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Digital_Fabrication_Studio.01Media,Business,PlatformsMassimo Menichinellimassimo.menichinelli@aalto.f@openp2pdesignhttp://...
This afternoon:* The Media ecosystem of Fabbing* Platforms for Fabbing and projects* Business models for Open projects
01.The Media ecosystem for DigitalFabrication,Open Design and DIY
WiredA monthly American magazine and on-line periodical (since 1993) that reports onhow new and developing technology affe...
DIYDrones from Chris Anderson (Wired)Funded in 2007, a store and an online community with 26,000 members.Source: http://di...
DIYDrones from Chris Anderson (Wired)The role of Media in promoting DIY projects ...Source: http://www.wired.com/dangerroo...
“Makers” from Chris AndersonNot only magazine, but also books...Source: http://www.amazon.com/Makers-The-New-Industrial-Re...
OReilly Media: MakeAn American media company (since 1978) that publishes books and Web sites andproduces conferences on co...
Make: a magazineAn American quarterly magazine published by OReilly Media which focuses on doit yourself (DIY) and/or DIWO...
Make: a blogBeside the magazine...Source: http://blog.makezine.com/
Make: an online storeBeside the magazine...Source: http://www.makershed.com/
Make: a series of local fairesBeside the magazine ...Source: http://makerfaire.com/
Make: a series of local fairesBeside the magazine ...Source: http://makerfaire.com/map.csp
Make: a TV / online seriesMake: television is a television show produced by Twin Cities Public Television andhosted by Joh...
Make: a controller kitMake teamed up with MakingThings, LLC, to produce the Make Controller Kit, anopen hardware solution ...
Make: CraftA quarterly magazine published by OReilly Media which focused on do it yourself(DIY) projects like knitting, se...
Makerbot TVAn online TV show produced by Makerbot, for promoting their 3D printers.Source: http://makerbot.tv/
Makerbot TVAn online TV show produced by Makerbot, for promoting their 3D printers.Source: http://makerbot.tv/LtHr/makerbo...
Thingiverse (from Makerbot)A website for sharing 3D digital fles that can be printed (with Makerbot printers).Source: http...
02.Platforms Digital Fabrication,OpenDesign and DIY
A platform= an extremely valuable and powerful ecosystem that quicklyand easily scales,morphs,and incorporates new feature...
A platformSimon, P. (2011). The Age of the Platform: How Amazon, Apple, Facebook, and GoogleHave Redefined Business. Motio...
Etsy: a DIY / Crafts marketplaceThe biggest marketplace for yourDIY / Crafts projects.Source: http://www.etsy.com/
Etsy: a platform for DIYWith also open API for interacting with the platform!Source: http://www.etsy.com/developers?ref=ft...
Etsy: a platform for DIYSource: http://www.youtube.com/watch?v=RmXJXYHnWPoThe biggest marketplace for yourDIY / Crafts pro...
Blomming: another platform for DIYSource: http://blomming.com/A platform for embedding your e-commerce store in your own w...
Ponoko (New Zealand)Online service and marketplace (open your own shop) with laser cutting,cnc routing, 3D printing, elect...
Ponoko (New Zealand)Online service and marketplace (open your own shop) with laser cutting,cnc routing, 3D printing, elect...
Ponoko (New Zealand)Online service and marketplace (open your own shop) with laser cutting,cnc routing, 3D printing, elect...
Shapeways (Netherlands/USA)Source: http://www.shapeways.comOnline service and marketplace (open your own shop) with 3D pri...
Shapeways (Netherlands/USA)Source: http://www.shapeways.com/blog/archives/1442-Funding-the-Rise-of-Creative-Commerce.htmlO...
Shapeways (Netherlands)Online service and marketplace (open your own shop) with 3D printing.Source: http://www.youtube.com...
i.materialise (Belgium)Source: http://i.materialise.com/Online service and marketplace (open your own shop) with 3D printi...
Sculpteo (France)Source: http://www.sculpteo.com/en/Online service and marketplace (open your own shop) with 3D printing.
Inventables (USA)Source: https://www.inventables.com/Online store for materials, components andmachines for digital fabric...
Adafruit (USA)Source: http://www.adafruit.com/Online store of Open Hardware projects and electronic components.
Adafruit (USA)Source: http://www.youtube.com/user/adafruitOnline store of Open Hardware projects and electronic components.
Adafruit (USA)Source: http://www.youtube.com/watch?v=qpYdt4hdEi8Online store of Open Hardware projects and electronic comp...
Sparkfun (USA)Source: http://www.youtube.com/user/adafruitOnline store of Open Hardware projects and electronic components.
Sparkfun (USA)Source: http://www.youtube.com/user/sparkfun?feature=results_mainOnline store of Open Hardware projects and ...
Sparkfun (USA)Source: http://youtu.be/dvvtRoBn4YMOnline store of Open Hardware projects and electronic components.
A physical platform: Arduino (Italy)Source: http://arduino.ccAn Open single-board microcontroller and IDE designed to make...
A physical platform: Arduino (Italy)Source: http://www.youtube.com/watch?v=q2dieLFR9C8 Full documentary: http://vimeo.com/...
Crowdfunding: KickstarterSource: http://www.kickstarter.com/startKickstarter is the worlds largest funding platformfor cre...
Crowdfunding: KickstarterSource: http://www.kickstarter.com/blog/happy-birthday-kickstarterProjects launched: activity bet...
Crowdfunding: KickstarterSource: http://www.kickstarter.com/blog/happy-birthday-kickstarterProjects that reach 30% of thei...
Crowdfunding: KickstarterSource: http://www.kickstarter.com/blog/happy-birthday-kickstarterFilm leads the pack with nearly...
Kicktraq: analytics for KickstarterSource: http://www.kicktraq.com/ http://www.kicktraq.com/projects/2105227104/ultra-bot-...
Kickstarter: is it rather a Medium?Source: http://www.fastcompany.com/1843007/kickstarter-crowdfunding-platform-or-reality...
Lessons from / for Kickstarter* Design for Simplicity: reduce the functionalities / components* Design for scale: identify...
Lessons from / for Kickstarter* Set a spot-on funding goal — not too big, not too small: set yourKickstarter goal near $10...
Crowdfunding: IndiegogoSource: http://www.indiegogo.com/A crowdfunding platform based in California, it has hosted over 10...
Crowdfunding for Open projects: GoteoSource: http://goteo.org/?lang=enA crowdfunding platform for Open Projects, not just ...
Crowdfunding for local business: SmallknotSource: http://www.smallknot.com/A new trend in crowdfunding: fund local project...
Crowdfunding for local business: LuckyAntSource: http://www.luckyant.com/A new trend in crowdfunding: fund local projects ...
Crowdfunding for local business: BrickstarterSource: http://brickstarter.org/an-introduction-to-brickstarter/A new trend i...
Crowdfunding for Finland: Mesenaatti.meSource: http://mesenaatti.me/en/Mesenaatti.me is the frst open-for-everyone Finnish...
GitHub: coding for the social networksSource: https://github.com/The most popular platform for code development, and espec...
Sourceforge: coding for the organizationSource: http://sourceforge.net/The most popular platform for open source projects ...
GitHub as a platform: GittipSource: https://www.gittip.com/A web service built on top of GitHub, it enables users tothank ...
GitHub: Goteo as open source CrowdfundingSource: https://github.com/Goteo/GoteoThe crowdfunding platform for Open projects...
Upverter: design hardware, with GitHubSource: http://upverter.comUpverter is a design and collaboration platform for stude...
03.The business of Digital Fabrication,Open Design and DIY
And designers can be entrepreneursNew platforms for crowdsourcing allow you to fund your projects, anddigital fabrication ...
And designers can be entrepreneursNew platforms for crowdsourcing allow you to fund your projects, anddigital fabrication ...
But “Open” alone is not enoughOpen Source is a good strategy, but your project needsto be meaningful for enough people!Sou...
You need to interact with the market… and this is exactly what new services andplatforms enable!Source: http://www.threadl...
Open Hardware: a rising market$0$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000$7,000,000$8,000,000$9,000,000...
SparkFun“In 2010, SparkFun had revenues of about $18.4MM. As of April of 2011, wehave around 120 employees, up from 87 a y...
A long tail of users / projects...Another big player, a marketplace for your DIY /Crafts projects (exploiting the long tai...
2005 2006 2007 2008 2009 2010 2011 (March)$0$50,000,000$100,000,000$150,000,000$200,000,000$250,000,000$300,000,000$350,00...
Makers can create a startup: MakerbotStarted from an hackerspace (and fromRepRap, even fnancially).Source: http://www.flic...
The market of 3D printingSustainable business--> $10 Milions from VCNot yet sustainable--> $5 Milions from VC3D printing m...
Big corporations: 3D SystemsNot only hackers or startups are in this feld,but even big and old companies.Source: http://ww...
Digital Fabrication: not just machines28%31%41% 3D PrintersMaterialsServicesThere are many ways for making money withdigit...
A typical closed innovation systemThis is the typical evolution of a closedcompany...Source: http://en.wikipedia.org/wiki/...
And newer pictures are too big for a slide :-)Source: http://futurist.se/gldt/An open innovation system
Open Innovation vs. Closed InnovationSource: http://en.wikipedia.org/wiki/Open_innovation http://shar.es/HN3UaFirms can an...
Open Innovation vs. Open Source“Open innovation is sometimes confated with open sourcemethodologies for software developme...
Look for what is becoming a commodityA commodity is a good for which there is demand, but which issupplied without qualita...
Hardware and Software, becoming commodities* (50s-70s) Hardware is the product, software is for free:mainframes--> Hacker ...
Manufacturing and Design, becoming commodities* (90s-00s) Manufacturing becomes a commodity and slowlydisappears in the We...
Fabbing + designers = $$$ + Open DesignBig corporations love shopping Design companies forselling their content with 3D pr...
But even makers may be giving content away...The same strategy of giving content to the users of the3D printers has been a...
But even anybody could become a user, so lets buya design software and offer it to them.Source: http://blog.3dsystems.com/...
And users innovate (even in non open way)Not developed by a company...Source: http://en.wikipedia.org/wiki/Skateboard
Users innovate – a lot!“We find this previously unmeasured type of household sectorinnovation to be quite large: 6.2% of U...
03.Business models for Open projects
Business models of Open Source (software)Non-monetary incentives:* problem solving* ethical questions* education + learnin...
A gift economyA mode of exchange where valuable goods and services are regularly givenwithout any explicit agreement for i...
A gift economy: focus on social networksFlows of good and services are important only for mantaining and improvingsocial n...
Business models of Open Source (software)Monetary incentives:* selling software (as open or even with dual licensing)* off...
A market economyDecisions regarding investment, production and distribution are based onsupply and demand and the prices a...
A market economy: barterA method of exchange by which goods or services are directly exchanged forother goods or services ...
A market economy: money as mediumThe main functions of money are distinguished as: a medium of exchange; aunit of account;...
Business models of Open Source (software)Red Hatfrst open source company expected to break through the$1bn mark in 2011.So...
The levels of openness in Open Hardware1. Closed: any hardware for which the creator of the hardwarewill not release any i...
Note: Open Business is not completely open* identity (brand) is fxed and is a warranty certifcate* existing business ecosy...
The business models of Open Hardware* Services and expertise (customization, consulting)* Manufacturing of owned or third ...
Business models for FabLabs* Enabler: launch new Labs and support services* Education: a global distributed model of educa...
The business models of Open HardwareSource: http://kits.sparklelabs.com/Proprietary hardware tools for learning how to dev...
The business models of Open HardwareSource: http://www.adafruit.com/jobs/Offering free services for building a greater use...
The business models of Open Hardware+ =Source: http://www.ponoko.com/make-and-sell/electronicsPartnership between hardware...
The business models of Open HardwareSource: http://bildr.org/Funding Open Hardware projects in exchange for documentation
The business models of Open HardwareSource: http://www.flickr.com/photos/ttstam/4177935719/Piracy as a learning and market...
The business models of Open HardwareSource: http://vimeo.com/26980501Piracy as a learning and market building strategy: Sh...
The business models of Open HardwareSource: http://www.makerbot.com/blog/2010/11/26/makerbot-botcave-store-opens-today/Bri...
The business models of Open HardwareSource: http://hackerspaces.org/wiki/NYC_ResistorRenting spaces for co-working / fundi...
The business models of Open HardwareSource: http://www.oshwbank.org/Microcredit / peer-to-peer lending / crowdfunding: Ope...
Similar models for DIY Craft... Sewing CafesSource: http://sweatshopparis.blogspot.com/Renting spaces for co-working: Sewi...
Similar models for DIY Craft... Sewing CafesSource: http://sweatshopparis.blogspot.com/Renting spaces for co-working: Sewi...
Open Money: making digital a physical mediumSource: http://en.wikipedia.org/wiki/Bitcoinhttp://www.wired.com/magazine/2011...
Open Money: making digital a physical mediumSource: http://www.youtube.com/watch?v=Um63OQz3bjoMoney is now being redesigne...
Open Money: it still needs business modelsSource: http://en.wikipedia.org/wiki/Bitcoinhttp://www.wired.com/magazine/2011/1...
Crowdsourcing, mass-collaboration and work“If crowdsourcing runs on people’s “spare cycles”—their downtime notclaimed by w...
… and a lesson from the pastSource: http://en.wikipedia.org/wiki/Henry_FordIn 1914 Ford doubled the wages, enabling his wo...
When everything is peaking...Source: http://ecoalfabeta.blogosfere.it/2011/03/il-picco-del-legno.htmlEven renewable resour...
… reinventing an open wheel is not enoughSource: http://www.theoscarproject.org/Will just making open an unstainable past ...
New language, business for the new mediaSource: http://en.wikipedia.org/wiki/CarEvery new technology takes time to develop...
New language, business for the new mediaSource: http://en.wikipedia.org/wiki/CarEvery new technology takes time to develop...
… blocks of an Open, DIY and P2P Economy* open business for design,energy,materials,tools* open business that consider inf...
Thank you!!Massimo MenichinelliAalto Media Factorymassimo.menichinelli@aalto.f@openp2pdesignhttp://www.slideshare.net/open...
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  1. 1. Digital_Fabrication_Studio.01Media,Business,PlatformsMassimo Menichinellimassimo.menichinelli@aalto.f@openp2pdesignhttp://www.slideshare.net/openp2pdesign
  2. 2. This afternoon:* The Media ecosystem of Fabbing* Platforms for Fabbing and projects* Business models for Open projects
  3. 3. 01.The Media ecosystem for DigitalFabrication,Open Design and DIY
  4. 4. WiredA monthly American magazine and on-line periodical (since 1993) that reports onhow new and developing technology affects culture, the economy, and politics.Source: http://www.wired.com/
  5. 5. DIYDrones from Chris Anderson (Wired)Funded in 2007, a store and an online community with 26,000 members.Source: http://diydrones.com/ + https://store.diydrones.com/http://diydrones.com/profiles/blogs/tour-of-the-new-3d-robotics-factory
  6. 6. DIYDrones from Chris Anderson (Wired)The role of Media in promoting DIY projects ...Source: http://www.wired.com/dangerroom/2012/06/ff_drones
  7. 7. “Makers” from Chris AndersonNot only magazine, but also books...Source: http://www.amazon.com/Makers-The-New-Industrial-Revolution/dp/0307720950/
  8. 8. OReilly Media: MakeAn American media company (since 1978) that publishes books and Web sites andproduces conferences on computer technology topics.Source: http://oreilly.com/
  9. 9. Make: a magazineAn American quarterly magazine published by OReilly Media which focuses on doit yourself (DIY) and/or DIWO (Do It With Others) projects.Source: http://makezine.com/magazine/ + http://make-digital.com/make/
  10. 10. Make: a blogBeside the magazine...Source: http://blog.makezine.com/
  11. 11. Make: an online storeBeside the magazine...Source: http://www.makershed.com/
  12. 12. Make: a series of local fairesBeside the magazine ...Source: http://makerfaire.com/
  13. 13. Make: a series of local fairesBeside the magazine ...Source: http://makerfaire.com/map.csp
  14. 14. Make: a TV / online seriesMake: television is a television show produced by Twin Cities Public Television andhosted by John Edgar Park which premiered in January 2009 on PBS stations.Source: http://makezine.tv/
  15. 15. Make: a controller kitMake teamed up with MakingThings, LLC, to produce the Make Controller Kit, anopen hardware solution to create interactive applications.Source: http://www.makershed.com/product_p/mkmt3.htm
  16. 16. Make: CraftA quarterly magazine published by OReilly Media which focused on do it yourself(DIY) projects like knitting, sewing, jewelry, metalworking, woodworking, until 2009.Source: http://blog.makezine.com/craftzine/ http://en.wikipedia.org/wiki/Craft_(magazine)
  17. 17. Makerbot TVAn online TV show produced by Makerbot, for promoting their 3D printers.Source: http://makerbot.tv/
  18. 18. Makerbot TVAn online TV show produced by Makerbot, for promoting their 3D printers.Source: http://makerbot.tv/LtHr/makerbot-tv-launch-episode/
  19. 19. Thingiverse (from Makerbot)A website for sharing 3D digital fles that can be printed (with Makerbot printers).Source: http://www.thingiverse.com/thing:29258
  20. 20. 02.Platforms Digital Fabrication,OpenDesign and DIY
  21. 21. A platform= an extremely valuable and powerful ecosystem that quicklyand easily scales,morphs,and incorporates new features (calledplanks), users, customers, vendors, and partners.The most vibrant platforms embrace third-party collaboration.The companies behind these platforms seek to foster symbioticand mutually benefcial relationships with users,customers,partners,vendors,developers,and the community at large.Attheir core,platforms today are primarily about consumer utilityand communications.Simon, P. (2011). The Age of the Platform: How Amazon, Apple, Facebook, and GoogleHave Redefined Business. Motion Publishing.
  22. 22. A platformSimon, P. (2011). The Age of the Platform: How Amazon, Apple, Facebook, and GoogleHave Redefined Business. Motion Publishing.
  23. 23. Etsy: a DIY / Crafts marketplaceThe biggest marketplace for yourDIY / Crafts projects.Source: http://www.etsy.com/
  24. 24. Etsy: a platform for DIYWith also open API for interacting with the platform!Source: http://www.etsy.com/developers?ref=ft_dev
  25. 25. Etsy: a platform for DIYSource: http://www.youtube.com/watch?v=RmXJXYHnWPoThe biggest marketplace for yourDIY / Crafts projects.
  26. 26. Blomming: another platform for DIYSource: http://blomming.com/A platform for embedding your e-commerce store in your own website.
  27. 27. Ponoko (New Zealand)Online service and marketplace (open your own shop) with laser cutting,cnc routing, 3D printing, electronic components through local hubs.Source: http://www.ponoko.com
  28. 28. Ponoko (New Zealand)Online service and marketplace (open your own shop) with laser cutting,cnc routing, 3D printing, electronic components through local hubs.Source: http://blog.ponoko.com/digital-making-hubs/
  29. 29. Ponoko (New Zealand)Online service and marketplace (open your own shop) with laser cutting,cnc routing, 3D printing, electronic components through local hubs.Source: http://www.ponoko.com/app-gateway/developer-program
  30. 30. Shapeways (Netherlands/USA)Source: http://www.shapeways.comOnline service and marketplace (open your own shop) with 3D printing.
  31. 31. Shapeways (Netherlands/USA)Source: http://www.shapeways.com/blog/archives/1442-Funding-the-Rise-of-Creative-Commerce.htmlOnline service and marketplace (open your own shop) with 3D printing.
  32. 32. Shapeways (Netherlands)Online service and marketplace (open your own shop) with 3D printing.Source: http://www.youtube.com/watch?feature=player_embedded&v=qJuTM0Y7U1k
  33. 33. i.materialise (Belgium)Source: http://i.materialise.com/Online service and marketplace (open your own shop) with 3D printing.
  34. 34. Sculpteo (France)Source: http://www.sculpteo.com/en/Online service and marketplace (open your own shop) with 3D printing.
  35. 35. Inventables (USA)Source: https://www.inventables.com/Online store for materials, components andmachines for digital fabrication and DIY.
  36. 36. Adafruit (USA)Source: http://www.adafruit.com/Online store of Open Hardware projects and electronic components.
  37. 37. Adafruit (USA)Source: http://www.youtube.com/user/adafruitOnline store of Open Hardware projects and electronic components.
  38. 38. Adafruit (USA)Source: http://www.youtube.com/watch?v=qpYdt4hdEi8Online store of Open Hardware projects and electronic components.
  39. 39. Sparkfun (USA)Source: http://www.youtube.com/user/adafruitOnline store of Open Hardware projects and electronic components.
  40. 40. Sparkfun (USA)Source: http://www.youtube.com/user/sparkfun?feature=results_mainOnline store of Open Hardware projects and electronic components.
  41. 41. Sparkfun (USA)Source: http://youtu.be/dvvtRoBn4YMOnline store of Open Hardware projects and electronic components.
  42. 42. A physical platform: Arduino (Italy)Source: http://arduino.ccAn Open single-board microcontroller and IDE designed to make theprocess of using electronics in multidisciplinary projects more accessible.
  43. 43. A physical platform: Arduino (Italy)Source: http://www.youtube.com/watch?v=q2dieLFR9C8 Full documentary: http://vimeo.com/18539129An Open single-board microcontroller and IDE designed to make theprocess of using electronics in multidisciplinary projects more accessible.
  44. 44. Crowdfunding: KickstarterSource: http://www.kickstarter.com/startKickstarter is the worlds largest funding platformfor creative projects.
  45. 45. Crowdfunding: KickstarterSource: http://www.kickstarter.com/blog/happy-birthday-kickstarterProjects launched: activity between April 28, 2009 - April 27, 2011.
  46. 46. Crowdfunding: KickstarterSource: http://www.kickstarter.com/blog/happy-birthday-kickstarterProjects that reach 30% of their funding goal succeed more than 90% of the time.As the line turns green, the percent of projects that succeed approaches 100%.
  47. 47. Crowdfunding: KickstarterSource: http://www.kickstarter.com/blog/happy-birthday-kickstarterFilm leads the pack with nearly $20 million in pledges and Music follows withmore than $13 million. 10 of the 13 categories have seen more than $1 million.
  48. 48. Kicktraq: analytics for KickstarterSource: http://www.kicktraq.com/ http://www.kicktraq.com/projects/2105227104/ultra-bot-3d-printer/Kickstarter is the worlds largest funding platformfor creative projects.
  49. 49. Kickstarter: is it rather a Medium?Source: http://www.fastcompany.com/1843007/kickstarter-crowdfunding-platform-or-reality-showOn Kickstarter, we sell / fund more an experiencethan a product!
  50. 50. Lessons from / for Kickstarter* Design for Simplicity: reduce the functionalities / components* Design for scale: identify your possible supply chain and plan howto scale the production* Treat it like a job: it requires full time energy, and probably also ateam work* Befriend fellow hackers: develop the project in hackerspaces orfablabs* Leverage your backers: use them not just for collecting money!Source: http://www.wired.com/design/2012/08/how-kickstarter-project-hexy-got-made/Some lessons from successful projects...“design for manufacturing”
  51. 51. Lessons from / for Kickstarter* Set a spot-on funding goal — not too big, not too small: set yourKickstarter goal near $10,000: 38% of projects met their goals* Don’t take too long to raise your money: The average Kickstartercampaign lasts for 30 days, with 35% of success* Produce a slick video to get attention: The nearly foolproof way toraise money on Kickstarter is to get the attention of thecrowdfunding site’s staff (89% success)* Make at least 1,000 Facebook friends: Founders with 1,000Facebook friends or more can have a success up to 40%Source: http://www.wired.com/business/2012/07/kickstarter/Some lessons from successful projects...
  52. 52. Crowdfunding: IndiegogoSource: http://www.indiegogo.com/A crowdfunding platform based in California, it has hosted over 100,000funding campaigns in areas such as music, charity, small business and flm.
  53. 53. Crowdfunding for Open projects: GoteoSource: http://goteo.org/?lang=enA crowdfunding platform for Open Projects, not just involving money butalso time, participation and involvement from users.
  54. 54. Crowdfunding for local business: SmallknotSource: http://www.smallknot.com/A new trend in crowdfunding: fund local projects and business tostrenghten your local community.
  55. 55. Crowdfunding for local business: LuckyAntSource: http://www.luckyant.com/A new trend in crowdfunding: fund local projects and business tostrenghten your local community.
  56. 56. Crowdfunding for local business: BrickstarterSource: http://brickstarter.org/an-introduction-to-brickstarter/A new trend in crowdfunding: fund local projects and business to strenghtenyour local community. This is a Finnish example under development.
  57. 57. Crowdfunding for Finland: Mesenaatti.meSource: http://mesenaatti.me/en/Mesenaatti.me is the frst open-for-everyone Finnishcrowdfunding platform.
  58. 58. GitHub: coding for the social networksSource: https://github.com/The most popular platform for code development, and especiallyopen source: a personal open source place + social network.
  59. 59. Sourceforge: coding for the organizationSource: http://sourceforge.net/The most popular platform for open source projects with 3.4 milliondevelopers that create over 324,000 projects: coding for an organization.
  60. 60. GitHub as a platform: GittipSource: https://www.gittip.com/A web service built on top of GitHub, it enables users tothank / give money to their favourite developers / projects.
  61. 61. GitHub: Goteo as open source CrowdfundingSource: https://github.com/Goteo/GoteoThe crowdfunding platform for Open projectsis itself an open project!
  62. 62. Upverter: design hardware, with GitHubSource: http://upverter.comUpverter is a design and collaboration platform for students, engineers,designers, makers and hackers for making hardware online.
  63. 63. 03.The business of Digital Fabrication,Open Design and DIY
  64. 64. And designers can be entrepreneursNew platforms for crowdsourcing allow you to fund your projects, anddigital fabrication and FabLabs could be useful for manufacturing them.Source: http://www.kickstarter.com/projects/danprovost/glif-iphone-4-tripod-mount-and-stand
  65. 65. And designers can be entrepreneursNew platforms for crowdsourcing allow you to fund your projects, anddigital fabrication and FabLabs could be useful for manufacturing them.Source: http://www.kickstarter.com/projects/1104350651/tiktok-lunatik-multi-touch-watch-kits
  66. 66. But “Open” alone is not enoughOpen Source is a good strategy, but your project needsto be meaningful for enough people!Source: http://www.kickstarter.com/projects/1833785894/100k-stray-toasthed-pull-toys
  67. 67. You need to interact with the market… and this is exactly what new services andplatforms enable!Source: http://www.threadless.com/
  68. 68. Open Hardware: a rising market$0$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000$7,000,000$8,000,000$9,000,000$10,000,000$11,000,000Revenues2009: 13 companies above $ 1 m. (totale: $50 m.). $ 1 billion by 2015.Source: http://blog.makezine.com/archive/2010/05/million-dollar-baby-businesses-de.html
  69. 69. SparkFun“In 2010, SparkFun had revenues of about $18.4MM. As of April of 2011, wehave around 120 employees, up from 87 a year ago.”“We hope to grow by 50% this year (2011) to around $28MM in sales. Weexpect to be in the 30-50MM range in the next 3-5.”Source: http://www.sparkfun.com/news/599
  70. 70. A long tail of users / projects...Another big player, a marketplace for your DIY /Crafts projects (exploiting the long tail effect).Source: http://en.wikipedia.org/wiki/Power_lawNumber of projectsNumberofitemssoldLong tailTop hits
  71. 71. 2005 2006 2007 2008 2009 2010 2011 (March)$0$50,000,000$100,000,000$150,000,000$200,000,000$250,000,000$300,000,000$350,000,000Total$sold(GrossMerchandiseSales)Etsy: exploiting the long tailUsers: +8 milioni / Active shops: +800,000Products: 8.5 milions.Source: http://www.etsy.com/press/kit/
  72. 72. Makers can create a startup: MakerbotStarted from an hackerspace (and fromRepRap, even fnancially).Source: http://www.flickr.com/photos/kellycdb/6168020183/http://commons.wikimedia.org/wiki/Category:Wood
  73. 73. The market of 3D printingSustainable business--> $10 Milions from VCNot yet sustainable--> $5 Milions from VC3D printing market has grown by 24.1% in 2011.Forecasts: $3.1 billions (2016) $5.2 billions (2020).(Wohlers Associates, 2011)Source: http://wohlersassociates.com/press54.htm
  74. 74. Big corporations: 3D SystemsNot only hackers or startups are in this feld,but even big and old companies.Source: http://www.3dsystems.com/
  75. 75. Digital Fabrication: not just machines28%31%41% 3D PrintersMaterialsServicesThere are many ways for making money withdigital fabrication...Source: http://investor.3dsystems.com/
  76. 76. A typical closed innovation systemThis is the typical evolution of a closedcompany...Source: http://en.wikipedia.org/wiki/Timeline_of_Microsoft_Windows
  77. 77. And newer pictures are too big for a slide :-)Source: http://futurist.se/gldt/An open innovation system
  78. 78. Open Innovation vs. Closed InnovationSource: http://en.wikipedia.org/wiki/Open_innovation http://shar.es/HN3UaFirms can and should use external ideas as well as internal ideas, and internal andexternal paths to market, as the frms look to advance their technology.
  79. 79. Open Innovation vs. Open Source“Open innovation is sometimes confated with open sourcemethodologies for software development. There are someconcepts that are shared between the two, such as the idea ofgreater external sources of information to create value. However,open innovation explicitly incorporates the business model as thesource of both value creation and value capture. This latter role ofthe business model enables the organization to sustain its positionin the industry value chain over time. While open source sharesthe focus on value creation throughout an industry value chain, itsproponents usually deny or downplay the importance of valuecapture.”Source: Chesbrough, H., 2011. Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era1st ed., Jossey-Bass.
  80. 80. Look for what is becoming a commodityA commodity is a good for which there is demand, but which issupplied without qualitative differentiation across a market. [...] themarket treats it as equivalent or nearly so no matter who producesit.Source: http://en.wikipedia.org/wiki/CommodityCommoditization (also called commodifcation) occurs as a goodsor services market loses differentiation across its supply base, oftenby the diffusion of the intellectual capital necessary to acquire orproduce it effciently. […] a unique, branded product into a marketbased on undifferentiated products.Source: http://en.wikipedia.org/wiki/Commoditization
  81. 81. Hardware and Software, becoming commodities* (50s-70s) Hardware is the product, software is for free:mainframes--> Hacker ethic of sharing information* (80s-90s) Hardware is commodity, software is the product andits proprietary: personal computers--> Microsoft emerges* (00s-...) Even software is a commodity, so lets sell servicesand get data from users: open source, web 2.0, services aroundsoftware, software as service, the cloud--> web 2.0 emerges
  82. 82. Manufacturing and Design, becoming commodities* (90s-00s) Manufacturing becomes a commodity and slowlydisappears in the West (thanks to China)* (10s-...) Now its even more a commodity(thanks to Fabbing)* (00s-...) Professional design is slowly becoming a commodity(thanks to Fast Fashion, Ikea, design schools bubble, Shanzai)--> Where is value now, in Design and Manufacturing?
  83. 83. Fabbing + designers = $$$ + Open DesignBig corporations love shopping Design companies forselling their content with 3D printers.Source: http://www.freedomofcreation.com/home/3d-systems-acquires-freedom-of-creation
  84. 84. But even makers may be giving content away...The same strategy of giving content to the users of the3D printers has been adopted by Makerbot.Source: http://www.thingiverse.com/
  85. 85. But even anybody could become a user, so lets buya design software and offer it to them.Source: http://blog.3dsystems.com/2011/05/3d-systems-partners-with-alibre.htmlhttp://www.alibre.com/Fabbing + designers = $$$ + Open Design
  86. 86. And users innovate (even in non open way)Not developed by a company...Source: http://en.wikipedia.org/wiki/Skateboard
  87. 87. Users innovate – a lot!“We find this previously unmeasured type of household sectorinnovation to be quite large: 6.2% of UK consumers - 2.9 millionindividuals -have engaged in consumer product innovation duringthe prior 3 years. In aggregate, consumers’annual productdevelopment expenditures are 2.3 times larger than the annualconsumer product R&D expenditures of all firms in the UKcombined. “Eric A.Von Hippel, Jeroen De Jong, Steven FlowersComparing Business and Household Sector Innovation in ConsumerProducts: Findings from a Representative Study in the UKhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=1683503
  88. 88. 03.Business models for Open projects
  89. 89. Business models of Open Source (software)Non-monetary incentives:* problem solving* ethical questions* education + learning* reputation --> social interactions + jobs--> its not just about money! Also a gift economy
  90. 90. A gift economyA mode of exchange where valuable goods and services are regularly givenwithout any explicit agreement for immediate or future rewards.Source: http://en.wikipedia.org/wiki/Gift_economy
  91. 91. A gift economy: focus on social networksFlows of good and services are important only for mantaining and improvingsocial networks in the community.Source: http://en.wikipedia.org/wiki/Gift_economy
  92. 92. Business models of Open Source (software)Monetary incentives:* selling software (as open or even with dual licensing)* offering services (customisation, support, ...)* paid developer work* donation* software as service (freemium, ...)* embedding software into hardware--> … its not just only volunteer work! Also a market economy
  93. 93. A market economyDecisions regarding investment, production and distribution are based onsupply and demand and the prices are determined in a free price system.Source: http://en.wikipedia.org/wiki/Market_economy http://en.wikipedia.org/wiki/Market_economy
  94. 94. A market economy: barterA method of exchange by which goods or services are directly exchanged forother goods or services without using a medium of exchange, such as money.Source: http://en.wikipedia.org/wiki/Barter
  95. 95. A market economy: money as mediumThe main functions of money are distinguished as: a medium of exchange; aunit of account; a store of value.Source: http://commons.wikimedia.org/wiki/Category:Coins
  96. 96. Business models of Open Source (software)Red Hatfrst open source company expected to break through the$1bn mark in 2011.Source:http://www.channelregister.co.uk/2011/03/24/redhat_q4_f2011_numbers/Cost of developing LinuxThe Linux Foundation (LF) (2008): $10.8 billion to build theLinux community distribution Fedora 9 in today’s dollars withtoday’s software development costs.$1.4 billion to develop the Linux kernel alone.Source: http://www.linuxfoundation.org/sites/main/files/publications/estimatinglinux.html
  97. 97. The levels of openness in Open Hardware1. Closed: any hardware for which the creator of the hardwarewill not release any information.2. Open Interface: all the documentation on how to make apiece of hardware perform the function for which it isdesigned is available (minimum level of openness).3. Open Design: in which enough detailed documentation isprovided that a functionally compatible device could becreated by a third party.4. Open Implementation: the complete bill of materialsnecessary to construct the device is available.Source: http://www.osbr.ca/ojs/index.php/osbr/article/view/379/340Patrick McNamara defned 4 possible levels of Openness in Open Hardware.
  98. 98. Note: Open Business is not completely open* identity (brand) is fxed and is a warranty certifcate* existing business ecosystems may not be open* knowledge,expertise,tools,resources are not always “open”Source: http://www.blender.org/blenderorg/blender-foundation/logo/ http://www.arduino.cc
  99. 99. The business models of Open Hardware* Services and expertise (customization, consulting)* Manufacturing of owned or third party Open Hardware* Manufacturing of proprietary hardware based on OpenHardware* Dual-licensing* Proprietary hardware designs based on Open Hardware* Proprietary software tools for developing Open Hardware* ... and …Source: http://www.openp2pdesign.org/2011/open-design/business-models-for-open-hardware/
  100. 100. Business models for FabLabs* Enabler: launch new Labs and support services* Education: a global distributed model of education throughFab Labs (Fab Academy + peer-to-peer learning)* Incubator: provide infrastructure for entrepreneurs to turntheir Fab Lab creations into sustainable local businesses.* Replicated / Network: provide a product,service or curriculumthat operates by utilizing the infrastructure, staff andexpertise of a local Fab LabSource: http://www.openp2pdesign.org/2011/fabbing/business-models-for-fab-labs/http://www.fablab.is/w/index.php/Proposal#Overall_Goals_within_the_Fab_ecosystem
  101. 101. The business models of Open HardwareSource: http://kits.sparklelabs.com/Proprietary hardware tools for learning how to develop Open Hardware.
  102. 102. The business models of Open HardwareSource: http://www.adafruit.com/jobs/Offering free services for building a greater user base.
  103. 103. The business models of Open Hardware+ =Source: http://www.ponoko.com/make-and-sell/electronicsPartnership between hardware and fabbing companies
  104. 104. The business models of Open HardwareSource: http://bildr.org/Funding Open Hardware projects in exchange for documentation
  105. 105. The business models of Open HardwareSource: http://www.flickr.com/photos/ttstam/4177935719/Piracy as a learning and market building strategy: Shanzai
  106. 106. The business models of Open HardwareSource: http://vimeo.com/26980501Piracy as a learning and market building strategy: Shanzai
  107. 107. The business models of Open HardwareSource: http://www.makerbot.com/blog/2010/11/26/makerbot-botcave-store-opens-today/Brick and mortar stores: Makerbot, the Botcave
  108. 108. The business models of Open HardwareSource: http://hackerspaces.org/wiki/NYC_ResistorRenting spaces for co-working / funding spaces by a community: hackerspaces.
  109. 109. The business models of Open HardwareSource: http://www.oshwbank.org/Microcredit / peer-to-peer lending / crowdfunding: Open Hardware Bank
  110. 110. Similar models for DIY Craft... Sewing CafesSource: http://sweatshopparis.blogspot.com/Renting spaces for co-working: Sewing Cafes
  111. 111. Similar models for DIY Craft... Sewing CafesSource: http://sweatshopparis.blogspot.com/Renting spaces for co-working: Sewing Cafes
  112. 112. Open Money: making digital a physical mediumSource: http://en.wikipedia.org/wiki/Bitcoinhttp://www.wired.com/magazine/2011/11/mf_bitcoin/Money is now being redesigned by many open source projects, where thegovernance of the fows of digital money is designed by the software: Bitcoin.
  113. 113. Open Money: making digital a physical mediumSource: http://www.youtube.com/watch?v=Um63OQz3bjoMoney is now being redesigned by many open source projects, where thegovernance of the fows of digital money is designed by the software: Bitcoin.
  114. 114. Open Money: it still needs business modelsSource: http://en.wikipedia.org/wiki/Bitcoinhttp://www.wired.com/magazine/2011/11/mf_bitcoin/But redesigning money is only half of the solution: we need to understand itsdynamics, and the possible business models it generates.
  115. 115. Crowdsourcing, mass-collaboration and work“If crowdsourcing runs on people’s “spare cycles”—their downtime notclaimed by work or family obligations—that quantity is now insurplus. […] Crowdsourcing is proving to be highly efficient atidentifying and exploiting those “spare cycles”.”Source: Howe, J., 2008. Crowdsourcing: Why the Power of the Crowd Is Driving the Future of Business 1sted., Crown Business.“First the human resource is not just inside the boundaries of yourcompany. The world is your resource. This is more than outsourcing.Companies can now tap into vast pools of labour."Source: Tapscott, D. & Williams, A.D., 2006. Wikinomics: How Mass Collaboration Changes Everything,Portfolio Hardcover.
  116. 116. … and a lesson from the pastSource: http://en.wikipedia.org/wiki/Henry_FordIn 1914 Ford doubled the wages, enabling his workers to afford the cars they wereproducing. Ford explained the policy as profit-sharing rather than wages.
  117. 117. When everything is peaking...Source: http://ecoalfabeta.blogosfere.it/2011/03/il-picco-del-legno.htmlEven renewable resources like wood are peaking.. What and how are we going tomanufacture when everybody will be able to do it?
  118. 118. … reinventing an open wheel is not enoughSource: http://www.theoscarproject.org/Will just making open an unstainable past be sustainable?
  119. 119. New language, business for the new mediaSource: http://en.wikipedia.org/wiki/CarEvery new technology takes time to develop its ownuses, languages and business models.
  120. 120. New language, business for the new mediaSource: http://en.wikipedia.org/wiki/CarEvery new technology takes time to develop its ownuses, languages and business models.
  121. 121. … blocks of an Open, DIY and P2P Economy* open business for design,energy,materials,tools* open business that consider information as abundant butmaterials and energy as scarce resources* open money (but well designed and linked to energy andmaterials)* API and Open Data between open businesses* Open processes + distributed testing of business models
  122. 122. Thank you!!Massimo MenichinelliAalto Media Factorymassimo.menichinelli@aalto.f@openp2pdesignhttp://www.slideshare.net/openp2pdesign
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