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Joseph Feller - Open for Business
The document discusses the principles of open business models as influenced by open source software and innovation, emphasizing collaboration, co-creation, and sustainable business practices. It critiques traditional intellectual property rights for focusing on value capture rather than value creation and suggests a shift toward next-generation IP models that support community and ecosystem-based industries. The open business model canvas is introduced as a tool to analyze key partners, activities, resources, and customer relationships in creating value while promoting social good.
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Joseph Feller - Open for Business
- 1. OPEN FOR BUSINESS JOSEPHFELLER PROFESSOR OF INFORMATION SYSTEMS CORK UNIVERSITY BUSINESS SCHOOL UNIVERSITY COLLEGE CORK
- 2. Open Software & Hardware OpenContent & Design Open Science & Scholarship Open Innovation & Co-Creation Crowdsourcin g & Crowdfunding The Sharing Economy
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- 6. Solve Problems Create & CaptureValue Affect Positive Change
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- 8. HOW CAN ORGANIZATIONSBUILD POWERFUL AND SUSTAINABLE BUSINESS MODELS AROUND OPEN KNOWLEDGE GOODS?
- 9. WHAT CAN WELEARN FROM OPEN SOURCE SOFTWARE? • COLLABORATIVE COMMUNITY-BASED SOFTWARE DEVELOPMENT • ENABLED BY: • THE INTERNET AS A COLLABORATION PLATFORM • LEGAL INNOVATION THAT CHANGES THE NATURE OF SOFTWARE IPR • IMPLICATIONS: • A NEW FORM OF SOFTWARE DEVELOPMENT • CREATION OF A SOFTWARE COMMONS • COMPELLING NEW BUSINESS MODELS
- 11. “COLLABORATE OVER WHATDOES NOT DIFFERENTIATE. COMPETE BY INNOVATING ON THE COMMODITY BASE. AND CONTRIBUTE, CONTRIBUTE, CONTRIBUTE!” — SIMON PHIPPS, CHIEF OPEN SOURCE OFFICER, SUN MICROSYSTEMS (2005- 2010) “The Zen of Open Source.” Sun Microsystems, 25 July 2006 (www.sun.com/2006-0725/ feature/index.jsp).
- 12. OPEN SOURCE CHALLENGED CONVENTIONALWISDOM • ABOUT THE SOURCE OF VALUE IN THE SOFTWARE INDUSTRY • ABOUT THE LOCUS OF PRODUCTION AND THE ROLE OF THE FIRM • ABOUT THE RELATIONSHIPS BETWEEN IPR AND INNOVATION
- 13. THE PROBLEM WITHLEGACY IPR • FOCUSES EXCLUSIVELY ON VALUE CAPTURE NOT CREATION • ASSUMES THAT INNOVATION AND PRODUCTION ARE ALWAYS FIRM OR MARKET BASED
- 14. THE PROMISE OFNEXT GEN IPR • LIKE OPEN SOURCE AND CREATIVE COMMONS • SUPPORTS VALUE CREATION AS WELL AS CAPTURE • ALIGNS WITH INTERNETWORKED COMMUNITY AND ECOSYSTEM BASED INDUSTRIES
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- 16. • MAXIMIZE SURFACEAREA • MINIMIZE SURFACE TENSION • PROMOTE CHAIN REACTIONS • CONTROL THE VECTOR OF ENERGY
- 17. Open Business ModelCanvas Questions Key Partners Who areour Key Partners? Who areour key suppliers? Which Key Resourcesare weacquairing from partners? Which Key Activitiesdo partnersperform? Motivations for Partnerships Optimization and economy Reduction of risk and uncertainty Acquisition of particular resourcesand activities Key Activities What Key Activitiesdo our ValuePropositions require? Our Distribution Channels? Customer Relationships? Revenue streams? Categories Production Problem Solving Platform/ Network Value Proposition What value do we deliver to thecustomer? Which one of our customer’sproblemsare we helping to solve? What bundles of productsand services are we offering to each Customer Segment? Which customer needsarewe satisfying? Characteristics Newness Performance Customization “Getting the Job Done” Design Brand/ Status Price Cost Reduction Risk Reduction Accessibility Convenience/ Usability Customer Relationships What typeof relationship doeseach of our Customer Segments expect usto establish and maintain with them? Which ones have we established? How arethey integrated with the rest of our businessmodel? How costly are they? Examples Personal assistance Dedicated Personal Assistance Self-Service Automated Services Communities Co-creation Customer Segments Who areour most important customers? Mass Market Niche Market Segmented Diversified Multi-sided Platform Cost Structure What are the most important costs inherent in our businessmodel? Which Key Resourcesare most expensive? Which Key Activitiesare most expensive? Is your business more Cost Driven (leanest cost structure,low price value proposition,maximum automation, outsourcing) Value Driven (focused on value creation, premium value proposition) Key Resources What Key Resourcesdo our Value Propositions require? Our Distribution Channels?Customer Relationships? RevenueStreams? Types of resources Physical Intellectual (brand patents,copyrights,data) Human Financial CC License Which Creative Commons licensewill I use? How doeslicense choice affect the business? Categories Public Domain Mark CC0 CCBY CCBY-SA CCBY-ND CCBY-NC CCBY-NC-SA CCBY-NC-ND Revenue Streams For what value are our customers really willing to pay? For what do they currently pay? How arethey currently paying? How would they prefer to pay? How much doeseach Revenue Stream contribute to overall revenues? Types Fixed Pricing Dynamic Pricing Asset sale List price Negotiation (bargaining) Usagefee Product featuredependent Yield management Subscription Fees Customer segment dependent Real-timemarket Lending/ Renting/ Leasing Volumedependent Licensing Brokeragefees Advertising Channels Through which Channelsdo our Customer Segmentswant to be reached? How arewe reaching them now? How areour Channelsintegrated? Which ones work best? Which ones are most cost-efficient? How do we integratewith customer routine? Open Business Model Canvas by Paul Stacey, Creative Commons based on Business Model Canvas Poster designed by: Business Model Foundry AG CC BY-SA 3.0 Vers: 3 Social Good Beyond revenue and profits what social good isgenerated by this business? Overall Open Environment Business Fits In? What isthe bigger open context your businesssits within?What open movementsexist already that your open business will build on and participate in?What is the shared outcome sought and how isit mutually beneficial?
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