Open Source Strategy Research Blog

Updating business strategy for a world embracing open source

Wednesday, September 12, 2012

Open entrepreneurship: The process of building a born-open business – Pitch for FSOSS October 26, 2012

Using FLOSS tools and methods is a no-brainer for cash-strapped startup companies that are trying to create something of value for their customers while growing their business. Some of these businesses will follow traditional business models and use FLOSS only as internal cost-saving measures. Other businesses are “born-open” and choose to build their business models around the norms and values of the FLOSS movemen. But what does the process of starting and growing a born-open business actually look like? How do founders create a business model that promotes FLOSS values while generating revenue?

Using data gathered from research on entrepreneurs involved in FLOSS, this presentation offers a perspective on the process of starting and growing a born-open business. It provides accounts of how founders from radically different backgrounds engage in a community building process that leads to surprisingly similar business models. Some of the key factors in understanding what is different in born-open business models are discussed.

Historically, the business world has viewed FLOSS as counterproductive for competitive advantage as many of the shared values in FLOSS communities are thought to result in business models that are not sustainable. Yet many entrepreneurs have shown that born-open businesses can work. This presentation examines some of the conditions required for success when using a born-open business model. It highlights why some of the traditional apprehentions might be unfounded and revisits some of the assumptions about value creation and how successful businesses grow.

posted by Mekki at 12:50 pm  

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