Reading Summaries for STC 383

Daniel Wimmer's summary for chapters 1 and 2:

OPEN BUSINESS MODELS: AN OUTLINE OF CHAPTERS 1-2

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Henry Chesbrough
This book was written by the author to promote the concept of “Open” business models versus the older concepts which have existed for sometime. The book seems to parallel an earlier management theory written by the same author “Open Innovation”
My take is that the corresponding editorials focus on a perceived concept that by extending one operation to wider visions will promote expansion of the hidden concepts owned by them or a patented property of a particular entity.

CHAPTER 1
This chapter introduces why an existing business should undertake a different view of how they are handling the trade technologies which are in part or wholly owned by them. Here, the author cites several examples of companies who either failed to expand their philosophies into modern methods and others who did so with success.
INTERMEDIATE MARKETS: This keystone address in what an upstream supplier of trade knowledge licenses and intellectual property “downstream” to a product developer.
THIS IS ONE METHOD OF “OPEN” MODELS……
The author illustrates how Hollywood now uses independent directors, actors writers etc to produce movies vs. the old days when a studio controlled all of the participants.
Inefficiencies in technology, here the author talks about how companies “upstream” have sold or partnered the development of technologies and their track record has not been good. Many surveys have shown that a small percentage of “upstream” transfer ever is brought to market.
THE SOCIAL COMPACT UNDERLYING IP PROTECTION
This part of the chapter deal with what society expects from an inventor by way of granting a termed patent right. KEY POINT: “Society offers a temporary monopoly and permitting riches in return (I suspect he forgot to say the return to society) to benefit society. His argument states that failing to do so is a social breath of contract.
CLOSED IP MANAGEMENT
This section grounds the author’s point that in “closed IP management” situations, there is little product development, hints again that expansion of the technologies is critical to development.
WHY OPEN UP NOW?
The author claims that the time has come for openness because of the high cost of R&D, development cost, creating a team to explore and facility expenses.
Among the other economic concerns are:
shorter life cycles of a patent ( competition or similar products)
R&D expenses