

Innovation in the Age of Digital Disruption

2020 ◽  
pp. 752-772
Author(s):  
Diana Claudia Cozmiuc ◽  
Ioan I. Petrisor
Keyword(s):  
Open Innovation ◽  
Business Models ◽  
Universal Language ◽  
Start Up ◽  
New Business ◽  
Worldwide Phenomenon ◽  
Digital Disruption ◽  
Start Ups ◽  
A Company ◽  
New Business Models

Digital disruption is a worldwide phenomenon whereby digital technology brings new business models that disrupt existing markets. Business models have become key to digital disruption, as the universal language of innovation from invention. The latest business models shift from pipeline material flow to knowledge creation in platforms. Open innovation is part of platform business models. Business models are now financed directly, which has created the lean start-up movement. Start-ups enter markets with no barriers and force incumbents to race them with the ability to compete based on business models and match start-up agility and creativity. One of the world's top innovators, Siemens, a company where innovation is strategy, uses the latest tools for innovation: open innovation for technology invention, business models to turn invention into innovation, and finances business models. A large company, Siemens has created an inner structure that intends to bring the advantages of the lean start-up movement indoors.

Innovation in the Age of Digital Disruption

2020 ◽  
pp. 1124-1144
Author(s):  
Diana Claudia Cozmiuc ◽  
Ioan I. Petrisor
Keyword(s):  
Open Innovation ◽  
Business Models ◽  
Universal Language ◽  
Start Up ◽  
New Business ◽  
Worldwide Phenomenon ◽  
Digital Disruption ◽  
Start Ups ◽  
A Company ◽  
New Business Models

Digital disruption is a worldwide phenomenon whereby digital technology brings new business models that disrupt existing markets. Business models have become key to digital disruption, as the universal language of innovation from invention. The latest business models shift from pipeline material flow to knowledge creation in platforms. Open innovation is part of platform business models. Business models are now financed directly, which has created the lean start-up movement. Start-ups enter markets with no barriers and force incumbents to race them with the ability to compete based on business models and match start-up agility and creativity. One of the world's top innovators, Siemens, a company where innovation is strategy, uses the latest tools for innovation: open innovation for technology invention, business models to turn invention into innovation, and finances business models. A large company, Siemens has created an inner structure that intends to bring the advantages of the lean start-up movement indoors.

The evolution of characters business models in Japan: Duffy, Hello Kitty, and Kumamon

2015 ◽  
Vol 31 (4) ◽  
pp. 34-37 ◽  
Author(s):  
Kazuhito Isomura ◽  
Kazunori Suzuki ◽  
Katsuyuki Tochimoto
Keyword(s):  
Case Studies ◽  
Customer Loyalty ◽  
Open Innovation ◽  
Design Methodology ◽  
Business Models ◽  
Content Type ◽  
New Business ◽  
New Business Models

Purpose – This paper aims to clarify how to develop characters business models by utilizing new business concepts. Design/methodology/approach – The paper examines three cases in Japan to innovate characters business models: Duffy, Hello Kitty and Kumamon. Findings – The paper suggests that utilizing experience-based promotions, open innovation and a royalty-free strategy enhances customer loyalty to characters, expands customer targets and encourages autonomous collaboration of stakeholders. Originality/value – These case studies clarify how new business models aim to increase customer loyalty to characters and widen customer targets beyond generation, industry and country.

scholarly journals Web-Based Services and Future Business Models

Economics ◽  
2015 ◽  
pp. 1564-1576 ◽  
Author(s):  
Valentina Ndou ◽  
Pasquale Del Vecchio ◽  
Giuseppina Passiante ◽  
Laura Schina
Keyword(s):  
Social Networking ◽  
Open Innovation ◽  
Business Models ◽  
User Perspective ◽  
Web Based ◽  
New Business ◽  
New Business Models ◽  
Computing Approach ◽  
Future Business ◽  
Technology Trends

A paradigm shift is taking place today that provides a compelling value proposition for organizations and requires the adoption of new business models for the management of their core activities in a competitive way. The new emerging business models are related with open innovation, cloud computing approach, as well as social networking, which creates opportunities for firms to harvest the resources and knowledge that could be found outside the firm's boundaries. However, in order for firms to grasp most of the emerging technologies, they should reconfigure their activities to tackle the challenge and opportunity presented by new innovations and technology trends. In this chapter, the authors demonstrate the changes that these new trends are witnessing for the business models of firms from a provider and user perspective.

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