For all of these reasons, traditional business models of innovation are limited only of use and much of the most important innovation of the next few decades is set to follow patterns of social innovation rather than innovation patterns developed in sectors such as information technology or insurance.
Indeed, the Internet is now generating a host of new business models that are set to have enormous impact in the social field. 7 Other possibilities may derive from new organizational forms,
2006). 6. For comparisons between business and the social sector in making organizations great, see<http://www. jimcollins. com/lib/articles. html#>.7. For details about the open-source business model,
This analysis is presented in this report. on research, strategy and policy aspects of DSI such as governance models, business model innovation and collective incentives,
therefore, include technologically-led research, together with business models and socially and environmentally conscious approaches, as reflected in the Internet Science Network of Excellence funded by the European commission. 15society in Future Internet development to achieve these goals is one of the main goals of this study. activities in this area can be summarised under two broad
breakthrough product or business models Attitude towards intellectual property Own and protect Do not share internal intellectual property Sharing internal intellectual property can be profitable Buy/sell:
do enough R&d internally to recognize external significant R&d Advantages First movers advantage Having better business models is more important than being a first mover Employees Professional employees inside the company Working with professional within inside
and they are governed by open business models. As the table below shows, nowadays, open innovation does
& license Foster & enable Intellectual property Governance business models Intermediaries for search Intermediaries for enabling processes
They believe the living labs'business model, still heavily dependent on public funding, contributes to limiting their expansion.
it describes a web-based business model that harnesses the creative solutions of a distributed network of individuals through what amounts to an open call for proposals.
the business model of crowdsourcing is already being applied in nonprofit and government projects. The crowd in those projects are the smart citizens.
lending and investing are the four funding forms or underlying business models by which the crowdfunding platforms can be subdivided.
In this respect, the report explores the two main types of business models that are in place: 1) app as a product,
there are only a limited number of firms willing to participate in a living lab. This business model limits its expansion.
Furthermore, the Digital economy is now mainly based on business models that aggregate, analyse and sell personal data, turning personal data in what has been defined as the oil of the Internet economy.
Most users have accepted exploitative business models based on privacy infringement and often hidden surveillance mechanisms in exchange for free services.
New business models based on sharing resources (such as energy, talent and tools), fair distribution of the fruits of collective intelligence, trust and reputation should be experimented
a broad concept of innovation, both research-driven and innovative in business models, design, and services that adds value for users
or two people Shift in customer demand toward commodity products Eroding margins Undercut business models depending on premium autos and large margin options Reduced entry barriers
and new business models will emerge 16 Subsidise purchase price of a car, in return for A x-year contract to use certain services Offer concierge services around the maintenance of the car Be an intermediary who manages car-sharing
business models, training modules, skill descriptions, digital contracts, software services, ontologies, dynamic semantic networks and taxonomies, folksonomies, tag clouds...
0) Crowdsourcing is defined as new business model in which a company or institution takes a job traditionally performed by a designated agent (usually an employee) and outsources it to an undefined, generally large group of people in the form of an open call over the Internet.
Just considering the services or the business models, this means that in some ecosystems new services will appear,
in others the same services will be modified to be adapted to local conditions, regulations, business models, in yet others the services will disappear from lack of use.
In other words, having embraced a holistic approach that highlights the dependence of the business models and interactions and of their formalisation into software services on their socioeconomic and cultural context,
Digital Ecosystems surely require a variety of business models to be viable and sustainable in the long run. Some of these models will be based mainly on a new Exchange Economy characterised by peer production behaviour to become integrated with the Gift Economy. 29 In the gift economy a immediate remuneration is sought not,
New sustainable business models and socioeconomic mechanisms based on collective and public benefit are starting to clearly emerge.
The critical issue is how to encourage simultaneously both business model innovation and societal innovation. This means enabling business model innovation in real world settings (such as Living Labs, maker spaces or so called Smart Cities) and orchestrating the process with all innovation stakeholders.
Mobilising civil society organisations, and innovators that are central to the way DSI happens and scale.
At a socioeconomic level the study will assess new business models and socioeconomic mechanisms‘beyond GDP',based on the valorisation of social data and common information resources for collective use and public benefit beyond monetisation
Finally, advanced ICT, collective knowledge and innovative business models in open networked platforms can reduce the technological, bureaucratic,
social innovations often need support in the early idea stages to refine their business models and grow their venture.
New sustainable business models and socioeconomic mechanisms based on collective and public benefit are starting to clearly emerge.
Furthermore, Arduino has lowered significantly the economic barriers to D. I. Y. electronics thanks to the product's low cost and open source business model.
Banzi and his team have spent precious billable hours making the thing, yet unlike conventional proprietary business models,
Many questioned if it would be possible to forge a sustainable business model considering the entire basis for Arduino relies upon open source technologies (in fact,
‘Open Business model'This means there has been a community willing to co-design and collaborate with the founders,
Currently, business models for the period after the project are being developed. What are the main barriers to innovate Governments
The business model is based on the association's independence, and the budget depends on the membership fees of the members.
its business model is mainly only to maintain the lab and its community. The small incomes from the fee charged to use the space are used to supply the open days.
'Github has managed to craft a successful business model based around code review and code management for open source and private projects, by tapping into this community of collective coders.
Overall the‘open source'culture of Github translates into their business model in one particularly obvious way:
'120 Funding and business model: Github's‘Freemium business models'(a term which relates predominantly to the fact that organisations will pay a premium price to host their source code privately with Github) is underpinned by the fact that as the cost of computing, storage,
and (most importantly) bandwidth has fallen over the past few years. For these reasons, Github has been able to offer free project hosting to millions of users.
There are also many applicable business models for implementing some open-source hardware even in traditional firms. For example, to accelerate development
thus ensuring Opencorporates has a sustainable business model and giving an incentive to release information back to the community.
Finally, the incubation within the Open Data Institute helped Opencorporates grow their business model and receive expert support from open data peers.
and drive business model reinvention by enlightened professionals. Except for a few success stories such as Airbnb and Blablacar,
‘legal nonprofit organisation'donations make up a significant part of the organisation's finance and business model. Users and supporters are encouraged to help support
Both a part of Patientlikeme's business model as well as its mission to create better treatments for its members,
it requires to be both innovative around a business model and be able to meet the standards of medicine.
In addition to the obvious challenge of getting engagement in the platform the two main challenges for Peerby has been developing a sustainable business model,
and care that they should will not be able to rent something in the future. 183 Getting the business model and team right:
we can therefore not resort to existing business models. The funding we received through contests and investors is spent
therefore on exploring new business models. Peerby's goal is to be a self-sustaining company, and they are exploring ways to make money from the platform.
and business model sets big challenges for the skills of him and his team‘We need to be flexible,
Cooperative collaboration of this sort between organisations (particularly those who might in the more proprietary business models of the past have been‘competitors')demonstrates a deep commitment to bringing about social innovation in the way educational tools are delivered.
If one were considering the usual considerations of traditional business model, the licensing model of the Raspberry Pi technology might be deemed a disadvantage:
Ushahidi have adapted their business model to offer new opportunities for collaboration through information-sharing offering technology customisation
New sustainable business models and socioeconomic mechanisms based on collective and public benefit are starting to clearly emerge.
The critical issue is how to encourage simultaneously both business model innovation and societal innovation. This means enabling business model innovation in real world settings (such as Living Labs, maker spaces or so called Smart Cities) and orchestrating the process with all innovation stakeholders.
Mobilising civil society organisations, and innovators that are central to the way DSI happens and scale.
At a socioeconomic level the study will assess new business models and socioeconomic mechanisms‘beyond GDP',based on the valorisation of social data and common information resources for collective use and public benefit beyond monetisation
Finally, advanced ICT, collective knowledge and innovative business models in open networked platforms can reduce the technological, bureaucratic,
social innovations often need support in the early idea stages to refine their business models and grow their venture.
New sustainable business models and socioeconomic mechanisms based on collective and public benefit are starting to clearly emerge.
Furthermore, Arduino has lowered significantly the economic barriers to D. I. Y. electronics thanks to the product's low cost and open source business model.
Banzi and his team have spent precious billable hours making the thing, yet unlike conventional proprietary business models,
Many questioned if it would be possible to forge a sustainable business model considering the entire basis for Arduino relies upon open source technologies (in fact,
‘Open Business model'This means there has been a community willing to co-design and collaborate with the founders,
Currently, business models for the period after the project are being developed. What are the main barriers to innovate Governments
The business model is based on the association's independence, and the budget depends on the membership fees of the members.
its business model is mainly only to maintain the lab and its community. The small incomes from the fee charged to use the space are used to supply the open days.
'Github has managed to craft a successful business model based around code review and code management for open source and private projects, by tapping into this community of collective coders.
Overall the‘open source'culture of Github translates into their business model in one particularly obvious way:
'120 Funding and business model: Github's‘Freemium business models'(a term which relates predominantly to the fact that organisations will pay a premium price to host their source code privately with Github) is underpinned by the fact that as the cost of computing, storage,
and (most importantly) bandwidth has fallen over the past few years. For these reasons, Github has been able to offer free project hosting to millions of users.
There are also many applicable business models for implementing some open-source hardware even in traditional firms. For example, to accelerate development
thus ensuring Opencorporates has a sustainable business model and giving an incentive to release information back to the community.
Finally, the incubation within the Open Data Institute helped Opencorporates grow their business model and receive expert support from open data peers.
and drive business model reinvention by enlightened professionals. Except for a few success stories such as Airbnb and Blablacar,
‘legal nonprofit organisation'donations make up a significant part of the organisation's finance and business model. Users and supporters are encouraged to help support
Both a part of Patientlikeme's business model as well as its mission to create better treatments for its members,
it requires to be both innovative around a business model and be able to meet the standards of medicine.
In addition to the obvious challenge of getting engagement in the platform the two main challenges for Peerby has been developing a sustainable business model,
and care that they should will not be able to rent something in the future. 183 Getting the business model and team right:
we can therefore not resort to existing business models. The funding we received through contests and investors is spent
therefore on exploring new business models. Peerby's goal is to be a self-sustaining company, and they are exploring ways to make money from the platform.
and business model sets big challenges for the skills of him and his team‘We need to be flexible,
Cooperative collaboration of this sort between organisations (particularly those who might in the more proprietary business models of the past have been‘competitors')demonstrates a deep commitment to bringing about social innovation in the way educational tools are delivered.
If one were considering the usual considerations of traditional business model, the licensing model of the Raspberry Pi technology might be deemed a disadvantage:
Ushahidi have adapted their business model to offer new opportunities for collaboration through information-sharing offering technology customisation
therefore no longer fit for the diversity of commerce business models in the digital age. Infrastructure and skills For e-commerce and omni-channel retail to flourish throughout the EU,
competitive and flexible enough to embrace the new business models that the e-commerce market requires. Harmonisation and standardisation:
'i e. a level-playing field for all forms and business models of commerce; this means avoiding exclusive rights or obligations,
6 2 Revisit your business model...12 3 Eco-innovate production processes...18 3. 1 Waste and emissions...
The booklet overviews emerging business opportunities eco-innovation has to offer to companies that reconsider business models,
business model and value proposition process eco-innovation product eco-innovation getting eco-innovations on the market online resources for eco-innovation.
At its core, eco-innovation is about creating business models that are both competitive and respect the environment by reducing resource intensity of products and services.
new markets New business models Enhancing quality of life Creating new and sustainable jobs Material security Resource justice economy environment society politics Figure 2:
A guide to eco-innovation for SMES and business coaches. 9 eco-innovation observatory Introducing eco-innovation Resilient business models Companies can revisit their business models
anticipation of new standards Cost saving Material and energy cost savings due to efficiency gains Resilient business models Creating business models focussed on delivering services
A guide to eco-innovation for SMES and business coaches. 2 Revisit your business model 14 eco-innovation observatory Revisit your business model Key challenges for your business model Rethink your value proposition and your offer:
what are emerging trends that may influence your value proposition and business model in a short-and long-term?
changing a business model is a continuous process. Integrate an ongoing strategic reflection of your business model.
This will make your business more resilient. Companies most often decide to rethink and redesign their business model to reduce costs
and improve customer experience. Many companies are driven also by environmental and social concerns. Revisit your business model Key Questions
What value do we deliver to customers? Which customers'needs are we helping to satisfy?
How much does our business model depend on our companies 'and our customers'access to and use of material and energy?
A guide to eco-innovation for SMES and business coaches. 15 eco-innovation observatory Revisit your business model Good practice examples Turntoo:
and cleaning. www. car2go. com 2 See more about chemicals management business models in Green Paper by FORA on www. foranet. dk/media/27577/greenpaper fora 211010. pdf Eco-innovate!
A guide to eco-innovation for SMES and business coaches. 16 eco-innovation observatory Learning Resources Business model Generation offers a wide range of resources for entrepreneurs and companies on business model innovation
The role of business models in green transformation Background Paper www. oecd. org/dataoecd/7/34/49537036. pdf Workshop resources www. oecd. org/innovation
/innovationinsciencetechnologyandindustry/thefutureofeco-innovationtheroleofbusinessmodelsingreentrans formationsummaryandpresentations. htm Nordic Innovation produced a series of publications on green business models www. nordicinnovation. org/Publications/green-business-modelinnovation-empirical
-and-literature-studies FORA present a number of cases of green business models in its Green paper:
Green business models in the Nordic Region. A key to promote sustainable growth. www. foranet. dk/media/27577/greenpaper fora 211010. pdf Revisit your business model Eco-innovate!
A guide to eco-innovation for SMES and business coaches. 17 eco-innovation observatory 3 See Schmidt-Bleek F.,2011:
Revisit your business model Measuring environmental performance Ecological rucksacks are the resource requirements of producing products or services.
towards smart freight models TRI-VIZOR, a spin-off from the University of Antwerp in Belgium, developed an original horizontal cooperation based business model for freight transport.
or new business models driven by environmental considerations will require approaches outside of normal day-to-day R&d processes with dialogue with a range of stakeholders including customers,
How can environmental considerations become integrated into customer relationships and integral to our business model? Which combination of customer needs are the companies'products satisfying e g. newness,
but also because they have limited confidence in entrepreneurs'business models and management teams (back to the skills gap).
and develop an implementation framework that is consistent with the liberalised business model. Smartgrids:‘‘Enabling'technologies Active distribution networks, revealing characteristics of today's transmission grids;
Assumptions about rising profits from progress in the fields of cloud computing and new business models associated with data analytics sustain the presumption of increased use of these technologies by the private
and individual users and stakeholders find themselves increasingly locked in to specific technologies, business models and social identities. 22 Source:
services or business models, leading up to successful commercialization. Entrepreneurship is defined as the pursuit of opportunities beyond the resources you currently control. 10 Turning an innovative idea into economic activity creates companies, economic growth and jobs.
Securing IP rights can form the basis of unique innovation-driven business models. Marketing and sales activities related to the results of the collaboration need to be considered as early as possible so as to allocate resources accordingly. 28 Enhancing Europe's Competitiveness Boosting collaboration is about systematically identifying win-win situations for both sides.
and safeguarding IP rights as a basis for a future-proof business model ABB/Fastned: 61 ABB delivers multi-standard 50 kw fast chargers for electric vehicles and industry-leading software solutions for remote servicing.
nurture and harvest participatory business models, with benefits ranging from supply chain savings to local economic inclusiveness.
The Cambrian Corporation will require a business model that creates incentives, assigns roles, creates value and distributes payoffs.
Creating Britain's entrepreneurial ecosystem Chesbrough (2006), Open Business models: How to Thrive in the New Innovation Landscape, Harvard Business school Press Cornell University, INSEAD, World Intellectual Property Organization (2013), The Global Innovation Index European commission (2012), Entrepreneurship
and/or recently made unemployed), focusing on new business models and approaches, combining elements of local skills and strengths,
industrialization (focusing on process efficiency and effectiveness) into a third era of enterprise IT, where digitalization is transforming business models
However, existing business processes, business models, information technology and talent suffer from legacy inertia and bad complexity.
business processes, business models and the business ecosystem. Information and technology leadership Value leadership People leadership Though aware of new digital technologies and approaches to information, the CIO mindset is dominated by nurturing
fact (extend the business within its business model, markets and tools) or faith (transform the business beyond the known).
transfer them into business models and develop new products and processes that leverage the potentials of nanotechnology while at the same time fit to the needs of customers in terms of performance and costs.
For example the difference in business models focusing on continued miniaturisation versus a diversification of new functionalities makes a comparison along number of employees or levels of investment little meaningful.
transfer them into business models and develop new products and processes that leverage the potentials of micro-and nanoelectronics while at the same time fit to the needs of customers in terms of performance and costs.
Discussion Paper-Session II Industry Structure and Business models for Industrial Biotechnology, OECD Workshop on Outlook on Industrial Biotechnology, DSTI/STP/BIO (2009) 22.
OECD. OECD (2009b), Industry Structure and Business models for Industrial Biotechnology, OECD workshop on Outlook on Industrial Biotechnology, DSTI/STP/BIO (2009) 22, Paris:
These new business models have grown as a response to falling productivity growth in the 1970s and the new opportunities presented by information and communication technologies. 1 Initially,
and business model thinking are linked tightly to each other. Finally, the buzz on open innovation has triggered many firms to redirect their innovation strategy in new ways.
OI provides greater scope for jointly configuring the best ideas and business models. In other words, OI strives to come up with the best ideas and the most suitable business models for commercialisation 49,82.
As a result, OI improves resource allocation at the macro level and yields benefits for all concerned 57.3.10.
Conversely, in an OI era, knowledge transfer is driven primarily by firms'desire to advance current business models, nurture new businesses,
Open innovation stresses that a firm's business model acts as a filter, leaving just a few technology projects in the running for commercialisation.
ii) foster and support institutions channelling human and financial resources towards promising technologies and business models;(
iii) highlight the reworking of good ideas through suitable business models and highly-efficient markets for technology and knowledge workers.
Policy 32 (7)( 2003) 1217 1241.37 H. Chesbrough, K. Schwartz, Innovation business models with co-development partnerships, Res.
NBER Innovation Policy & the Economy, 2 (1), MIT Press, Cambridge MA, 2002, pp. 51 77.49 H. Chesbrough, Open Business models:
Technological, Market and Organisational Change, John Wiley & Sons, London, 2001.101 H. Chesbrough, Business model innovation:
He is extending his research on open innovation and open business models by performing joint research with various universities around the globe.
while also opening up new business models at the heart of these firms. These changes are already apparent to nearly all of us as consumers.
and driving business model innovation and they show a set of six unique traits (see text box above).
Nestlé, The swiss food giant, has used digital technology to create a whole new business model for its Nespresso range of coffee capsules,
better customer experiences, streamlined operations and new business models. Gartner2 agrees: its 2013 CIO Agenda Report notes that,
3 1. Using digital to enhance traditional business models, such as moving from selling products to providing services Streetcar and Xerox are two examples 2. Transforming existing business models to offer new digital services such as 100flowers selling via Facebook
3. Inventing wholly new types of business models from virtual currencies in online games, to others selling its digital data In many cases,
digital has moved technology toward becoming the front end of the spear rather than the tail feathers,
and the radical new logistics ideas it can deliver has made CIO Richard Alan Herz a vital voice in shaping the firm's future business model.
and moving toward a more flexible business model, says Dave Ryerkerk, Global IT Advisory Leader at EY.
who are delivering both on business transformation as well as business model-related innovation. These are the two elements that The DNA of the CIO identified as the most helpful for CIOS trying to stand out in their role
Born to be digital 19 The CIO's role 1 2 4 3 5 6 EXECUTION ENABLE Taking ownership of IT governance MENT Bringing business model innovation Managing
That figure is well ahead of the 72%of IT-intensive industry CIOS. It's very important that a CIO has a vision for the company that is directly linked to its business model,
All this implies that the digital-ready CIOS have a close understanding of their companies'underlying business models,
Digital-ready CIOS strongly see the need to bring innovation both at a business model level and in terms of new products
like the aerospace CIO who explains convincingly the impact of harnessing in flight sensor data to transform their business model,
They know how to explain these new business models, which may be more profitable than actually building the physical products,
The early pioneers of digital have shown the disruptive potential that these tools hold from new ways to communicate with customers, through to wholly new business model opportunities.
at both a process and a business model level Don't let operational IT overwhelm you Tasks at a strategic level Conclusion Your personal agenda Born to be digital 37 It is human nature to be swept up by a compelling storyline
Changes in business models the convergence of formerly discrete sectors and increased mergers & acquisition (M&a) activity call for a work-force with multi-disciplinary skills and a flexible and problem-solving attitude.
has seen the emergence of new and more complex business models. Increasingly, multinational companies seek to maintain competitive advantage by out-sourcing,
a distributed business model where different value adding activities are carried out where they can be done most efficiently and cost-effectively The application of software technologies (such as Services Oriented Architecture SOA, Open source,
Web 2. 0 and Mash-ups) are continuing to drive the development of new applications and business models.
Business models are being transformed whereby open innovation (across companies) is becoming a reality; smaller technology intensive companies have a range of options for targeting their end customers,
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