Open Design:
Business + Money
Massimo Menichinelli
openp2pdesign.org
Design for Open Systems, Processes, Projects, Places.
Media for an open
source economy
Source: http://wired.com
Wired
Source: http://diydrones.com
DIY Drones from Wired's (ex) director
Source: http://www.wired.com/dangerroom/2012/06/ff_drones
DIY Drones from Wired's (ex) director
Source: http://www.amazon.com/Makers-The-New-Industrial-Revolution/dp/0307720950/
“Makers” from Wired (ex) director
Source: http://oreilly.com/
O'Reilly Media
Source: http://makermedia.com/
From O'Reilly Media: Maker Media
Source: http://makezine.com/volume/make-35/
Make: Magazine
Source: http://makezine.com/blog/
Make: a blog
Source: http://www.makershed.com/
Make: an online store
Source: http://makerfaire.com/
Make: local faires
Make: a TV / online serie
Source: http://archive.makezine.com/tv/
Make: Craft magazine
Source: http://blog.makezine.com/craftzine/ http://en.wikipedia.org/wiki/Craft_(magazine
Platforms for an open
source economy
= an extremely valuable and powerful ecosystem that quickly and
easily scales, morphs, and incorporates new features (call...
Etsy: a DIY / Craft marketplace
Source: http://www.etsy.com/
Etsy: a platform with API
Source: http://www.etsy.com/developers
Blomming: a DIY / Craft marketplace
Source: http://www.blomming.com/
Fabbing platform: Ponoko (New Zealand)
Source: http://ponoko.com
Fabbing platform: Ponoko + API
Source: http://www.ponoko.com/apps
Fabbing platform: Shapeways (NL)
Source: http://shapeways.com
Fabbing platform: Shapeways + API
Source: http://developers.shapeways.com/
Fabbing platform: i.materialise (Belgium)
Source: http://i.materialise.com/
Fabbing platform: Sculpteo (France)
Source: http://i.materialise.com/
Platform for making: Inventables (USA)
Source: http://www.inventables.com/
(Open) Hardware: Adafruit (USA)
Source: http://www.adafruit.com/
(Open) Hardware: Sparkfun (USA)
Source: https://www.sparkfun.com/
(Open) Hardware: Arduino (Italy)
Source: http://www.arduino.cc
Crowdfunding: Kickstarter (USA)
Source: http://www.kickstarter.com/
Crowdfunding: Kickstarter 09-11
Source: http://www.kickstarter.com/blog/happy-birthday-kickstarter
Crowdfunding: Kickstarter 09-11
Source: http://www.kickstarter.com/blog/happy-birthday-kickstarter
Crowdfunding or Experience?
Source: http://www.fastcompany.com/1843007/kickstarter-crowdfunding-platform-or-reality-show
Lessons from Kickstarter (01)
Source: http://www.wired.com/design/2012/08/how-kickstarter-project-hexy-got-made/
* Design ...
Lessons from Kickstarter (02)
Source: http://www.wired.com/business/2012/07/kickstarter/
* Set a spot-on funding goal — no...
More Crowdfunding: Indiegogo (USA)
Source: http://www.indiegogo.com/projects/ubuntu-edge
Crowdfunding for Openness: Goteo (Spain)
Source: http://goteo.org/
Crowdfunding for locality: Smallknot (USA)
Source: http://smallknot.com/
Platforms for Open Source: Sourceforge
Source: http://sourceforge.net/
Platforms for Open Source: GitHub
Source: http://github.com
Platforms for Open Source: BitBucket
Source: https://bitbucket.org/
GitHub, BitBucket as platforms: GitTip
Source: https://www.gittip.com/
UpVerter: design (open) hardware with GitHub
Source: https://upverter.com/explore/
The markets for an
open source economy
… and designers can be entrepreneurs
Source: http://www.kickstarter.com/projects/1104350651/tiktok-lunatik-multi-touch-wat...
But “open” alone is not enough
Source: http://www.kickstarter.com/projects/1833785894/100k-stray-toasthed-pull-toys
You need to interact with the market
Source: http://www.hreadless.com
Open Hardware: a rising market
Source: http://blog.makezine.com/archive/2010/05/million-dollar-baby-businesses-de.html
$0
...
A Long Tail of users / projects
Source: http://en.wikipedia.org/wiki/Power_law
Number of projects
Numberofitemssold
Long t...
Even Makers can be entrepreneurs
Source: http://www.3dsystems.com/
Not only Makers but also big companies
Source: http://www.3dsystems.com/
The market: not just machines...
Source: http://investor.3dsystems.com/
28%
31%
41% 3D Printers
Materials
Services
A closed innovation system
Source: http://en.wikipedia.org/wiki/Timeline_of_Microsoft_Windows
A closed innovation system
Source: http://futurist.se/gldt/
What is becoming a commodity?
* ('50s-'70s) Hardware is the product, software is for free:
mainframes
--> Hacker ethic of ...
Is Design a commodity?
Source: http://www.freedomofcreation.com/home/3d-systems-acquires-freedom-of-creation
Even makers give away contents
Source: http://www.thingiverse.com/thing:13827
… and users innovate
Source: http://commons.wikimedia.org/wiki/File:Sk8rs.PennQuarter.NW.WDC.21sep08.jpg
… and users innovate – a lot!
“We find this previously unmeasured type of household sector
innovation to be quite large: 6...
Money + Business
models for an open
source economy
Open Source business models (01)
Non-monetary incentives:
* problem solving
* ethical questions
* education + learning
* r...
A gift economy
Source: http://en.wikipedia.org/wiki/Gift_economy
A gift economy: focus on social networks
Monetary incentives:
* selling software (as open or even with dual licensing)
* offering services (customisation, support,...
A market economy
Source: http://en.wikipedia.org/wiki/Market_economy
A market economy: focus on money
Source: http://commons.wikimedia.org/wiki/Category:Coins
Business models for Open Hardware
Source: http://www.openp2pdesign.org/2011/open-design/business-models-for-open-hardware/...
Business models: partnerships
Source: http://www.ponoko.com/make-and-sell/electronics
Business models: indirect funding
Source: http://bildr.org/
Business models: piracy as learning
Source: http://shop.goophone.hk/product-16.html
Business models: commercial places
Source: http://www.flickr.com/photos/laughingsquid/8006346553/ Scott Beale / Laughing S...
Business models: microcredit / P2P lending
Source: http://www.oshwbank.org/
Open Money for a community economy
Source: http://en.wikipedia.org/wiki/Bitcoin
Open Money: just a prototype now
Source: http://www.wired.com/magazine/2011/11/mf_bitcoin/
Money and Business: for which work?
“If crowdsourcing runs on people’s “spare cycles”—their downtime not
claimed by work o...
Money and Business: a lesson from the past
Source: http://en.wikipedia.org/wiki/Henry_Ford
Peak resources: a lesson for the future
Source: http://ecoalfabeta.blogosfere.it/2011/03/il-picco-del-legno.html
Reinventing an open wheel is not enough
Source: http://www.theoscarproject.org/
We need a new language for a new scenario
Source: http://en.wikipedia.org/wiki/Car
We need a new language for a new scenario
Source: http://en.wikipedia.org/wiki/Car
… blocks of an Open, DIY and P2P Economy
* open business for design, energy, materials, tools
* open business that conside...
Fonte: http://www.flickr.com/photos/massimo_menichinelli/8019726607/in/set-72157631612238923
FabMoney: a digital currency ...
Open Hardware, Software, Design, Data
Source: https://github.com/OpenP2PDesignOrg/FABMoney
Source: Alessandro Gadotti
MuSe FabLab, Trento (Italy)
MuSe FabLab, Trento (Italy)
Thank you!!
Massimo Menichinelli
info@openp2pdesign.org
openp2pdesign.org
@openp2pdesign
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Open Design: Business + Money @ FabLab Cali

  1. 1. Open Design: Business + Money Massimo Menichinelli openp2pdesign.org Design for Open Systems, Processes, Projects, Places.
  2. 2. Media for an open source economy
  3. 3. Source: http://wired.com Wired
  4. 4. Source: http://diydrones.com DIY Drones from Wired's (ex) director
  5. 5. Source: http://www.wired.com/dangerroom/2012/06/ff_drones DIY Drones from Wired's (ex) director
  6. 6. Source: http://www.amazon.com/Makers-The-New-Industrial-Revolution/dp/0307720950/ “Makers” from Wired (ex) director
  7. 7. Source: http://oreilly.com/ O'Reilly Media
  8. 8. Source: http://makermedia.com/ From O'Reilly Media: Maker Media
  9. 9. Source: http://makezine.com/volume/make-35/ Make: Magazine
  10. 10. Source: http://makezine.com/blog/ Make: a blog
  11. 11. Source: http://www.makershed.com/ Make: an online store
  12. 12. Source: http://makerfaire.com/ Make: local faires
  13. 13. Make: a TV / online serie Source: http://archive.makezine.com/tv/
  14. 14. Make: Craft magazine Source: http://blog.makezine.com/craftzine/ http://en.wikipedia.org/wiki/Craft_(magazine
  15. 15. Platforms for an open source economy
  16. 16. = an extremely valuable and powerful ecosystem that quickly and easily scales, morphs, and incorporates new features (called planks), users, customers, vendors, and partners. The most vibrant platforms embrace third-party collaboration. The companies behind these platforms seek to foster symbiotic and mutually benefcial relationships with users, customers, partners, vendors, developers, and the community at large. At their core, platforms today are primarily about consumer utility and communications. Simon, P. (2011). The Age of the Platform: How Amazon, Apple, Facebook, and Google Have Redefined Business. Motion Publishing. Business now: a platform
  17. 17. Etsy: a DIY / Craft marketplace Source: http://www.etsy.com/
  18. 18. Etsy: a platform with API Source: http://www.etsy.com/developers
  19. 19. Blomming: a DIY / Craft marketplace Source: http://www.blomming.com/
  20. 20. Fabbing platform: Ponoko (New Zealand) Source: http://ponoko.com
  21. 21. Fabbing platform: Ponoko + API Source: http://www.ponoko.com/apps
  22. 22. Fabbing platform: Shapeways (NL) Source: http://shapeways.com
  23. 23. Fabbing platform: Shapeways + API Source: http://developers.shapeways.com/
  24. 24. Fabbing platform: i.materialise (Belgium) Source: http://i.materialise.com/
  25. 25. Fabbing platform: Sculpteo (France) Source: http://i.materialise.com/
  26. 26. Platform for making: Inventables (USA) Source: http://www.inventables.com/
  27. 27. (Open) Hardware: Adafruit (USA) Source: http://www.adafruit.com/
  28. 28. (Open) Hardware: Sparkfun (USA) Source: https://www.sparkfun.com/
  29. 29. (Open) Hardware: Arduino (Italy) Source: http://www.arduino.cc
  30. 30. Crowdfunding: Kickstarter (USA) Source: http://www.kickstarter.com/
  31. 31. Crowdfunding: Kickstarter 09-11 Source: http://www.kickstarter.com/blog/happy-birthday-kickstarter
  32. 32. Crowdfunding: Kickstarter 09-11 Source: http://www.kickstarter.com/blog/happy-birthday-kickstarter
  33. 33. Crowdfunding or Experience? Source: http://www.fastcompany.com/1843007/kickstarter-crowdfunding-platform-or-reality-show
  34. 34. Lessons from Kickstarter (01) Source: http://www.wired.com/design/2012/08/how-kickstarter-project-hexy-got-made/ * Design for Simplicity: reduce the functionalities / components * Design for scale: identify your possible supply chain and plan how to scale the production * Treat it like a job: it requires full time energy, and probably also a team work * Befriend fellow hackers: develop the project in hackerspaces or fablabs * Leverage your backers: use them not just for collecting money!
  35. 35. Lessons from Kickstarter (02) Source: http://www.wired.com/business/2012/07/kickstarter/ * Set a spot-on funding goal — not too big, not too small: set your Kickstarter goal near $10,000: 38% of projects met their goals * Don’t take too long to raise your money: The average Kickstarter campaign lasts for 30 days, with 35% of success * Produce a slick video to get attention: The nearly foolproof way to raise money on Kickstarter is to get the attention of the crowdfunding site’s staff (89% success) * Make at least 1,000 Facebook friends: Founders with 1,000 Facebook friends or more can have a success up to 40%
  36. 36. More Crowdfunding: Indiegogo (USA) Source: http://www.indiegogo.com/projects/ubuntu-edge
  37. 37. Crowdfunding for Openness: Goteo (Spain) Source: http://goteo.org/
  38. 38. Crowdfunding for locality: Smallknot (USA) Source: http://smallknot.com/
  39. 39. Platforms for Open Source: Sourceforge Source: http://sourceforge.net/
  40. 40. Platforms for Open Source: GitHub Source: http://github.com
  41. 41. Platforms for Open Source: BitBucket Source: https://bitbucket.org/
  42. 42. GitHub, BitBucket as platforms: GitTip Source: https://www.gittip.com/
  43. 43. UpVerter: design (open) hardware with GitHub Source: https://upverter.com/explore/
  44. 44. The markets for an open source economy
  45. 45. … and designers can be entrepreneurs Source: http://www.kickstarter.com/projects/1104350651/tiktok-lunatik-multi-touch-watch-kits
  46. 46. But “open” alone is not enough Source: http://www.kickstarter.com/projects/1833785894/100k-stray-toasthed-pull-toys
  47. 47. You need to interact with the market Source: http://www.hreadless.com
  48. 48. Open Hardware: a rising market Source: http://blog.makezine.com/archive/2010/05/million-dollar-baby-businesses-de.html $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 $11,000,000 Revenues
  49. 49. A Long Tail of users / projects Source: http://en.wikipedia.org/wiki/Power_law Number of projects Numberofitemssold Long tail Top hits
  50. 50. Even Makers can be entrepreneurs Source: http://www.3dsystems.com/
  51. 51. Not only Makers but also big companies Source: http://www.3dsystems.com/
  52. 52. The market: not just machines... Source: http://investor.3dsystems.com/ 28% 31% 41% 3D Printers Materials Services
  53. 53. A closed innovation system Source: http://en.wikipedia.org/wiki/Timeline_of_Microsoft_Windows
  54. 54. A closed innovation system Source: http://futurist.se/gldt/
  55. 55. What is becoming a commodity? * ('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 and it's proprietary: personal computers --> Microsoft emerges * ('00s-...) Even software is a commodity, so let's sell services and get data from users: open source, web 2.0, services around software, software as service, the cloud --> web 2.0 emerges
  56. 56. Is Design a commodity? Source: http://www.freedomofcreation.com/home/3d-systems-acquires-freedom-of-creation
  57. 57. Even makers give away contents Source: http://www.thingiverse.com/thing:13827
  58. 58. … and users innovate Source: http://commons.wikimedia.org/wiki/File:Sk8rs.PennQuarter.NW.WDC.21sep08.jpg
  59. 59. … and users innovate – a lot! “We find this previously unmeasured type of household sector innovation to be quite large: 6.2% of UK consumers - 2.9 million individuals - have engaged in consumer product innovation during the prior 3 years. In aggregate, consumers’ annual product development expenditures are 2.3 times larger than the annual consumer product R&D expenditures of all firms in the UK combined. “ Eric A. Von Hippel, Jeroen De Jong, Steven Flowers Comparing Business and Household Sector Innovation in Consumer Products: Findings from a Representative Study in the UK http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1683503
  60. 60. Money + Business models for an open source economy
  61. 61. Open Source business models (01) Non-monetary incentives: * problem solving * ethical questions * education + learning * reputation --> social interactions + jobs --> it's not just about money! Also a gift economy
  62. 62. A gift economy Source: http://en.wikipedia.org/wiki/Gift_economy
  63. 63. A gift economy: focus on social networks
  64. 64. 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 --> … it's not just only volunteer work! Also a market economy Open Source business models (02)
  65. 65. A market economy Source: http://en.wikipedia.org/wiki/Market_economy
  66. 66. A market economy: focus on money Source: http://commons.wikimedia.org/wiki/Category:Coins
  67. 67. Business models for Open Hardware Source: http://www.openp2pdesign.org/2011/open-design/business-models-for-open-hardware/ * Services and expertise (customization, consulting) * Manufacturing of owned or third party Open Hardware * Manufacturing of proprietary hardware based on Open Hardware * Dual-licensing * Proprietary hardware designs based on Open Hardware * Proprietary software tools for developing Open Hardware * ... and …
  68. 68. Business models: partnerships Source: http://www.ponoko.com/make-and-sell/electronics
  69. 69. Business models: indirect funding Source: http://bildr.org/
  70. 70. Business models: piracy as learning Source: http://shop.goophone.hk/product-16.html
  71. 71. Business models: commercial places Source: http://www.flickr.com/photos/laughingsquid/8006346553/ Scott Beale / Laughing Squid / laughingsquid.com.
  72. 72. Business models: microcredit / P2P lending Source: http://www.oshwbank.org/
  73. 73. Open Money for a community economy Source: http://en.wikipedia.org/wiki/Bitcoin
  74. 74. Open Money: just a prototype now Source: http://www.wired.com/magazine/2011/11/mf_bitcoin/
  75. 75. Money and Business: for which work? “If crowdsourcing runs on people’s “spare cycles”—their downtime not claimed by work or family obligations—that quantity is now in surplus. […] Crowdsourcing is proving to be highly efficient at identifying and exploiting those “spare cycles”.” Source: Howe, J., 2008. Crowdsourcing: Why the Power of the Crowd Is Driving the Future of Business 1st ed., Crown Business. “First the 'human resource' is not just inside the boundaries of your company. 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.
  76. 76. Money and Business: a lesson from the past Source: http://en.wikipedia.org/wiki/Henry_Ford
  77. 77. Peak resources: a lesson for the future Source: http://ecoalfabeta.blogosfere.it/2011/03/il-picco-del-legno.html
  78. 78. Reinventing an open wheel is not enough Source: http://www.theoscarproject.org/
  79. 79. We need a new language for a new scenario Source: http://en.wikipedia.org/wiki/Car
  80. 80. We need a new language for a new scenario Source: http://en.wikipedia.org/wiki/Car
  81. 81. … blocks of an Open, DIY and P2P Economy * open business for design, energy, materials, tools * open business that consider information as abundant but materials and energy as scarce resources * open money (but well designed and linked to energy and materials) * API and Open Data between open businesses * Open processes + distributed testing of business models
  82. 82. Fonte: http://www.flickr.com/photos/massimo_menichinelli/8019726607/in/set-72157631612238923 FabMoney: a digital currency for collaboration
  83. 83. Open Hardware, Software, Design, Data Source: https://github.com/OpenP2PDesignOrg/FABMoney
  84. 84. Source: Alessandro Gadotti MuSe FabLab, Trento (Italy)
  85. 85. MuSe FabLab, Trento (Italy)
  86. 86. Thank you!! Massimo Menichinelli info@openp2pdesign.org openp2pdesign.org @openp2pdesign

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