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1   Biotope for Geeks
    Dr. Volker Göbbels
    Arachnion GmbH & Co. KG
    vmg@arachnion.de
    http://twitter.com/VolkerGoebbels
2   Who am I?
     PH.D. in Chemistry
     Web development specialist since several years
     Self-employed / own company since 2000
     Freelancing in projects on location and remote
     Building own projects
3   Who are you?
        Anyone freelancing / self-employed?
        Having a „regular job“?
        Environment:
          Working in an office?

          Travelling a lot?

    Are you happy with your current situation?
4   What do I talk about?
      Its a gathering of information and thoughts not
      Work:
        where you want

        when you want

        whith people you like

        for whoever you want (or not)

        get paid for it!

      Leverage your expertise
      Learn new things
5   Self-employment El Dorado?!?
     No, additional costs compared to employed:
       Pay your heath inssurance yourself

       Taxes

       Possibly payments to chamber of commerce

       Tax advisor

     Doing your own acquisition
     Rent an office (?)
6   Where do good ideas come from?
     Ronald Burt, University Chicago
      Bridging: It‘s not how many people
      you know, it‘s how many kinds

      Most good ideas come from
      people who bridge structural holes

      It‘s not creativity born of deep
      intellectual ability. It‘s creativity as
      an import-export business.
7   Social community (r)evolution
      Normally having more than a few people in an „organization“ requires some
      sort of management
      Standard for management organization is a hierarchical structure
      Contrary concept is „market“: free commercial relationships between buyers
      and sellers
Market vs. hierarchy
8   the big picture

             Market                                Hierarchy




                                                        n




                                                                          Go
                                                        io
                                                       at




                                                                           ve
                                                   rm
                                    Abstraction




                                                                               rn
                                                  fo




                                                                               an
                                                  In




                                                                                    ce
                                                             Uniformity



                                      You only talk to your direct neighbors
       Everyone talks to everyone
                                          upstream and downstream
Market vs. hierarchy
9   discussion

             Market                          Hierarchy
      Gets complicated with large        Communication costs lower
      groups
                                         But: management costs!
      No controlling, only negotiation
      Communication costs high
10   OK, now where‘s the revolution?
     Ronald Coarse, 1937, „The nature of the firm“:
         The max. size of a company depends on the ratio of transactional costs (TC)
         vs. revenue
         A small reduction in TC leads to a higher size limit for large and a better
         effectivity in smaller companies
         When TC implodes (like with networked collaboration tools) new products
         and services are possible which were not achievable with a regular enterprise
         Thats our gap!
11   Why should I try?
       Scott Bradner: „The internet means you do not have to convince anyone else
       that something is a good idea before trying it“
       The distinction between professionals and amateurs fall apart, this means for
       software projects:
        We don‘t need a management (we can now discuss that among us)

        We don‘t need project brokers (we can communicate with customers ourself)

        We can be found by every interested customer
12   The cultural process behind
       New communication technology is disruptive, not evolutionary
       New technology is not an enhancement to society but a challenge
       Things previously beyond our power become possible
       The social media scene is just realizing that, in economy we are still struggling
       for an understanding
13   Some figures
      Cali Ressler, Jody Thompson (Best Buy): „Work is something you do, not a
      place you go to“
      Results:
       Productivity:     +35%

       Own dismissals:   -90%

       Forced dismissals: +50-70%
       (underperforming coworkers are more obvious)
14   Benefits for freelancers
       No or less acquisition (communication of opportunities inside the team)
       Work with people you like and who are cool
       No daily way to the office
       No „body leasing“
       „Surround yourself with excellence“
       Single freelancers don‘t get opportunities for big (and cool) projects
       Nearly no operational costs
       You decide if you work on a project (but you have to be seriously commited)
15   Benefits for customers
      Ambitious projects require the really good guys
      Often you don‘t get those as employee of a consulting company
      You don‘t get them cheap but for a good price
      You don‘t have to gather and form a team yourself
16   Getting real
       Tools for communication:
         Mail

         IRC

         Twitter

       Tools for colaboration:
         some sort of groupware

         DoingText.com

         Version control (git, svn, cvs)
17   Open questions
      What about the money?
      Someone has to write an invoice.
      Does everybody see what other team members charge?
      At least inside a project team, there should be some transparency
      What about the legal mumbo jumbo?
      Who is liable for problems from the customers point of view?
18   References
      Clay Shirky, „Here comes everybody“, ISBN 978-0-713-99989
      Markus Albers, „Morgen komm ich später rein“, ISBN 978-3-593-38652-2
Thanks a lot!

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Biotope For Geeks

  • 1. 1 Biotope for Geeks Dr. Volker Göbbels Arachnion GmbH & Co. KG vmg@arachnion.de http://twitter.com/VolkerGoebbels
  • 2. 2 Who am I? PH.D. in Chemistry Web development specialist since several years Self-employed / own company since 2000 Freelancing in projects on location and remote Building own projects
  • 3. 3 Who are you? Anyone freelancing / self-employed? Having a „regular job“? Environment: Working in an office? Travelling a lot? Are you happy with your current situation?
  • 4. 4 What do I talk about? Its a gathering of information and thoughts not Work: where you want when you want whith people you like for whoever you want (or not) get paid for it! Leverage your expertise Learn new things
  • 5. 5 Self-employment El Dorado?!? No, additional costs compared to employed: Pay your heath inssurance yourself Taxes Possibly payments to chamber of commerce Tax advisor Doing your own acquisition Rent an office (?)
  • 6. 6 Where do good ideas come from? Ronald Burt, University Chicago Bridging: It‘s not how many people you know, it‘s how many kinds Most good ideas come from people who bridge structural holes It‘s not creativity born of deep intellectual ability. It‘s creativity as an import-export business.
  • 7. 7 Social community (r)evolution Normally having more than a few people in an „organization“ requires some sort of management Standard for management organization is a hierarchical structure Contrary concept is „market“: free commercial relationships between buyers and sellers
  • 8. Market vs. hierarchy 8 the big picture Market Hierarchy n Go io at ve rm Abstraction rn fo an In ce Uniformity You only talk to your direct neighbors Everyone talks to everyone upstream and downstream
  • 9. Market vs. hierarchy 9 discussion Market Hierarchy Gets complicated with large Communication costs lower groups But: management costs! No controlling, only negotiation Communication costs high
  • 10. 10 OK, now where‘s the revolution? Ronald Coarse, 1937, „The nature of the firm“: The max. size of a company depends on the ratio of transactional costs (TC) vs. revenue A small reduction in TC leads to a higher size limit for large and a better effectivity in smaller companies When TC implodes (like with networked collaboration tools) new products and services are possible which were not achievable with a regular enterprise Thats our gap!
  • 11. 11 Why should I try? Scott Bradner: „The internet means you do not have to convince anyone else that something is a good idea before trying it“ The distinction between professionals and amateurs fall apart, this means for software projects: We don‘t need a management (we can now discuss that among us) We don‘t need project brokers (we can communicate with customers ourself) We can be found by every interested customer
  • 12. 12 The cultural process behind New communication technology is disruptive, not evolutionary New technology is not an enhancement to society but a challenge Things previously beyond our power become possible The social media scene is just realizing that, in economy we are still struggling for an understanding
  • 13. 13 Some figures Cali Ressler, Jody Thompson (Best Buy): „Work is something you do, not a place you go to“ Results: Productivity: +35% Own dismissals: -90% Forced dismissals: +50-70% (underperforming coworkers are more obvious)
  • 14. 14 Benefits for freelancers No or less acquisition (communication of opportunities inside the team) Work with people you like and who are cool No daily way to the office No „body leasing“ „Surround yourself with excellence“ Single freelancers don‘t get opportunities for big (and cool) projects Nearly no operational costs You decide if you work on a project (but you have to be seriously commited)
  • 15. 15 Benefits for customers Ambitious projects require the really good guys Often you don‘t get those as employee of a consulting company You don‘t get them cheap but for a good price You don‘t have to gather and form a team yourself
  • 16. 16 Getting real Tools for communication: Mail IRC Twitter Tools for colaboration: some sort of groupware DoingText.com Version control (git, svn, cvs)
  • 17. 17 Open questions What about the money? Someone has to write an invoice. Does everybody see what other team members charge? At least inside a project team, there should be some transparency What about the legal mumbo jumbo? Who is liable for problems from the customers point of view?
  • 18. 18 References Clay Shirky, „Here comes everybody“, ISBN 978-0-713-99989 Markus Albers, „Morgen komm ich später rein“, ISBN 978-3-593-38652-2