Open Vs. Closed Systems
Posted on Thu, Nov 18, 2010
Every solution provider has to have a strategy with regards to how they want to conduct business in their respective niche. Open solutions are ones that are open to adding value-add tools/services/content for the benefit of their customer. Close systems are ones that perceive it a threat to "open-up" to externalities and therefore either try to develop on their own or acquire, and thus enhance and improve their value offering. And there's a lot in the middle; closed most of the time but open opportunisticly. Some companies chose their strategy based on constraints: priorities, resources and investment ($). Others choose based on principles: the true belief that open systems benefit first and foremost their customer. Facebook is a good example of an open system: you can develop (almost) any application on the Facebook platform. Android is similar in that sense: a platform enticing, inviting, and rewarding others to enhance it for the benefit of their mutual customer.
There are cons and pros to every approach; however there is no doubt, argument or explanation that can justify a closed system to be a better option for the customer. Customers are always better-off with open systems.
So if you are a customer, reach out to your suppliers and insist they be(come) an "open-system". Insist that they either provide ways for other/external applications to integrate with them, or alternatively insist that they integrate with other/external apps. The bottom line is that customers want best of breed. In everything. Best finance system; best management system; best communication platform etc. Unfortunately, the higher probability is that there will never be a single supplier that will provide the best of breed applications in all categories. Therefore, the only way suppliers can accomodate that is by "opening" their systems up; this way customers can work with multiple suppliers, assuring they get best of breed in every category, but having a standartized, integrated flow of information passing between the open systems (and suppliers involved); for the customers benefit. So if you are working with any closed system, it's about time they open-up. And remember: the customer is always right. Which in is this case, is you.