A recent article in MIT Sloan Review has posed the question whether one’s firm should embrace it or not.
What, though, I admired most about the post was that the authors, Bougreau and Lakhani, addressed the topic of business models.
What’s the Business Model?
Whether a company’s product is a computer operating system, a social network, a motorcycle, a kitchen appliance or even a board game, the decision to open it to external innovation means that the product will be transformed into a platform. And to generate revenues from that platform, executives need to think about the nature of the accompanying business model.
I could not have said it any better. This is a question that is rarely neither confronted nor thought of by the recent Social Media scene.
I think we all do agree that there is no question that leading firms undoubtedly do adopt some form of open innovation, the article tackled however how to best position oneself in deciding which type of open innovation to select, whether it be ” a collaborative community or a competitive market”
The answer however “… depends on three crucial issues,” the article concluded.