OPEN SERVICES AND INNOVATION

Some years ago, I sat in Paul Horn's office at IBM. Paul was the senior vice president of research, in charge of IBM's three thousand researchers, scientists, and engineers. We had a wonderful conversation about innovation and the many successes IBM had realized from its research activities. At the end of our time, I asked him a final question: What is your biggest problem today?

His answer intrigued and stimulated me: that his research activities were geared to support a company that made computer products: systems, servers, mainframes, and software. But most of IBM's revenues were coming from services, not from its products. "I can't sustain a significant research activity at IBM if our research is not relevant to ...

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