IMIO News Summer 07 Page 2

Text Box: In a new book that already has drawn glowing reviews, Henry Chesbrough, executive director of the Center for Open Innovation (COI) and adjunct professor at the Haas School, calls on companies to break down their walls to foster innovation. Just released in December, Open Business Models: How to Thrive in the New Innovation Landscape, already has received a Wall Street Journal review calling the book, "one that B-school students and lay readers alike will enjoy." BusinessWeek also included it on its list of the 10 best innovation and design books of 2006. Chesbrough argues for companies to look outside their boundaries for the best ideas and to capitalize on their own unused ideas through licenses and sales to other firms, even competitors. This new open approach requires new performance metrics, new processes, and changing long-held views about innovation and intellectual property. Such change is essential in today's world of rising technology development costs, shorter product life cycles, and widely distributed knowledge, argues Chesbrough. Open business models are illustrated with detailed case studies of Proctor & Gamble, IBM, and Qualcomm, and a framework of six business model types -- with examples such as Wal-Mart, Dell, and Apple -- and a diagnostic test to enable managers to open up their own companies. It builds upon Chesbrough's earlier book, Open Innovation: The New Imperative for Creating and Profiting from Technology; both are published by Harvard Business School Press. For more on COI: http://openinnovation.haas.berkeley.edu/

Text Box: The Center for Open Innovation has initiated a new membership organization, the Berkeley Innovation Forum (BIF), to facilitate an academic and corporate partnership with a focus on innovation. In brief, the mission of the BIF is to create a community of innovation leaders that meet to exchange ideas and practices. Through an environment of non-competing companies, BIF members will explore new ways to advance the management of innovation by engaging openly with one another. The Berkeley Innovation Forum is developing new approaches to the study of innovation, avoiding fundamental flaws in the usual approach of business schools. The study of business is not a science in the academic sense of the word, yet business schools organize as though it was. A far better model is the model of medical schools, which pursue fundamental research on the biological mechanisms of disease, and join that research to clinical practice that translates research breakthroughs into new therapies for patients. In a small way, the BIF, if it is successful, will help to close the gap between innovation theory, and innovation practice, by incorporating more clinical experience into the open innovation research agenda.

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Henry Chesbrough

Text Box: The services sector has grown over the last 50 years to dominate economic activity in most advanced industrial economies, yet scientific understanding of modern services is rudimentary. The executive director of the Institute’s Center for Open Innovation, Henry Chesbrough, has been a leader in a multi-disciplinary effort to raise public awareness of the issue and conduct research and teaching in the emerging discipline of services science. Dr. Chesbrough recently: was named a charter faculty member of the new campus program, Services Science, Management and Engineering, received an SSME faculty award from IBM in connection with the SSME program, informed the business community, with publications in the Financial Times and Harvard Business Review, informed the academic community, by authoring the lead article in the July 2006 Communications of the Association of Computing Machinery (ACM), “A research manifesto for services science”, offered the first focused course on services science at Berkeley in 2006 (with Bob Glushko), and organized a two day service innovation conference at Berkeley.

New Chesbrough Book Shows Companies How to Foster Innovation