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Team A - Open Innovation

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Team A - Open Innovation

  1. 1. Angela Chiara Francesco Tommaso Ilaria Agostina Why Companies should have OPEN BUSINESS MODEL ! Ufficio Valorizzazione Ricerche UVR-SSSA
  2. 2. OPEN Business Models CLOSED • Create value • Capture a portion of this value From the manufacturing of the products to the commercialization IN-HOUSE Dividing work of innovation among companies
  3. 3. From closed to open business model Yesterday It used to make its own cell phones and base stations Today It just makes chips and sells licenses to its technologies
  4. 4. Limits of closed BMs Companies quickly recognize ideas that fit their own successful resources and have difficulties in changing their configuration assets and market positions Inefficiencies of innovation markets Companies are not familiar with the exchange of technology and intellectual property “Between 75% and 95% of patented technologies are simply dormant”
  5. 5. The Economic Pressure on Innovation Difficulties in justifying investments in innovations for companies
  6. 6. The New Business Model of Open Innovation Innovation became economically attractive again!
  7. 7. Open experiments! How to take part in the open innovation process? Fear to risk to lose reputation of an established brand for a new product? Create a new subordinate «white box» brand to get consumers’ feedback! Explore new open business model by spinning off companies and investing in start-ups!Results emerge in the long-term period! Doubts on how to conduct open innovation experiment?
  8. 8. How three companies do it
  9. 9. Making the transition... Clear commitment and support from the top «buy in» for the model from important constituencies before being rolled out across the company Adjusting or rebuilding the model to handle significant volumes Need for: Evidences that the transition is heading in the right direction - pursuing of new sources of revenues and business value - collecting critical information from the market Acting on the information that the experiment generates
  10. 10. Conclusion The alternative solution of opening up a companies’ business model may not be easy: It takes courage and vision to try out new ideas during a time of financial difficulty ANYWAY Open Business Model provides a potential pathway to greater innovation activity and increased growth

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