open design: business + money @ fablab cali
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Open Design: Business + Money
Massimo Menichinelli
openp2pdesign.orgDesign for Open Systems, Processes, Projects, Places.
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Media for an open source economy
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Source: http://diydrones.com
DIY Drones from Wired's (ex) director
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Source: http://www.wired.com/dangerroom/2012/06/ff_drones
DIY Drones from Wired's (ex) director
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Source: http://www.amazon.com/Makers-The-New-Industrial-Revolution/dp/0307720950/
“Makers” from Wired (ex) director
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Make: Craft magazineSource: http://blog.makezine.com/craftzine/ http://en.wikipedia.org/wiki/Craft_(magazine
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Platforms for an open source economy
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= 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
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Fabbing platform: Shapeways + APISource: http://developers.shapeways.com/
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Fabbing platform: i.materialise (Belgium)Source: http://i.materialise.com/
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Platform for making: Inventables (USA)Source: http://www.inventables.com/
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Crowdfunding: Kickstarter 09-11Source: http://www.kickstarter.com/blog/happy-birthday-kickstarter
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Crowdfunding: Kickstarter 09-11Source: http://www.kickstarter.com/blog/happy-birthday-kickstarter
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Crowdfunding or Experience?Source: http://www.fastcompany.com/1843007/kickstarter-crowdfunding-platform-or-reality-show
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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!
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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%
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More Crowdfunding: Indiegogo (USA)Source: http://www.indiegogo.com/projects/ubuntu-edge
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UpVerter: design (open) hardware with GitHubSource: https://upverter.com/explore/
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The markets for an open source economy
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… and designers can be entrepreneursSource: http://www.kickstarter.com/projects/1104350651/tiktok-lunatik-multi-touch-watch-kits
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But “open” alone is not enoughSource: http://www.kickstarter.com/projects/1833785894/100k-stray-toasthed-pull-toys
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Open Hardware: a rising marketSource: 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
Reve
nues
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A Long Tail of users / projectsSource: http://en.wikipedia.org/wiki/Power_law
Number of projects
Num
ber
of it
ems
sold
Long tail
Top hits
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The market: not just machines...Source: http://investor.3dsystems.com/
28%
31%
41% 3D Printers
Materials
Services
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A closed innovation systemSource: http://en.wikipedia.org/wiki/Timeline_of_Microsoft_Windows
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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
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Is Design a commodity?Source: http://www.freedomofcreation.com/home/3d-systems-acquires-freedom-of-creation
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Even makers give away contentsSource: http://www.thingiverse.com/thing:13827
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… and users innovateSource: http://commons.wikimedia.org/wiki/File:Sk8rs.PennQuarter.NW.WDC.21sep08.jpg
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… 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 FlowersComparing 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
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Money + Business models for an open
source economy
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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
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A gift economySource: http://en.wikipedia.org/wiki/Gift_economy
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A gift economy: focus on social networks
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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)
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A market economySource: http://en.wikipedia.org/wiki/Market_economy
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A market economy: focus on moneySource: http://commons.wikimedia.org/wiki/Category:Coins
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Business models for Open HardwareSource: 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 …
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Business models: partnershipsSource: http://www.ponoko.com/make-and-sell/electronics
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Business models: piracy as learningSource: http://shop.goophone.hk/product-16.html
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Business models: commercial placesSource: http://www.flickr.com/photos/laughingsquid/8006346553/ Scott Beale / Laughing Squid / laughingsquid.com.
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Open Money for a community economySource: http://en.wikipedia.org/wiki/Bitcoin
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Open Money: just a prototype nowSource: http://www.wired.com/magazine/2011/11/mf_bitcoin/
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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.
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Money and Business: a lesson from the pastSource: http://en.wikipedia.org/wiki/Henry_Ford
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Peak resources: a lesson for the futureSource: http://ecoalfabeta.blogosfere.it/2011/03/il-picco-del-legno.html
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Reinventing an open wheel is not enoughSource: http://www.theoscarproject.org/
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We need a new language for a new scenarioSource: http://en.wikipedia.org/wiki/Car
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We need a new language for a new scenarioSource: http://en.wikipedia.org/wiki/Car
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… 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
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Fonte: http://www.flickr.com/photos/massimo_menichinelli/8019726607/in/set-72157631612238923
FabMoney: a digital currency for collaboration
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Open Hardware, Software, Design, DataSource: https://github.com/OpenP2PDesignOrg/FABMoney
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Source: Alessandro Gadotti
MuSe FabLab, Trento (Italy)
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MuSe FabLab, Trento (Italy)