Developing Open Business Models in Existing and New Businesses in the
FMCG Industry
Abstract
Companies can create value by effectively applying and managing open
business models. In order to understand the full potential of open
business models, we suggest broadening the concept beyond Chesbrough’s
original idea, which is predominantly defined in an open innovation
context that limits its full potential to be applied in other contexts.
We use examples from Unilever to show how a firm can combine and
integrate its assets, capabilities and skills (brands, patents, routes
to market, etc.) with those of its partners to create new consumer
value. Next, we focus on the different types of open business models
Unilever has developed for a range of strategic purposes, ranging from
business models that are only marginally open (e.g. applied in core
skills enhancement) to a highly open business model (e.g. applied in new
business development). We also examine the benefits and drawbacks of
these open business models, noting that they need to be effectively
managed if the company is to reap the benefits from applying them to its
businesses. At Unilever, several management dimensions underlie its
successful utilization of open business models.