Embedded Files
Pattern description
Pattern description
In software engineering, the source code of a software product is not kept proprietary, but is freely accessible for anyone. Generally, this could be applied to any technology details of any product. Others can contribute to the product, but also use it free as a sole user. Money is typically earned with services that are complimentary to the product, such as consulting and support.
Inventive problems
Inventive problems
It is necessary to perform a lot of product development operations in order to increase the number of product characteristics.
It is necessary to perform a few product development operations in order to reduce the product development costs.
The product should have a wide range of characteristics to increase the number of customers.
The product should have a minimum set of characteristics to reduce the number of development and production operations.
The product price should be high in order to get the maximum revenue.
The product price should be low to meet the customers' expectations.
The company should be large and have a complex structure to perform a large number of diverse operations for the development, production, and delivery of a complex product to the customers.
The company should be small and have a simple structure in order to:
- reduce the variety and complexity of the company activities;
- focus on a small number of core operations;
- have a small stuff;
- minimize the cost of development, production, sale, and delivery of products to customers.
Application examples
Application examples
Online encyclopaedia Wikipedia, launched in 2001, is perhaps the best-known example. It has now become the world’s most-used reference work. Wikipedia consists of articles composed by Internet users all over the world and is constantly edited and improved. Since the use of Wikipedia is free, the company is financed primarily through donations. Wikipedia has ousted many established encyclopaedia publishers from the market, forcing them to give up on an age-old business model.
Local Motors became the first Open Source car manufacturer when it was launched in 2008. Its business model is based on an open design network, allowing engineers from all over the world to contribute ideas for building new cars and to develop them collaboratively on the company’s online platform. Rally Fighter was the first car to be developed and produced on this principle. While only some 150 units have been sold to date, they have cost Local Motors just US $3.6 million, a mere 3 per cent of what the typical car manufacturer spends on developing a new vehicle. Even with only 150 units sold, Local Motors reached its break-even point barely two years after launch.
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