Me: Hello Auntie! *waves her hands*

Aunt Wiki: Hello Dear. Anything you want to ask me today?

Me: yeah! What is Open Innovation? I don’t get it at all!

Aunt Wiki: “Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology”

Me: Oh… I don’t get it…

Aunt Wiki: well, it basically means that a company doesn’t rely on internal idea or research sources only for their activities.

Me: So… They’re buying technological patents from external resources?

Aunt Wiki: Yes… And no. It doesn’t always come in the form of patents. It sometimes come in the form of royalties because the idea is not always used for product, it can also be used for the marketing, packaging, or anything that works for the company!

Me: Oh… Yes yes… *nods* *still doesn’t fully understand*

Aunt Wiki: Well, let’s take an example of Kraft. You know Kraft, don’t you?

Me: Of course! I use lots of its product for cooking

Aunt Wiki: Kraft has its own page entitled “Innovate with Kraft”. In this page, you can submit product ideas, packaging design, even marketing ideas. and you will get paid for it if Kraft considers your idea is profitable.

Me: Oh I see! Thanks now I get it.

Aunt Wiki: You’re welcome! Any other question for today?

Me: Yes actually. What is an Open Business Model?

Aunt Wiki:  Open Business represents a concept of doing business in a transparent way by intimately integrating an ecosystem of participants, collaborating in public space. Open Business structures make contributors and non-contributors visible such that the business benefits are distributed accordingly. They activate personal engagement and productivity by benefitting the contributors and producers that they can live from it and helping the clients to reduce their costs.

Me: huh…?

Aunt Wiki: Well just like Uncle Google!!!

Me: Like… doing everything for free, even giving people more benefits compared to the efforts used to access it?

Aunt Wiki: yes. Google give us free e-mail, free video streaming site, free blogs, even some tools like Google docs. And people can even earn money from the google ads in their blogs. Very nice, isn’t it?

Me: Oh I see…

Aunt Wiki: Basically, the knowledge is free through membership or large membership, and the pay is given based on their performance. Also, net profit is split within members. Nice, isn’t it?

Me: Yeah. And that makes sense too because “open” means that it isnt owned by a group or someone…

Aunt Wiki: Well that is why it is called open business.

Me: Awesome… Okay Aunt Wiki thanks for sharing. I need to go now.

Aunt Wiki: Okay bye!

Me: *leaves*

Aunt Wiki: dasar ieu budak manggil cuman kalo ada perlunya doang… beuhhhhh



this ends the midterm for CI class. woohooo! ❤