Workshop for North American regional meeting of OERu partners in Vancouver BC 17-Sep-2015.

1. Except where otherwise noted these materials are licensed Creative Commons Attribution 4.0 (CC BY)
17-Sep-2015
Paul Stacey
Associate Director of Global Learning, Creative Commons
Building an open source business by Libby Levi licensed CC BY-SA
NA OERu Regional Meeting
Open Business Models

2. Agenda
Orientation and Goals
• Introduce Creative Commons open business models work
• Goal setting for the day
• Fears of openness
Getting model design juices flowing
• Use case studies to interactively explore how open business models work
• Reveal some of the rationale, benefits, and models of open businesses
• Stimulate a think different approach
Design your OERu open business model
• Introduce the building blocks for what an open business model is
• Review the core questions to ask in building out each component of an
open business model
• Use a template to designs an open business model for your institutions
involvement with OERu

3. Agenda
Open Business Model Design Sharing
• Group sharing of individual business models and their institutions
revenue opportunities and community service priorities
• Synthesis of multiple designs into one or two shared models
• Open business model gallery
Next Steps
• Synergistic fit of partner open business models with each other, with
Oceania models and with OERF
• Preparation of business model submissions for the OERu Council of
CEOs meeting on 9 October 2015

4. http://thepowerofopen.org/

5. http://teamopen.cc/piya/
http://teamopen.cc/max/

6. https://www.kickstarter.com/projects/creativecommons/made-with-creative-commons-a-book-on-open-business
http://creativecommons.org/weblog/entry/45022

7. Logic Model

8. https://docs.google.com/drawings/d/1zkAYPAhEh0TMYxgdExIiVDq8UTZX3WZ9mfB-22Gw5HY/edit

9. Oceania OERu Regional Meeting
27-Aug-2015
Toowoomba

10. Goal Setting for The Day
Empty Net by Jeff Wallace licensed CC BY-NC
One page OERu partner
institution open business
model from each of you
that supports goal 3 of
the OERu – “Achieve a
fiscally sustainable &
scalable OERu network.”

11. Parking Fears of Openness
The Scream by Edvard Munch National Gallery Oslo Norway

12. Getting Open Business Model
Design Juices Going (11-11:45)
Photo by andriuXphoto licensed CC BY-SA

13. Closed Innovation Paradigm
Chesbrough, Henry William (2006). Open Innovation: The new imperative for creating and profiting from technology. Boston: Harvard Business
School Press. pg. xxii.
Based on the belief that successful innovation requires control.
Companies must generate there own ideas, then develop them, build them, market them, distribute
them, service them, finance them, and support them, on their own.
Closed innovation counsels businesses to be self-reliant and internally focused.
To be sure of quality, availability, and capability you’ve got to do it yourself.

14. Open Innovation Paradigm
Chesbrough, Henry William (2006). Open Innovation: The new imperative for creating and profiting from technology. Boston: Harvard
Business School Press. pg. xxii.
Doing it all yourself fails to productively make use of new knowledge and ideas outside your business.
Open innovation combines both external and internal ideas to create value.
In addition, ideas can be taken to market through external channels, outside the current business of the
firm, to generate additional value.
Open innovation requires less control and more collaboration

15. Revenues
Costs
Own
market
revenue
Internal
development
costs
Own
market
revenue
Internal &
external
development
costs
The New Business Model of Open Innovation
License
Spin-off
Sale/
divestiture
New revenues
Closed model
Open Innovation
business model
Cost & time savings
from leveraging
external development
Chesbrough, Henry William (2006). Open Business Models: How to thrive in the new innovation landscape. Boston: Harvard Business
School Press. pg. 17.

16. Open Source Software
http://www.catb.org/~esr/writings/cathedral-bazaar/magic-cauldron/
Magic Cauldron Essay
Use-Value Funding Models
• Cost-Sharing
• Risk-Spreading
Indirect Sale-Value Models
• Loss-Leader/Market Positioner
• Widget Frosting
• Give Away the Recipe, Open a Restaurant
• Accessorizing
• Free the Future, Sell the Present
• Free the Software, Sell the Brand
• Free the Software, Sell the Content

17. Open Source Software
System integrators sell a stack of
hardware, software, and services.
Integrators can charge customers similar
prices even if they use open source software.
How does business model
change if you use open source
software?
Dirk Riehle. “The Economic Motivation of Open Source Software: Stakeholder Perspectives.” IEEE Computer, vol. 40, no. 4 (April 2007).
Page 25–32. The paper is available as a PDF file as well as online. © 2007 IEEE.

18. Open Source Software
Dirk Riehle. “The Economic Motivation of Open Source Software: Stakeholder Perspectives.” IEEE Computer, vol. 40, no. 4 (April 2007).
Page 25–32. The paper is available as a PDF file as well as online. © 2007 IEEE.
Switching to open source software can
result in more customers and higher profits.
How does business model
change if you use open source
software?

19. https://medium.com/medium-writing-prompts/why-give-away-your-work-for-free-5ed4513d5fa8

20. If what you have is good, just give it time. "Viral" growth is exponential, but it can take a while.
Or you can use advertising to artificially direct audience attention to something they wouldn't
care about otherwise. If the work is not good, interest will drop off when advertising does.
Understanding Free Content by Nina Paley
http://questioncopyright.org/understanding_free_content

21. What does Nina Paley do?

22. Many cultural institutions hold material that is in the public domain. This does not mean that they also have
to publish it for free. The Rijksmuseum has, like most art museums, an image bank where they sell digital
copies of images. When at the end of 2011 they started releasing images, they offered two sizes. The
medium quality image (.jpg, 4500x4500, +/- 2MB) was available free to download from their website
without any restrictions. When the user clicked on the download button, a pop‐up asked the user to
attribute the Rijksmuseum as a courtesy. If the user was looking for the master file (.tiff and up to 200MB)
they were charged €40.
Democratising the Rijksmuseum by Joris Pekel, Europeana Foundation
http://pro.europeana.eu/files/Europeana_Professional/Publications/Democratising%20the%20Rijksmuseum.pdf
What does Rijksmuseum do?

23. €181,000 revenue is quite high, but represents only 0.2% of the total revenue of the
Rijksmuseum during that period. Total employee costs were about €100,000 per year.
In October 2013 the Rijksmuseum decided to no longer charge for public domain images that
were already digitised and started releasing their highest quality images for free. They
preferred instead to focus their efforts on generating project funding from art foundations in
order to digitise an entire collection. Such administrative costs are much lower, as a
transaction is only made once and is a lot easier to handle than multiple private individuals.
For the Rijksmuseum the revenue from image sale was relatively small and they decided to
abandon it all together as a way to create more goodwill, get more people familiar with their
collection and attract them to come to the museum.
Democratising the Rijksmuseum by Joris Pekel, Europeana Foundation
http://pro.europeana.eu/files/Europeana_Professional/Publications/Democratising%20the%20Rijksmuseum.pdf
https://www.rijksmuseum.nl/en

25. Ostrom’s Commons
Analysis & Design Framework
How is the digital commons different
from the physical commons?
Cost of storage, copying, & distribution almost $0.
Cannot be depleted but artificial scarcity frequently practiced.
Global and local. Empowers individual action independent of gov’t & market.

26. How is open different from free?
5Rs: The Powerful Rights of OER
• Make, own, and control your own copy of
the contentRetain
• Use the content in its unaltered formReuse
• Adapt, adjust, modify, improve, or alter the
contentRevise
• Combine the original or revised content with
other OER to create something newRemix
• Share your copies of the original content,
revisions, or remixes with othersRedistribute

27. Your Business In The WE-Economy
The levels of user
engagement in value
creation follow a long
tail.
At one end of the
scale are lots of
users contributing a
bit of feedback — at
the other end are a
few super-users co-
creating products as
experts.
What’s new is that
companies are
opening to input, and
that customers are
willing and able to
participate to a
greater extent.
Education business
model
implications?
Your Business In The WE-Economy
http://we-economy.net/?page_id=928

28. https://www.flickr.com/

29. In October 2014, Flickr announced a new service that allows its members to order printed photos on wood
or canvas, choosing either from their own photos, from a set of curated images, or from about 50 million
CC BY or CC BY-SA–licensed images. Flickr would share profits with the photographers of the curated
images, but not the CC-licensed ones, as those licenses permit Flickr to use the photos commercially.
Creators with copyrighted images are compensated 51% of what Flickr collects. Flickr keeps 100% of the
proceeds from the CC licensed images.
https://www.flickr.com/create

30. Public Reaction
Generosity taken advantage of unfairly.
Flickr adding little value add & exploiting photographers.
CC photographers could have kept their images to themselves and
gotten half of the fee, instead of Flickr taking all of it.
Demotivating/deincentivizing to people who share their work.
Not legally obligated, but social obligation?
What would you do?

31. http://www.openwords.com/

32. https://www.posiba.com/

33. http://tumuult.com/

34. https://www.seats2meet.com/

35. 470 co-authors from 45 countries
Used globally by startups and big corporations.
Start with - What is a business model?
Business Model Building Blocks
11:45- 12:30 pm

36. Business Model Generation Canvas
licensed CC BY-SA

37. Open Business Model Canvas Remix

38. Open Business Model Building Block Questions
https://docs.google.com/drawings/d/1zkAYPAhEh0TMYxgdExIiVDq8UTZX3WZ9mfB-22Gw5HY/edit

39. Design your institution’s OERu business model
Using open business model canvas design:
• Customer segments: Who are the customers you are
targeting or intending to serve through OERu?
• Value proposition: What value proposition are you
providing each customer? What are the bundles of
products and services you are offering and what
customer needs do they fulfill?
• Social good: What social good is being generated
(beyond revenue or profits)
• Revenue: What revenue will be generated through
OERu activities? How will customers pay? How much
will they pay? Will this fund your OERu activities?

40. Designing OERu Business Model Designs
Share initial designs
Synthesis of multiple designs into one or two
shared models?
Open business model gallery

41. Next Steps
Synergistic fit of partner open business models
with each other, with Oceania models and with
OERF
Preparation of business model submissions for
the OERu Council of CEOs meeting on 9
October 2015

42. OERF open business model for the OERu
Wayne Mackintosh
https://docs.google.com/drawings/d/1zkAYPAhEh0TMYxgdExIiVDq8UTZX3WZ9mfB-22Gw5HY/edit

43. Oceania Aggregate OERu business
http://wikieducator.org/OERu/Open_business_model_canvases/Aggregated_OERu_partner_canvas

44. Paul Stacey
Creative Commons
web site: http://creativecommons.org
e-mail: pstacey@creativecommons.org
blog: http://edtechfrontier.com
presentation slides: http://www.slideshare.net/Paul_Stacey
News: http://creativecommons.org/weblog
Facebook: https://www.facebook.com/creativecommons

45. 470 co-authors from 45 countries
Used globally by startups and big corporations.
Books