1. Open Innovation zwischen Anspruch
und Wirklichkeit
INTEGRO KICK-OFF – 28 Nov. 2008
Frank T. Piller
RWTH Technology & Innovation Management Group, RWTH Aachen
MIT Smart Customization Group, MIT, Cambridge, MA, USA
www.open-innovation.de
Lehrstuhl für BWL, Technologie- und Innovationsmanagement
…many
graduate
student
assistants
… a great team of research associates …
Office
Management
Monika Heer
Two Professors ...
Frank T. Piller
Hans-Horst Schröder (em.)
... and a large
network of
associated
research fellows
5. 9
Netflix is the world's largest online movie
rental service
More than eight million subscribers.
Members can choose from >100,000 titles
Total subscribers have grown at a
compound annual rate of 70 percent.
Total estimated rental revenue of over $1.5
billion at the end of 2007 -- DVD rental
totals approximately $8 billion annually --
still a lot of growth potential
At the same time, Blockbuster's revenues
continue to decrease at a rate of 5 to 9
percent / quarter.
10
Objective: get root mean
square error (RMSE)
<= 0.8563 (Netflix's own
algorithm Cinematch has
RMSE of 0.9525, this
equals to one point of
error of recommendation
on their 5-point scale of
"hate-love" movie
evaluation)