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Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
Business Model Analysis and Open Innovation
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Business Model Analysis and Open Innovation

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I discuss the case of Kiva and MyC4 from business model perspective and later discuss open innovation

I discuss the case of Kiva and MyC4 from business model perspective and later discuss open innovation

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  • Crowdsourced microloans for the developing world Borrowers/Entrepeneurs in need of money to help grow their business can reach out to field partners in their home country to request a loan, the field partner partners with KIVA and KIVA's users can lend money to the entrepeneur and will be payed back periodically, the lender can then choose to reloan his money or withdraw it. The borrower of course has to pay interest to the field partner.
  • Textual Analysis Examining Kiva lender and borrower pages to determine how content and layout influence lender behavior. How do people familiar with social networking conventions, especially millennials, interact with the site? Use a textual analysis to determine the success of design conventions at spurring philanthropic behavior. What are the key design features of a borrower's page and how are they interpreted by a lender? What values are assigned to the picture, the description of the venture, and the terms of the loan? How does Kiva present the role of the MFI in the context of the borrower's page, and how does that contrast with Premal Shah's description of the lending process? Naming conventions: a visitor to the site lends to 'businesses' (directory name in URL), can sort by 'Entrepreneur/Activity.' Screen captures from MySpace and eBay are specifically included since Kiva's former marketing director, one of our interviewees, had worked as a product manager for both companies.    
  • Majority of entrepreneurs borrow money for their retail business, they might own small shops and need the money to buy products to sell, agricultures may need money to buy materials, machinery, seeds, cattle. Among other things services, clothing, housing, transportation, the idea is not to give as charity, but to get them started so they can generate their own money and have their own successful business
  • Transcript

    • 1. Lecture SeriesWeb: Liberty FraternityEqualityAnirudh AgrawalPhD Fellow IKL
    • 2. Lecture 5Online ActivismOnline rating and reviewsCo-creationCrowdsourcing Anirudh Agrawal aag.ikl@cbs.dk
    • 3. Lecture 6 Business model Analysis Business Model Canvas Case Kiva vs MYC4 Open Innovation Anirudh Agrawal aag.ikl@cbs.dk
    • 4. Business ModelHow organizations creates, delivers andcaptures value What is the value proposition? What are the target markets? Who are the critical members of the team? Where does competitive advantage exist? Why is there a competitive advantage? When will development, launch and cash flow breakeven occur? Anirudh Agrawal aag.ikl@cbs.dk 4
    • 5. Types of Business ModelBrick-and-mortar Companies that operate solely offline with traditional business practicesClick-and-mortar Companies operating with both an online and offline presence Anirudh Agrawal aag.ikl@cbs.dk 5
    • 6. Business Model Analysis How Output Inputs Recipe Target Outputs ValuedPeople Revenues Value Creation viaMoney Customer Base •IPO Profits Business Market Model •Merger/ Opportunity License Acquisition RevenuesIntellectual •Dividend Cash FlowCapital Stream Intellectual PropertyPhysical Assets Anirudh Agrawal aag.ikl@cbs.dk
    • 7. Business Model AnalysisRevenuesCash flows and their timingRevenue driversExpensesCash flows and their timingInvestment required through cash flow breakevenWorking capitalMaximum financing required and cash flow breakeven timingSensitivity analysisKey success factors Anirudh Agrawal aag.ikl@cbs.dk 7
    • 8. B/W Strategy and Operationalization Courtesy :Source: Linking Strategy to Operations: Process Models and Innovation by David P. Norton and Randall H. Russell Mark von Rosing Anirudh Agrawal aag.ikl@cbs.dk Mobile: +45 2888 8901 E-Mail: mark@vonrosing.dk
    • 9. Business Model P2P SocialLending Anirudh Agrawal aag.ikl@cbs.dk
    • 10. Key Key Value Costumer Costumer partners activities proposition relationships segments Text Key resources Text Channels Cost structure Revenue streams Anirudh Agrawal aag.ikl@cbs.dkwww.businessmodelgeneration.com
    • 11. KIVA and MYC4http://www.youtube.com/user/kivahttp://www.youtube.com/watch?v=_5r8emxTj7w Anirudh Agrawal aag.ikl@cbs.dk 11
    • 12. Kiva Background Founded by Matt Flannery and Jessica Jackley in 2005 “Unity” in Swahili Based in San Francisco, CA Mission: “To connect people through lending to alleviate poverty” Non-profit Notable sponsors: Paypal, Linked in, Chevron, Visa 35 employees Anirudh Agrawal aag.ikl@cbs.dk
    • 13. Kiva Business Model Crowdsourced microloans for entrepreneurs in developing countries How it works? − Borrowers / Entrepreneurs − Field Partner − KIVA − Lender (KIVA users) Anirudh Agrawal aag.ikl@cbs.dk
    • 14. Kiva Business Model Anirudh Agrawal aag.ikl@cbs.dk 14
    • 15. KIVA Process Field partner post Entrepreneur profile KIVA user selects entrepreneur and makes donation Minimum of $25 KIVA sends money to field partner Field Partner gives money to entrepreneur (interest) Entrepreneur → Field Partner => Kiva → Lender Anirudh Agrawal aag.ikl@cbs.dk
    • 16. Kiva Business Model eBay Kiva Facebook Anirudh Agrawal aag.ikl@cbs.dk
    • 17. MyC4.comMyC4 is an online platform which facilitates capital exchange forthose with the least access to it in the form of loans African business (Uganda, Kenia, Cote D’ivoire, more to come) in the micro to meso-segment (250 to 25.000 euro) Loan duration 4 to 36 months (average of 12 months)Fully web2.0 enabled with open APIs in the pipelineStrong community driven approachBid against other investors using the Dutch auction method Anirudh Agrawal aag.ikl@cbs.dk
    • 18. MyC4.comInvestors upload money to MyC4 and start to bidTwo types of users: Ordinary people like you & me (98% of the users – 50% of the capital) High capital users (private equity, 2% of the users – 50% of the capital)Investors bid against each other based on interest rate Lower interest bids push out high interest bids Market decides the best interest rate Charity-like bids are possible (min. 2% p.a.) Anirudh Agrawal aag.ikl@cbs.dk
    • 19. MyC4.comAll sorts of African business are available Fishing and farming Manufacturing/construction Raw material processing/trading Retail ServicesThe investment has to conform to the U.N. MillenniumDevelopment GoalsDue diligence of each investment is performed locally Anirudh Agrawal aag.ikl@cbs.dk
    • 20. MyC4 Business Model Investors Investments & repayments MyC4OnlineLocal Provider/Lender Due diligence Disbursements Collecting repayments Business Anirudh Agrawal aag.ikl@cbs.dk
    • 21. MyC4 – key differentiators Over 88% to 94% of each Euro reaches the African business Non-comparable to traditional charity Highly competitive interest rates Not just 2% p.a. difference, but more over 20% p.a. difference People directly see where they invest into Connects people, creates intimacy Stimulates local economy MyC4 development center located in Kampala, Uganda Primary provider (FED) grown to 42 employees out of 3 Anirudh Agrawal aag.ikl@cbs.dk
    • 22. MyC4 – benefits and risks Benefits: High interest rates (over 7% p.a. easily achievable) Solid alternative to charity It’s fun! Risks: Currency exchange losses Political/ethnic instability (e.g. Kenia) Loans can be defaulted Anirudh Agrawal aag.ikl@cbs.dk
    • 23. An example of a typicalinvestment on MyC4 Description Business can specify the wanted interest rate Insight in total costs Anirudh Agrawal aag.ikl@cbs.dk
    • 24. The Borrowers/Entrepreneurs Majority: Retail and Agriculture Others: Services, Clothing, Housing, Transportation, Education, Arts Geographical Distribution: − Africa: Rwanda, Uganda and Kenya − Asia: Cambodia and Philippines − South America: Ecuador and Peru Majority of Entrepreneurs are female Anirudh Agrawal aag.ikl@cbs.dk
    • 25. Statistics of Kiva and MyC4 Anirudh Agrawal aag.ikl@cbs.dk 25
    • 26. Activity 1 What are the various points in business model where Kiva and MyC4 can have cost overruns? How does IT platforms enhaces the productivity and reach of Kiva and MyC4? How can Kiva and MyC4 leverage Social Media platforms? Discuss in groups of 4 or 5…10 minutes Anirudh Agrawal aag.ikl@cbs.dk 26
    • 27. Open Innovation
    • 28. What is Innovation?• Change/ Creativity/ Ideation/invention normally towards more pleasant/efficient than the present• Methods/Innovations/Inventions/Creativity that reduces the transaction costs of doing that business…R Coarse• Better, efficient, productive products, processes, services, technologies or ideas that are readily available to the markets, governments and society…Wikipedia Anirudh Agrawal aag.ikl@cbs.dk
    • 29. What is Innovation? Institutional Innovation Product-Service InnovationOrganizational actors Organizational InnovationOrganizational Structure Organizational Environment Organizational Boundary Anirudh Agrawal aag.ikl@cbs.dk
    • 30. Types of Innovation?Structural level innovation (process,systems)Actor level innovation (HR, work methods,team, function-skill level)Organizational boundary level innovationEnvironmental level innovation (region,culture, taste, macro-political-economical) Anirudh Agrawal aag.ikl@cbs.dk
    • 31. Types of Innovation?Incremental innovation IOS 5.1 to IOS 6.0 Windows 7 to Windows 8Radical Innovation Windows 95 Iphone first generation, Ipad1, Ipod 1 Inductive charging Anirudh Agrawal aag.ikl@cbs.dk
    • 32. What is closed Innovation? Schumperters’ view Systems or architects of Production houses hold the keys of Innovation Anirudh Agrawal aag.ikl@cbs.dk
    • 33. Closed Innovation : Organizations Hire bright people : Mostly Top ranked university graduates/ PhDs with publications/Post-docs Put them in special conditions (Well funded Labs, Good Wages Packages) Research and Develop a range of Ideas Funnel some of those ideas to product/service stage towards the end-users/ waiting customersCopied with Pride from the presentation on Open Innovation models by Charles Leadbeater Anirudh Agrawal aag.ikl@cbs.dk
    • 34. Los Alomos Laboratory 25 Sept 2012 Anirudh Agrawal aag.ikl@cbs.dk 34
    • 35. Closed Innovation : Assumptions Knowledge is sticky (only creators of knowledge know everything about the knowledge) Only inventors knows the best use of their inventions Intellectual Property provides competitive edge , hence it should be protected Innovation comes from within, self-reflective process ; Users are passive – cannot provide information to the firm on innovation Anirudh Agrawal aag.ikl@cbs.dkCopied with Pride from the presentation on Open Innovation models by Charles Leadbeater
    • 36. Question the obvious? 25 Sept 2012 Anirudh Agrawal aag.ikl@cbs.dk 36
    • 37. Examples of Closed Innovations Elite Education : Harvard University (best comes from best universities)• Investment gets innovation (you put in resources, you will get innovation) …sort of a black box model of the innovation• Assumption Only NASA can make a Space-Craft to Mars Anirudh Agrawal aag.ikl@cbs.dk
    • 38. Why only NASA can create space-craft? Anirudh Agrawal aag.ikl@cbs.dk 38
    • 39. Challenges to Closed Innovation• Innovation can arise from anywhere : Ex: Google still don’t have a challenge for Facebook or LinkedIn or Twitter• User can innovate, add value to final product ..empowering end user? Hmmm..• In a highly networked world, closed innovation can always have threats (stealing of secrets) Anirudh Agrawal aag.ikl@cbs.dk
    • 40. Anyone among us can be the nextEinstein or Edison or Zuckerberg Anirudh Agrawal aag.ikl@cbs.dk 40
    • 41. Close Innovation : Need for reforms• Should Innovation be a closed , blackboxed department, isolated from the environment of the firm• Should consumer to part of developing the product/ service for the firm..if so how?• Should there be cross –functional teams? Marketing + R and D …is it ok? Anirudh Agrawal aag.ikl@cbs.dk
    • 42. Innovation Funnel From the Presentation of Prof Henry Chesbrough UC Berkeley, Open Innovation: Renewing Growth from 25 Sept 2012 Industrial R&D, 10th Annual Innovationaag.ikl@cbs.dk Minneapolis Sept 27, 2004 Anirudh Agrawal Convergence, 42
    • 43. Activity 2 Anirudh Agrawal aag.ikl@cbs.dk 43
    • 44. What is OPEN Innovation? Anirudh Agrawal aag.ikl@cbs.dk
    • 45. • http://www.youtube.com/watch? v=_GAferFgSF8• http://www.youtube.com/watch? v=xBEv7ukmz2U Anirudh Agrawal aag.ikl@cbs.dk
    • 46. What is Open Innovation?• Maximizing return on investment through actively exploiting external ideas and knowledge and internal ideas and knowledge.. Henry Chesbourgh• Economically important innovations are developed by users and other agents who divide up the tasks and costs of innovation development and then freely reveal their results to the public ..Eric Von Hippel Anirudh Agrawal aag.ikl@cbs.dk
    • 47. Open Innovation Anirudh Agrawal aag.ikl@cbs.dk Ref: chesbourgh
    • 48. External Open Innovation• Purchasing : Buying technologies – IP rights, trademarks, copyrights, trademarks from external players instead of developing inhouse• Licensing –In : Obtaining the right to exploit technologies by paying royalties to external partners• Joint Venture : Establishing a JV with other partners to commercialize technologies• Joint Development : Developing capabilities, products, services and technologies by outside collaboration such as Firms, Universities, Labs• Contract R & D : Buying R and D services from Universities, Industries• Venture Capital : Investing in promising products/services/capabilities through external funding..• Mergers and Acquisition for capability enhancement• Customer involvement : User driven innovation• External networking : Outsourcing, consultants, expertsRef: Open innovation management and challenges : Abdul Hadi G, Junbae Lee . Procedia Social and behavioral sciences Anirudh Agrawal aag.ikl@cbs.dk
    • 49. Purchasing• Purchasing : Buying technologies – IP rights, trademarks, copyrights, trademarks from external players instead of developing in-house  Firms strategy towards make or buy? ROI, Investment, Risks associated, Dominant Logic  Examples : Patent war between Samsumg and Apple or Google maps vs Apple Maps  Example form Social Enterprise perspective : Using first world technologies through special arrangements to solve third world problems of energy, food, water, housing, education, health- care, finance Anirudh Agrawal aag.ikl@cbs.dk
    • 50. Licensing-In• Licensing –In : Obtaining the right to exploit technologies by paying royalties to external partners• Examples : Facebook integration in Iphone 5 , Google maps in Iphone 4S• Example from Social Entrepreneurship Perspective : Royalty on AIDS medicine patent for every medicine sold in third world / royalty to paypal for every donation made to a charity organization Anirudh Agrawal aag.ikl@cbs.dk
    • 51. Joint Venture• Joint Venture : Establishing a JV(a new company) with other partners to commercialize technologies• Example : Starting a JV company in a new country to develop market expertise of that country• Examples : Social entrepreneur can contact a designing firm in Denmark and co-create products for developing world markets or social problems Anirudh Agrawal aag.ikl@cbs.dk
    • 52. 25 Sept 2012 Anirudh Agrawal aag.ikl@cbs.dk 52
    • 53. Joint Development• Joint Development : Developing capabilities, products, services and technologies by outside collaboration such as Firms, Universities, Labs• Example : Smart phone development Nokia/Microsoft ; Fundamental science related development : Development of Micro-chip• Example from social entrepreneurship perspective : Development of base of the pyramid solution at MIT media labs; WRI report .. The next billion Anirudh Agrawal aag.ikl@cbs.dk
    • 54. Why will I learn from you? Anirudh Agrawal aag.ikl@cbs.dk 54
    • 55. Contract R and D• Contract R & D : Buying R and D services from Universities, Industries• Example: Completing outsourcing capability development , knowledge creation, product innovation aspects of the company to a third party player ; Firms hiring designing firms like IDEO to develop products and capabilities• Example From social entrepreneurship perspective : UNICEF developed cheap /special energy food packets for the humanitarian disaster areas Anirudh Agrawal aag.ikl@cbs.dk
    • 56. What can you do for me? Anirudh Agrawal aag.ikl@cbs.dk 56
    • 57. Venture Capital• Venture Capital : Investing in promising products/services/capabilities through external funding• Example : Ihubs in Nairobi, VC funded By Google to raise new technologies and dot.coms in Nairobi• Examples from Social Entrepreneurship Perspective : Gates-Melinda foundation Anirudh Agrawal aag.ikl@cbs.dk
    • 58. Customer Involvement• Customer involvement : User driven innovation• Examples : Apps for Android and IOS• Examples from Social Entrepreneurship perspective : www.NIF.org Anirudh Agrawal aag.ikl@cbs.dk
    • 59. Can customers innovate? 25 Sept 2012 Anirudh Agrawal aag.ikl@cbs.dk 59
    • 60. Can customers innovate? 25 Sept 2012 Anirudh Agrawal aag.ikl@cbs.dk 60
    • 61. External Networking : How can anoutsider know more than us?• External networking : Outsourcing, consultants, experts• Example : Hiring consultants, experts to bring in new capabilities, insights into the firm without actually creating a ful-time position for it Anirudh Agrawal aag.ikl@cbs.dk
    • 62. Internal Open Innovation• Selling : Selling inside capabilities• Licensing Out : Servitization of inside capabilities• Spin Off : Creating a new organization based on internal capabilities with the parent organizer as the major funder, organizer and mentor• Open Source : Revealing internal technologies/capabilities to the market without any immediate selfish incentiveRef: Open innovation management and challenges : Abdul Hadi G, Junbae Lee . Procedia Social and behavioral sciences Anirudh Agrawal aag.ikl@cbs.dk
    • 63. Selling Inside Capabilities• Selling : Selling inside capabilities• Example : Selling patents, copyrights, trademarks Anirudh Agrawal aag.ikl@cbs.dk
    • 64. 25 Sept 2012 Anirudh Agrawal aag.ikl@cbs.dk 64
    • 65. Licensing Out• Licensing Out : Servitization of inside capabilities• Example : Google Maps Anirudh Agrawal aag.ikl@cbs.dk
    • 66. Cloud Based Applications 25 Sept 2012 Anirudh Agrawal aag.ikl@cbs.dk 66
    • 67. Spin Off• Spin Off : Creating a new organization based on internal capabilities with the parent organization as the major funder , mentor and chief architect• Example : Intel• Example : Anirudh Agrawal aag.ikl@cbs.dk
    • 68. Anirudh Agrawal aag.ikl@cbs.dk 68
    • 69. • Open Source : Revealing internal technologies/capabilities to the market without any immediate selfish incentive• Example : Opening up Android platform for third party aap development Anirudh Agrawal aag.ikl@cbs.dk
    • 70. Anirudh Agrawal aag.ikl@cbs.dk 70
    • 71. Organizations for OpenInnovation• Able to set up systematic procedures for problem solving• Motivation for new knowledge acquisition• Risk Taking, entrepreneurial• Developing capabilities to create knowledge and capabilities• Team Management Anirudh Agrawal aag.ikl@cbs.dk
    • 72. Factors that Promote Open Innovation• Organizational Factors – Flexible Organizations – Hierarchy (Flat vs Pyramidal) – Information hoarding vs Information sharing – Service based vs Product based vs Project based• Market Factors – Lead User innovation – User education and Sensiblization – Price, method of Promotion , place of promotion – Competition Anirudh Agrawal aag.ikl@cbs.dk
    • 73. Open Innovation video..geeky• http://fora.tv/2008/04/08/MITs_Eric_von_Hip pel_Open_Innovation Anirudh Agrawal aag.ikl@cbs.dk
    • 74. Innovators DNA• Associating : technology association, industry association• Curiosity, Questioning : Why, what, if, But, why not, how, does that, really?• Observation : Marketing, your customers, your suppliers, your value chain, your employees, your competitors• Experimenting, Risk, Entrepreneurial MindSet, Never Give Up• Networking : Individual / Skill based resource management Anirudh Agrawal aag.ikl@cbs.dk
    • 75. Innovators DNA Anirudh Agrawal aag.ikl@cbs.dk
    • 76. Tools for analyzing Innovation• 4 P analysis• PEST Analysis• Financial or Economic Feasibility Analysis  Profit –loss  ROI  EBITDA(Earnings before interest taxe depreciation and amortization)  IRR  NPV• Porters 5 forces analysis Anirudh Agrawal aag.ikl@cbs.dk
    • 77. 4 P Analysis Anirudh Agrawal aag.ikl@cbs.dk 77
    • 78. Porters 5 Forces Anirudh Agrawal aag.ikl@cbs.dk 78
    • 79. Value Chain Analysis Anirudh Agrawal aag.ikl@cbs.dk 79
    • 80. Financial and Economic FeasibilityAnalysisProfit – LossProfit – LossROI > Return on Investment/ Impact on investmentROI > Return on Investment/ Impact on investmentSROI > Social Return on InvestmentSROI > Social Return on InvestmentNPV > Net Present valueNPV > Net Present valueIRR > Internal rate of return/ Discounted Cash Flow IRR > Internal rate of return/ Discounted Cash FlowEBITDAEBITDA Anirudh Agrawal aag.ikl@cbs.dk 80
    • 81. Activity 3• Use of Open Innovation in your bachelors/Masters project• 10 minutes Anirudh Agrawal aag.ikl@cbs.dk
    • 82. Open Innovation vs Closed Innovation Closed Innovation Principles Open Innovation Principles Smart People get hired, work for Smart People are everywhere, Large companies, are PhDs or they can work from anywhere Ivey League Universities, give for anyone, their motivations are them money not just money To profit from Innovation Firms must be receptive to orientation, we must discover it Innovation surrounding us, ourselves, develop it ourselves, innovation can come from both and get it to market inside and outside firm boundaries Patents, IP rights, copyrights We don’t really have to create give us undisputed monopoly in innovation in order to profit from the market it We must protect our capabilities We can create competitive from others, must not let anyone advantage by letting outsiders see or use our capabilities use our capabilities and generate revenue as well Anirudh Agrawal aag.ikl@cbs.dk http://www.openinnovation.eu/open-innovation/
    • 83. Other firm´s market Licence, spin Our new out, divest market Internal technology base Internal/external Our current venture handling market External technology insourcingExternal technology base Anirudh Agrawal aag.ikl@cbs.dk From the Presentation of Prof Henry Chesbrough UC Berkeley, Open Innovation: Renewing Growth from 83 C 2002 Henry Chesbrough EIRMAInnovation Convergence, Minneapolis Sept 27, 2004 Industrial R&D, 10th Annual SIG III, 2005-10-20
    • 84. • http://www.youtube.com/watch? v=2UDBaDtwXfI&feature=related Anirudh Agrawal aag.ikl@cbs.dk
    • 85. What have we covered• Human Rights/Shared Values• Internet – Changing paradigm• Social Movement and Civil Society organizations• Online Activism• Online Rating and Reviews• Co-creation• Crowd sourcing• Business Model Analysis• Kiva vs MyC4• Open Innovation Anirudh Agrawal aag.ikl@cbs.dk 85

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