In open innovation, every company is seeking for external resources for internal innovation activities. Meanwhile, other companies are also in desperate need of the internal resources owned by this company. Such resources can be either engineering technologies or managerial experiences. Hence, open innovation can be performed not only for engineering purpose but also for management purpose, such as business model, product or even service. In this article, we will only focus on one typical kind of open innovation named cross-industry innovation for discussion. Particular attention will be paid to the cases in which services are integrated together with product. By introducing product service system, the advantages of open innovation can be most obviously incarnated. This is only a theoretical research, which is composed based on the foundations of previous researches. This paper will firstly compliment the theory structure of open innovation. And then special attention will be paid on customer integrated cross industry (CICI) open innovation because of its high level of openness. By taking telematics service as an example, this paper will continue to discuss the industrial business model of CICI open innovation.