Open Innovation Business Models

IMG_1075On May 6th I was running a workshop together with Ouke Arts of PricewaterhouseCoopers on Open Business Model Innovation. LEF Open Innovation (@ Media Plaza Utrecht) had put an interesting program together to discuss the topic “What is open innovation?” Open Innovation is a term promoted by Henry Chesbrough (Prof. University of Berkeley). The idea behind open innovation is that companies work with other companies on innovation. They either source it in, or source it out (eg. patents they do not use). 

Just at the time I needed to do prepare the workshop Alex Osterwalder and Yves Pigneur released their book chunk on Open Business Models on the Hub. Alex describes here the difference between the outside in and inside out approach. Very visual presentation on how these business models work. Examples of Glaxo and Proctor & Gamble included. 

But how does open innovation work for the participants of the workshop? During our workshop they audience had difficulties in coming up with a definition. Is it that you work close together on the innovation process with other companies? But what if a company recently invented an idea or concept and you start working with them rightaway? Is that inside out open business models? Or is it just smart sourcing? Anyhow, we had great discussions, people helped each other with describing business models and we concluded: Invent your business model! Inside, outside and upside down! (you can take a look at our slide pack here).

Dutch Business Models on Social Media!

Dutch internet entrepeneursOn April 28th seven dutch internet entrepeneurs gathered in Amsterdam @ Van Hellemond. Why? To discuss future internet developments with a focus on social apps./ media. Edge Strategies, a marketingresearch business from the US asked Business Models Inc. to find and invite dutch internet entrepreneurs for this discussion. The entrepreneurs should all own or have interests in websites with a lot of social interaction. A large international hosting company is the principal of the research. Frank Della Rosa – from Edge Strategies – is connected through our business model hub.

The result of our quick network search was amazing! Great enthusiasm and a great crowd showed up at the research meeting. See here for yourself. Sander (Favela Fabric), Hessel (Tribe of Noise), Jeroen (Mindz.com), Wouter (Wakoopa.com), Patrick (The Next Web), Daan (Redchocolate.nl) and Mathys (Mobypicture).

The outcome of the research is confidential. However, we share some interesting thoughts with you here and later on in this blog. Everybody agreed that making money with social media is really possible. New businessmodels evolve everyday. Lessons learned was that most of the times the businessmodel that worked wasn’t the original designed businessmodel. “We actually stumbled upon it” was heard a few times.

Cloud computing has a very bright future. One big advantage is the very transparant and flexible coststructure. One disadvantage is the inflexibility of data transfer to another cloud supplier. New vendor lock-in systems is something people are tired of after years of Microsoft tyranny.

Frank was very pleased with the results. The research is to be finished in May. We will continue doing research on business models. The next chapter will be business models in the advertising industry.