Framing OI2

Abstract

In a seminal blog in 2010, John Hagel and John Seely Brown identified that the next key challenge for open innovation was open innovation itself. Hagel and Seely Brown say ‘We’re moving from a world where value is created and captured in transactions to one where value resides in large networks of long-term relationships that provide the rails for much richer “knowledge flows”’. Hagel and Seely Brown argue that the opportunity is to build long-term trust-based relationships amongst ecosystem players and encourage participants to build cumulatively upon the contributions of others. Karl Erik Sveiby says that trust is the bandwidth of communications. Hagel and Brown advocate an extended open innovation approach, which promotes fostering and building upon relationships between the players in an ecosystem. A core proposition is that increased interaction leads to increased knowledge, which leads to increased value.