open innovation

Open Innovation in the Era of the Internet of Things

written by Marco Tirelli.

Considering the contemporary evolution and widespread popularity of both Open Innovation and the Internet of Things, the present paper aims to analyze their relationship in the light of common strategic issues. For instance, open innovation typically requires the integration of internal and external resources into platforms, architectures and systems, as Henry Chesbrough (2012) has clearly stated: “There’s more value in creating the architecture that connects technologies together in useful ways to solve real problems than there is in creating yet another technological building block”.

Therefore, the architecture and system-integration capabilities required by open innovation emphasize its theoretical connection with the competitive dynamics and business logics of the IoT ecosystems of open platforms and interconnected products and services. Moreover, the open innovation model stresses the role and importance of business models in order to support this purpose. Likewise, as previously mentioned, business models are being transformed in the evolutionary context of IoT, rising both new opportunities and strategic challenges for companies in dealing with this technological and business development. Consequently, the present paper tries to analyze this theoretical link and discuss the following problem statement: “Is there a strategic relationship between Open Innovation and the Internet of Things?”