Open innovation and consulting

James Governor's post on IBM's offering of free consulting services is very intersting. Definitely it is one of the cornerstones of IBM's current innovation stragegy where Irving Wladawsky-Berger writes:

"We are enabling customers to connect their data to the Internet by writing "glue" code for transaction monitors like CICS(TM) and databases like DB2(TM), and giving it away. We also have established Internet consulting practices to help customers. In addition, our Open Systems Centers worldwide will help plan the architectures, prove the concepts and prototype the solutions for customers."

IBM's initiative is an excellent way to hand over the keys to customer to play and get their hands dirty. As James points out - this is a "smart" move. Why? Because this will get customers to generate new needs or application areas that will bring in "unique value" propositions. And guess what - there will be no better people to pick up those businesses than those IBM folks who are already inside the door. People who are in consulting know unique value as opposed to commoditized services is where the big bucks are. A bit of pro-bono work goes a long way. This is a good demo of how opening the innovation, how incorporating one's customers within a company's value chain opens doors for business opportunities. Because of the intangible nature of the way this process works, people generally find it difficult to quantify and hence justify such initiatives. But the fuzzier the situation gets, the muddled it is, the more confusing the benefits and costs are - the greater the opportunities are to make money in high-end consulting business. Opening the business models unleases such an opportunity. And IBM is right on the money.