Sse article2 6a_2011

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Sse article2 6a_2011

  1. 1. How to manageoutside innovation<br />Group 6a<br />
  2. 2. Twosources for innovation<br />Competitive markets<br />Contract based <br />Profit motive<br />Competitive relationships among innovators<br />Collaborative communities<br />Open sharing of information<br />Joint development <br />transparency<br />
  3. 3. Three criticalissues<br />1.Type of innovation<br />2. Motivation of the innovators<br />3. The platform business models<br />
  4. 4. Type of innovation<br />Different circumstancesrequire different innovations<br />
  5. 5. Motivation of the innovators<br />Extrinsic Motivation<br />Intrinsic Motivation<br />
  6. 6. The platformbusiness models<br />Three types of platform business models:<br /><ul><li>Integratorplatformmodel
  7. 7. Productplatform
  8. 8. Two-sidedplatform</li></ul>Can work for bothcollborativecommunities and competetive markets<br />
  9. 9. Integratorplatform<br />The company incorporates outside innovations and sells the final products to customers.<br /> - High control for the platform firm<br /> - Example: Apple Appstore<br />Competetive market advantage<br />
  10. 10. Productplatform<br />The external innovators build “on top” of the platform and sell the resulting products to customers<br />- Lowercontrol for platformfirm<br /> - Example: Google android (Hardware development)<br />
  11. 11. Two-sidedplatform<br />External innovators and customers are free to transact directly with one another as long as they also affiliate with the platform’s owner.<br /> - Verylowcontrol for platformfirm<br /> - Facebook (widgets)<br />Collaborative community<br />advantage<br />
  12. 12. References<br />Boudreau, K. & Lakhani K., “How to Manage Outside Innovation”<br />

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