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Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era [Hardcover]

Henry Chesbrough
4.2 out of 5 stars  See all reviews (4 customer reviews)
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Book Description

8 Feb 2011
The father of "open innovation" 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. "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

Frequently Bought Together

Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era + Open Business Models: How To Thrive In The New Innovation Landscape + Open Innovation: The New Imperative for Creating and Profiting from Technology
Price For All Three: 60.66

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Product details

  • Hardcover: 256 pages
  • Publisher: Jossey Bass (8 Feb 2011)
  • Language: English
  • ISBN-10: 0470905743
  • ISBN-13: 978-0470905746
  • Product Dimensions: 23.6 x 15.7 x 2.3 cm
  • Average Customer Review: 4.2 out of 5 stars  See all reviews (4 customer reviews)
  • Amazon Bestsellers Rank: 332,713 in Books (See Top 100 in Books)
  • See Complete Table of Contents

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Review

‘… thoughtful new book on innovation’.  (Economist.com, January 2011). ‘…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) 

From the Inside Flap

The father of "open innovation" 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. "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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Most Helpful Customer Reviews
1 of 1 people found the following review helpful
5.0 out of 5 stars Excellent and useful read 31 Aug 2012
Format:Kindle Edition|Verified Purchase
A book that should be read by everyone working in the manufacturing sector. It has a clear and useful message - to succeed in the future 1) focus on how to convert your product offering into as a service offering to boost revenues, 2) the next breakthrough ideamid unlikely to be sitting in your company but in another organisation and 3) open your company's doors to collaborative research and innovation to access the very best ideas, technologies, skills and know-how in other companies.
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1 of 1 people found the following review helpful
By Robert Morris TOP 500 REVIEWER
Format:Hardcover
In his previous articles and books (notably Open Innovation and Open Business Models), Henry Chesbrough has a great deal of value to say about results-driven, multi-dimensional collaboration/co-creation within and beyond any organization, whatever its size and nature may be. Given the current economy and, especially, ever-increasing commoditization, his latest book is especially valuable because he thoroughly explains in it how to deliver better products and services for any business' customers "that will allow it to grow and compete in a services era, ultimately escaping the commodity trap and that treacherous treadmill."

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.
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3 of 5 people found the following review helpful
5.0 out of 5 stars A must read 15 Feb 2011
Format:Hardcover
Following up on his major contribution on 'open innovation', Prof. Henry Chesbrough -- one of our most insightful observers of business innovation -- is giving us another must read book. This clearly written and engaging book is packed with insights, and enriched by the author's experience and ability to converse at a high level with a broad spectrum of companies. I could not put this down.
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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0 of 1 people found the following review helpful
2.0 out of 5 stars Too much theory 11 April 2011
Format:Hardcover
This is a good book if you are studying innovation for a college course. However as a hands-on business book its got to much text and not enough frameworks. As a result it isnt great if you are looking for something to help you implement innovation in your business.
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Amazon.com: 4.4 out of 5 stars  13 reviews
14 of 15 people found the following review helpful
4.0 out of 5 stars Service and Business Model Innovation 31 Jan 2011
By Jeffrey Phillips - Published on Amazon.com
Format:Hardcover
Henry Chesbrough literally "wrote the book" on Open Innovation years ago. Today (2011 timeframe) every firm is trying to understand how to gain more ideas from customers and business partners, and frankly, few have really figured it out. And that's just focused on product innovation and the pipelines and structures that Chesbrough introduced in his first book. Which makes Open Services Innovation interesting and problematic at the same time.

Problematic because so many firms are just really beginning to understand "open" innovation, and taking small steps to understand how to best interact with customers and partners. That means that the graduate level class of open services innovation is valuable, but probably beyond many firms at this point. After all, asking a firm to innovate around services or business models is difficult, and asking them to use open innovation is difficult. Combining the two is a huge leap for many firms. I suspect that this book will become really popular in three to five years, once the frameworks for open innovation have been accepted and become more established.

The book is interesting because it assumes that the reader is familiar with and has implemented some aspects of open innovation, and it spends far much more of its time and focus on service and business model innovation. In fact it does a lot of what White Space Innovation by Mark Johnson did, only without Johnson's framework. The book is valuable because it discusses innovation in areas where many firms are only getting started - innovation in processes, services, business models and customer experiences. So in that regard, a firm or individual new to innovation can pick up the book and ignore the "open" aspects, which are relatively few, and learn a fair amount of innovation in services, business models and experiences, which is equally valuable and in fact is probably best suited for many firms.

The book also points out what I consider to be a real problem with book publishing. Chesbrough has a good idea and conveys it in four or five solid chapters. After that, he is forced to stretch the material to consider Open Services Innovation for Large firms, Open Services Innovation for Smaller Firms, Open Services Innovation for Services Industries, and so forth. I don't think these concepts add a lot to the discussion and they feel like filler in order to stretch the content to legitimate book length. You can get all the value you need from this book by reading the first 130 pages. That's not a critique on the content, but a comment on the format and the expectations of a publisher.

Chesbrough is to open innovation what Christensen is to innovation in general, and his concepts and ideas are spot on. What's possibly unfortunate about this book is that he is covering a subject that is akin to quantum physics for many firms, who are still trying to get the grasp of the Newtonian Physics of simple, open innovation. Many firms will buy this book, but I suspect most of them won't be able to use it effectively until they have a better grasp of "open" innovation, unless they toss out the open focus and think through innovation around services and business models.

One brief complaint - Many open innovation practitioners fail to communicate effectively that Open Innovation is a generic term for a number of different approaches to working with clients and customers to gather and manage ideas. You can see different types of Open Innovation in IdeaStorm, from Dell, IdeaJams, from IBM, Innovation Contests like the X-Prize, technology transfer organizations and solution providers like Innocentive. Be careful when considering Open Innovation, as it is only a catchall phrase for a lot of different tools and techniques, which have different applications and different downstream implications. I wish that authors writing about Open would address this. I've written a short chapter on this in the book A guide to Open Innovation and Crowdsourcing edited by Paul Sloane: [...]
10 of 10 people found the following review helpful
3.0 out of 5 stars Important topic 18 Mar 2011
By Jackal - Published on Amazon.com
Format:Hardcover|Verified Purchase
Service innovation is a very important topic and open innovation is a fashionable idea. Still this book only deserves three stars. The biggest problem is that we know so little about service innovation as opposed to product or process innovation. So the author is applying his ideas on open innovation to an area in which we do not have much knowledge. That makes the book quite messy and certainly not a definitive read.

If you're new to the idea of open innovation I would go for the author's first two books instead (Open Innovation: The New Imperative for Creating And Profiting from Technology, Open Business Models: How to Thrive in the New Innovation Landscape). These books were more solidly built on research so they are better. Chesborough seems to be going down the same line as Christiansen, who started with a book based on his research ((The Innovator's Dilemma: The Revolutionary Book that Will Change the Way You Do Business (Collins Business Essentials)) and then wrote a number of additional increasingly shallow books without any real new content.

I still give the book three stars because it is an honest attempt to deal with an important issue for the modern economy.
5 of 6 people found the following review helpful
5.0 out of 5 stars The "Next Practices" of Open Innovation 14 Mar 2011
By Paul R. Williams - Published on Amazon.com
Format:Hardcover
Every once in awhile, a business book comes along that is so timely, so helpful to the right audience and so filled with common sense principles that you kick yourself for not thinking of it! But being in the right place at the right time with what is most needed is why people like Dr. Henry Chesbrough, the "Father" of Open Innovation, are so successful. His latest book, Open Services Innovation, is just such a tool that is so needed for business today.

In a global economy stung by commoditization and a lack of differentiation, only those organizations that stand out via services, business models, operating processes and customer focus will succeed. The premise of Open Services Innovation is that, in a product-based economy, after the exchange of a product is executed between provider and consumer, the provider's "job" is essentially done. But in a services-based economy, the exchange of a service between provider and customer is not complete until the customer's need is fulfilled. This gives the provider much more time to interact with the customer, understand their needs, analyze trends, and study behaviors, all to simply discover ways to better serve that customer and their needs. And that results in a closer relationship. And that results in growth. Get it?

Not yet? Okay, how about this great anecdote from the book about a Wal-Mart data mining initiative that studied customer purchasing trends in the lead up to Hurricane Charlie. Wal-Mart, traditionally thought of as a simple product provider, noticed through their analysis of the purchase trending data that people tended to stock up on, among many "normal" survival products, Pop-Tarts and beer. Oh, and not just any Pop-Tarts, but Strawberry Pop-Tarts. So, fresh with this knowledge, and with Hurricane Frances taking aim on Florida, they sent added supplies to Florida stores, including more Strawberry Pop-Tarts and beer, which promptly flew off the shelves. The combination of customer insight and a service mentality sold more product. Get it now?

Look, unless you've been under a rock for the past few years, you know "open innovation" is hot. Opening up R&D to outside ideas, banishing "not-invented-here" corporate mindsets, reaching out to customers and interacting with them to learn about their "jobs to be solved" have all changed the innovation management landscape. But where this book steps clear of the other "open innovation" offerings is how it extends these concepts beyond current thinking and into the service-based economy.

Dr. Chesbrough takes us into places where there aren't typically R&D functions. Services don't typically evolve from prototypes and research experiments. But, despite these differences in traditional innovation models, some service organization have leveraged open innovation concepts to get closer to their customer's needs and thus, closer to their wallets. Cool ideas like experience point mapping, specialization, niche services, co-creation and business model changes now fill the open services innovation management space. This is key...because in a world rapidly being consumed by the commoditization of products, you only really have services left in which to interact, participate, share and otherwise wow the customer. If you can leverage the best of what we know from traditional open innovation strategy and transform the services-based experience, you just leapfrogged your competition. How cool is that?!

Dr. Chesbrough also delivers what few business writers can nowadays, and that is cold, hard examples from not just the "big guys" like Xerox or KLM, but smaller firms that you've never heard of...yet, and global firms that are just starting to emerge. Remember that great Gary Hamel quote that basically says "somewhere, in some garage, someone is crafting a bullet with your organization's name on it?" Well, these emerging market service providers, who are learning to master the concepts of open innovation and customer observation, are those "someone's" and "somewhere's."

Please, do yourself a favor and get this book. Sit down and dedicate some time to really study it. Fold the corners...highlight it...write in it. Its only 200ish pages. But it is chock-full of information you need to keep pace with, and then lead, the transition from a product-based economy to a services-based economy.
4 of 5 people found the following review helpful
5.0 out of 5 stars Bringing service innovation to a new level 13 Feb 2011
By Frank Piller - Published on Amazon.com
Format:Hardcover
This is perhaps Henry Chesbrough's best book. While his first, Open Innovation (2003), already is a classic that entirely changed the way how many companies think about innovation and technology management, Open Service Innovation has a much broader and more strategic impact that not just covers R&D and technical problem solving, but a firm's business model and value proposition in general.

As much as the book is about open innovation of services, it is about service innovation in general - a practice that in most companies (even in pure service companies) is still not fully understood nor executed. In this way, readers may get a double profit from reading Henry's book: First, they learn how to increase productivity of the development process of a new service by connecting with the outside world. But secondly, they also learn how to design their service business model in the first place in a way so that it can create sustainable competitive advantage. I also liked that in this book, Chesbrough finally has an entire chapter on customer co-creation and the role of customers and users in an open innovation process.

As always with Henry Chesbrough's books, this one is equally routed in the literature and in his strong experience of interacting with many companies and managers directly. Easy to read but a lot to think about!
1 of 1 people found the following review helpful
5.0 out of 5 stars henry Chesbrough is synthesizing his open innovation thinking 3 Jun 2011
By Gunnela Westlander - Published on Amazon.com
Format:Hardcover|Verified Purchase
In Henry Chesbrough's book "Open services innovaton - rethinking your business to grow and compete in a new era" he offers a synthesis of his preceeding works on the same theme. The author successfully addresses a wider circle of readers, not only experts in business economy and administration but also social and organizational psychologists who would find in this book relevant contextual approaches in studying psychological implications of innovation strategies.
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