Open innovation is reshaping traditional business strategy by challenging the conventional emphasis on internal R&D and proprietary knowledge. Henry W. Chesbrough and Melissa M. Appleyard argue that open innovation, which involves leveraging external ideas and resources, is creating new empirical phenomena that are not well explained by traditional strategic theories. These theories traditionally emphasize the importance of building competitive barriers through internal development, but open innovation is leading firms to adopt more collaborative and community-driven approaches. Open strategy, a new approach to business strategy, integrates the benefits of openness with the need for value capture. It balances traditional strategic principles with the potential of open innovation, allowing firms to create and capture value through collaboration. Open strategy emphasizes the importance of sustainable business models that can adapt to the dynamic nature of open innovation. Traditional business strategy has been influential in shaping corporate practices, particularly through the work of Michael Porter, who introduced the Five Forces model. However, the rise of open innovation and related phenomena, such as open source software, collective invention, and peer production, is challenging these traditional views. These new models of innovation are creating value through open processes, often leading to network effects and widespread adoption. Examples such as Linux, Wikipedia, and MySpace illustrate the potential of open innovation to create significant value. These initiatives rely on community contributions and open coordination, often leading to the development of robust ecosystems. However, they also face challenges in sustaining value capture and ensuring long-term sustainability. The article discusses various open business models in open source software, including support, subscription, professional services, proprietary extensions, dual license, device, and community source models. These models demonstrate how companies can balance open innovation with value capture. However, the sustainability of these initiatives is a critical concern, as they must navigate the challenges of maintaining community engagement and ensuring that the value created is captured effectively. The article also highlights the importance of traditional business strategy in informing open initiatives. By understanding the principles of value creation and value capture, companies can develop sustainable open strategies that balance innovation with profitability. The case of IBM's transition to open innovation, including its involvement with Linux, illustrates how traditional strategic principles can be adapted to support open initiatives. In conclusion, open strategy represents a new approach to business strategy that integrates the benefits of open innovation with the need for value capture. It is essential for companies to adapt their strategies to the changing landscape of innovation, ensuring that they can sustain their participation in open initiatives while capturing value effectively.Open innovation is reshaping traditional business strategy by challenging the conventional emphasis on internal R&D and proprietary knowledge. Henry W. Chesbrough and Melissa M. Appleyard argue that open innovation, which involves leveraging external ideas and resources, is creating new empirical phenomena that are not well explained by traditional strategic theories. These theories traditionally emphasize the importance of building competitive barriers through internal development, but open innovation is leading firms to adopt more collaborative and community-driven approaches. Open strategy, a new approach to business strategy, integrates the benefits of openness with the need for value capture. It balances traditional strategic principles with the potential of open innovation, allowing firms to create and capture value through collaboration. Open strategy emphasizes the importance of sustainable business models that can adapt to the dynamic nature of open innovation. Traditional business strategy has been influential in shaping corporate practices, particularly through the work of Michael Porter, who introduced the Five Forces model. However, the rise of open innovation and related phenomena, such as open source software, collective invention, and peer production, is challenging these traditional views. These new models of innovation are creating value through open processes, often leading to network effects and widespread adoption. Examples such as Linux, Wikipedia, and MySpace illustrate the potential of open innovation to create significant value. These initiatives rely on community contributions and open coordination, often leading to the development of robust ecosystems. However, they also face challenges in sustaining value capture and ensuring long-term sustainability. The article discusses various open business models in open source software, including support, subscription, professional services, proprietary extensions, dual license, device, and community source models. These models demonstrate how companies can balance open innovation with value capture. However, the sustainability of these initiatives is a critical concern, as they must navigate the challenges of maintaining community engagement and ensuring that the value created is captured effectively. The article also highlights the importance of traditional business strategy in informing open initiatives. By understanding the principles of value creation and value capture, companies can develop sustainable open strategies that balance innovation with profitability. The case of IBM's transition to open innovation, including its involvement with Linux, illustrates how traditional strategic principles can be adapted to support open initiatives. In conclusion, open strategy represents a new approach to business strategy that integrates the benefits of open innovation with the need for value capture. It is essential for companies to adapt their strategies to the changing landscape of innovation, ensuring that they can sustain their participation in open initiatives while capturing value effectively.