Open Services Innovation: The Case of BT in the UK

Authors

  • Carlos Eduardo Yamasaki Sato University of Sussex, School of Business, Management and Economics, Science Policy Research Unit (SPRU), The Freeman Centre, Jubilee Building, Falmer, Brighton, East Sussex BN1 9SL, United Kingdom.

DOI:

https://doi.org/10.4067/S0718-27242014000200011

Keywords:

open innovation, service innovation, research & development (R&D), information and communications technologies (ICT), next generation network (NGN), public switched telephone network (PSTN), internet protocol (IP), voice over internet protocol (VoIP).

Abstract

Open innovation was conceptualised by Chesbrough (2003, p. 34) using cases from the ICT (Information and Communications Technologies) sector, more specifically equipment and component suppliers such as Lucent, IBM and Intel. Subsequently, the vast majority of the case studies in open innovation emphasised innovation processes in goods-based firms, not in service firms. Open systems innovation was well known in the telecommunications industry well before Chesbrough’s conceptualisation of open innovation. However, subsequent research has not paid much attention on its adoption by incumbent telecommunications operators. This paper investigates how open innovation was adopted by the incumbent telecommunications operator BT in the UK, using the case study as the research method. BT used open innovation as a management injunction to systematise innovation under a common framework to leverage and integrate technology and knowledge in order to address customer needs, and to change the way of thinking about innovation within BT.

Downloads

Download data is not yet available.

Author Biography

Carlos Eduardo Yamasaki Sato, University of Sussex, School of Business, Management and Economics, Science Policy Research Unit (SPRU), The Freeman Centre, Jubilee Building, Falmer, Brighton, East Sussex BN1 9SL, United Kingdom.

Lecturer in Management

SPRU (Science and Technology Policy Research)

References

Berris, J. (2005). Open and Honest Innovation. Global Telecoms Business, Sept/Oct 2005, 32-34.

Bianchi, M., Cavaliere, A., Chiaroni, D., Frattini, F., & Chiesa, V. (2011). Organisational modes for Open Innovation in the bio-pharmaceutical industry: An exploratory analysis. Technovation, 31(1), 22-33.

BT. (2006). Embracing Open Innovation: A new approach to creating sustainable value. Retrieved 23 July 2006, 2006

Chesbrough, H. (2003). Open Innovation: The New Imperative for Creating and Profiting from Technology. Massachusetts: Harvard Business School Press.

Chesbrough, H. (2011). Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era. San Francisco: Jossey-Bass.

Chiaroni, D., Chiesa, V., & Frattini, F. (2011). The open innovation journey: how firms dynamically implement the emerging innovation management paradigm. Technovation, 31(1), 34-43.

Christensen, C. M. (1997). The Innovator´s Dilemma: When New Technologies Cause Great Firm to Fail. Massachusetts: Harvard Business School Press.

Christensen, C. M., Johnson, M. W., & Rigby, D. K. (2002). Foundations for Growth: How to Identify and Build Disruptive New Businesses. MIT Sloan Management Review, 43(3), 22-31.

Christensen, C. M., & Overdorf, M. (2000). Meeting the Challenge of Disruptive Change. Harvard Business Review, March-April, 67-76.

Christensen, C. M., & Raynor, M. E. (2003). The Innovator´s Solution: Creating and Sustaining Successful Growth. Massachusetts: Harvard Business School Press.

Dahlander, L., & Gann, D. (2010). How open is innovation? Research Policy, 39(6), 699-709.

Davies, A. (2003). Are Firms Moving "Downstream" into High-Value Services? In J. Tidd & F. M. Hull (Eds.), Service Innovation: Organizational Responses to Technological Opportunities & Market Imperatives. London: Imperial College Press.

Davies, A. (2003). Integrated solutions: the changing business of systems integration. In A. Prencipe, A. Davies & M. Hobday (Eds.), The Business of Systems Integration (pp. 333-368). Oxford: Oxford University Press.

Davies, A. (2004). Moving base into high-value integrated solutions: a value stream approach. Industrial and Corporate Change, 13(5), 727-756.

Dittrich, K., & Duysters, G. (2007). Networking as a Means to Strategy Change: The Case of Open Innovation in Mobile Telephony. The Journal of Product Innovation Management, 24(6), 510-521.

Dodgson, M., Gann, D., & Salter, A. (2006). The role of technology in the shift towards open innovation: the case of Procter & Gamble. R&D Management, 36(3), 333-346.

Dunbar, D. (2005). Building an Infrastructure for 21st Century Networks

Ferrary, M. (2011). Specialized organizations and ambidextrous clusters in the open innovation paradigm. European Management Journal, 29(3), 181-192.

Fransman, M. (1994). AT&T, BT and NTT: The role of R&D. Telecommunications Policy, 18(4), 295-305.

Fransman, M. (2002). Telecoms in the Internet Age: From Boom to Bust to...? Oxford: Oxford University Press.

Freeman, C., & Soete, L. (1997). The Economics of Industrial Innovation (3rd ed.). London: Pinter.

Gassman, O., Enkel, E., & Chesbrough, H. (2010). The future of open innovation. R&D management, 40(3), 213-221.

Hughes, T. P. (1987). The Evolution of Large Technical Systems. In W. E. Bijker, T. P. Hughes & T. J. Pinch (Eds.), The Social Construction of Technological Systems. Cambridge, MA: The MIT Press.

Huizingh, E. K. R. E. (2011). Open innovation: State of the art and future perspectives. Technovation, 31(1), 2-9.

Huston, L., & Sakkab, N. (2006). Connect and develop: inside Procter & Gamble's new model for innovation. Harvard Business Review, 84(3), 58-66.

Kerzner, H. (2006). Project Management: A Systems Approach to Planning, Scheduling and Controlling (9th ed.). Hoboken, New Jersey: John Wiley & Sons, Inc.

Kirschbaum, R. (2005). Open innovation in practice. Research-Technology Management, 48(4), 24-28.

Lazzarotti, V., & Manzini, R. (2009). Different modes of open innovation: a theoretical framework and an empirical study. International Journal of Innovation Management, 13(4), 615-636.

Lichtenhaler, U. (2011). Open innovation: past research, current debates, and future directions. Academy of Management Perspectives, 25(1), 75-93.

Mansell, R. (1999). New media competition and access: the scarcity-abundance dialectic. New media and society, 1(2), 155-182.

Meredith, J. R., & Mantel, S. J. (2006). Project Management: A Managerial Approach (6th edition ed.). USA: John Wiley & Sons, Inc.

Meyer, D. (2008). BT guns for Android and Skype with Ribbit buy. ZDNet UK.

Mortara, L., & Minshall, T. (2011). How do large multinational companies implement open innovation? Technovation, 31(10-11), 586-597.

Moschella, D. (2003). Customer-driven IT: how users are shaping technology industry growth. Boston, Massachusetts: Harvard Business School Press.

Olleros, F. X. (2007). The Power of Non-Contractual Innovation. International Journal of Innovation Management, 11(1), 93-113.

Sato, C. E. Y. (2014). Platform Leadership of Incumbent Telecommunications Operators: the Case of BT 21st Century Network (BT21CN). International Journal of Innovation Management, 18(2), 37 pages.

Trott, P., & Hartmann, D. (2009). Why 'Open Innovation' is Old Wine in New Bottles. International Journal of Innovation Management, 13(4), 715-736.

Vargo, S. L., & Lusch, R. F. (2004). Evolving to a New Dominant Logic for Marketing. Journal of Marketing, 68(January 2004), 1-17.

Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: continuing the evolution. Journal of the Academy of Marketing Science, 36, 1-10.

Vargo, S. L., Lusch, R. F., & Morgan, F. W. (2006). Historical Perspectives on Service-Dominant Logic. In S. L. Vargo & R. F. Lusch (Eds.), The Service-Dominant Logic of Marketing: Dialog, Debate, and Directions (pp. 29-42). New York: M. E. Sharpe, Inc.

Vargo, S. L., Maglio, P. P., & Akaka, M. A. (2008). On value and value co-creation: A service systems and service logic perspective. European Management Journal, 26, 145-152.

Verwaayen, B. (2005). Global Telecoms Business, Sept/Oct 2005, n. 82, p. 12.

Wise, R., & Baumgartner, P. (1999). Go downstream: the new profit imperative in manufacturing. Harvard Business Review(September-October), 133-141.

Downloads

Published

2014-06-24

How to Cite

Sato, C. E. Y. (2014). Open Services Innovation: The Case of BT in the UK. Journal of Technology Management & Innovation, 9(2), 145–156. https://doi.org/10.4067/S0718-27242014000200011

Issue

Section

Case Studies

Similar Articles

<< < 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 > >> 

You may also start an advanced similarity search for this article.