Day 2 Morning - Open Source (Carbone and Weiss)
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  • 1. New Tools and Rules of the Game How to Lever Open Source to Gain Advantage Peter Carbone & Michael Weiss May 2009 Made available under Creative Commons License Lead to Win
  • 2. Agenda As senior leaders and founders - you are responsible for the strategy of your business - to design the business to compete: • Open source as a powerful and dangerous tool • What you need to know. • New go-to-market models and tools • What you need to know. Slide 2 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 3. Introduction Upon Completion of this segment you will know: • what open source is and is not • understand the context for applying open source • areas of strengths and value • things to watch out for You will be able to: • determine if and how to use open source to advance your business • avoid disasters Slide 3 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 4. Myths of Open Source Myth Reality Free Commercial Cost driven Strategy driven Software thing S/W, H/W, content, process Volunteers Commercial support Ad Hoc Collaborative Process Slide 4 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 5. What is Open Source All About • Software – most well know • Hardware – designs License to IPR Transparency • Content – education (MIT) – information (Wikipedia) • Process – know how Slide 5 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 6. A Word About Licensing • Many types with varying degrees of flexibility Permissive Hybrid Restrictive • Inheritance - Clean IP • Lots of expertise in TFN Slide 6 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 7. New Technology Strategy Options... Open Source Example Business driven Value appropriation Profits extracted from Open Source projects 5. Redefine 4. Collaborate Engineering driven Development efficiency Value co-creation 3. Champion Value appropriation 2. Contribute 1. Use Coupling management Time 0. Deny Single Multiple product projects Slide 7 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 8. How it Works • Open Source development model encourages open innovation • Openness, Transparency, Meritocracy • No control points • Anyone can participate • Open Governance • Open Source licensing allows competing • Vendor neutral vendors to collaborate on the infrastructure • Meritocracy technology • Code rules • No requirement for royalties. • Attracts the broadest • No single control point of intellectual and deepest property participation • Open Source business model encourages rapid adoption of technology – It is free and easy to access Slide 8 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 9. Importance of Platform Architecture of participation 9 A Practitioners Guide to Ecosystem Development - Mike Milinkovich Slide May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 10. Five Levels of Value ... Why Businesses Engage with Open Source 1. Use 2. Contribute 3. Champion 4. Collaborate 5. Redefine Fill gaps in Explore and feature set of Champion open Gain positional reduce build Change value company’s source project advantage for costs proposition of product company’s offer delivered product in a Decrease Steer new to customers Improve market segment time to functionality and software quality market its evolution Changes to: Motivation -> Behaviour -> Investment -> Commitment Slide 10 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 11. Company Value Appropriated 1. Use 2. Contribute 3. Champion 4. Collaborate 5. Redefine Role of Technologist Project manager Manager responsible Manager responsible Line of business manager resp. for or technology for developing product for market segment president responsible making technical work lead responsible portfolio and sales strategy for growth, chief decision to in function or for a product technical officer use open project component source New actions • Uses and • Contributes • Contributes leaders • Collaborates to • Invests in programs company promotes time, code, and experienced implement and tools to design decision open source developers, and developers to open company’s product products so they can maker software money to open source project strategy be developed using carries out source project • Steers manages info • Exerts influence on open source projects • Coordinates from open source customers & • Mobilizes a network activities of project competitors to of outside and internal • Mobilizes external change competitive diverse references to developers developers to environment in help persuade contribute to project favour of company customers to buy and reduce industry • Connects, enables • Coordinates internal redundancy & external developers and positions experts • Connects, enables to deliver solutions to • Mobilizes & and positions customers using new coordinates experts to deliver business model community to solutions to promote open source • Develops partner customers network and services project • Promotes solutions to this network Slide 11 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 12. Value to the Community 1. Use 2. Contribute 3. Champion 4. Collaborate 5. Redefine No change in More features Company pull Company New company value to open and better quality for open source commitment to driven resources source project health and to establish links software Leadership advancement of with other open Number of structure and open source source projects users and governance project and new project awareness of New versions of contributors open source open source software software increases Slide May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win 12
  • 13. Why You Might want To Participate 1. Use 2. Contribute 3. Champion 4. Collaborate 5. Redefine Explore Fill gaps in and Build open source feature set of Create an reduce community around company’s industry platform Redefine your build company initiative product for shared position in the costs e.g. Manage cost infrastructure value chain Decrease Improve of Customer e.g. COTS, aTCA time to software Customization market quality Slide 13 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 14. Some Dynamics of Open Source Business Value appropriation Technical Value creation Business Strategic lever Development Feature- Business-Process cost saving Driven Driven Products Co-Development Market making ecosystems Market • Motivation -> Behaviour -> investment -> Commitment Slide 14 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 15. Open Source - Lessons Learned • valuable strategic tool not just engineering tool • business model versus technology dependency • facilitates collaborative innovation • cultural implications • requires different design approach • collaborative vs waterfall • integration vs development processes • take care with licensing • engineer life cycle cost vs first cost alone Changes the Game Slide 15 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 16. Decisions How to: – leverage community to advance your business? – collaborate with partners - is OSS a focal point? – manage required investment to drive influence? – make the value chain changes that are required? – appropriate value? Slide 16 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win
  • 17. References 1. Talent First Network http://www.talentfirstnetwork.org/ 2. “Competitive Open Source” - July 2007 - The Open Source Business resource [ Carbone ] 3. Value Derived from Open Source is a Function of maturity Levels” - OCRI partnership Series - April 2007 [ http://www.ocri.ca/events/ presentations/partnership/April1907/PeterCarbone.pdf ] 4. “Insights From Research on Competing with Open Source - OCRI Partnership Series - April 2006 [ http://www.ocri.ca/events/ presentations/partnership/April2106/Carbone.pdf] Slide 17 May 20, 2009 Peter Carbone - Made available under Creative Commons License Lead to Win