patterns 116 open business Models VP CR CH CS KP KA KR C$ Outside-In Pattern It costs money to acquire innovation from outside sources. But by building on externally-created knowl- edge and advanced research programs, a company can shorten time-to-market and increase its internal R&D productivity. Building on external knowl- edge requires dedicated activities that connect external entities with inter- nal business processes and R&D groups. external organizations, sometimes from completely diΩerent industries, may be able to oΩer valuable insights, knowledge, patents, or ready-made products to internal R&D groups. Taking advantage of outside innovation requires specifi c resources to build gateways to external networks. Established companies with strong brands, strong Distribution Channels, and strong Customer Relationships are well suited to an outside-in open business model. They can leverage existing Customer Relationships by building on outside sources of innovation. bmgen_final.indd 116 6/15/10 5:39 PM