IMD-OWP22-PostEvent-Report-V11[8]

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NAVIGATING THE OPEN ENTERPRISE SYSTEM

Companies increasingly embrace the open enterprise approach: from open innovation to organizing platforms and ecosystems. What are the trade-offs for the different open enterprise models?

Uncertainty related to continued threats posed by a mutating pandemic, military ambitions and conflicts, inflationary dynamics, and a great resignation among employees poses challenges to leaders of companies like never before. Incumbents, multinationals, and even start-ups must fundamentally adapt their mental model of how to lead companies today and shape their successful future.

Different models of open enterprises reveal four design principles to help your organization adapt and prosper in uncertainty. ENTERPRISES NEED TOBE MORE OPEN THANCLOSED Looking at the processes, whether innovative ideas flow in or out (open innovation), there is more exchange of knowledge with partners and absorption through acquisitions than ever before. This way they can keep up with rapid changes in the environment.

Many of them benefit from operating in a highly diverse, international business context that allows for greater benefits from interactions with partners (from alliances to ecosystems). GoTo, for example, transformed itself by integrating e-commerce, logistics, and retail into an open platform in Southeast Asia.

MARK GREEVEN Professor of Innovation and Strategy

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