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‘…this is a book I can only recommend as an essential read…Chesbrough has certainly raised the bar on service innovation.’ (InnovationManagement.se, January 2011).
‘…looks beyond product and technological platforms to a world where consumer–facing services provide the strategy for high–value, high–growth employment.’ (Guardian.co.uk, February 2011).
‘...offers a great vision for the future and provides inspiration for how companies in both developed and developing economies could create more high value and satisfying jobs.’ (Anatellô, November 2011)
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"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."
—GARY HAMEL, visiting professor, London Business School; director, Management Lab; and author, The Future of Management
"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."
—SCOTT COOK, founder and chairman of the executive committee, Intuit
"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."
—CLAYTON CHRISTENSEN, Robert & Jane Cizik Professor of Business Administration, Harvard Business School, and author, The Innovator′s Dilemma
"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."
—JAMES C. SPOHRER, director, IBM University Programs World–Wide
"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."
—TOM KELLEY, general manager, IDEO, and author, The Ten Faces of Innovation, The Art of Innovation
"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."
—ALEX OSTERWALDER, author, Business Model Generation
"Open Services Innovation shows how a business can redefine itself as a service organisation and tap into faster growth through shared innovation."
—SIR TERRY LEAHY, chief executive, Tesco
"Chesbrough shows how innovating openly with a services mindset can make you a market leader."
—CHARLENE LI, author, Open Leadership, and founder, Altimeter Group
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Chesbrough makes the case for open services innovation in Chapter 1. I was especially interested in what he has to say about "The Commodity Trap," one that reveals three business realities. Here's the challenge: How to avoid or escape from that trap? That's the focus of Part 1 (Chapters 1-5) in which he provides and discusses a framework to spur innovation and growth. This framework is based on four concepts and practices:
1. Think of your business as a service business
2. Innovators must co-create with customers
3. Open innovation accelerates and deepens service innovation
4. Business models are transformed by services innovation
Chesbrough observes, "By transforming products into platforms that incorporate internal and external innovations and surrounding these platforms with a variety of value-added services, companies can obtain some breathing space from relentless price and cost pressures."
In Part 2, (Chapters 6-9) he describes a full range of applications and examples of Open Services Innovation (OSI) in a variety of industries, geographies, and contexts. More specifically, in larger companies (e.g. Xerox and GE), smaller companies (e.g. MTV Networks and NetBase), service businesses (e.g. Amazon), and in emerging economies (e.g. Asian Paints, SSIPEX, and ShaanGu). Then in the final chapter, Chesbrough explores "the larger context in which the shift toward services innovation is taking place." More specifically, he discusses that shift in historic context, addresses especially important issues in service innovation, and then shares what are obviously heart-felt as well as highly-rational convictions about "the way forward" into an uncertain future that is certain to consist of both major perils and major opportunities. "It is high time to get started on the journey" and, I presume to add, this book would be an invaluable travel guide.
Strongly recommended for managers, inventors, investors, business students -- and just about anyone interested in understanding our business landscape, along with the opportunities (and challenges) it presents to all sorts of actors.
Prof. Annabelle Gawer, Prof of Strategy and Innovation, Imperial College Business School, Imperial College London, UK.
Author of Platform Leadership (2002).Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation
Co-author/editor of Platforms, Markets and Innovation (2010)Platforms, Markets and Innovation
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