Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era
December 2010, Jossey-Bass
"Whether you are managing a product or a service, your business
needs to become more open and more inclusive in order to be more
innovative. Open Services Innovation will be an invaluable guide to
intrepid managers who commit to making that journey."
—GARY HAMEL, visiting professor, London Business School; director, Management Lab; and author, The Future of Management
"I tore out page after page to share with my leaders. Chesbrough
has pioneered an entire rethink of business innovation that’s
rich in concept, deeply explained, with tools ready to use in every
—SCOTT COOK, founder and chairman of the executive committee, Intuit
"Focusing on core competence often tempts managers to keep
continuing what succeeded in the past. A far more important
question is what capabilities are critical in the future, and
Chesbrough shows how to ask and answer these issues."
—CLAYTON CHRISTENSEN, Robert & Jane Cizik Professor of Business Administration, Harvard Business School, and author, The Innovator's Dilemma
"To thrive, businesses will need to master the lessons of open
service innovation. Here is their one-stop guidebook with important
lessons clearly and compellingly presented."
—JAMES C. SPOHRER, director, IBM University Programs World-Wide
"Open Innovation pioneer Henry Chesbrough breaks new ground with
Open Services Innovation, a persuasive argument for the
power of co-creation in the world of services."
—TOM KELLEY, general manager, IDEO, and author, The Ten Faces of Innovation, The Art of Innovation
"With his trademark style of beautifully explained examples,
Henry Chesbrough shows how open service innovation and new business
models can help you escape this product commodity trap and bring
you to the next level of competition."
—ALEX OSTERWALDER, author, Business Model Generation
"Open Services Innovation shows how a business can redefine
itself as a service organisation and tap into faster growth through
—SIR TERRY LEAHY, chief executive, Tesco
"Chesbrough shows how innovating openly with a services mindset
can make you a market leader."
—CHARLENE LI, author, Open Leadership, and founder, Altimeter Group
Introduction: Open Services and Innovation 1
1 The Case for Open Services Innovation 7
Part 1: A Framework to Spur Innovation and Growth 29
2 Think of Your Business as a Services Business 31
3 Co-Create with Your Customers 53
4 Extend Services Innovation Outside Your Organization 68
5 Transform Your BusinessModel with Services 89
Part 2: Open Services Innovation in Practice 113
6 Open Services Innovation in Larger Companies 115
7 Open Services Innovation in Smaller Companies 133
8 Open Services Innovation for Services Businesses 155
9 Open Services Innovation in Emerging Economies 169
10 Open Services Innovation: The Way Forward 188
The Author 230
Henry Chesbrough is professor and executive director of the Center for Open Innovation at the Haas School of Business at the University of California, Berkeley. Previously, he was a professor at the Harvard Business School. His book Open Innovation was named Best Business Book by Strategy & Business magazine, and the best book on innovation on NPR's All Things Considered. His second book, Open Business Models, was named one of the 10 best business books by BusinessWeek, and Scientific American rated him as one of its Top 50 business and technology leaders.