Open Business Models

Open business models are an approach that companies can take to let more external ideas and technology flow in and more internal knowledge flow out (Chesbrough, 2007). Increasingly firms are looking outside their boundaries for ideas and intellectual property (IP) they can bring in, as well as to license their underutilized home-grown IP to other organizations. The open business model represents a break from traditional corporate ethos where the emphasis was on protection of intellectual property and information resources. The business world is realizing that useful knowledge is no longer concentrated in a few large organizations and companies that keep their intellectual property too close to the vest risk missing out on critical business innovations that idea-sharing could generate. By adopting these models, organizations can bring innovations to market more quickly and less expensively, thereby securing a competitive advantage in an increasingly dynamic global economy. Popular and well known examples of business models include Linux Red Hat (which adds value in the form of user and technical support to the basic Linux distribution) and Google Ads.
Open Educational Resources Next: open-capital

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