Value Creation in Open Source Hardware CommunitiesCase study of Open Source EcologyManuel Moritz, Tobias Redlich, Jens Wulfsberg
Institute for Production Engineering
Helmut-Schmidt-University, Hamburg (GER)
www.hsu-hh.de/laft www.openproduction.info @OpenProduction
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Following OSS, tangible objects/products whose relevant
documentation and designs (schematics, assembly instructions,
bill of materials, design files, source code etc.) are freely
accessible
Freedom to study, modify, distribute, make, and sell the
design or hardware based on that design
Users gain full control of technology
Efficient and rapid innovation process based on free circulation
of ideas, knowledge sharing and collaboration
Examples: 3D printers (RepRap), electronics (Arduino), automotive
(Local Motors), drones (ArduCopter), medical equipment (handiii)
I. What is Open Source Hardware?
II. Potentials and Challenges of OSH
Lower R&D costs (via Open Innovation)
Better products (peer review, customization)
Standardized, modular, adaptable products
Lower/no legal fees (no patenting)
Quicker time to market
Collaboration (open standards, partnerships)
Ethical brand bonus (educational, sustainable)
Lower cost for support and marketing (viral effects)
Cheap employer marketing
Legal risks (copyright vs. patent law)
No governance mechanisms
Liability/warranty/safety (for users)
Project outcome unclear
Motives and incentives of contributors diverse
Constant attractiveness of the project required
Uncool projects are not supported
Interoperability OSH/closed source
III. OSH Business Models
IV. Case Study: Open Source Ecology
Non-profit (hybrid) OSH organization, located in Missouri,
founded in 2003 by Marcin Jakubowski
Network of farmers, engineers and supporters building the
Global Village Construction Set
GVCS entails 50 modular, low-cost, high-performance
machines that cover all relevant areas of living and cultivation
(agriculture, energy, production, transportation )
Primary Value Creation
Products
build &
sell
Support
installation
service
repair
Service
printing
consulting
Hardware
on-demand
customize
Dual
Licensing
freemium
Secondary Value Creation
Education &
Training
Workshops
Lectures
(Crowd)
Funding
Campaigns
VC
Channels
Ads
Certificates
Donations
Supporters
Sponsors
Foundation/
consortium
Membership
fees
Outcome of OSH projects are tangible products that need to be
built, installed, adapted, serviced etc.
OSH organizations apply a mix of different models
Primary value creation is direct value creation through or with
the use of OSH
Secondary value creation entails activities that support OSH
processes or spread knowledge about OSH
Value Creation Process
Activities
Strategies
Value Creation Process
Collaborative production
Parallel development/division of labor
Best practise
Construction set approach
Scalable processes and projects
Sustainability, sufficiency
Open franchising of business models
Closed-loop-manufacturing
Agility
Efficiency (on global perspective)
Local approaches (sourcing, manufacturing)
Distributive economics
Value Creation Artifact
Structure
Function
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Value Creation Artefact
Open source (development, documents etc.)
Low-cost
Modular, scalable (component and machine)
Robust, simple design
Flexible fabrication
High performance (industry standard)
Industrial efficiency (productivity standards)
Lifetime design
Flexible (multi-purpose)
User-serviceable
DIY (control, know-how)
Value Creation System Structure
Organization
Coordination
Value Creation System Structure
Resilience/Adaptability
Replicable enterprises
Viability
Flexible fabrication
Transparency
Participatory
Adhocratic
Network of like-minded communities
