Open Innovation Business Models Research Articles

The role of digital knowledge servitization in supply chain management

PurposeThis paper aims to contribute to overcoming the gap existing in the supply chain literature related to digital servitization by bridging digital servitization with knowledge management and identifying the rise of digital knowledge servitization as a driver for changes in the supply chain business model towards open innovation.Design/methodology/approachThe study follows an inductive grounded theory approach for theory building. To analyse the impact of digital knowledge servitization, in-depth interviews of managers in the main business units of the Volvo Group supply chain ecosystem were carried out.FindingsThe results show how the digital servitization process affects the supply chain business model, highlighting the central role of knowledge in the service ecosystem and the rise of the theoretical concept of digital knowledge servitization. In particular, through the Innovation Lab (Volvo Group) study, the paper contributes to bringing together the theoretical knowledge-based view of servitization with the digital servitization concept, which demonstrates the role of this combined perspective in the transformation of the supply chain; this is carried out by introducing a new business model based on open innovation in inbound and outbound processes.Practical implicationsThe research offers interesting insights from a managerial perspective, as increasingly advanced and complex digital solutions require shorter times in supply chain management (SCM). Companies need to be able to quickly manage information and knowledge flows deriving from internal and external interactions and involvement with external actors upstream and downstream of the supply chain ecosystem. Therefore, the digital knowledge servitization of the supply chain also highlights implications for managers in terms of human resources management.Originality/valueThe novel research goal is to contribute to the supply chain literature by integrating the digital servitization with the knowledge view and analysing the impact on the inbound and outbound supply chain through the introduction of an open innovation business model.

Archetypes of open-source business models

The open-source paradigm offers a plethora of opportunities for innovative business models (BMs) as the underlying codebase of the technology is accessible and extendable by external developers. However, finding the proper configuration of open-source business models (OSBMs) is challenging, as existing literature gives guidance through commonly used BMs but does not describe underlying design elements. The present study generates a taxonomy following an iterative development process based on established guidelines by analyzing 120 OSBMs to complement the taxonomy's conceptually-grounded design elements. Then, a cluster-based approach is used to develop archetypes derived from dominant features. The results show that OSBMs can be classified into seven archetypical patterns: open-source platform BM, funding-based BM, infrastructure BM, Open Innovation BM, Open Core BM, proprietary-like BM, and traditional open-source software (OSS) BM. The results can act as a starting point for further investigation regarding the use of the open-source paradigm in the era of digital entrepreneurship. Practitioners can find guidance in designing OSBMs.

Open Innovation Business Model as an Opportunity to Enhance the Development of Sustainable Shared Mobility Industry

The shared mobility services market is growing and changing very rapidly. Many novelties are introduced to the systems, ranging from improvements to the services already offered to services referred to as innovative. Since the following years are to bring significant development of mobility as a service (MaaS) systems, data sharing, and cooperation on the mobility market, the article is dedicated to check whether the current business models of the industry are ready for the open innovations implementations. The article aimed to analyze the business models of shared mobility systems along with their presentation in the form of CANVAS models and to investigate whether the models contain aspects of open innovation. Moreover, the article presents its own value-added open business model prepared for the whole shared mobility market. The paper also identifies a set of open innovations that can be implemented by all types of shared mobility operators. It proposed the basis that operators can use when developing their own open business models. The developed research is an original contribution to filling the research gap concerning the approach to open innovation by operators of all types of shared mobility services available on the market. The results show that car-sharing service providers are the biggest opponents of open innovation. On the other hand, the most ‘open’ systems are bike-sharing services. The conducted research may support operators in the process of transforming their businesses into more accessible for users. It also helps to develop the open innovation concept to create more sustainable shared mobility systems along the lines of collaborative economy assumptions.

Analiza spremnosti telekomunikacionih operatera za "crowd" - zasnovane otvorene inovacije u razvoju servisa pametnih gradova

This paper studies the readiness of the Serbian telco operators and other stakeholders to implement a crowd-based open innovation business model. Telco companies are facing challenges in terms of market demands and with finding new opportunities to attract subscribers with innovative products and services. These innovations are frequently oriented towards smart city services based on emerging technologies such as Internet of things, cloud computing, software defined networks and blockchain. Due to complexity, pace and costs of research and development, telco operators have already recognized the need to shift from a traditional to an open innovation concept. The development of crowdsourcing models has further fueled the possibility to include customers in the open innovation process, in order to better design and develop services suited to their own needs. With this in mind, the goal of this paper is to propose a crowd-based open innovation business model for improvement of innovation capacities of Serbian telco operators. The proposed model is used as the basis of evaluating the readiness of internal and external stakeholders for participation in open innovation projects. The study is based on the adjusted value-based adoption model, while the analysis is performed using the PLS-SEM method. The results show that participants identify trust as the most influential factor for the perceived value of crowd-based open innovation, while the internal stakeholders of telco companies find expected income and reputation as the most relevant. Both groups have shown a high interest in innovations related to smart city services such as smart traffic and ecology-related services.

A Note on Corporate Open Innovation: Engagement with Startups

This Note summarizes our findings based on an exploratory and initial global research study of best practices for organizations employing open innovation business model strategies. We utilized an expert interview approach to develop a survey that was taken during the Covid-19 pandemic. It was meant to assess open innovation strategies and tactics, particularly focused on partnering with startups and emerging companies. We worked with a cohort of Corporate Accelerator Forum (CAF) members (as experts), prior to a more extensive survey of corporations concerning their engagement with startups. Our experts included key leadership from Techstars, Bayer CoLaborator, and Illumina Accelerator. We plan a broader, more extensive survey of national and international companies as a follow up. Our results highlight and provide commentary on current industry practices and trends during the Covid-19 pandemic, and have applicability to the biopharma, MedTech, and digital medicine/health markets.

Оцінка інноваційної діяльності за напрямами трансферу технологій підприємствами України

The article aims at clarifying the classification features of the forms and directions of technology transfer, and analyzing empirical data on technology transfer operations in Ukraine. The effectiveness, efficiency and immediacy of technology transfer depend on the choice of its rational forms and directions of technology transfer. The combined form of transfer is considered to be most promising, as it encompasses the advantages of both the vertical and horizontal transfer forms based on the open innovation business model. Ukraine has prerequisites for the implementation of this form of technology transfer, but it is necessary to increase the innovative activity of industrial enterprises and research organizations, and to increase funding for innovation. In the future the authors plan to suggest an organizational and economic mechanism to increase innovation activity at the enterprise level. In 2007-2019 research and development at industrial enterprises (R&D) accounted for about 15% in the total cost of innovation, in average. The lowest share of R&D in total expenditures on innovation was observed in 2011 (7.5%), and the highest share was observed in 2018, comprising 26.3%. The share of costs for vertical transfer is 69.6-89.5%, which is much higher than that for horizontal transfer, which is 10.5-30.4%. The main reason for the decrease in the level of technology transfer at Ukrainian enterprises is the limited funding from the state and the negative investment climate in the country. The share of non-commercial transfers has been lower than 1% since 2012. Combined transfer based on digital technology platforms is virtually absent.

Sustainability Condition of Open Innovation: Dynamic Growth of Alibaba from SME to Large Enterprise

Research Question: Open innovation and the open business model exaggerate complexity (a transaction cost) in addition to the realization of emergence and its lock-in. Within a short period, Alibaba has become one of the global top e-commerce companies with several open innovation business models. Our research question was: “How could Alibaba become a global top e-commerce company in China in such a short time?” Research Method: We chose a deep interview method, participatory observation, and meta-analysis to answer this research question. Research Result: Alibaba has applied global, creative e-commerce business models through open innovation in a short time. In addition, it has overcome complexity—i.e., the cost of open innovation and the force that breaks down a company—through an open innovation-friendly culture. This is a “Jack-Ma style consumer confidence and new Guanxi culture”, a new and strong Chinese corporate culture. Alibaba has also undergone the expansion of its open business model feedback loop platform. This study investigated the expanded open business model feedback loop platform, the continuously strengthened open-innovation-friendly culture, and complexity, with the latter being the cost of open innovation, which was controlled by an open-innovation-friendly culture and open business model feedback loop.

Открытые инновационные бизнес модели и стратегии: особенности, проблемы, перспективы развития

The paper discusses the results of review of the business models innovation, open innovation business models and open innovation strategies. We reveal an increasing business attention and extensive growth of scientific paper in this field. We define positions of single authors about framework of components, parameters and relation business model innovation with open business models and open innovation strategies Based on existing literature, we illustrate that openness of business models innovation enhance the role of ecosystems, platforms, communities and other network forms in strategic management. The important avenues for future research in understanding and alignment business model innovation with effectiveness of creating and capturing value, business, innovation strategies and positioning strategies in digital transformation era.

Innovation management based on proactive engagement of customers: A case study on LEGO Group. Part I: Innovation Management at Lego Group

Customers' proactive engagement in the innovation process represents a business priority for companies which adopt the open innovation business model. In such a context, it is of outmost importance for companies to use the online environment and social media, in order to create an interactive and open dialogue with customers and other important external stakeholders, achieving to gather creative solutions and innovative ideas by involving them in the process of co-creating value. Thus, the current paper is based on a case study approach, which aims to highlight the open innovation business model of the LEGO Group, one of the most successful and active company in engaging customers in submitting ideas and creative solutions for developing new products and new technologies, through online platforms. The study then proceeds to analyze the innovation management at LEGO Group, emphasizing the most important elements regarding the management team, the success and failures, the evolution of the LEGO products focusing on the innovation efforts of the company, its mission, vision, and values, emphasizing the innovation terms which guide the actions and objectives of the LEGO Group. Also, the research based on the case study approach, outlines the most important policies and strategies of the company, the organizational structure consisting of flat structures which facilitate the orientation of the team management on the innovation process and the proactive involvement of consumers and other external stakeholders in product development, highlighting also the most important activities developed by the management team in exploring the new opportunities which may occur on the market, involving customers in sharing their ideas at festivals, participating to discussions of adult fans on web-based platforms and establishing partnerships with the external stakeholders in order to create value. Moreover, the paper is focused on identifying the company's concerns regarding the competitive strategies, new technologies developed for sustainable development and innovation, emphasizing also the concerns of the LEGO Group for a long-term orientation strategy which implies developing innovative products, made by ecological materials, reducing the negative impact on the environment. In addition, the company aims to foster innovation maintaining a clear vision, multiple contacts with the internal and external environment, and the flat structures which enable the communication between innovative management teams and top management team. Consequently, the study provides the insights regarding the innovation management of the LEGO Group, emphasizing the role of engaging customers and other external stakeholders in the co-creation of value.

Business Models for Open Innovation: From Collaboration to Incorporation

The paper describes five open innovation business models - collaboration, outsourcing, licensing, trading and incorporation - defined on the basis of open revenues and costs, new investments and divestments in intangibles. A sample of 271 companies from biopharmaceutical and technology hardware & equipment industries is investigated, and their annual reports for the three years period 2010-2012 are analysed. Results show that for biotech companies open innovation represents a characteristic activity, with most of them having high values of revenues deriving from joint development projects. On the other side, for pharmaceutical firms open innovation is somehow ancillary: even if most open innovation activities are widespread, their values are not really significant if compared to the total business volume. As to the technology hardware & equipment industry, the use of spin-ins as a mean for incorporating external knowledge is the most frequent open strategy. This work contributes to the research on open innovation by defining the business models that R&D intense companies may adopt to foster open innovation. From a managerial point of view, the framework can be used by companies for assessing the status of their own open strategies, also allowing the benchmarking with competitors.

The Role of Open Business Model in Technology Commercialization

Purpose: This paper has examined the impact of open innovation business model in technology commercialization with the data from 30 companies of manufacturing firms in South Korea. Methods: The findings provide support for distinguishing five hypotheses relating to development time, IP management, sales, firm size and R&D intensity. To test the hypotheses, data were collected using via e-mail and fax. Small and medium-sized (less than 300 employees) and large industrial firms were chosen for this study. Results: The result shows that openness in its business model is positively associated with successful technology commercialization. Conclusion: The major findings and the implications are: First, as the business model gets more open, development period of technology will be more favorable which gets benefit from rising costs of innovation. Second, as the business model gets more open, large portion of sales are created from new products. Thus, the problem of shorter product life in the market which affects large portion of market revenue can be solved through an open business model. Third, in general, R&D intensity, firm size and the level of IP management affect determination of business model types. The findings also suggest that companies need to increasingly address their external technology exploitation process instead of focusing on their internal innovation processes.

Open Innovation Business Model in the Food Industry: Exploring the Link with Academia and SMEs

Open Innovation Business Model in the Food Industry: Exploring the Link with Academia and SMEs

Turning science into health solutions: KEMRI’s challenges as Kenya’s health product pathfinder

BackgroundA traditional pathway for developing new health products begins with public research institutes generating new knowledge, and ends with the private sector translating this knowledge into new ventures. But while public research institutes are key drivers of basic research in sub-Saharan Africa, the private sector is inadequately prepared to commercialize ideas that emerge from these institutes, resulting in these institutes taking on the role of product development themselves to alleviate the local disease burden. In this article, the case study method is used to analyze the experience of one such public research institute: the Kenya Medical Research Institute (KEMRI).DiscussionOur analysis indicates that KEMRI’s product development efforts began modestly, and a manufacturing facility was constructed with a strategy for the facility’s product output which was not very successful. The intended products, HIV and Hepatitis B diagnostic kits, had a short product life cycle, and an abrupt change in regulatory requirements left KEMRI with an inactive facility. These problems were the result of poor innovation management capacity, variability in domestic markets, lack of capital to scale up technologies, and an institutional culture that lacked innovation as a priority.However, KEMRI appears to have adapted by diversifying its product line to mitigate risk and ensure continued use of its manufacturing facility. It adopted an open innovation business model which linked it with investors, research partnerships, licensing opportunities, and revenue from contract manufacturing. Other activities that KEMRI has put in place over several years to enhance product development include the establishment of a marketing division, development of an institutional IP policy, and training of its scientists on innovation management.SummaryKEMRI faced many challenges in its attempt at health product development, including shifting markets, lack of infrastructure, inadequate financing, and weak human capital with respect to innovation. However, it overcame them through diversification, partnerships and changes in culture. The findings could have implications for other research institutes in Sub-Saharan Africa seeking to develop health products. Such institutes must analyze potential demand and uptake, yet be prepared to face the unexpected and develop appropriate risk-mitigating strategies.

Innovation Process Models With Emphasis on Open Innovation Model

Innovation Process Models With Emphasis on Open Innovation ModelThis article presents different models of innovation processes and focuses in particular on the open innovation. The empirical part is based on the findings on the innovation cooperation of enterprises in the EU and OECD (these data, among others, determine the open innovation). At the end of the article there is a case study of Nokia which implements the open innovation in its innovation activity. The aim of this article is to present the paradigm of the open innovation processes. This approach concentrates on sharing knowledge, i.e. making new solutions available to other units by means of e.g. license sale. The open innovation business model takes advantage of both internal and external sources of ideas without a fear that a company's own ideas when transferred to another organization will lead to the company's loss of profits coming from this idea. The formal framework of an organization is just a symbolic one and makes the flow of knowledge between the organization and its environment possible. The enterprises that adopt the open innovation strategy both enthusiastically develop ideas which were created by others as well as make their own ideas available to other organizations that find them more interesting.

An Empirical Analysis of the Effects of Patents and Secrecy on Knowledge Spillovers

Theoretical considerations suggest that secrecy reduces spillovers almost completely through non-disclosure, while the disclosure requirement of patents generates some spillover and at the same time allows firms to appropriate knowledge. In this paper we empirically analyze whether protection by secrecy or protection by patents is associated with lower knowledge spillovers. Since the amount of knowledge spillovers is hard to measure directly, we look at the impact of the usage of protection methods in an industry on the innovation activities of firms using external knowledge. One goal is to assess if firms have moved to a more open innovation business model, i.e. allow more knowledge spillovers to occur despite using protection methods. Our estimations show that the usage of both, patents and secrecy, hinders the innovation activities of firms through the reduction of spillovers to firms in their own industry. We conclude that the appropriability effect of patents outweighs the disclosure effect. We also find some evidence that the open innovation business model has not been implemented widely.