Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era

258 Pages·2011·3.88 MB·English

by  Henry Chesbrough

Praisefor Open Services Innovation
‘‘Itoreoutpageafterpagetosharewithmyleaders.Richinconceptand
deeply explained, this is how every business can rethink innovation to
outgrowandoutdistanceitsrivals.Notmerelyoneidea,eachchapteris
a panoply of tools to move from the crush of commoditization to the
edge of innovation. Give this book to your executives. If by the end of
ChapterThreetheyhaven’trethoughttheirrelationshipwithcustomers,
invitingthemtoco-createwhatthey’llgladlypaymorefor,thengetnew
executives.’’
—Scott Cook, founder and chairman, executive committee,
Intuit
‘‘Focusingoncorecompetenceoftentemptsmanagerstokeepcontinuing
what succeeded in the past. A far more important question is what
capabilitiesarecriticalinthefuture,andChesbroughshowshowtoask
andanswertheseissues.Thisisamarvelousbook.’’
—Clayton Christensen, Robert & Jane Cizik Professor of
Business Administration, Harvard Business School, and
author,TheInnovator’sDilemma
‘‘Large company, small business, product company, service business,
developed country, or emerging economy—what do they all have in
common? They are all part of the global, knowledge-intensive service
economy.Tothrivetheywillneedtomasterthelessonsofopenservice
innovation. Here is their one-stop guidebook with important lessons

clearlyandcompellinglypresented.’’
—James C. Spohrer, director, IBM University Programs
World-Wide
‘‘Citizens, consumers, and customers are fast changing, shaped by their
collectiveexperience.Firmsstruggletokeepup,trappedbyabackward-
lookingdefinitionoftheirbusinessandisolatedfromnewdevelopments.
Onesuchchangeistheshiftfromproductstoservicesseeneverywhere
indevelopedanddevelopingeconomies.OpenServicesInnovationshows
howabusinesscanredefineitselfasaserviceorganisationandtapinto
fastergrowththroughsharedinnovation.’’
—TerryLeahy,chiefexecutive,Tesco
‘‘Open innovation pioneer Henry Chesbrough breaks new ground with
Open Services Innovation, a persuasive argument for the power of co-
creation in the world of services. And because all organizations are
ultimatelyservicebusinesses,thisbookisausefulguideforallmanagers
hopingtorenewortransformtheirorganization.’’
—TomKelley, general manager, IDEO, and author, The Ten
FacesofInnovationandTheArtofInnovation
‘‘Weneedtogetoutofthecommoditytrap.Whetheryouaremanaging
a product or a service, your business needs to become more open and
moreinclusiveinordertobemoreinnovative.OpenServicesInnovation
willbeaninvaluableguidetointrepidmanagerswhocommittomaking
thatjourney.’’
—Gary Hamel, visiting professor, London Business School;
director, Management Lab; and author, The Future of
Management
‘‘HenryChesbroughshowshowinnovatingopenlywithaservicesmindset
canmakeyouamarketleader.Readthisbookandavoidthecommodity
deathtrap—anddon’tattemptopeninnovationwithoutit!’’
—CharleneLi,author,OpenLeadership,andfounder,Altimeter
Group

‘‘Increasingly great products are merely a ticket to compete. With his
trademark style of beautifully explained examples, Henry Chesbrough
showshowopenserviceinnovationandnewbusinessmodelscanhelp
youescapethisproductcommoditytrapandbringyoutothenextlevel
ofcompetition.’’
—AlexOsterwalder,author,BusinessModelGeneration
‘‘Two-thirdsoftheworld’sGDPtodaycomefromtheintangibleservices
economyand,yet,mostbusinessleadersarestillusingthemanagement
metrics of the past. This thoughtful book clearly explains how twenty-
first century leaders can innovate in a world where intangible services
predominate.’’
—ChipConley,founder,JoiedeVivreHospitality,andauthor,
PEAK:HowGreatCompaniesGetTheirMojoFromMaslow
‘‘Open Services Innovation should be required reading for our entire
health care system. Henry Chesbrough builds on his powerful insights
surrounding the need to rethink innovation in our highly connected
economy.Histhought-provokingchallengestotheservicessectorandhis
blueprintforcreatingongoinginnovationwillserveallleaderscharged
withdifferentiatingtheirorganization.’’
—MichaelHowe,formerCEO,MinuteClinic,andformerCEO,
Arby’s
The OpenInnovation Community
DearReader,
To successfully innovate in the 21st century, companies need to open up
and work with external partners to commercialize internal innovations,
allowing unused internal ideas to be taken to market by others externally.
Openinnovationdescribesanewparadigmforthemanagementofindustrial
innovation—andOpenServicesInnovation:RethinkingYourBusinesstoGrow
andCompeteinaNewEratranslatesthisconcepttotheserviceeconomy.
Continuingthedialogueofthisbook—andmyprevioustexts—andtoput
thetheoryofopeninnovationintopractice,IhavedesignedanonlineOpen
Innovation Community to serve as an informational resource for thought
leaders, consultants, authors, business leaders, academics, and others who
haveadeepinterestinopeninnovation.Thisforumisadigitalcommunity
wherethecontributionofpassionateopinionsandsharingofbestpractices
is encouraged—especially when substantiated with evidence—along with
reactions and interpretations related to news headlines and events, and the
latestacademicresearch.
Given my deep immersion in open innovation theory and practice, I am
passionateaboutassertingthecriticalneedtocontinuallysharpenone’sskills,
learn from others as well as help teach others, and stay acutely tuned in to
businesstrends,challenges,andsuccesses.
I hope you will not only visit the Open Innovation Community at
www.openinnovation. net;I encourage you to engage and contribute to the
ongoingdiscussions.
Sincerely,
HenryChesbrough
FounderandExecutiveDirector
CenterforOpenInnovation
HaasSchoolofBusiness
UniversityofCalifornia,Berkley
HENRY CHESBROUGH
OPEN
Services
INNOVATION
Rethinking Your Business to Grow
and Compete in a New Era
Copyright2011byOpenServicesandInnovation.Allrightsreserved.
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LibraryofCongressCataloging-in-PublicationData
Chesbrough,HenryWilliam.
OpenServicesInnovation :RethinkingYourBusinesstoGrowandCompeteinaNewEra/
HenryChesbrough.
p.cm
Includesbibliographicalreferencesandindex.
ISBN978-0-470-90574-6
1.Customerservices.2.Technologicalinnovations.3.Recessions—History—21stcentury
I.Title.
HF5415.5.C4752011
658.4(cid:1)063—dc22
2010043532
PrintedintheUnitedStatesofAmerica
firstedition
HBPrinting10987654321
Formyparents,RichardandJoyceChesbrough