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Open Business Models

Open innovation takes many forms. One of the great things about working at the coal-face of this new industry is watching it develop and mature. We are starting to see a new language develop and new methods for innovating with others. One of the under-appreciated aspects of open innovation is how flexible the business model can be. Companies new to OI tend to react defensively at first: “How can we protect our Intellectual Property”?

This IP protectionism in not really necessary.

The picture above shows a range of range of progressively open business models with all sorts of approaches that include and transcend IP. We begin with traditional in-house Research and Development and open out all the way to a commons model. We group models into four main categories – Closed, Cooperative, Collaborative and Co-Creative. You can see featured some of the new interesting new approaches that are arising like Idea Management platforms (Cooperative) in many large firms such as Orange’s IDClic. We include Digital Platforms (Collaborative) like the Apple Appstore and Open Source (Co-creative) such as espoused by Mozilla.

Have a look at the spiral and decide where your organisation is today. Where do you want it to be?

The drive towards more open business models is happening because we are increasingly able to tap into smart people and great ideas from anywhere. It is also being driven by the competitive landscape changing rapidly. New business models have to reflect this agility and become more networked.

Please let us have your comments and builds. There is room for debate on where we’ve placed the models relative to each other and I am sure you can think of more.

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