Open innovation in open source software : how Google balances (or not) openness with taking influence in Android

Abstract

The purpose of this thesis is to investigate open innovation in open source software and more specifically in Android software. Thesis explores how Google balances openness and taking influence in Android operating system. The thesis also investigates competing platforms, their openness and success in the market. Android system has gained a huge popularity in very short period of time and it became the number one mobile operating system only 3 years after it was released. Thesis examines which are the success factors of Android. Innovations are the key factor of company's survival. Traditionally closed innovation model was used in companies and knowledge was kept as a secret inside of the company. Further advances in technology changed this approach and knowledge has diffused more radically. Therefore open innovation has become the new approach. Android platform is a great example of this shift and a successful example of open innovation in mobile industry. Because the open innovation plays important role in this thesis, the thesis also reviews open innovation literature related to the open source software industry. The thesis also reviews market studies about mobile platforms from the developer point of view. This work examines the open innovation model in mobile software development. Lessons are learned through case studies and market studies from mobile industry. How company can profit from open source system which is basically free is also reviewed in the thesis. Thesis discusses key factors which contributed to the success of Android platform and its adoption among users which helps to understand which factors should be considered by companies which are planning to utilize open innovation. Android business model is examined in relation to Chesbrough's definition of business model functions.