A New Spin on Open Source Business Models

IT Managers Journal is reporting that a Canadian communications student is trying to put a new spin on open source business models. Greg Dean, a student at Simon Fraser University, is attempting to merge the principles of open source with that of a co-op and a regular corporation. From the article: "On the first slide of his presentation, Dean described the ICT/OS as a 'participatory, self-managed workers' business' designed for 'getting the benefits of a corporation through the convivial democracy of a co-op.' Punctuated by dozens of questions, the rest of the presentation explained exactly how he thought this goal could be achieved. In his vision, the co-op would involve three types of members: full members, who are freelancers in high-tech professions and have full voting rights; associated members such as lawyers who provide services to the co-op; and non-members with an investment in the company."

Comments

Re:Some differences..

[MindStalker]

I think the real failure of this model is its not considering customers as members most successful co-ops do in some way.

The Muhammad Yunus business model

[EmbeddedJanitor]

The traditional competitive business model goes something along the lines of: Kick competitors in the balls...., gouge customers as hard as you can..., make as much profit as you can and screw the consequences (social, environmental,...)

As well as the micro-credit Muhammad Yunus scored his Nobel for, he is also proposing that some businesses might restructure around goals other than profit. Yes, if you've been a corporation watcher, it is a hard concept to get your head around.

Interesting interview on BBC a few days back, can probably found on the Beeb's website.

Realization

[slidersv]

To put it in Edison's words: Realization is 1 percent inspiration and 99 percent perspiration. A lot of people have some very good ideas.
Just yesterday my friend was telling me how pre university schools are useless at telling people who they are and presented me detailed plan how the system could be revamped.
It was great and all, but so what? There are bunch of school that offer different programs than standardized school, there are just not so omnipresent.

The point is, if you do not go out of your way to implement your idea, it is left at just that - a thought.

And we wonder...

[HangingChad]

...why management thinks IT people have no grasp of practical business concepts.

Think of this as a credit union for software development. A hybrid between open source and a pure commercial venture. Co-op business models and profits are not mutually exclusive. The credit union I belong to operates profitably, as will any that want to stay in business. The local farmer's co-op in town makes a profit, then cuts a check for part of it back to the members. Grocery co-ops thrive, though you rarely hear about them because they don't usually have an advertising budget.

He can't be more specific on how they would operate because there's no way to predict that without actually forming one. The structure and operation are more fluid than a commercial venture. And the character and operation will change as the membership changes over time.

I think once the co-op development model undergoes more development it will be recognized as the next step in the evolution of software as a resource commodity. It's a business model that's been around a lot longer than any of us. It's just strange to those of you growing up on the internet because it involves human interaction in meat space. ;)