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Community Driven Innovation




Peter Cheng | 程 勇
Twitter @petercheng



           Open Source. Collaborated   © OpenSourceCamp
Bio Peter Cheng | 程勇
   Community Strategist & Open Source Evangelist
        Founder of TargetSource The Community Driven Company
        Founder of Open Source Camp, Open Source University Events
        Co-founder of Huihoo.org (From 2001)
        JFoxSOAF, JFox Committer (http://code.google.com/p/jfox)

   General Speaker
          MindTrek & OpenMind 10.1 2009 Tampere Finland
          Software Freedom Day Beijing 2009
          LinuxWorld China Beijing 2007-2008
          2007 China SOA Conference
          2007 Redhat Conference
          2006 Redhat Day
          2006 IBM DeveloperWorks Conference
          2005-2006 BEA User Group (Beijing,Shanghai,Changsha,HangZhou)
          2004-2007 China Software Conference

   Open Source University (From 2003 …)




                 Open Source. Collaborated                                 © OpenSourceCamp
Agenda

 Community as a Strategy

 Community Business Practice in Open Source World




         Open Source. Collaborated       © OpenSourceCamp
Today is So Yesterday

    NASDAQ




      China Stock A




                                    The Gartner Hype Cycle




        Open Source. Collaborated          © OpenSourceCamp
The Social Revolution


    1999                           2009




                                              Future?




       Open Source. Collaborated          © OpenSourceCamp
Things Have Changed




       Open Source. Collaborated   © OpenSourceCamp
The Social Revolution (2/2)
     Portal           Social Network   Communities




        Open Source. Collaborated        © OpenSourceCamp
How do most companies sell today

   Buy contact lists
   Do mail shots
   From small Google ads to bill boards
   Follow up with cold calls
   Engage call centers
   Identify “readiness to buy”
   Qualify the yield
   Call and try to get an appointment
   Start a sales process
   Hope for the best




            Open Source. Collaborated      © OpenSourceCamp
How do YOU buy today

   You ignore advertising
   You hate cold calls
   You have spam filters
   You have popup stopper
   You first check the Internet for meaningful comments
   You check forums and get interesting opinions
   You read blogs
   You discuss with peers or experts
   You explore with friends or colleagues
   When you are “ready to buy”
    the decision is pretty much set in stone




           Open Source. Collaborated         © OpenSourceCamp
Community Definition



     “A community usually refers to a group of people
      who interact and share certain things as a group. ...
     The word community comes from the Latin communis,
     meaning 'common, public, shared by all or many.'”
                                              Wikipedia

                   “物以类聚,人以群分
                   ” of a feather flock together
                    Birds




        Open Source. Collaborated                  © OpenSourceCamp
Community as a Strategy


                    Community as a
                    Business Strategy


                    Community as a
                    Marketing Strategy




                   Community as a
                   Development Strategy




       Open Source. Collaborated          © OpenSourceCamp
CaaB: Eclipse– Leading Global IDE Market

 Started by IBM since 1998
     A platform to unite IBM Visual Age products.

 Official Definition:
     Eclipse is an open source community whose projects are
      focused on providing an extensible development platform
      and application frameworks for building software.

 IBM handed over the control to a NOT FOR PROFIT
  consortium, the Eclipse Foundation, at 2004
     IBM also donated $40million to the Eclipse Foundation

 The Eclipse Evaluation
     Version 1.0: Open Source Java IDE
     Version 2.0: Universal Tooling Platform
     Version 3.0: Platform for Rich Client Application


           Open Source. Collaborated                 © OpenSourceCamp
Building Ecosystem                Users > Millions

                           Member Company > 170


                                  Plug-ins > 1000

                Virtual Editor                      EclipseUML
                               Official Projects >30
                               Committers > 1000
                   Web Tools Platform          Eclipse Platform


     FreeMem        TPTP                                            Subclipse
                                                       DSDP
                           BIRT
                                         DTP

              Hibernate
                                                    Spring IDE
              Synchronizer




 http://www.infoq.com/news/2009/07/Results-Eclipse-Community-Survey
           Open Source. Collaborated                              © OpenSourceCamp
CaaM: Taobao -- Leading C2C Market in China

 Taobao.com The Largest C2C eBusiness Platform in China
 Members: 145M (June, 2009)
 Transactions: 8B Euro ( 6 Months, 2009)
                3 Times Wal-Mart China Revenue



 Age

>46       4.5%


36~45        8.7%


26~35                               47.4%


16~25                       39.4%




 http://research.cnnic.cn/html/1247720873d1055.html
           Open Source. Collaborated              © OpenSourceCamp
Connecting Communites

    Taobao Forum                          Taobao SNS




                   Taobao Open Platform




       Open Source. Collaborated            © OpenSourceCamp
CaaD: SpringSource – Leader in Java Application
Infrastructure

 SpringFramework: The Most Popular Java Application
  Framework
 > 3Millis Download
 Acquisition: 430M USD By VMWARE




         Open Source. Collaborated       © OpenSourceCamp
Connecting People (Customers, Users,
Developers)

                                            Core                       Customers
                                      Developers Team
                                         Architectural                 Evaluation
                   Marketing & Sale       Standards                    Feedback
                        Team                                                                   Community Developers

                      Customer                                                                       Development
                    Requirements                                                                       Testing




    Management Team                                                                                              Volunteer
                                                         COMMUNITES
        Planning                                                                                                   Share
        Strategy                                                                                                   Spread




                                      Forums                Projects          Events & Conferences




                                                   Private & Public Resources




              Open Source. Collaborated                                                              © OpenSourceCamp
Communities is Everywhere




       Open Source. Collaborated   © OpenSourceCamp
Agenda

 Community as a Strategy

 Community Business Practice in Open Source World




         Open Source. Collaborated       © OpenSourceCamp
Open Source is Phenomenon, But …
      Open Source Activity                 Open Source Environment




                Finland|芬兰          China|中国


   By Redhat


               Open Source. Collaborated                © OpenSourceCamp
The Culture




         Relationships                  Guan Xi
                                          关系



     US                             China, Finland
     • Individualist                • Collectivist
     • Information Oriented         • Relationships Oriented
     • Seeks the truth              • Seeks the way
     • Argument culture             • haggling culture




        Open Source. Collaborated              © OpenSourceCamp
Open Source Take the Long Tail

         How it applies to the IT Industry




                              Open Source




        Open Source. Collaborated           © OpenSourceCamp
The TAO




      Open Source. Collaborated   © OpenSourceCamp
Challenges

 Local Culture

 Communication

 Top down approach

 Complexity in copyright laws

 Communities tend to be very fragile




           Open Source. Collaborated    © OpenSourceCamp
Community Requirements and Values

                                         Developers
                                         •Learn Technology
             Developers                  •Personal Branding
                                         •Find Better Jobs
                                         •Fun Life
                                         Enterprise
                                         • Find Right People
            Open Source                  • Building Business Network
            Communities
                                         • Product Promotion
                                         • Enhance Technology Ability
                                         Customers
Customers                   Enterprise
                                         • Identify Resources
                                         • Take Right Control
                                         • Reduce Cost


            Open Source. Collaborated                © OpenSourceCamp
Bridging Communities



                        Business         … Talent …                   Innovation



                                   Driven                    Driven

    Customers                                                                Enterprises

 Telecom, Bank, eBiz,                                                   INTEL. Google, Redhat
  Internet Company                                                      INTALIO,Terracotta etc




                                        Communities

                                         Apache, OW2
                                      OW2, OSA, ZEUUX, etc


                Open Source. Collaborated                              © OpenSourceCamp
MAKING MONEY OUT OF COMMUNITIES
 "Community driven business (OSS business) = management of:
  - Project(s)
  - Communities
  - Business" Ossi-project 2007

“历史的浪潮比我们做得还要快。创新者被抛在后面,
他们曾经改变的世界拿着他们的主意向着意想不到的方向跑了。”



                                            Kim Stanley Robinson


                "It is misleading to talk about Community or OSS
                 business models, rather one should view them as
                drivers or enablers and creators of new business
                opportunities and find ways of capturing value in the
                opportunities they have brought about."
                                                      Mikko Puhakka 2008
          Open Source. Collaborated                      © OpenSourceCamp
Conclusions

 Your business ecosystem of customers, prospects and
  partners together are far more powerful than any
  individual relation to an individual person.

• The ability to create and grow trustful communities for a
  better business experience, resulting in more market
  acceptance and eventually market leadership.

          As Tom Friedman says,
          “it’s a flat new world.”

          “Communities Make
          Business More Fat”



          Open Source. Collaborated         © OpenSourceCamp
Open Source. Collaborated   © OpenSourceCamp

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Community Driven Innvoation

  • 1. Community Driven Innovation Peter Cheng | 程 勇 Twitter @petercheng Open Source. Collaborated © OpenSourceCamp
  • 2. Bio Peter Cheng | 程勇  Community Strategist & Open Source Evangelist  Founder of TargetSource The Community Driven Company  Founder of Open Source Camp, Open Source University Events  Co-founder of Huihoo.org (From 2001)  JFoxSOAF, JFox Committer (http://code.google.com/p/jfox)  General Speaker  MindTrek & OpenMind 10.1 2009 Tampere Finland  Software Freedom Day Beijing 2009  LinuxWorld China Beijing 2007-2008  2007 China SOA Conference  2007 Redhat Conference  2006 Redhat Day  2006 IBM DeveloperWorks Conference  2005-2006 BEA User Group (Beijing,Shanghai,Changsha,HangZhou)  2004-2007 China Software Conference  Open Source University (From 2003 …) Open Source. Collaborated © OpenSourceCamp
  • 3. Agenda  Community as a Strategy  Community Business Practice in Open Source World Open Source. Collaborated © OpenSourceCamp
  • 4. Today is So Yesterday NASDAQ China Stock A The Gartner Hype Cycle Open Source. Collaborated © OpenSourceCamp
  • 5. The Social Revolution 1999 2009 Future? Open Source. Collaborated © OpenSourceCamp
  • 6. Things Have Changed Open Source. Collaborated © OpenSourceCamp
  • 7. The Social Revolution (2/2) Portal Social Network Communities Open Source. Collaborated © OpenSourceCamp
  • 8. How do most companies sell today  Buy contact lists  Do mail shots  From small Google ads to bill boards  Follow up with cold calls  Engage call centers  Identify “readiness to buy”  Qualify the yield  Call and try to get an appointment  Start a sales process  Hope for the best Open Source. Collaborated © OpenSourceCamp
  • 9. How do YOU buy today  You ignore advertising  You hate cold calls  You have spam filters  You have popup stopper  You first check the Internet for meaningful comments  You check forums and get interesting opinions  You read blogs  You discuss with peers or experts  You explore with friends or colleagues  When you are “ready to buy” the decision is pretty much set in stone Open Source. Collaborated © OpenSourceCamp
  • 10. Community Definition “A community usually refers to a group of people who interact and share certain things as a group. ... The word community comes from the Latin communis, meaning 'common, public, shared by all or many.'” Wikipedia “物以类聚,人以群分 ” of a feather flock together Birds Open Source. Collaborated © OpenSourceCamp
  • 11. Community as a Strategy Community as a Business Strategy Community as a Marketing Strategy Community as a Development Strategy Open Source. Collaborated © OpenSourceCamp
  • 12. CaaB: Eclipse– Leading Global IDE Market  Started by IBM since 1998  A platform to unite IBM Visual Age products.  Official Definition:  Eclipse is an open source community whose projects are focused on providing an extensible development platform and application frameworks for building software.  IBM handed over the control to a NOT FOR PROFIT consortium, the Eclipse Foundation, at 2004  IBM also donated $40million to the Eclipse Foundation  The Eclipse Evaluation  Version 1.0: Open Source Java IDE  Version 2.0: Universal Tooling Platform  Version 3.0: Platform for Rich Client Application Open Source. Collaborated © OpenSourceCamp
  • 13. Building Ecosystem Users > Millions Member Company > 170 Plug-ins > 1000 Virtual Editor EclipseUML Official Projects >30 Committers > 1000 Web Tools Platform Eclipse Platform FreeMem TPTP Subclipse DSDP BIRT DTP Hibernate Spring IDE Synchronizer http://www.infoq.com/news/2009/07/Results-Eclipse-Community-Survey Open Source. Collaborated © OpenSourceCamp
  • 14. CaaM: Taobao -- Leading C2C Market in China  Taobao.com The Largest C2C eBusiness Platform in China  Members: 145M (June, 2009)  Transactions: 8B Euro ( 6 Months, 2009) 3 Times Wal-Mart China Revenue Age >46 4.5% 36~45 8.7% 26~35 47.4% 16~25 39.4%  http://research.cnnic.cn/html/1247720873d1055.html Open Source. Collaborated © OpenSourceCamp
  • 15. Connecting Communites Taobao Forum Taobao SNS Taobao Open Platform Open Source. Collaborated © OpenSourceCamp
  • 16. CaaD: SpringSource – Leader in Java Application Infrastructure  SpringFramework: The Most Popular Java Application Framework  > 3Millis Download  Acquisition: 430M USD By VMWARE Open Source. Collaborated © OpenSourceCamp
  • 17. Connecting People (Customers, Users, Developers) Core Customers Developers Team Architectural Evaluation Marketing & Sale Standards Feedback Team Community Developers Customer Development Requirements Testing Management Team Volunteer COMMUNITES Planning Share Strategy Spread Forums Projects Events & Conferences Private & Public Resources Open Source. Collaborated © OpenSourceCamp
  • 18. Communities is Everywhere Open Source. Collaborated © OpenSourceCamp
  • 19. Agenda  Community as a Strategy  Community Business Practice in Open Source World Open Source. Collaborated © OpenSourceCamp
  • 20. Open Source is Phenomenon, But … Open Source Activity Open Source Environment Finland|芬兰 China|中国 By Redhat Open Source. Collaborated © OpenSourceCamp
  • 21. The Culture Relationships Guan Xi 关系 US China, Finland • Individualist • Collectivist • Information Oriented • Relationships Oriented • Seeks the truth • Seeks the way • Argument culture • haggling culture Open Source. Collaborated © OpenSourceCamp
  • 22. Open Source Take the Long Tail How it applies to the IT Industry Open Source Open Source. Collaborated © OpenSourceCamp
  • 23. The TAO Open Source. Collaborated © OpenSourceCamp
  • 24. Challenges  Local Culture  Communication  Top down approach  Complexity in copyright laws  Communities tend to be very fragile Open Source. Collaborated © OpenSourceCamp
  • 25. Community Requirements and Values Developers •Learn Technology Developers •Personal Branding •Find Better Jobs •Fun Life Enterprise • Find Right People Open Source • Building Business Network Communities • Product Promotion • Enhance Technology Ability Customers Customers Enterprise • Identify Resources • Take Right Control • Reduce Cost Open Source. Collaborated © OpenSourceCamp
  • 26. Bridging Communities Business … Talent … Innovation Driven Driven Customers Enterprises Telecom, Bank, eBiz, INTEL. Google, Redhat Internet Company INTALIO,Terracotta etc Communities Apache, OW2 OW2, OSA, ZEUUX, etc Open Source. Collaborated © OpenSourceCamp
  • 27. MAKING MONEY OUT OF COMMUNITIES  "Community driven business (OSS business) = management of: - Project(s) - Communities - Business" Ossi-project 2007 “历史的浪潮比我们做得还要快。创新者被抛在后面, 他们曾经改变的世界拿着他们的主意向着意想不到的方向跑了。” Kim Stanley Robinson "It is misleading to talk about Community or OSS business models, rather one should view them as drivers or enablers and creators of new business opportunities and find ways of capturing value in the opportunities they have brought about." Mikko Puhakka 2008 Open Source. Collaborated © OpenSourceCamp
  • 28. Conclusions  Your business ecosystem of customers, prospects and partners together are far more powerful than any individual relation to an individual person. • The ability to create and grow trustful communities for a better business experience, resulting in more market acceptance and eventually market leadership. As Tom Friedman says, “it’s a flat new world.” “Communities Make Business More Fat” Open Source. Collaborated © OpenSourceCamp
  • 29. Open Source. Collaborated © OpenSourceCamp