Open Business Model! New Method! Fresh from the Mind!

Posted: October 10, 2010 in Uncategorized

Meet me again! The author of this blog. =D
Today, i’m going to write about something extra ordinary! Very very out of the box! But it is actually a serious subject. =p

Today! I am going to create a blog regarding OPEN BUSINESS MODEL!

What is an Open Business Model?
First, let us see this illustration below! =D


See all the company list in the picture? =D
Now, let me ask you a question, what is the similarity between all the company listed above?

* Thinking* *Thinking*

AHA!

All of them are a company that create an interactive product! This company creates a website that allow their costumer which in this case a user to interact with other users and give a feedback and input to the company.

That kind of company is the example of the Open Business Company. So what is exactly a OPEN BUSINESS MODEL?

Let us ask the people who make Open Business Model popular which is Mr. Henry Chesbourgh!

He states that, “Companies that keep their intellectual property too close to the vest risk missing out on critical business innovations that idea-sharing could generate. Open business models foster collaboration with customers and suppliers to everyone’s benefit.

The more companies learn about open business models, the more they realize how much they have to change their own innovation activities to take full advantage of these paradigms. It’s not simply a matter of searching for new technologies. To thrive, companies must adapt their business models to make them more open to external ideas and paths to market.”

Henry Chesbrough, “Embracing Open Business Models”, Optimize Magazine, 1/1/07

This phrase was taken from his Book regarding OPEN BUSINESS MODEL!


Tried to read the book! It is actually quite good and the english used in the books is not too hard to understand.
I recommend this book to people out there who wants to try open up a business. =D

Back to topic, Open Business Model has a very close relationship to the Open Innovation! *linked to my previous post regarding Open Innovation*
Why?

Because if the company wants to survive and grow, the company needs to do an innovation! However, in today era of globalization, the company needs to change their innovation method into an Open Innovation method. This method can be accomplished by changing their Business Model.

Open Business Model is a business model that is transparent! Means that the business allow the user, the stakeholders, and the shareholders to interact with the company.
This will make the company able to interact with them and get a good feedback and knowledge that can be used in improving their business.
This is a new and innovative method that can be used in order to improve the business of the company.

The company needs help from outside the company to help them grow, because the company is not perfect, and the outside people who interact with them can give them a good feedback that will increase the value and the business.

Time to start doing an OPEN INNOVATION and OPEN BUSINESS MODEL!

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