Service innovations represent an important way for firms to retain their competitive advantage as products become increasingly commoditized. To do so, firms need to think of their businesses as a services business, engage customers in the service innovation process, and employ open innovation as a means to accelerate and deepen service innovation. The creative application of open innovation in services provides firms with the opportunity to fundamentally change their business models. This is an excerpt from Henry Chesbrough's new book, Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era.
- © 2011 by the Regents of the University of California. All rights reserved.