Open Services Innovation

The father of "e;open innovation"e; is back with his most significant book yet. Henry Chesbrough s acclaimed book Open Innovation described a new paradigm for management in the 21st century. Open Services Innovation offers a new approach that demonstrates how open innovation combined with a services approach to business is an effective and powerful way to grow and compete in our increasingly services-driven economy. Chesbrough shows how companies in any industry can make the critical shift from product- to service-centric thinking, from closed to open innovation where co-creating with customers enables sustainable business models that drive continuous value creation for customers. He maps out a strategic approach and proven framework that any individual, business unit, company, or industry can put to work for renewed growth and profits. The book includes guidance and compelling examples for small and large companies, services businesses, and emerging economies, as well as a path forward for the innovation industry. "e;Whether you are managing a product or a service, your business needs to become more open and more inclusive in order to be more innovative. Open Services Innovation will be an invaluable guide to intrepid managers who commit to making that journey."e; GARY HAMEL, visiting professor, London Business School; director, Management Lab; and author, The Future of Management "e;I tore out page after page to share with my leaders. Chesbrough has pioneered an entire rethink of business innovation that s rich in concept, deeply explained, with tools ready to use in every industry."e; SCOTT COOK, founder and chairman of the executive committee, Intuit "e;Focusing on core competence often tempts managers to keep continuing what succeeded in the past. A far more important question is what capabilities are critical in the future, and Chesbrough shows how to ask and answer these issues."e; CLAYTON CHRISTENSEN, Robert & Jane Cizik Professor of Business Administration, Harvard Business School, and author, The Innovator's Dilemma "e;To thrive, businesses will need to master the lessons of open service innovation. Here is their one-stop guidebook with important lessons clearly and compellingly presented."e; JAMES C. SPOHRER, director, IBM University Programs World-Wide "e;Open Innovation pioneer Henry Chesbrough breaks new ground with Open Services Innovation, a persuasive argument for the power of co-creation in the world of services."e; TOM KELLEY, general manager, IDEO, and author, The Ten Faces of Innovation, The Art of Innovation "e;With his trademark style of beautifully explained examples, Henry Chesbrough shows how open service innovation and new business models can help you escape this product commodity trap and bring you to the next level of competition."e; ALEX OSTERWALDER, author, Business Model Generation "e;Open Services Innovation shows how a business can redefine itself as a service organisation and tap into faster growth through shared innovation."e; SIR TERRY LEAHY, chief executive, Tesco "e;Chesbrough shows how innovating openly with a services mindset can make you a market leader."e; CHARLENE LI, author, Open Leadership, and founder, Altimeter Group

The father of "open innovation" is back with his most significantbook yet. Henry Chesbrough's acclaimed book OpenInnovation described a new paradigm for management in the 21stcentury. Open Services Innovation offers a new approach thatdemonstrates how open innovation combined with a services approachto business is an effective and powerful way to grow and compete inour increasingly services-driven economy. Chesbrough shows howcompanies in any industry can make the critical shift from productto service-centric thinking, from closed to open innovation whereco-creating with customers enables sustainable business models thatdrive continuous value creation for customers. He maps out astrategic approach and proven framework that any individualbusiness unit, company, or industry can put to work for renewedgrowth and profits. The book includes guidance and compellingexamples for small and large companies, services businesses, andemerging economies, as well as a path forward for the innovationindustry."Whether you are managing a product or a service, your businessneeds to become more open and more inclusive in order to be moreinnovative. Open Services Innovation will be an invaluable guide tointrepid managers who commit to making that journey."GARY HAMEL, visiting professor, London BusinessSchool; director, Management Lab; and author, The Future ofManagement"I tore out page after page to share with my leaders. Chesbroughhas pioneered an entire rethink of business innovation that'srich in concept, deeply explained, with tools ready to use in everyindustry."SCOTT COOK, founder and chairman of the executivecommittee, Intuit"Focusing on core competence often tempts managers to keepcontinuing what succeeded in the past. A far more importantquestion is what capabilities are critical in the future, andChesbrough shows how to ask and answer these issues."CLAYTON CHRISTENSEN, Robert & Jane CizikProfessor of Business Administration, Harvard Business School, andauthor, The Innovator's Dilemma"To thrive, businesses will need to master the lessons of openservice innovation. Here is their one-stop guidebook with importantlessons clearly and compellingly presented."JAMES C. SPOHRER, director, IBM University ProgramsWorld-Wide"Open Innovation pioneer Henry Chesbrough breaks new ground withOpen Services Innovation, a persuasive argument for thepower of co-creation in the world of services."TOM KELLEY, general manager, IDEO, and author, TheTen Faces of Innovation, The Art of Innovation"With his trademark style of beautifully explained examplesHenry Chesbrough shows how open service innovation and new businessmodels can help you escape this product commodity trap and bringyou to the next level of competition."ALEX OSTERWALDER, author, Business ModelGeneration"Open Services Innovation shows how a business can redefineitself as a service organisation and tap into faster growth throughshared innovation."SIR TERRY LEAHY, chief executive, Tesco"Chesbrough shows how innovating openly with a services mindsetcan make you a market leader."CHARLENE LI, author, Open Leadership, andfounder, Altimeter Group

Acknowledgments xiIntroduction: Open Services and Innovation 11 The Case for Open Services Innovation 7Part 1: A Framework to Spur Innovation and Growth 292 Think of Your Business as a Services Business 313 Co-Create with Your Customers 534 Extend Services Innovation Outside Your Organization 685 Transform Your BusinessModel with Services 89Part 2: Open Services Innovation in Practice 1136 Open Services Innovation in Larger Companies 1157 Open Services Innovation in Smaller Companies 1338 Open Services Innovation for Services Businesses 1559 Open Services Innovation in Emerging Economies 16910 Open Services Innovation: The Way Forward 188Notes 203The Author 230Index 232