Open Source                       as            an IT & Business Strategy             for emergent countries              ...
« no national government, if it had  alternatives, would have chosen                th  during the 20 century to acceptdep...
Outline1. Introduction2. Opportunity study of open source adoption3. Open source as a IT strategy4. Open source : an IT st...
Introduction –                                                   IT/Business StrategyThe Strategic Alignment Model        ...
Introduction – Business/IT                     Alignment PerspectivesAdapted by Preston Coleman et al., 2006 from Pap (199...
Alqualsadi research teamEnterprise Architecture, Quality of their Development and Integration                             ...
Open source as a Business opportunity     for governments & private sector (1)●   Equity : Strengthen brand and Build bran...
Open source as a Business opportunity     for governments & private sector (2)●   Economic development        –   Develop ...
Open source as a Technical Opportunity   for governments & private sector●   IT Governance           –   Handle definitely...
Open source as a Technical Opportunity   for governments & private sector –       Introduction to IT Cost Model           ...
Open source as a Technical Opportunity  for governments & private sector –             OSS Capex                          ...
Open source as a Technical Opportunity  for governments & private sector –Does open-source reduce the cost of IT investmen...
Open source as IT strategySanjiva Weerawarana et al. 2004                                                                 ...
Implementing OSS IT Strategies                                                                                            ...
What kind of policy frameworks are          appropriate to enable the success of         open-source in developing countri...
Open source as IT strategy –    obstacles in emergent countries●   Power of software industry lobbies●   Free software Cap...
Open source : an IT strategyleveraging for Business strategy                                    – alignment map exampleOSS...
Open source as Business strategy –                  business modelsWilfred Dolfsm, 2006                                   ...
Open source as Business strategy     business models for open innovation through                 OSS development     ●   4...
OSS development Business Strategy         vs off-shoring/outsourcing            Business Strategies     ●   environment th...
Open source as Business strategy –   some conditions for success●   High level sponsorships : governments, companies,    c...
Developed countries and OSS adoptionJean-Jacques Gauguier et al., 2005adapted from Dravis (2003) and Weerawarana & al. (20...
Emergent countries and OSS adoptionJean-Jacques Gauguier et al., 2005adapted from Dravis (2003) and Weerawarana et al. (20...
Current state of Morocco in terms       of open source (1)●   Annual National Open Source Contests         –   InnovIT (ex...
Current state of Morocco in terms           of open source (2)●   OSS in Ministries & Public Administrations :           –...
INSEAD 2011Current state of Morocco in terms of innovation :      The Global Innovation Index 2011 - ranking              ...
INSEAD 2011                                                                                                     27/30(CC) ...
Brazil - A Model to follow      ●   By mid-2002, many Latin American countries such as Brazil had proposed bills mandating...
References1.   Steven Weber, Open Source Software in Developing Economies, 2003.2.   Sanjiva Weerawarana, and Jivaka Weera...
Merci pour votre attention              avez-vous des questions ?                         Prof. Karim Baïna               ...
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Open Source as IT and Business Strategy

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Open source as IT and Business Strategy for emergent countries. Morocco situation with regards to open source. How an emergent country may benefit from adpting open source software. How an emergent country can be prapared to oss transitiion. Examples of developed countries and emergent countries having adopted open source software within their IT strategy. Business models of open source.

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Open Source as IT and Business Strategy

  1. 1. Open Source as an IT & Business Strategy for emergent countries Prof. Karim Baïna Responsible of Alqualsadi research team on Enterprise ArchitectureENSIAS, Mohammed V Souissi University, Rabat, Morocco (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  2. 2. « no national government, if it had alternatives, would have chosen th during the 20 century to acceptdependence for steel or petroleum on single or small number ofsuppliers based in another nation » Steven Weber, 2003. 2/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  3. 3. Outline1. Introduction2. Opportunity study of open source adoption3. Open source as a IT strategy4. Open source : an IT strategy leveraging for Business strategy5. Open source as a Business strategy6. Emergent countries and open source software adoption7. Current state of Morocco in terms of open source8. Brazil – a Model to follow9. References 3/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  4. 4. Introduction – IT/Business StrategyThe Strategic Alignment Model Strategic fit functional integrationhttp://www.strategic-alignment.com/ Adapted by Preston Coleman et al., 2006 from Henderson & Venkatraman (1990) 4/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  5. 5. Introduction – Business/IT Alignment PerspectivesAdapted by Preston Coleman et al., 2006 from Pap (1995) 5/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  6. 6. Alqualsadi research teamEnterprise Architecture, Quality of their Development and Integration Alqualsadi* research team stands for Enterprise Architecture, Quality of their Development and Integration * Abou Al Hassan ibn Ali ibn Muhammad Alqualsadi (1412-1486) 6/30 Arithmetics, Algebra, Astronomy (father of X and √ symbols) (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  7. 7. Open source as a Business opportunity for governments & private sector (1)● Equity : Strengthen brand and Build brand equity● Education & Human ressources : – Develop Regional HR capacity building more qualified than off-shoring point of view – To raise mind share● Governance – Improve effectiveness, efficiency – Minimise country/enterprise IT business model dependence to commercial monopoly of an elite group of suppliers (for IT sector : e.g. proprietary software retailers) 7/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  8. 8. Open source as a Business opportunity for governments & private sector (2)● Economic development – Develop a local software industry in the IT sector with new business opportunities & models – Develop Regional markets (local language support – not just English, French etc.) – Exploit indirect revenues of OSS services● Budget economy – Reduce IT budget (CAPEX) in the cost model – Make software affordable – Save foreign currency 8/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  9. 9. Open source as a Technical Opportunity for governments & private sector● IT Governance – Handle definitely IP rights & licences (GPL, LGPL...) establishing open source strategy rather than tolerating software piracy – Let the licence price (if applicable) a secondary decision criteria for the « build-versus-buy- or-integrate your self » questions – Minimise country/enterprise IT infrasctructure dependence to commercial monopoly of an elite group of suppliers – Share IT risks, ressources/knowledge, value/successes, performances with the world wide open community● IT Reliability – Keep faults/bugs correctable by the users● IT Security & autonomy – Keep algorithms tranparent to the users ● eg. governments, such as China, perceive proprietary software’s hidden protocols as threats to their national security, Nir Kshetri, 2003 9/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  10. 10. Open source as a Technical Opportunity for governments & private sector – Introduction to IT Cost Model David Chisnall, 2006Total Cost of Ownership may be computed as follows1. Capex : The "purchase price"* of the system (hardware & software licence)2. The cost of switching to the new system (« In-Transition » - entry ticket)(deployment costs, training costs, project management costs, adaptation/development/integration costs...)3. Opex : The cost of maintaining the system (operations staff, help desk, staff who fix problems, technical staff on supporting the live IT, technology upgrades and refreshes, operation and support management costs)4. The cost of switching away from the system (« Out-Transition » - exit ticket)(cost of dependence on black box system not based on standard/open formats/protocols) 10/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  11. 11. Open source as a Technical Opportunity for governments & private sector – OSS Capex Sanjiva Weerawarana et al., 2004 & Rishab Aiyer Ghosh 2004 In Morocco, Piracy is about 60% (Dounia Essabban, 2006)● When labor costs are high, as it is in developed countries, the Capex is a small fraction of the TCO. However, when labor costs are low, as it is in developing countries, the license fee can easily be the dominating factor of the TCO.● OSS of course typically has little or no license cost compared to proprietary software.● NB. * WinXP (+MSOffice) Cost (normalised with US$ cost of live 2003) = – (Cost in USA) $560 * (U.S. GDP p capita / Country GDP p capita) 11/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  12. 12. Open source as a Technical Opportunity for governments & private sector –Does open-source reduce the cost of IT investment in developing countries?● Quite possibly. We already see just having the choice and the competition offered by open source being used to reduce costs.● However, I think that if the developing country is serious about not just seeing IT as a cost center, but as a requirement for national development, the real advantage of open source ends up being able to build up your own knowledge base.● And that is not cheap in itself – you’ll likely pay as much for that as you’d pay for a proprietary software solution.● The difference being that with the proprietary solution, you’ll never catch up, and you’ll have to pay forever, without ever learning anything yourself. Linus Torvalds, Father of Linux 12/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  13. 13. Open source as IT strategySanjiva Weerawarana et al. 2004 13/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  14. 14. Implementing OSS IT Strategies Steven Weber, 2003● At a high level of generality there are three sets of policy implementation options to be considered by governments: – Formal approaches (such as legislation or a government strategic plan) versus more informal, flexible approaches to letting OSFS use evolve. – Level of involvement : subnational, national, regional collaboration. – Mode of development : public sector adoption of OSFS versus private sector adoption, and collaboration among various users. Country Formality National sub- regional anti- Security & IP national dependence autonomy Rights Brazil High ** ** * ** Argentina Medium- ** ** High China Medium ** * ** * ** India Low * * 14/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  15. 15. What kind of policy frameworks are appropriate to enable the success of open-source in developing countries? a) Hold off on Internet tariffs, licensing, and control until the industry is mature enough that one understands its dynamics. As I understand it, Ghana is having problems right now with cybercafes providing Voice Over IP technology, which is seen as being contrary to the stateowned telecommunications company. Since open source only works over the Internet, policies that favor the use and spread of the Internet are essential to building a healthy open source community. b) Give strategic weight to IT vendors or internal solutions that incorporate open source technologies, but don’t mandate that all IT solutions are open source ! c) Create a “CTO” for Open Source technologies in government who reports at a very high level. Have this person be responsible for staying on top of the use of OSS in the government, establishing standards, encouraging different groups to work together on common solutions, etc. Such a person may communicate very frequently with those outside the country as well. d) Have public education facilities that teach technologies focus on open source technologies as much as possible. That is, when someone takes a class in Operating Systems, have them learn about how they work by studying Linux. e) Provide some funding, not a huge amount but enough for a dozen techies plus a manager or two, whose job it is to ensure that the popular OSS software in the world is localized for the language of the developing nation. Most OSS these days have a good story with respects to support for alternative charsets and encodings, but simply need the manpower to provide and maintain the translation bundles. Doing this legwork helps ensure the OSS tech. remain available for this nation citizens. 15/30Brian Behlendorf, Co-Founder Apache (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  16. 16. Open source as IT strategy – obstacles in emergent countries● Power of software industry lobbies● Free software Capex & Psychological price : « expensive is better »● Globalisation & Agressive marketing : « brands obsession »● Inferiority complex : « foreign is better »● Confidence in Companies more than on Communities : « tailored & customised technical support »● Absence of Open source in government IT policies● Government IT policies are more off-shoring oriented 16/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  17. 17. Open source : an IT strategyleveraging for Business strategy – alignment map exampleOSS as Biz Strategy Sanjiva Weerawarana et al. 2004OSS as IT Strategy 17/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  18. 18. Open source as Business strategy – business modelsWilfred Dolfsm, 2006 Domestic markets Global markets Sanjiva Weerawarana et al. 2004 18/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  19. 19. Open source as Business strategy business models for open innovation through OSS development ● 4 “Open Innovation” models for OS as a Business Strategy – Pooled research : Pool resources to innovate in a common platform, exploit results (e.g. Linux, Mozilla) – Spinouts : Release some non-core innovation in a separate body, but stay involved (e.g. Eclipse, OpenSolaris, Jikes, Beehive) – Selling complements : Income from complements, shared innovation in a common OSS core (e.g. Oracle Http Server & IBM WS/Apache, Safari/Konqueror, Android & Apps /Linux) – Donated complements : Income from a proprietary core innovation, seek donated labor for valuable complements (e.g. Early BSD Unix, Matlab Central)Joel West et al. 2006 19/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  20. 20. OSS development Business Strategy vs off-shoring/outsourcing Business Strategies ● environment the country is well suited to exploit outsourced and offshored manufacturing and services of OSS products ● OS provides a unique opportunity to build software development skills in areas of the software stack, which do not form part of the bread and butter off-shoring/outsourcing work, which developing countries are typically exposed to. ● It is likely that the off-shore model, rather than the outsourcing model, will be the first approach in these businesses, as that allows businesses in developed countries to retain a degree of control and for the developing country to yet have a viable business model.Sanjiva Weerawarana et al. 2004 20/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  21. 21. Open source as Business strategy – some conditions for success● High level sponsorships : governments, companies, communities, niche, donnors● High IT infrastructure development● Inexpensive technical manpower● High IT skill developers & developer communities – one of the most successful open source software foundations of the world, the Apache Software Foundation, uses community strength as the litmus test to decide on whether to embark on a project 21/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  22. 22. Developed countries and OSS adoptionJean-Jacques Gauguier et al., 2005adapted from Dravis (2003) and Weerawarana & al. (2004) 22/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  23. 23. Emergent countries and OSS adoptionJean-Jacques Gauguier et al., 2005adapted from Dravis (2003) and Weerawarana et al. (2004) 23/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  24. 24. Current state of Morocco in terms of open source (1)● Annual National Open Source Contests – InnovIT (ex-CMOS) since 2008 sponsored by the Association of Information System Users in Morocco (AUSIM) – Apps Challenge (ex-Android Development Challenge) since 2010 sponsored by a telecom operator● Annual National Open Source days – Software Freedom Day at Casablanca (since 2009) – Each Engineering School or Science Faculty has its own Open Source day & Linux Install Party (since EMI 1999)● Education : – Many Universities include OSS in their curricula 24/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  25. 25. Current state of Morocco in terms of open source (2)● OSS in Ministries & Public Administrations : – More than 40% of use (mainly OS, Office Suites, Programming frameworks) Taieb Debbagh, at RALL 2007 - 3ème rencontres africaines des utilisateurs de logiciels libres) – Ministries of Finance, Cooperation and Foreign Affairs● OSS in Enterprises : – Many OSS Service Enterprises are created (SSLL - Sociétés de Service en Logiciels Libres) – Many Businesses adopt OSS “for practical issues not for free software ideology” : LAMP, Spring, Apache, Tomcat, Jboss, Liferay, Alfresco, jbpm, Activiti, Bonita, OpenERP, Sugar CRM, Open LDAP, Pentaho, Mule ESB, Talend, Zope, Plone, Joomla, Drupal, ...● OSS and Moroccan IT Strategy & High Level sponsorship : – OSS is not mentioned by the Moroccan digital strategy “Maroc Numeric 2013”● OSS Developers & Users Communities & Associations : – Among others : OSIM (Open Source In Morocco), Ubuntu-MA... 25/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  26. 26. INSEAD 2011Current state of Morocco in terms of innovation : The Global Innovation Index 2011 - ranking -- HI : High Income LM : Lower-Middle UM : Upper-Middle LI : Low Income ECS : Europe & Central Asia MEA : Middle East & North Africa SSF : Sub-Saharan Africa EAS : East Asia & Pacific; SAS : South Asia 26/30 NAC : North America LCN : Latin America & Caribbean st (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31 , 2012 0 .0 0 8.75 17 .5 0 26 .2 5
  27. 27. INSEAD 2011 27/30(CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  28. 28. Brazil - A Model to follow ● By mid-2002, many Latin American countries such as Brazil had proposed bills mandating the use of open source in government organizations. ● Brazil is one of the countries where policies regarding adoption of FOSS have been successful, notably in the states of Rio Grande do Sul and Pernambuco. Four cities – Amparo, Solonopole, Ribeirao Pires, and Recife – have passed laws giving preference to or requiring the use of software libre, and other municipalities, states, and the national government have considered similar legislation. ● The Brazilian government is recommending that its agencies have Linux installed in all new computers from 2004 on. Also, the Brazilian Navy has been using FOSS since 2002. ● Since 2000, the Brazilian government has been funding a large-scale open source GIS project. The project is TerraLib, an open-source library for GIS and associated applications (Câmara et al., 2000). TerraLib enables quick development of GIS applications and is available at www.terralib.org. In early 2006, more than 10 private companies in Brazil developed products using TerraLib. The latest Brazilian GIS market survey estimates the total market to be US$150 million, with 200 companies and 4,000 employees (Magalhaes & Granemman, 2005). The service provider market is estimated to be US$40 million. Companies offering GIS services based on open source software form 15% of the service provider market.Gilberto Câmara, 2007 28/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  29. 29. References1. Steven Weber, Open Source Software in Developing Economies, 2003.2. Sanjiva Weerawarana, and Jivaka Weeratunga, Open Source in Developing Countries, SIDA, Sweden, 2004.3. Rishab Aiyer Ghosh, The Opportunities of Free/Libvre/Open Source Software for Developing Countries, -ICTSD Dialogue on the pro- development IP agenda forward: Preserving Public Goods in health, education and learning, 29 November – 3 December 2004.4. Nir Kshetri, Economics of Linux Adoption in Developing Countries, IEEE Software, 21 (1), 74-81, 2004.5. Jean-Jacques Gauguier, and Rémi Douine, Local Software and Local Content Production Challenge in Developing Countries. What Can Be Learned from Open Source and Creative Commons Paradigms, Communications & Strategies, N° 58, 2nd Q. 2005.6. Joel West, and Scott Gallagher, Patterns of Open Innovation in Open Source Software, in Open Innovation: Researching a New Paradigm, Oxford University Press, 2006.7. Preston Coleman, and Raymond Papp, Strategic Alignment : Analysis of Perspectives, 2006 Southern Association for Information Systems Conference, 2006.8. David Chisnall, Making Effective Software TCO Calculations, InformIT, 2006.9. Wilfred Dolfsma, Tight prior open source equilibrium: The rise of open source as a source of economic welfare, First Monday, Volume 11, Number 1 - 2 January 2006.10. Gilberto Câmara, Frederico Fonseca, Information Policies and Open Source Software in Developing Countries, Journal Of The American Society For Information Science and Technology, 58(1):121–132, 2007.11. Jesus M. Gonzalez-Barahona, and Felipe Ortega, Economic Aspects of Libre Software, 2010.12. INSEAD, Soumitra Dutta ed, The Global Innovation Index 2011, Accelerating Growth and Development, 2011. 29/30 (CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
  30. 30. Merci pour votre attention avez-vous des questions ? Prof. Karim Baïna @kbaina www.slideshare.net/kbaina/ made with : 30/30(CC) Prof. Karim Baïna, ENSIAS at « 4ème Journée Open Source ENSA Marrakech », March 31st, 2012
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