The document discusses open business models and why companies should adopt them. It notes that closed business models only capture value within the company, while open models allow value creation and capture to be shared between the company and external partners. The document outlines some limitations of closed models and the economic pressures for more open innovation. It provides examples of how some companies have transitioned to more open models and concludes that while challenging, open business models can provide opportunities for greater innovation and growth.

1. Angela
Chiara
Francesco
Tommaso
Ilaria
Agostina
Why Companies
should have OPEN
BUSINESS MODEL !
Ufficio
Valorizzazione
Ricerche
UVR-SSSA

2. OPEN
Business Models
CLOSED
• Create value
• Capture a portion of this value
From the manufacturing of
the products to the
commercialization IN-HOUSE
Dividing work of innovation
among companies

3. From closed to open
business model
Yesterday
It used to make its own cell phones
and base stations
Today
It just makes chips and sells licenses
to its technologies

4. Limits of closed BMs
Companies quickly recognize ideas that fit their own
successful resources and have difficulties in changing their
configuration assets and market positions
Inefficiencies of innovation markets
Companies are not familiar with the exchange of
technology and intellectual property
“Between 75% and 95% of patented
technologies are simply dormant”

5. The Economic Pressure on
Innovation
Difficulties in
justifying
investments in
innovations for
companies

6. The New Business Model of
Open Innovation
Innovation
became
economically
attractive
again!

7. Open experiments!
How to take part in the open
innovation process?
Fear to risk to lose
reputation of an
established brand for a
new product?
Create a new
subordinate
«white box»
brand to get
consumers’
feedback!
Explore new open
business model by
spinning off
companies and
investing in
start-ups!Results emerge in the long-term period!
Doubts on how to
conduct open innovation
experiment?

8. How three companies do it

9. Making the transition...
Clear commitment and support from the top
«buy in» for the model from important constituencies before
being rolled out across the company
Adjusting or rebuilding the model to handle significant volumes
Need for:
Evidences that the transition is heading in the right direction
- pursuing of new sources of revenues and business value
- collecting critical information from the market
Acting on the information that the experiment generates

10. Conclusion
The alternative solution of opening up a companies’ business
model may not be easy:
It takes courage and vision to try out new ideas during a
time of financial difficulty
ANYWAY
Open Business Model provides
a potential pathway to
greater innovation activity
and
increased growth