To the definition commonly used, the two terms are highly similar. Due to that, the essay will assume that they are interchangeable.
Open business model is a decision of a company to build their business model along with anyone involved with the company. As the company pay heed to the ideas of many stakeholders, the company may have trouble in timing. Furthermore, many people are exposed to the model, enabling competitors to gain information regarding the weakness of the model or copy the model. Though, the company may create a grand business model, for there are wide ranged of ideas. In addition, the openess of the company may loyalty of the stakeholders. Many companies nowadays see it is more profitable to use the open innovation. To understand why companies begin to shift open-ward, the reasons will be analyzed within the essay.
The advantages are many, though take example of the most obvious ones – loyalty and great plans. The loyalty is generated because stakeholders feel that they are really a part of the company. The great plans are generated through the minds of everyone involved. Loyalty gives the company more long trerm profit as the great plans give the trick to be sustainable
The most visible disadvantages of the open business model are trust and time. The more the world progress, companies sees that people have likeness to trust and loyalty. Also, the time lost is believed to generate more long term profit, for companies now mosly think of sustainability. Along with this, the companies take believe that it would be more profitable to use openess.