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Except where otherwise noted these materials are licensed Creative Commons Attribution 4.0 (CC BY)
27-Aug-2015
Paul Stacey...
http://thepowerofopen.org/
http://teamopen.cc/piya/
http://teamopen.cc/max/
https://www.kickstarter.com/projects/creativecommons/made-with-creative-commons-a-book-on-open-business
http://creativecom...
Goal Setting for The Day
Empty Net by Jeff Wallace licensed CC BY-NC
One page OERu partner
institution open business
model...
Getting Open Business Model
Design Juices Going (11-11:45)
Photo by andriuXphoto licensed CC BY-SA
Closed Innovation Paradigm
Chesbrough, Henry William (2006). Open Innovation: The new imperative for creating and profitin...
Open Innovation Paradigm
Chesbrough, Henry William (2006). Open Innovation: The new imperative for creating and profiting ...
Revenues
Costs
Own
market
revenue
Internal
development
costs
Own
market
revenue
Internal &
external
development
costs
The ...
Open Source Software
http://www.catb.org/~esr/writings/cathedral-bazaar/magic-cauldron/
Magic Cauldron Essay
Use-Value Fun...
Open Source Software
System integrators sell a stack of
hardware, software, and services.
Integrators can charge customers...
Open Source Software
Dirk Riehle. “The Economic Motivation of Open Source Software: Stakeholder Perspectives.” IEEE Comput...
https://medium.com/medium-writing-prompts/why-give-away-your-work-for-free-5ed4513d5fa8
If what you have is good, just give it time. "Viral" growth is exponential, but it can take a while.
Or you can use advert...
What does Nina Paley do?
Many cultural institutions hold material that is in the public domain. This does not mean that they also have
to publish i...
€181,000 revenue is quite high, but represents only 0.2% of the total revenue of the
Rijksmuseum during that period. Total...
Ostrom’s Commons
Analysis & Design Framework
How is the digital commons different
from the physical commons?
Cost of stora...
How is open different from free?
5Rs: The Powerful Rights of OER
• Make, own, and control your own copy of
the contentReta...
Your Business In The WE-Economy
The levels of user
engagement in value
creation follow a long
tail.
At one end of the
scal...
https://www.flickr.com/
In October 2014, Flickr announced a new service that allows its members to order printed photos on wood
or canvas, choosin...
Public Reaction
Generosity taken advantage of unfairly.
Flickr adding little value add & exploiting photographers.
CC phot...
470 co-authors from 45 countries
Used globally by startups and big corporations.
Start with - What is a business model?
Bu...
Business Model Generation Canvas
licensed CC BY-SA
Open Business Model Canvas Remix
Open Business Model Building Block Questions
Design your institution’s OERu business model
Using open business model canvas design:
• Customer segments: Who are the cu...
Lunch
12:30-1:30 pm
Designing OERu Business Model Designs
1:30-2:30 pm
Share initial designs
Group work to design one or two business
models b...
OERF open business model for the OERu
Wayne Mackintosh
Next Steps
2:30-3pm
• What do we need to do in preparing the
business model submission for the OERu
Council of CEOs meetin...
Paul Stacey
Creative Commons
web site: http://creativecommons.org
e-mail: pstacey@creativecommons.org
blog: http://edtechf...
470 co-authors from 45 countries
Used globally by startups and big corporations.
Books
OERu OERu Regional Meeting & Open Business Models Workshop
OERu OERu Regional Meeting & Open Business Models Workshop
OERu OERu Regional Meeting & Open Business Models Workshop
OERu OERu Regional Meeting & Open Business Models Workshop
OERu OERu Regional Meeting & Open Business Models Workshop
OERu OERu Regional Meeting & Open Business Models Workshop
OERu OERu Regional Meeting & Open Business Models Workshop
OERu OERu Regional Meeting & Open Business Models Workshop
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OERu OERu Regional Meeting & Open Business Models Workshop

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Slides used for Open Business Models workshop with OERu Oceania partner institutions at University of Southern Queensland 27 Aug-2015.

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OERu OERu Regional Meeting & Open Business Models Workshop

  1. 1. Except where otherwise noted these materials are licensed Creative Commons Attribution 4.0 (CC BY) 27-Aug-2015 Paul Stacey Associate Director of Global Learning, Creative Commons Building an open source business by Libby Levi licensed CC BY-SA Oceania OERu Regional Meeting Open Business Models
  2. 2. http://thepowerofopen.org/
  3. 3. http://teamopen.cc/piya/ http://teamopen.cc/max/
  4. 4. https://www.kickstarter.com/projects/creativecommons/made-with-creative-commons-a-book-on-open-business http://creativecommons.org/weblog/entry/45022
  5. 5. Goal Setting for The Day Empty Net by Jeff Wallace licensed CC BY-NC One page OERu partner institution open business model from each of you that supports goal 3 of the OERu – “Achieve a fiscally sustainable & scalable OERu network.”
  6. 6. Getting Open Business Model Design Juices Going (11-11:45) Photo by andriuXphoto licensed CC BY-SA
  7. 7. Closed Innovation Paradigm Chesbrough, Henry William (2006). Open Innovation: The new imperative for creating and profiting from technology. Boston: Harvard Business School Press. pg. xxii. Based on the belief that successful innovation requires control. Companies must generate there own ideas, then develop them, build them, market them, distribute them, service them, finance them, and support them, on their own. Closed innovation counsels businesses to be self-reliant and internally focused. To be sure of quality, availability, and capability you’ve got to do it yourself.
  8. 8. Open Innovation Paradigm Chesbrough, Henry William (2006). Open Innovation: The new imperative for creating and profiting from technology. Boston: Harvard Business School Press. pg. xxii. Doing it all yourself fails to productively make use of new knowledge and ideas outside your business. Open innovation combines both external and internal ideas to create value. In addition, ideas can be taken to market through external channels, outside the current business of the firm, to generate additional value. Open innovation requires less control and more collaboration
  9. 9. Revenues Costs Own market revenue Internal development costs Own market revenue Internal & external development costs The New Business Model of Open Innovation License Spin-off Sale/ divestiture New revenues Closed model Open Innovation business model Cost & time savings from leveraging external development Chesbrough, Henry William (2006). Open Business Models: How to thrive in the new innovation landscape. Boston: Harvard Business School Press. pg. 17.
  10. 10. Open Source Software http://www.catb.org/~esr/writings/cathedral-bazaar/magic-cauldron/ Magic Cauldron Essay Use-Value Funding Models • Cost-Sharing • Risk-Spreading Indirect Sale-Value Models • Loss-Leader/Market Positioner • Widget Frosting • Give Away the Recipe, Open a Restaurant • Accessorizing • Free the Future, Sell the Present • Free the Software, Sell the Brand • Free the Software, Sell the Content
  11. 11. Open Source Software System integrators sell a stack of hardware, software, and services. Integrators can charge customers similar prices even if they use open source software. How does business model change if you use open source software? Dirk Riehle. “The Economic Motivation of Open Source Software: Stakeholder Perspectives.” IEEE Computer, vol. 40, no. 4 (April 2007). Page 25–32. The paper is available as a PDF file as well as online. © 2007 IEEE.
  12. 12. Open Source Software Dirk Riehle. “The Economic Motivation of Open Source Software: Stakeholder Perspectives.” IEEE Computer, vol. 40, no. 4 (April 2007). Page 25–32. The paper is available as a PDF file as well as online. © 2007 IEEE. Switching to open source software can result in more customers and higher profits. How does business model change if you use open source software?
  13. 13. https://medium.com/medium-writing-prompts/why-give-away-your-work-for-free-5ed4513d5fa8
  14. 14. If what you have is good, just give it time. "Viral" growth is exponential, but it can take a while. Or you can use advertising to artificially direct audience attention to something they wouldn't care about otherwise. If the work is not good, interest will drop off when advertising does. Understanding Free Content by Nina Paley http://questioncopyright.org/understanding_free_content
  15. 15. What does Nina Paley do?
  16. 16. Many cultural institutions hold material that is in the public domain. This does not mean that they also have to publish it for free. The Rijksmuseum has, like most art museums, an image bank where they sell digital copies of images. When at the end of 2011 they started releasing images, they offered two sizes. The medium quality image (.jpg, 4500x4500, +/- 2MB) was available free to download from their website without any restrictions. When the user clicked on the download button, a pop‐up asked the user to attribute the Rijksmuseum as a courtesy. If the user was looking for the master file (.tiff and up to 200MB) they were charged €40. Democratising the Rijksmuseum by Joris Pekel, Europeana Foundation http://pro.europeana.eu/files/Europeana_Professional/Publications/Democratising%20the%20Rijksmuseum.pdf What does Rijksmuseum do?
  17. 17. €181,000 revenue is quite high, but represents only 0.2% of the total revenue of the Rijksmuseum during that period. Total employee costs were about €100,000 per year. In October 2013 the Rijksmuseum decided to no longer charge for public domain images that were already digitised and started releasing their highest quality images for free. They preferred instead to focus their efforts on generating project funding from art foundations in order to digitise an entire collection. Such administrative costs are much lower, as a transaction is only made once and is a lot easier to handle than multiple private individuals. For the Rijksmuseum the revenue from image sale was relatively small and they decided to abandon it all together as a way to create more goodwill, get more people familiar with their collection and attract them to come to the museum. Democratising the Rijksmuseum by Joris Pekel, Europeana Foundation http://pro.europeana.eu/files/Europeana_Professional/Publications/Democratising%20the%20Rijksmuseum.pdf https://www.rijksmuseum.nl/en
  18. 18. Ostrom’s Commons Analysis & Design Framework How is the digital commons different from the physical commons? Cost of storage, copying, & distribution almost $0. Cannot be depleted but artificial scarcity frequently practiced. Global and local. Empowers individual action independent of gov’t & market.
  19. 19. How is open different from free? 5Rs: The Powerful Rights of OER • Make, own, and control your own copy of the contentRetain • Use the content in its unaltered formReuse • Adapt, adjust, modify, improve, or alter the contentRevise • Combine the original or revised content with other OER to create something newRemix • Share your copies of the original content, revisions, or remixes with othersRedistribute
  20. 20. Your Business In The WE-Economy The levels of user engagement in value creation follow a long tail. At one end of the scale are lots of users contributing a bit of feedback — at the other end are a few super-users co- creating products as experts. What’s new is that companies are opening to input, and that customers are willing and able to participate to a greater extent. Education business model implications? Your Business In The WE-Economy http://we-economy.net/?page_id=928
  21. 21. https://www.flickr.com/
  22. 22. In October 2014, Flickr announced a new service that allows its members to order printed photos on wood or canvas, choosing either from their own photos, from a set of curated images, or from about 50 million CC BY or CC BY-SA–licensed images. Flickr would share profits with the photographers of the curated images, but not the CC-licensed ones, as those licenses permit Flickr to use the photos commercially. Creators with copyrighted images are compensated 51% of what Flickr collects. Flickr keeps 100% of the proceeds from the CC licensed images. https://www.flickr.com/create
  23. 23. Public Reaction Generosity taken advantage of unfairly. Flickr adding little value add & exploiting photographers. CC photographers could have kept their images to themselves and gotten half of the fee, instead of Flickr taking all of it. Demotivating/deincentivizing to people who share their work. Not legally obligated, but social obligation? What would you do?
  24. 24. 470 co-authors from 45 countries Used globally by startups and big corporations. Start with - What is a business model? Business Model Building Blocks 11:45- 12:30 pm
  25. 25. Business Model Generation Canvas licensed CC BY-SA
  26. 26. Open Business Model Canvas Remix
  27. 27. Open Business Model Building Block Questions
  28. 28. Design your institution’s OERu business model Using open business model canvas design: • Customer segments: Who are the customers you are targeting or intending to serve through OERu? • Value proposition: What value proposition are you providing each customer? What are the bundles of products and services you are offering and what customer needs do they fulfill? • Social good: What social good is being generated (beyond revenue or profits) • Revenue: What revenue will be generated through OERu activities? How will customers pay? How much will they pay? Will this fund your OERu activities?
  29. 29. Lunch 12:30-1:30 pm
  30. 30. Designing OERu Business Model Designs 1:30-2:30 pm Share initial designs Group work to design one or two business models based on commonalities Focus on new revenue opportunities and/or community service/social good priorities
  31. 31. OERF open business model for the OERu Wayne Mackintosh
  32. 32. Next Steps 2:30-3pm • What do we need to do in preparing the business model submission for the OERu Council of CEOs meeting on 9 October 2015? • How will the OERu partners know what business model factors are working and what isn’t? • What does success look like from a business point of view? • Mapping the evolution of open business models over time. How will the model adapt?
  33. 33. Paul Stacey Creative Commons web site: http://creativecommons.org e-mail: pstacey@creativecommons.org blog: http://edtechfrontier.com presentation slides: http://www.slideshare.net/Paul_Stacey News: http://creativecommons.org/weblog Facebook: https://www.facebook.com/creativecommons
  34. 34. 470 co-authors from 45 countries Used globally by startups and big corporations. Books

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