An Open Innovation Business Model Commerce Essay

An Open Innovation Business Model Commerce Essay It is very important to know what innovation is before we can further proceed in answering the question. An innovation is a product or service with a bundle of features that is new in the market, or that is commercialized in some new way that opens up new uses and consumer groups for it. Innovation is invention implemented and taken to market (Chesbrough 2003). Invention however is the creation of something that was previously unknown (Chesbrough, Vanhaverbeke et al. 2006). In summary, INNOVATION= INVENTION+COMMERCIALIZATION. Today companies who, want to deliver consistent organic growth to their shareholders, customers, and their employees can do that only through innovation (Chesbrough 2006). So what is Open Innovation? Illustration 1: Concept of open innovation Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. [This paradigm] assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology. (Henry Chesbrough, Open Innovation: Researching a New Paradigm). As mentioned by Chesbrough, there are a total of 5 paths to Open Innovation. Firstly, the old fashion model. It work like a fortress, the firm will take ideas internally to market. This path works the same as a closed innovation concept. The second path would be opening up the abilities for others. This can be achieved by bringing in ideas internally; ideas that does not fit into the firm business but might be useful for others. The third path would be acquiring ideas externally. Ideas are everywhere; firms can acquire ideas from university, individuals, start-up companies and etc. They can then come out with new opportunities and solutions using these acquired knowledge by taking them to a new market; a market that the firm might not have gotten into. The forth path would be to bring in external technologies and ideas to fill the gap that the firm might be facing problem with. Without open innovation, companies might need to use more resources to fill the gap. Lastly, an internal project that does not look promising until a certain level of development can be taken out and allow the team to continue working on it outside. This process can help to raise new money, acquire new customer and hire new employees (Specialist) to further develop the project. At certain point, if it seems feasible and viable, firms have the option to bring the project back if it turns out to be strategically interesting. The 5 paths are very important in helping use to understand why firms are moving towards the open innovation business model. The opposite of Open Innovation-The Closed Innovation In order to understand Open Innovation better, we will need to know the opposite of it- the Closed Innovation. In short, Close Innovation is a paradigm that successful innovation requires control and ownership of the Intellectual property (IP). A company should have full control of everything that relates to ideas. Some companies therefore decided to run their own research and development (RD) units. The entire new product development cycle was then incorporated within the company where innovation was done in a closed and self-supporting way (Wikipedia). It has always been the case whereby internal Research and Development (RD) was regarded as a strategic asset and it creates barrier to competitive entry in many industries. Only bigger firms with substantial resources and long-term research programs are capable to compete within their respective industries. This eventually led to higher profit margin as well. Competitors had to start their own laboratories using their own resources in order to compete. Therefore firms invested heavily in internal RD, which eventually led them to breakthrough innovation that enabled them to create new products and services to generate more revenue and profit margins (Chesbrough 2003). Therefore the protection of intellectual property in a closed innovation paradigm is very tight. It is so tight that firms will store their technologies until they are ready to use it. In the meantime, firms will also minimize or rather ensure zero leakages incident of information that relate to the technology. (Chesbrough 2003) Differences between closed and open innovation Table 1: Open Innovation Principles, Source: H. Chesbrough (2003) One major difference between closed and open innovation are how firms filter their ideas. In any RD process, researchers must separate the bad proposal from the good ones and eventually only the good proposal will be commercialised and the bad ones will be discarded. Both open and closed model can remove false positives (that is bad ideas that initially look promising), but open innovation can revived these false positive and false negatives (ideas that initially seem to lack promise but turn out to be surprisingly valuable) to recoup losses incurred during the RD process. A classic example will be Xerox and Palo Alto Research Centre (PARC). Researcher there developed many breakthrough technologies such as Ethernet and Graphical User Interface (GUI). However Xerox main focus is on high speed printer and copier, hence these technologies were not viewed as promising by the firm. This is what we call false negative. GUI was eventually used by APPLE in Macintosh operating system and Micr osoft in Windows operating system respectively. Why open innovation? Today, in many industries, the traditional logic of supporting an internally oriented, centralized approach to RD has become obsolete. Ideas must be used with alacrity as useful information and knowledge can be obtained easily. A firms ability to exploit external knowledge is a critical component of innovative capabilities (Cohen and Levinthal 1990) instead of exploiting only internal knowledge. In short, firms that can integrate external ideas to advance their own businesses while leveraging their internal ideas outside their current operations will likely thrive in this new era of open innovation. As time passed by, Closed innovation model begin to obsolete fundamentally and ultimately eroded. This eventually led to closed innovation giving place to open innovation paradigm (Chesbrough 2003). Increase in availability and mobility of skilled workers encourage firms to go into an open innovation business model. This is because the labour market is linked to the market of know-how (Teece 2000), these labors are likely to be lured by better compensation package which will then led to information leakages. This makes the labour market highly mobile which encourage companies to shift from a closed innovation model to an open innovation model. Also, ideas can no longer be stored on the shelf anymore. Failure to utilize own technologies might result in firms seeing their own technologies ended up being exploited by other firms. This is due to a widespread of knowledge pool among companies, customer, suppliers and other parties. Hence the closed innovation business model is once again proven to be less useful to many firms. Rising development costs and shorter product life-cycles has resulted in firms finding it increasingly difficult to justify investments in innovation (Chesbrough 2007). This actually made the open innovation model important. It is very important for firms to process knowledge at a faster pace to prevent worker and venture capitalist to steal their ideas. It is not surprising at all that external suppliers offer better quality work of what a company can achieve internally (Chesbrough 2003). Hence, in today context, most of the bigger firms actually engage the services of external suppliers so that they can apply their investment to cover more areas in less time. However it is important to note that this allows other firms to move faster and cover new markets as well. An example of this would be Samsung and Apple. Apples A5 chip is built by Samsung à ¢Ã¢â€š ¬Ã… ½, the processor that powers Apples iPhone 4S and iPad 2 is being manufactured in Texas by rival Samsung. As mentioned earlier in this essay that a company such as XEROX that is too focus internally (closed innovation approach) will eventually miss out numerous opportunities because many will fall outside the firms current businesses or will need to be integrated with external technologies to unleash their full potential. As RD functions are organised as separate function within organisations, there bound to have some technologies that are under- or unutilised. These ideas are kept on the shelf of the knowledge bank until downstream business is ready and willing to use them (Chesbrough 2003). Firms will do well if they are able to make full use of extensive technologies (Chesbrough, Vanhaverbeke et. al. 2006). Its also possible to innovate with discoveries of others (Chesbrough 2003). Firms can leverage on external knowledge instead of ignoring it and pursuing only internal RD (Chesbrough 2003). Valuable ideas come from inside or outside the company and can go to market from inside or outside the company as well (Chesbrough 2003). Both external and internal ideas are equally important. Firms can focus on a particular area without having to do everything (Chesbrough 2003). Therefore Open Innovation offers lower costs for innovation, faster times to market, and risk sharing with others. (Chesbrough 2006). Open innovation does not mean that internal RD must be removed from a firms RD process. A firm can achieve additional benefits when implementing internal RD in Open Innovation context as the internal RD can fill the gaps (leveraging on external) in what others are doing. Firms that adopt Open Innovation business model do not need to invent the most novel or best technologies and knowledge in order to thrive and lead in their respective industry. Firms just need to be sure that they are making the best use of internal and external knowledge in a timely manner and innovate to create new products or services. Smaller firms such as SMEs have more reasons to move towards the Open Innovation business model. This is because they have less internal RD capability, less market power which mean weaker ability to capture value and IP enforcement are often costly to them (Henry Chesbrough 2008). Markets that is too small for larger firms might be attractive for SMEs. Smaller firms are able to execute plans at a faster rate because there are less internal politics (Henry Chesbrough 2008). Eventually larger firms will value this collaboration with smaller firms and they will create platforms that seek supporting investment from SMEs and SMEs can expand globally at a lower cost. As for larger firms, the Open innovation business model plays an important role. Radical innovations were viewed as an approach to generate growth for large established company as they depend on breakthrough innovation to move to the next platform for growth. However larger firms are lacking of supportive infrastructure to enable breakthroughs to be commercialized. Open innovation model can aid firms in building this supportive infrastructure. Larger firms can then focus on building deeper core competencies. Example 1: Intel Firms can benefit from innovation even if they do not own the technologies they use. An example would be computer processor maker, Intel. Intel has been successful for years without conducting much basic research on its own. All development took place within existing production laboratories as Intel does not have any development facilities. However Intel decided to take a change at a later stage, three research laboratories with different focus in their respective areas were established later. In addition to that, Intel actively promotes linkages between its research laboratories and external research community. They held conferences, research forums and seminars in attempt to bring both internal and external researches together. (Chesbrough 2003) Strong connections between them and newly incorporated firms allow Intel to extend its business strategy by leveraging on the advantages that these start-ups possessed. Intel benefitted tremendously from this far-sighted approach with corporate venture capitalist. To sum up, Intel actually adopted the third and fourth path to Open Innovation as mentioned earlier in this essay. Their primary focus is on accessing and leveraging on external knowledge (Chesbrough 2003). Example 2: The rise of Adobe and fall of Metaphor Computer We all know that Adobe systems owe its success to their first product, the PostScript. Postscript created a new industry segment within personal computer industry, known as desktop publishing. This technology was initially developed within Xeroxs Palo Alto Research Center (PARC). Within PARC, what was then called Interpress was a means of allowing Xeroxs laser printers to print what was displayed on a Xerox Star workstation. This capability became known as WYSIWYG, or what you see is what you get. John Warnock and Charles Geschke, who both worked on this technology while at PARC, wanted to create a standard around Interpress. However, their management within Xerox resisted this, because they did not want to give away one of the primary differentiating features of the Star system. Extracted from Intel ® Technology Journal. From the extract above, we can see that both John and Charles innovation does not look promising to PARC at that point of time. Eventually Hewlett Packard and Canon agreed to bundle in the Technology which was later labeled as PostScript as a standard item in their laser printers, while Apple agreed to support PostScript in its software. If back then PARC adopted an Open Innovation business model, they would have benefited. This is mentioned earlier on as the fifth path to Open Innovation business model. However HP, Canon and Apple benefited from the model as they have all taken the third and fourth approach to Open Innovation business model. And lastly Adobe uses the first and second approach, which eventually led them to success. Unlike Adobe, Metaphor chooses to adopt a closed innovation approach. Nothing was carved out and shared with other firms. Lack of third-party support eventually led them to their downfall. Conclusion As ideas and technologies become obsolete at a very fast pace (Chesbrough 2006) and many useful knowledge has been widely spread, open innovation is vital for firms as they can use external as well as internal ideas and paths to market as they look to advance their technology (Chesbrough 2003) while pursuing lower costs for innovation, faster times to market, and the chance to share risks with others (Chesbrough 2006). In order to thrive in this new era, firms must adopt an open innovation business model. However it is important to note that, closed innovation is still applicable to certain industry such as the Pharmaceutical industry. Open Innovation business model is merely an evolution of closed innovation as it consist partial traits of the latter. ******** The End ********

Hamlet: Hamlets Sanity :: Shakespeare Hamlet Essays

Hamlet: Hamlet's Sanity â€Å"Great wits are sure to madness near allied, and thin partitions do their bounds divide.† Though John Dryden's quote was not made in regard to William Shakespeare's Hamlet, it relates very well to the argument of whether or not Hamlet went insane. When a character such as Hamlet is under scrutiny, it can sometimes be difficult to determine what state he is in at particular moments in the play. Nonetheless, Hamlet merely pretends to be insane so that he can calculate his moves according to the situation at hand. There are many situations throughout the play that are enough to bring Hamlet to insanity. Take, for example, Act IV, scene II, after Polonius's death. Hamlet's day has been hectic; he finally determines that Claudius has killed his father. The chance to kill Claudius confronts him, and he comes very close to convincing Gertrude that Claudius killed his father. Hamlet accidentally kills Polonius and finally, the ghost of his father visits him. Though at this point these situations create plenty of reasons for Hamlet to be insane, he remains sharp and credible. â€Å"[Hamlet] concocts this state of madness...his intellect remains clear, his discourse sound and comprehensive,† (Harris, p. 129). Hamlet reveals to his friends and his mother of his plans to pretend act insane. He tells Horatio that he is going to "feign madness," and that if Horatio notices any strange behavior from Hamlet, it is because he is putting on an act. (I, v). Hamlet also tells his mother that he is not mad, "but mad in craft." (III, iv). In addition to his confessions, Hamlet's madness only manifests itself when he is in the presence of certain characters. When Hamlet is around Polonius, Claudius, Gertrude, Ophelia, Rosencrantz and Guildenstern, he behaves irrationally. When Hamlet is around Horatio, Bernardo, Francisco, The Players and the Gravediggers, he behaves rationally (Bevington, p. 59). Some of the characters themselves come to realize that Hamlet is not mad. Claudius confesses that Hamlet's "actions although strange, do not appear to stem from madness." (III, i). In addition, Polonius admits that Hamlet's actions and words have a "method" to them; there appears to be a reason behind them, they are logical in nature. (II, ii). Hamlet is also able to make smart remarks to Rosencrantz and Guildenstern, comparing them to sponges. "When he (Claudius) needs what you have gleaned, it is but squeezing you and, sponge, you shall be dry again," ( ). This is random and unexpected, as many of his actions, but the comparison makes sense; Rosencrantz and Guildenstern soak up all the kings

Belonging Pactise Essay

For a person to belong into a certain group, class or society, they must learn to fit in with that certain group, class or society and learn the rituals, language, behaviour responsibilities and culture. The sense of belonging to one of these social groups gives one a sense of belonging, and cancels out the feeling of exclusion and isolation. The journey into fitting into these groups can be a challenging task, which involves class clashes and other obstacles. Through the study of Educating Rita, we see the benefits of belonging, but contrasting them with the negatives in belonging. In order to fit in to a new class, one must learn the aspirations, culture, interests and language, otherwise they will not be able to communicate and feel the sense of belonging to the new class. In Educating Rita, the struggle Rita goes through in order to transforms her old self, into a new and improved Rita, shows us that in order to belong to a social class one must first have self-actualization, knowing what their purpose and aspirations are in life, in order to pursue the correct class for them. This is the problem that Rita has from the beginning of the play, the lack of self-actualization causes her the excessive want to change and to fit into the higher social class. Rita’s epiphany only comes towards the end of the play, but the struggles and obstacles that lead to the epiphany show us the importance of self-actualization. Throughout the play, we can clearly outline the differences between the two social classes, the working-class and the middle-class. These differences in language, culture, aspirations and rituals cause the obstacles to fit in. The task that Rita is pursuing is a very challenging one, that may not even be achieved. From the beginning of the play we see the struggles she is going to have, when she struggles to open the door. This is symbolic to the struggles and obstacles she will face during the process of trying to belong. The difference between language and education is shown when Frank is discussing the book Howard’s End, and Rita’s lack of education leads to the misunderstanding of the book’s title, and mocks the pun. The ambition and desire to belong into the higher social class is caused because of the lack of self-actualization. When Frank asks Rita why she has enrolled into the class, she answer, â€Å"I wanna know†¦ Everything†, this shows her lack of understanding about her own ambitions and aspirations, and shows that she is still looking for something to fulfil and enrich her life. The disproportionate use of tag questions suggests Rita’s lack of confidence, which reflects on her lack of self-actualization.

Hamlet Analytical Essay Essays

Hamlet Analytical Essay Essays Hamlet Analytical Essay Paper Hamlet Analytical Essay Paper And if I stay it will be double, which provides an explanation of all the murders and suicides that were a result of Hamlets decision to not end his life. !! The conscience drives ones decision making, which determines the end, and the ate of the afterlife. Hamlet has demonstrated how overthrowing can lead to unlawful deaths, and how one will pay for their sins in the afterlife. However, Hamlet and his family are Christians, and if they followed their own beliefs, the outcomes would have been different. Hamlet would have a clear conscience, no deaths would have taken place, and their afterlives would have been saved. Through this play, Shakespeare teaches the important lesson of morality. Do right, and one will be saved. Do wrong, and one will be punished. !

Picture of a House

Picture of a House It is said that every family has skeletons in the cupboard. If only old houses could speak, they would tell a lot of fascinating stories about bad and good times of their inhabitants. At first glance, an old house in the picture may seem to be a mere building consisting of walls, windows and doors, but its atmosphere and every its part would mean a lot for several generations that were born and grew up in it.Advertising We will write a custom essay sample on Picture of a House specifically for you for only $16.05 $11/page Learn More A paved path leading to the terrace steps looks so inviting that it is hard to resist the temptation and enter the building. Stepping on this winding trail, a guest would inevitably think of those people who had walked this path millions of times day by day in the past. It is possible that these were small children who ran skipping along and perhaps even fell after stumbling over one of the stones on the path. These could also be elderly people who went slowly because it was already difficult for them to walk. Young people could walk this path in a hurry from and to work without even noticing beauty of the house. With all these thoughts in mind, a guest would find himself/herself on a desert terrace. Knocking on the door, the stranger would imagine children playing games on this terrace and an elderly man sitting in a rocky chair. However, now there are no lights in the window and the terrace is desert. Nobody would open, and it seems that now only memories and family secrets live in this house. Not able to enter the house, a stranger would stay outside and walk in the garden. It is autumn, and the bare trees share the mood and loneliness of the house. However, there are no leaves on the lawn, and it means that somebody has collected them. Someone who is now invisible has gathered the autumn leaves and neatly cut the lawn. The presence of invisible but caring owners surround the house with atmosphere of mys tery. The red tiling on the roof of the house and a gabled tower make the building look like a castle from a fairy tale. There is a small chimney on the roof, and obviously small children growing up in this house were waiting for Santa Claus to come through it every Christmas Eve. Children grew up and do not believe in miracles anymore, but a small chimney remains as a commemoration of those old good times. The large windows of the house are similar to somebody’s curious eyes and connect the inhabitants of the building with the surrounding world. It is obvious that there are even more windows in this house than it is necessary for lighting the rooms in a proper way. Most rooms of the house have two or even more windows which demonstrate the openness of the inhabitants and make the building look even more inviting. It is possible that previously the house was more hospitable than on this autumn morning and guests crowded on its small terrace and in its brightly-lit rooms. Howe ver, now the house looks desert and sleeps, hiding all its secrets behind thick curtains on the windows.Advertising Looking for essay on art? Let's see if we can help you! Get your first paper with 15% OFF Learn More Looking at the exterior of the house in the picture, strangers can only make guesses concerning the lives of its inhabitants and the true meaning of the elements of the building. A winding path, bare trees in the garden and large windows would seem only the elements of the construction to a stranger, but would tell much more to people who have spent at least a part of their lives in this house.

Choose a specific characteristic of yourself (it can be a physical Assignment

Choose a specific characteristic of yourself (it can be a physical feature, an ability or a type of behavior) that you believe to have been affected by your environment (physical, social, or both) - Assignment Example I know these seems like the habit picked up by an older generation or by a group of gentlemen but it is a trend being picked up by even the younger generation which prefer it to taking alcohol or smoking the real cigarettes which are more harmful to the health. Ever since my social circle expanded, I have had to attend a few too many social gatherings (the intimate kind with only a few friends or members and not open to the general public). In all these social gatherings, the people I consider my friends or allies smoke these kinds of cigars and I was initially the only odd one out. For a while (months) I resisted the temptation both from the friends and myself to indulge in this behavior but eventually I threw in the towel and started smoking them only because I didn’t want to be left out anymore. The social environment had been the one that enticed me to start the behavior. Had I not been involved in these social gatherings, I would not even have known how to buy a cigar let alone be an expert smoker. The most interesting bit about this behavior is that it happens only when I am in these social meetings but once done, I do not even feel the slightest urge to smoke a cigar. I do not feel left out or a loner anymore and actually a sense of belonging settles in once everyone removes their cigars and starts smoking them even if for only a few minutes (Kirst-Ashman, 2007). Observation is the best research method to find out whether for certain it is the environment that has brought about this behavior in individuals. This research can be conducted among the same circle of friends I have as it is the easier target and data will be collected easily without invading the privacy of most people. Observation can take place outside the social gatherings for example in their offices, homes or in between classes. The observation will not be hard as I interact with these people often in

Week 2 response papers Essay Example | Topics and Well Written Essays - 500 words

Week 2 response papers - Essay Example sidering that controlling people’s values and temperance is difficult, this may not be the ultimate solution to the current and impending environmental problems. In agreement with the student post, teaching people and making them aware of the consequences of their actions can play a lot in changing people’s negative behavior. As the student notes, people may end up being less wasteful as they understand the kind of situation that may result due to their actions or inactions. While laws help in bringing sanity, they alone too reduce people’s freedoms as noted by the student. A world with numerous freedoms taken away is not a healthy world in my personal view. The world would indeed be a better place if sustainability was upheld without necessarily imposing prohibitions or restrictions to such things as procreation as noted by Dasgupta (2007). As suggested b the student, it would be a noble idea to start teaching people about the issues of sustainability and environmental conservation at a tender age, giving them the opportunity to make informed choices about their preferences and actions. The second student has presented very strong and interesting ideas. The notion that there are already too many laws, regulations and prohibitions is only the truth. However, these laws are broken every so often; even by the very same people who enact them, in some cases. Furthermore, individual freedoms are reduced or altogether abolished with almost every single law that is enacted. Considering the above facts, education seems to be a better option in dealing with issues related to sustainability. When people are educated, they are in a better position to use their common senses to solve or avoid problems (Heal, 2009). Yet another commendable suggestion by the student is the idea that experimental tests should not be conducted in the atmosphere but under simulated conditions. It is common for scientists to simulate how things would work under certain circumstances