Bringing Open Innovation to Services Harvard Case Solution & Analysis

In earlier work, the author advocated the concept of open innovation, companies should both organize their innovation processes to be more open to external knowledge and ideas, and to allow more of their ideas and knowledge flow from the outside when it is not used within. However, the initial discussion of open innovation contrasted it with the traditional R & D development and products, it had the effect of emphasizing more on the innovative products and technologies than in the service of innovation. Open innovation works somewhat differently in service businesses, in particular, because the role of the customer is different, in the service, the customer is often involved in the process with a company that gives clients. In addition, innovative processes operate differently in services. Few companies have formal R & D activities for the services they provide, and the customer may require the involvement throughout the process of innovative services. Some of the concepts of open innovation readiness to apply for service innovation. For example, Amazon. com not only created the open innovation services by bringing the "outside"-think customer reviews on Amazon.com, and third parties to sell products via the website Amazon, but also through the adoption of the "inside out", for example, using internal knowledge and infrastructure to create a business on selling cloud computing services for other companies. Companies interested in moving to open innovation service may try methods such as working closely with clients to develop new ways to address them; proposals focus on utility customers, rather than on products, as well as investments in the organization of the customer. Companies that traditionally product-oriented, you may need to make some organizational changes, such as changes in pricing, as they move to a more service-oriented approach.
developed world are increasingly focused on services with more than 70% of the gross domestic product and employment in the Organization for Economic Cooperation and Development countries. As a result, individual companies and the economy are facing the problem of how innovation in services. "Hide
by Henry W. Chesbrough Source: MIT Sloan Management Review 8 pages. Publication Date: January 1, 2011. Prod. #: SMR377-PDF-ENG

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