1. How to manageoutside innovation Group 6a

2. Twosources for innovation Competitive markets Contract based Profit motive Competitive relationships among innovators Collaborative communities Open sharing of information Joint development transparency

3. Three criticalissues 1.Type of innovation 2. Motivation of the innovators 3. The platform business models

4. Type of innovation Different circumstancesrequire different innovations

5. Motivation of the innovators Extrinsic Motivation Intrinsic Motivation

7. Productplatform

8. Two-sidedplatformCan work for bothcollborativecommunities and competetive markets

9. Integratorplatform The company incorporates outside innovations and sells the final products to customers. - High control for the platform firm - Example: Apple Appstore Competetive market advantage

10. Productplatform The external innovators build “on top” of the platform and sell the resulting products to customers - Lowercontrol for platformfirm - Example: Google android (Hardware development)

11. Two-sidedplatform External innovators and customers are free to transact directly with one another as long as they also affiliate with the platform’s owner. - Verylowcontrol for platformfirm - Facebook (widgets) Collaborative community advantage

12. References Boudreau, K. & Lakhani K., “How to Manage Outside Innovation”