1) The document discusses how traditional business strategy has limitations in explaining emerging open innovation models where resources come from external communities rather than internal ownership.
2) It proposes a more open approach to strategy that focuses on open invention through crowdsourced knowledge creation and open coordination through industry standardization.
3) Sustaining open initiatives long-term faces challenges around attracting and retaining contributors, competing with other open projects, and ensuring the agenda evolves in a useful direction. Traditional business strategies around intellectual property ownership and managing value chains must be reconsidered for open models.
3. About the Authors
The Insights and Limits of
Traditional Business Strategy
Emerging Anomalies that Challenge
Traditional Business Strategy
4. About the Authors
The Insights and Limits of
Traditional Business Strategy
Emerging Anomalies that Challenge
Traditional Business Strategy
Towards a more Open Approach to Strategy
5. About the Authors
The Insights and Limits of
Traditional Business Strategy
Emerging Anomalies that Challenge
Traditional Business Strategy
Towards a more Open Approach to Strategy
Issues Confronting the Sustainability of
Open Source and Related Initiatives
How Traditional Business Strategy
Can Inform Open Initiatives
7. • Adjunct Professor, University of California Berkley, ᠋᠌᠍
Haas School of Business
• Faculty Director, Garwood Center for Corporate Innovation
• Center for Open Innovation
EDUCATION
• BA, Economics, Yale University, Summa Cum Laude
• MBA, Stanford University, with Highest Honors
• PhD, Business Administration and Public Policy, Haas School of Business, UC Berkeley
CURRENT RESEARCH INTERESTS
• Innovation
• Organizing, structuring, and managing internal and external research and development
• Technology-based spinoffs and corporate venture capital
• Managing intellectual property
• Comparative industry evolution in high-technology industries between the US, Japan, and
Western Europe
Henry W. Chesbrough
8.
• Ames Professors in the Management of ᠋᠌᠍
Innovation and Technology
• Portland State University’s School of ᠋᠌᠍
Business Administration
EDUCATION
• Ph.D. 1997 Economics, University of California at Berkeley
• B.A. 1988 Economics/International Area Studies, University of
• California at Los Angeles, summa cum laude and with College Honors
CURRENT RESEARCH INTERESTS
• Innovation and technology entrepreneurship and strategy
• Cooperative RD in high-tech settings, e.g. semiconductor industry the open source software
industry and currently in advanced interdisciplinary RD settings like nano-medicine
• Global semiconductor industry's ability to achieve perpetual innovation in design, process
integration, and manufacturing
Melissa M. Appleyard
10. The Evolution of Business Strategy
Alfred Chandler--- Strategy Structure
Igor Ansoff--- Corporate Strategy
Kenneth R. Andrews
Michael Porter- Five Forces Model
Maximize Producer Surplus
40. 1. How to attract the participation of a broad
community of contributors, and how to sustain
their participation over time?
4. How to make profit by the open resources?
2. How to compete for contributors with other
open-resource competitors?
3. How the open invention or coordination project is
led, and how its agenda evolves?
50. Value Creation
Creative individuals,
innovation communities,
collaborative initiatives
Value Capture
Drive to sustain continued
participation support
initiatives
Open Strategy Balances
Value Creation with Value Capture
• Traditional concepts: underestimate or ignore value of open
invention open coordination
• New business models à blend elements of open closed
innovation (e.g. open source software)
• Challenges – efforts to sustain themselves over time
• Turn around reconsider aspects of traditional business strategy