McComb's MBA Guest Lecture : Presentation Feb 2014


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These are the slides I talked to as a 90 minute guest lecture. I did not keep strictly in order so the content may not flow directly slide to slide.

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McComb's MBA Guest Lecture : Presentation Feb 2014

  1. 1. @zehicle on Open Source for Fun & Profit OK, YOU GOT AGILE? HOW DOES THAT BECOME A PRODUCT?
  2. 2. Agile Manifesto  People over process >  Individuals and interactions  over processes and tools  Working software  over comprehensive documentation  Customer collaboration  over contract negotiation  Responding to change  over following a plan
  3. 3. Open Source  Profit?  Free in Open Source is NOT about revenue   Create Value!     It’s about fair use, not profit Customers expect to pay for value Support & Validation are value Voice in the community is value No product is instant: $ from Sustaining Open Source  License Models  Copy Left vs Copy Right  Legal matters: IP protection, liability limits  Know your model    GPL – requires you to pay it back into the community Apache – “business friendly” because you don’t have to share MIT – “over the fence” with minimal impacts
  4. 4. Lean + Agile  Lean is a Manufacturing Process  Goldratt: The Goal  Ries: Lean Startup  Kim: Phoenix Project  Ideas are Inventory <- this is POWERFUL  Iterative Learning!  Work in Pivots  Selling validates concepts  Vision is not the same as a commitment (interlocking = risk)  DON’T skip strategy chasing profit  You are NOT in as big a rush as you think
  5. 5. Process, Culture & Open Source  Culture matters  Doing is doing  Lean is about learning  Low inventory = agility  Inertia is your friend: get moving  Inertia is your enemy: don’t coast  Leave Room for Collaboration  Be flexible  Get feedback fast  Good ideas survive Deliver Learn Measure / Commit Alternatives / Collaborate Accept Unknowns / Trust
  6. 6. When Agile/Lean Fails  Mismatch w/ larger process  Trust challenges  Feedback missing  Being too tactical – leave room for strategy!  Technical Debt not being paid  Mismatched risk tolerance  Inability to delivery iteratively  Unwillingness to collaborate with customers
  7. 7. Value of Open Source  Customers  Supply chain transparency  Cost – generally it’s comparable BUT multi-vendor  Quality – yes, actually higher  Pace of innovation – much faster  Vendors  Support Contracts  Consulting Engagements  Update / Subscription Sales  Accelerate Primary Product (e.g.: Linux sells Servers)
  8. 8. Risks for Open Source  Risks  Picking a project that dies  Lacking expertise to be successful  Loss of control of the project  Mitigations  Adopt slowly  Purchase from established companies  Build expertise if capability is core  Force Multipliers  More engaged technologists  Better able to adapt to your business
  9. 9. Why Open Source works for Vendors  Control  Direct Feedback / Customer Interaction  Defect detection / correction  Perception of leadership  Pace of Innovation / Velocity  Supply Chain with Customers  Collaboration with Partners  Cost
  10. 10. Driving Open Source Communities Driving Open Source Communities 10 Leadership requires active contribution! $$$ Build Customer Relationships Leadership creates • Design Influence • Credibility with Customers • API & Feature Advantage • Ensures compatibility Using without Leading:  Stuck with others designs  Get advanced features late  Changes are disruptive Selling without Contribution • Prone to defects • Waiting on releases • Angers community Influence APIs & Features Easy Way To Influence Contribution & Leadership Hard Way To Influence Needed Integration & Advanced Capabilities Advantaged Ecosystem $$$ 2/17/2014
  11. 11. Sales Funnel This is Sales 101 If you want to closed deals, you need to build a pipeline of prospects. There’s a conversion ratio of losses at each stage in the funnel. Generally, it costs $$$ to get prospects into the funnel and you only make $$$ when they exits the bottom. You care about inbound volume, cost to acquire and conversion rate.
  12. 12. Sales Funnel + Open Source Open source engagement is (one of) our sales funnels. People in our community are much more likely to become paying customers. A positive experience is essential Community Download Trial Engagement PoC and Pilot (may be silent) Customer Conversion The other funnels are partners and Dell lead generation. Most of those still enter our community!
  13. 13. Not all Open is Collaborative  We are focused on collaborative open source  We want projects with diverse contributors  We accept community input and changes  We lead by focusing on customer value  More sustainable project model  Less risk for users of the project  Easier to influence & participate
  14. 14. Cathedral vs. Bazaar  Books  Raymond, Cathedral & Bazaar  Bacon, Art of Community  Two approaches to design  Strongly lead with a small visionary core  Collaboratively lead with adaptive design  Linux, OpenStack & Crowbar: “bazaar style”  Humility in design  “all bugs are shallow”  Everyone has something to contribute
  15. 15. Upstream, Gates, Trunk & Branch  Trunk is main place where work is being done.   Trunk has all the latest stuff and changes Going off trunk is usually less stable  Gates are code reviews before code is added   Multiple parties review code before it’s added to trunk We have controls and tests to ensure new code is good code  Branches (or Forks) are a split off of the main trunk   may have special features or be more stable generally, work is not shared back  Upstream is giving code back to community.   You take time to merge back into trunk We “pull” code into trunk from contributors
  16. 16. Thinking Deeply… OpenStack and Hadoop are being much more disruptive than we expected. Why? The benefit of open, collaborative projects is not cost! The benefit is control of deliverables and features. If IT is essential to your business (an that is true for nearly everyone now), then open source projects give you control and visibility into your supply chain. Open source is about supply chain management