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Open Source Community Building by Firms and Institutions

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Dr. Matthias Stürmer, Ernst & Young AG ...

Dr. Matthias Stürmer, Ernst & Young AG
21 October 2010 at CERN, Geneva

Workshop on Open Source Software with Technology Transfer Perspective
http://indico.cern.ch/conferenceDisplay.py?confId=101453

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    Open Source Community Building by Firms and Institutions Open Source Community Building by Firms and Institutions Presentation Transcript

    • Open Source Community Building by Firms and Institutions Dr. Matthias Stürmer, Ernst & Young AG 21 October 2010 at CERN, Geneva Workshop on Open Source Software with Technology Transfer Perspective
    • Ernst & Young IT Risk & Assurance Advisory Assurance • IT Risk Management • External IT Audit • Information Security • Third Party Reporting • IMAS (Info. Mgmt. & Analysis) • IT Due Diligence • IT Effectiveness • IT Program Assurance Page 2 21 October 2010 Open Source Community Building by Firms and Institutions
    • Speaker • Senior, Ernst & Young AG in Bern • Dr. sc. ETH Zurich: Research program of Swiss National Science Foundation (SNSF) on Open Source Dynamics at the Chair of Strategic Management and Innovation • lic.rer.pol. University of Bern: Licenciate of Business Administration and Computer Science • Board member of Swiss Open Systems Dr. Matthias User Group /ch/open: OpenExpo etc. Stürmer • Secretary of the Senior, Ernst & Young AG Parliamentarian Group of Digital Sustainability Page 3 21 October 2010 Open Source Community Building by Firms and Institutions
    • Agenda 1) Introduction on Open Source Communities 2) Benefits and Costs when Releasing Open Source Software 3) Balancing Act between Openness and Control 4) Case Studies in Community Building 5) Conclusions Page 4 21 October 2010 Open Source Community Building by Firms and Institutions
    • Introduction on Open Source Communities Page 5 21 October 2010 Open Source Community Building by Firms and Institutions
    • Typical Structure of an Open Source Community Open Source Community Inactive Users Active Users Contributors Developers, Joining Script Leaders Initiators, Owners, Core Developers Software • Source code • Binary files • Documentation Artefacts Source: Matthias Stuermer „Open Source Community Building“ Page 6 21 October 2010 Open Source Community Building by Firms and Institutions
    • Development Lifecycle Initial Release of the Source Code Base • Developer • Firm Feedback • Public Institution from Users Community- Linux Building Mozilla Firefox Apache Webserver Bug Fixes, etc. Extensions Forming of Service Provider Industry Core Contributions Page 7 21 October 2010 Open Source Community Building by Firms and Institutions
    • Community Stakeholders Institution: Institution: Initiator and Software User Software Development and Client Internal Feedback Software Requirements Software Software Development Firm Development Public Feedback Implementation of Core Contributions Collaboration Platform Core Basis-A Application likation Public Feedback Institution: Software User and Code Contributor Institution: Contribution of Software User Bug Fixes and and Commentor Extensions Page 8 21 October 2010 Open Source Community Building by Firms and Institutions
    • Motivation to Contribute Reasons for individuals to contribute to open source software: Intrinsic Motivation Externalized Extrinsic Motivation • Ideology • Reputation • Altruism • Reciprocity • Kinship • Learning • Fun • Own-use Extrinsic Motivation • Career • Pay Source: G. F. von Krogh, S. Haefliger, S. Spaeth, M. W. Wallin “Open Source Software: a Review of Motivations to Contribute” Page 9 21 October 2010 Open Source Community Building by Firms and Institutions
    • Motivation to Contribute Reasons for firms to contribute to open source software: Business benefits Legal constraints • Low knowledge protection costs • GPL demands contributions • Learning effects for the organization • Reputation gain • Lower costs of innovation • Lower manufacturing costs • Faster time to market Source: Matthias Stuermer, Sebastian Spaeth, Georg von Krogh, "Incentives and costs in implementing Private-Collective Innovation: A case study" Page 10 21 October 2010 Open Source Community Building by Firms and Institutions
    • Benefits and Costs Releasing Open Source Page 11 21 October 2010 Open Source Community Building by Firms and Institutions
    • Benefits when Releasing Open Source Software Incentives and their findings in the case Incentive Findings in the Nokia case Low knowledge protection costs Revealing of source code, no protection required Learning effects Collaboration with external firms and individuals Reputation gain Increased attraction of Nokia as employer and building an own developer community Adoption of innovation Standard setting of the platform configuration Lower costs of innovation Reuse of Open Source Software, outsourcing of software testing and bug fixing and maintenance to open source communities Lower manufacturing costs No licensing fees for software platform Faster time to market Tapping of distributed technology expertise and high flexibility of software platform Source: Matthias Stuermer, Sebastian Spaeth, Georg von Krogh, "Incentives and costs in implementing Private-Collective Innovation: A case study" Page 12 21 October 2010 Open Source Community Building by Firms and Institutions
    • Costs and Mitigations Strategies Cost Findings in the Nokia case Mitigation strategy Difficulty to differentiate Released source code can be reused by Partial revealing of source competitors code to retain control of hardware integration and look and feel Guarding business secrets Plans for new products Selective revealing of future plans and protection of information through NDAs Reducing network entry Investments for Software Development Sharing the costs with other barriers Kit, preview version of platform, device actors in the network program, staff for community management, and increased communication effort Giving up control Development direction such as scope of Hiring of key developers and functionality of Open Source projects are participation in upstream controlled by external parties communities. No single vendor controls platform Organizational inertia Required internal restructuring of Adapt and open up processes processes Source: Matthias Stuermer, Sebastian Spaeth, Georg von Krogh, "Incentives and costs in implementing Private-Collective Innovation: A case study" Page 13 21 October 2010 Open Source Community Building by Firms and Institutions
    • Balancing Act between Openness and Control Page 14 21 October 2010 Open Source Community Building by Firms and Institutions
    • How to Gain Control in an Open Source Project Community-driven OSS projects • Meritocracy: exercise of control on the basis of knowledge • Technical contributions and organizational-building • behavior lead to authority and control Firm-driven OSS projects • Business model: value creation and value appropriation • Firms need control to appropriate returns of investment • Balancing act between openness and control Source: Matthias Stuermer, Defense Doctoral Thesis ETH Zürich “How Firms Make Friends: Communities in Private-Collective Innovation” Page 15 21 October 2010 Open Source Community Building by Firms and Institutions
    • How May Firms Influence on OSS Communities Influence of corporations increases when: • Firms reveal previously proprietary code • Firms employ core developers who previously contributed as unpaid volunteers • Firms contract intermediary OSS firms and individuals New challenges in firm-driven OSS projects: • Possible crowding-out effects of intrinsic motivation • Create incentives to attract external contributions Source: Matthias Stuermer, Defense Doctoral Thesis ETH Zürich “How Firms Make Friends: Communities in Private-Collective Innovation” Page 16 21 October 2010 Open Source Community Building by Firms and Institutions
    • Balancing Act Between Openness and Control Control decreases contributions • Transparency increases contributions strongly • Accessibility increases contributions slightly Balancing is difficult • Too little control: results may not serve the firm's goals • Too much control: communities may not contribute with all of their energy, interest, and creativity • Worst case: forking of the source code Source: Matthias Stuermer, Defense Doctoral Thesis ETH Zürich “How Firms Make Friends: Communities in Private-Collective Innovation” Page 17 21 October 2010 Open Source Community Building by Firms and Institutions
    • Forking The Community‘s Sword of Damocles • Worst case scenario in a community when the project‘s governance failed • Division of open source community: same code but new name for the fork • Specialty of open source software: everyone can „make it their own“ • Success of a fork: tacit knowledge vs. explicit knowledge Main Famous cases of unfriendly forks: • OpenOffice.org became LibreOffice • MySQL became MariaDB • Compiere became ADempiere Fork • SugarCRM became vTiger • Mambo became Joomla Page 18 21 October 2010 Open Source Community Building by Firms and Institutions
    • Case Studies in Community Building Page 19 21 October 2010 Open Source Community Building by Firms and Institutions
    • Community Building by Nokia • Sale of 1500 discounted Tablets to active OSS developers • maemo.org for tutorials, road map, API docs, Wiki, Blog Planet... • 244 registered Maemo projects on garage.maemo.org [2007-06-30] • Mailing Lists (June 2005 - December 2006) and IRC chat • Developer: 6795 mails from 832 email addresses (79 Nokia) • User: 2534 mails from 511 email addresses (33 von Nokia) • Bugzilla for bug reporting: about 1000 reported issues • Maemo software development kit (SDK) • Sardine: development (unstable) version of the operating system Source: Matthias Stuermer, Sebastian Spaeth, Georg von Krogh, "Incentives and costs in implementing Private-Collective Innovation: A case study" Page 20 21 October 2010 Open Source Community Building by Firms and Institutions
    • Community Building by IBM for Eclipse Active Code Committers in the Eclipse Open Source Community Source: Sebastian Spaeth, Matthias Stuermer, Georg von Krogh (2010) "Enabling Knowledge Creation Through Outsiders: Towards a Push Model of Open Innovation" Page 21 21 October 2010 Open Source Community Building by Firms and Institutions
    • Community Building by IBM for Eclipse Contexts enabling the push model of open innovation 1. Preemptive generosity Revealing of initial Eclipse source code by IBM 2. Continuous commitment Constant number of IBM programmers in Eclipse Constant level of participation in newsgroups 3. Adaptive governance structures (giving up control) Non-profit foundation with equal membership of firms 4. Lowering barriers to entry Sub-projects by non-IBM people; modular architecture Source: Sebastian Spaeth, Matthias Stuermer, Georg von Krogh (2010) "Enabling Knowledge Creation Through Outsiders: Towards a Push Model of Open Innovation" Page 22 21 October 2010 Open Source Community Building by Firms and Institutions
    • Community Building by European Commission OSOR – Open Source Observation Repository – www.osor.eu OSOR.EU • European information and development platform on open source • For open source projects of public authorities Hosting collaboration platform • For national and international open source projects Links all European open source collaboration platforms • Currently 2331 open source projects in public authorities Publishes • Established case studies about the use of open source in authorities • Well researched news about open source from all over Europe Page 23 21 October 2010 Open Source Community Building by Firms and Institutions
    • Community Building by European Commission National open source platforms linked to OSOR.EU Adullact (France) OpenSource Plattform des Digitalen Österreich (Austria) Guadalinex forge (Andalucia, Spain) Software Repositorty of the Junta de Anadalucia (Andalucia, Spain) The Free Knowledge Forge of the RedIRIS Community (Spain) Forja.linex.org (Extremadura, Spain) Morfeo Free Software Community Forge lafarga.cat (Catalonia, Spain) ASC – Ambiente di Sviluppo Cooperativo (Italy) Mancomun forge (Galicia, Spain) Technology Transfer Centre (Spain) Page 24 21 October 2010 Open Source Community Building by Firms and Institutions
    • Conclusions Page 25 21 October 2010 Open Source Community Building by Firms and Institutions
    • Open Source Adoption Levels Level 3: Community Building Building of a firm-sponsored open source community Level 2: Knowledge Revealing Revealing of proprietary source code under an open source license Level 1: Open Innovation Integration of externally available open source components Source: Matthias Stuermer “How Firms Make Friends: Communities in Private- Collective Innovation” Page 26 21 October 2010 Open Source Community Building by Firms and Institutions
    • Open Source Adoption Matrix Data Sources Active Open • Blog Source Nokia Red Hat www.digitale-nachhaltigkeit.ch Community “Bedeutung von Open Source Building Canton of Software in sieben IBM Waadt internationalen Software- Raiffeisen Novell Unternehmen“ Open Source Adoption Release of Day • Press releases Open Source Canton of Solothurn of the Parliamentarian Group Software Oracle for Digital Sustainability Canton of Zug HP • OpenExpo 2009 und 2010 Manor Federal speeches on www.openexpo.ch Use of Open Court educa.ch • Open Source Observatory and Source Mobiliar Repository for European public Software Canton of Postfinance administrations www.osor.eu Basel-Stadt • PhD thesis of Canton of Dr. Matthias Stürmer 2009 Use of Bern Fabasoft “How Firms Make Friends: Proprietary Federal Communities in Private- Software Administration Microsoft Collective Innovation“ Strategic Relevance of Software Use of Software Software Development Software Development for own Use as Core Business Page 27 21 October 2010 Open Source Community Building by Firms and Institutions
    • Thank you! Dr. Matthias Stürmer Senior, Ernst & Young AG matthias.stuermer@ch.ey.com Mobile: +41 58 289 61 97