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Abstract
Firms achieve their competitive advantage quickly through the concept framework of open innovation by integrating external inspiration with internal endowment when facing hyper-competition in the digital era. This paper deploys open innovation into building platform blocks by modular operators. These eight modular operators are splitting, augmenting, deleting, substituting, inversing, porting, configuring, and integrating. By means of case studies of two Taiwan Internet vendors, the results depict the manipulation strategies between eight modular operators to fit seven functional requirements for weaving social media, which are presence, identity, sharing, reputation, groups, conversations, and relationship. Finally, this paper advances propositions about the deployment of modularization strategies to develop a competitive platform.
Highlights
IntroductionChesbrough [1] emphasized that the classical innovation process is like a funnel, taking time to scrutinize novel ideas that have usually gradually absorbed a bundle of resources toward a feasible and profitable conceptual target
Gassmann [2] emphasized that firms in certain industries with the characteristics of high technology, globalization, technological fusion, and new business models desire open innovation, which could infuse them with novel ideas and opportunities from worldwide knowledge workers
This study investigated two Internet-based businesses to examine their strategies of manipulating modular operators for developing the sustainable service platform
Summary
Chesbrough [1] emphasized that the classical innovation process is like a funnel, taking time to scrutinize novel ideas that have usually gradually absorbed a bundle of resources toward a feasible and profitable conceptual target. The increasing costs of internal innovation limit the speed of new product launches when facing hyper-competition in the Internet era. Android smartphone operation system (OS), which outperformed the Symbian system sponsored by Nokia. On this OS platform, there were more and more mobile Apps emerging collaboratively through accessible open application programming interfaces (APIs), such as Google Maps API, Facebook API, and YouTube API. The open innovation process facilitates increasing returns of network externality due to the collective participation of users and producers so as to expand advantageously the size of the system’s installed base. The deployment mechanism of the open innovation process would be the research results
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