GE: Profiting from Open Services Innovation
The Innovation Excellence website posted an article by Henry Chesbrough which notes that as new products come to market with increasing frequency and take valuable market share, more and more companies are finding it increasingly challenging to keep up and compete. Product life span is further shortened by customers’ increasing demands for products and services customized or tailored to fulfill their needs better. The combination of these undeniable forces creates a commodity trap, an often perilous phenomenon that pulls at even the most innovative and successful companies. Innovating in services is the escape route from the commodity trap and a solution for growth, giving firms a significant competitive advantage. GE Aviation is an example.
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