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]]>This is part of a serious of blogposts about the REMODEL programme at The Danish Design Centre
The business strategies of the REMODEL participants have really started to mature, and we are almost at the end in which the companies can harvest the output: Namely a newfound strategic understanding of the business potential of open source principles in manufacturing of hardware products, as well as a draft plan for the existing product in their portfolio that they have been working on throughout the process.
To get to this end goal, however, they first had to go the final stretch to uncover more specifically which kind of community they need to build in order to succeed with their new open source strategy.
In this concluding phase the companies first and foremost ran one last iteration of their system map, based on the feedback from the stakeholder interview last time. With that in place it was time – based on the revised system map – to craft a prototype of their desired community eco-system: Looking at who are the key participants, what human resources they will need to establish and maintain it, and lastly which licenses and technical platforms to choose in order to realize it. You can browse the tools and methods for this in the Phase 7 repository on the REMODEL Github page.
Lots of really interesting learning points came forward in this work. Here are a few highlights:
Identifying key stakeholders that are needed for the community to succeed in the first place is absolutely key and such stakeholders should be the first ones to be catered to and looped in. The key question to ask oneself is therefore: How do you motivate them? One of the companies pointed out that as a community builder you need to consider not just the pay-off for yourself, but more importantly what is in it for them (it needs to be a 2-way relationship). Working with motivation of stakeholders in general is a great investment of time.
Proper, systematic building of community requires a solid resource base, so any planning ideally needs to include a cost estimate and business calculation. This is something that we actually had not implemented in the REMODEL program so far, but as it was quickly pointed out by some of the more business savvy team members across the companies, this is something that we will add in coming iterations.
Bottom line is that it is important to have the actual cost estimate sorted since the extent to which such funds can be secured has a great impact on the chance of realizing the idea.
Open sourcing first and then building community afterwards might be the wrong chronological order: In fact, it might be easier to build a community first (without having any open assets for them ) and then figure out what to open source later based on input from the burgeoning community. On one hand this might give a bigger sense of co-ownership among the community members, but secondly, this might even make open sourcing less intimating for business owners, because they can start small and build relationships first as a proof of concept before getting into deeper waters.
For some of the companies, there was the realization that maybe the community (or platform) is the actual product, rather than the hardware. In a digital economy more often than not the real business (and scaling) potential lies in creating a bond with users and offering a continual service rather than simply selling a one-off product. In this train of though the hardware could be seen merely as a connecter of the company and the user, and therefore it makes sense for it to be freely copied in order to scale the volume of relationships; allowing for the emergence of new business opportunities based on, for instance, subscription-based service models.
This will likely not come as a surprise to anyone, but should be mentioned anyway: After the dust has settled after the completion of the REMODEL design sprint several companies noted that they realize how community building is much more complex than they had imagined and that while having gotten a good introduction in the program, they need to dig much deeper: So in really understanding how to build a community they need to learn what REALLY are the drivers? Community building is an art form, and for several of the companies, it became clear that they now need to continue on their own to learn more (Note: We often point people to Jono Bacon’s seminal The Art of Community as a great point of departure).
With this round-up of the 7th and final phase of REMODEL, we conclude the first series of sharing insights, but the sharing continues in other forms: We are writing up business cases on all 10 companies and are also preparing our REMODEL conference to take place on October 9, 2018, in Copenhagen. Stay tuned.
This is the sixth blog post of the REMODEL programme. Read number one, number two, number three, number four and number five here.
Curious to follow the REMODEL program in more depth? Read more here or sign up for the newsletter. Eager to discuss? Join the conversation on Twitter under the #remodelDK hashtag or contact Danish Design Centre Programme Director Christian Villum on [email protected]
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]]>This is part of a serious of blogposts about the REMODEL programme at The Danish Design Centre
As mentioned in our most recent article, REMODEL has design principles baked into the very fabric of the sprint. This means we have dedicated no less than 3 phases out of the total number of 7 phases to actual outreach: Soliciting feedback from actual users, making tests of the emerging prototype and, most importantly, challenging assumptions.
In this phase, the companies received invaluable input from the two international expert mentors from the REMODEL Expert Panel, whom they sent their materials to in the last phase. The mentors were a dream team of global thought leaders and cutting-edge experimenters from across the open source global arena: Benjamin Tincq from Good Tech Lab (Brazil/France), Diderik van Wingerden from Open Innovation (Netherlands), Jaime Arredondo from Bold & Open (France), Lars Zimmermann from Open It Agency (Germany), Peter Troxler from Rotterdam University of Applied Sciences, Paul Stacey from Open Education Consortium and Vasilis Niaros from P2P Foundation.
Each REMODEL company received detailed written feedback from two mentors each, who made a complete review of the materials and then, as part of this 6th phase, engaged in a discussion with the companies in a Skype session to challenge them and their business strategies as well as helped them incorporate the open source principles in the right way.
Following this call, the companies updated your system map and pitch according to the feedback and then continued to solicit more feedback: Namely from their potential community of co-creators by interviewing a key stakeholder in their ecosystem.
Tons of learnings have poured in from this phase, and we will focus specifically on the great feedback we received from our mentors. Moreover, for article brevity, we will limit ourselves to present you with three of the best ones here, while stressing that all the other learnings will be included in our grand documentation at the end of the REMODEL program:
Avoid getting overwhelmed, start out small:
The first dominant pattern in much of the great work being done in the companies is that it is really easy to get overwhelmed by where to start when transitioning towards an open business model for a product, mainly because (as we learned earlier on) it is not necessarily ideal to open source it all; instead it can make sense to open source certain elements in which co-creation lends particular opportunity.
Then there is also the community establishment (and maintenance) work pile (how to do it properly? We’ll get more into that in Phase 7) and there is the whole communication issues in terms of telling the work about it – and finally, and most importantly, who in the organisation will lead this effort and handle as well as grow the community? Do we have the resources and skills or do we need to hire?
The list of questions goes on. All of a sudden this seems to add up to a gigantic task. But it does not have to be, as pointed out by one of the mentors, Diderik van Wingerten: Instead, a much better approach is to start small, really small, and see what works by trial-and-error. Start with one product or just one element in that product. Find a user group among your customers, test it out with them. Then later scale up when a certain approach goes well. Note: As we write up business cases on the 10 companies over the coming months, you will see some concrete examples of this approach.
Make sure you have the right project lead on board:
The manpower/skillset issue mentioned above leads to the next point: It is starting to be quite clear that in order to go from theory to practice and to see the open source-based business strategy/model get implemented requires some very specific rootsetting to actually become realized, noted mentor Diderik van Wingerten in another comment.
In order for a company to step into the open economy, they will need an anchor person who is dedicated to the mission. That passionate person who is keen to face challenges head-on, conquer obstacles and be the guiding light for everyone on the team in order to succeed and ensure the desired yield. Building and implementing new business models is always somewhat of a struggle but becomes even a little more demanding when you are pioneering new innovation, for instance by using open source principles.
But with greater risk often comes greater reward. And for that, you need the right person in the organisation. As mentor Diderik additionally pointed out: “You need someone in the company who understands open source, the value of it, and is keen on making it successful. It is a bit like working according to Scrum: the theory is easily learned in a course, but to really get the value means you do need to have an experienced Scrum Master by your side day today.”
The need for digital adeptness:
And this leads us to another related learning, as presented by another one of the mentors, Jaime Arredondo: Digital aptness in the organization in general, at least in the team that leads the open sourcing efforts. You cannot simply expect that taking a physical product, open sourcing its design (or parts thereof) and expecting your stakeholders (as well as other potential co-creators) to understand that or, on top of that, engage themselves in it in a new way. Your organization needs a digital presence, adeptness in communicating and acting online and moreover be able to lead projects in the digital realm.
Otherwise, the key interaction with your users will either not happen or, if it does, might not lead to the kind of interaction you imagine or desire. This digital adeptness is something that many small to medium-sized manufacturing companies may not have, since their key expertise in the pre-digital age was to manufacture. This is changed with the advent of the Internet and the digital era; companies large and small needs at least a basic foundation (skill-wise, mindset-wise, and leadership-wise) of digital proficiency. This is hardly news to anyone, but – as we learn now in REMODEL – quite crucial for the successful business implementation of open source principles.
As mentioned we have stockpiled loads of more insights and learnings from this work phase and will publish everything over the coming months in the toolkit. In the meantime, we want to use this opportunity to recommend anyone looking for qualified expert business input in open sourcing innovation to get in touch with the REMODEL experts and mentors. You will find an overview of their competencies and other data here.
More learnings to be shared from the next (and also final) 7th phase. Stay tuned.
This is the fifth blog post of the REMODEL programme. Read number one, number two, number three and number four here.
Curious to follow the REMODEL program in more depth? Read more here or sign up for the newsletter. Eager to discuss? Join the conversation on Twitter under the #remodelDK hashtag or contact Danish Design Centre Programme Director Christian Villum on [email protected]
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]]>This is part of a serious of blogposts about the REMODEL programme at The Danish Design Centre
One thing that is really challenging when open sourcing your product is to actually embrace the input coming from your community members: User-driven innovation is hard, and it is not always fun hearing the honest truth from your customers as you engage with them and invite them to become co-creators. This 5th phase in the REMODEL program pushed the companies to start imagining what it means to meet their community.
As the work of the participating companies has started to reach a mature conceptual stage, we have now entered the last half of the program which focuses on reaching out, soliciting feedback from different stakeholders, scoping a potential community and continually iterating and finetuning the new, open source-based strategy for their product. A mix of classic design steps and a venture into the still largely uncharted territory of open source hardware business model making and community building. In other words: The hard part is no longer grappling with understanding the concepts of open source and how to apply it in their own specific manufacturing industry, but rather to start to look beyond their own resources and into the global reservoir of expertise that is the Internet.
In the 5th phase of REMODEL, the 10 companies are starting to engaging with what can potentially become their community of co-creators. Concretely through organizing a hackathon (in a board-game style simulation exercise) to collect feedback from imagined stakeholders like makers, hackers, designers, pro-users and even investors. Next, they revise their “System Maps” and “Open-o-Meters” (as introduced in earlier phases of the program) based on that feedback. Lastly, they send all their materials to their mentors from the REMODEL Expert Panel for review and commenting.
One way to get (early) feedback on an idea or a product – as well as to take the first steps of building a community of co-creators – is to organize a “hackathon”. A hackathon is an event in which external people (and often the general public) is invited to join a session of exploration and co-creation around a challenge set by the organizer of the event: In this case, it would be to give feedback on the open product idea and to help make it better. A hackathon is originally a highly design-driven way of collaborative problem-solving and creative tinkering coming out of the maker-world, but a concept which has increasingly been picked up in the corporate world to create rapid prototypes. In any case, it is a great, quick and informal way of inviting stakeholders (and other curious people) into a high-yield discussion and co-creation exercise.
To ensure the REMODEL program remains lightweight and easy to go through, however, we opted to not have the companies run an actual hackathon, but instead simulate one. This happened through the REMODEL hackathon boardgame:
In the boardgame the company organizes a hackathon: They start out by drawing persona-cards that represent people who you could expect would show up at a hackathon, such as makers, pro-users and designers. The company is also instructed in pitching their open product idea (in front of a camera) to make sure all the imagined attendees actually understands what the company wants them to do. The company then draws question cards that present them with challenging questions and critique as if spoken by the personas. All this fuels a discussion on the company’s work team and gives valuable input that really challenges the existing product concept.
After simulating the hackathon and revising their concept and materials according to the reflections coming out of the hackathon, the company sent their work materials for review by their two assigned mentors from the REMODEL Expert Panel: As an invaluable resource in exploring cutting-edge open source strategies and business models, REMODEL draws upon the expertise of some of the world’s finest experts in the field including business developers, consultants, academics, CEOs, thought leaders and activists. As part of the REMODEL design sprint, the companies get to solicit feedback from these experts and discuss in depth their specific approach towards open source business development.
For several of the companies, the hackathon-exercise was quite a revelation of the kind of blunt input (and expectations) that a vested community can present the community organizer with. The board game had questions such as: “Who is going to offer support to modify the product?” and “I would like to copy and sell your open product, is that okay then?”. The reflections from the companies were many and included:
Stay tuned for the recap of the 6th week of the REMODEL sprint and many more learnings!
This is the fourth blog post of the REMODEL programme. Read number one, number two and number three here
Curious to follow the REMODEL program in more depth? Read more here or sign up for the newsletter. Eager to discuss? Join the conversation on Twitter under the #remodelDK hashtag or contact Danish Design Centre Programme Director Christian Villum on [email protected]
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]]>This is part of a serious of blogposts about the REMODEL programme at The Danish Design Centre
We have now stepped into Phase 4 of the REMODEL programme and have thereby reached the half-way marker. This brings the 10 Danish manufacturing companies, who are exploring new business strategies and models based on open source principles, to the level where they start to have an overview what it takes to go open and harness the full potential of inviting users and customers to join the community surrounding their product and to take an active, contributing role by becoming co-creators.
Up until now – in the first three phases of REMODEL – we have mostly been laying down the foundation for understanding what open source is and how it can potentially be applied to not only software and virtual products, but also on physical products and hardware. With this understanding more firmly in place it is now time to dig deeper and start imagining how the open source mechanisms can be applied concretely in business strategy of the companies’ products.
In this 4th phase of the REMODEL program the companies started to lay the foundation for establishing a community around their product. First they mapped their existing eco-system of stakeholders – from users (or customers) to collaborators, partners and external influencers – before diving into re-imagining what the full scope of the “system” around their product needs to look like in order to potentially create and maintain a community of co-creators to boost innovation and product development. This is done through an exercise called “the system map” – developed by Nicola Morelli of Aalborg University – which helps map money flows, assets building, human resources needed and other critical factors the companies need to put efforts into facilitating (and engaging with), as well as how all these connect to each other. In essence, you visualize the apparatus needed to develop, manufacture and sell the product including all the elements and their interconnectedness. One key exercise we have added in the REMODEL program is then to subsequently identify which of these elements could be open sourced in order to optimize value creation. Here is an example of what that looks like:
Major learnings are really starting to pour in from the work done by the 10 companies as they have reached this phase of the program. For instance, it is becoming more and more apparent that open sourcing hardware is much more complicated than open sourcing software. One on hand because these days most physical products comprise of several elements that are not physical, ie. services, software or other virtual elements that are essential to the application of the physical product but not directly a part of it. For instance online platforms, data streams and even services, which may just as well be opened. But does that this make the product itself open? Concretely, in the REMODEL program, we have included a reworked version the Open-o-meter tool, made by Jerémy Bonvoisin, NAME and NAME, which does a really good job at defining exactly what makes physical products open.
But it performs less well in dealing with these non-physical elements as mentioned before. This made it hard at first for several of the companies to identify firmly what they should open and how to do it. One company said: “We realized suddenly how the Open-o-meter is mostly for products and not services or channels,” and then continued: “However the mindset and approach it represented was pretty clear and we could use that to discuss more broadly what we could open both in hardware and non-hardware terms.”
It is also becoming clear in the work of several of the companies that simply opening up single elements of the product does not actually contribute a lot of measurable increase in value creation. The real trick lies in the community building element of the business strategy; namely how to motivate users to engage with those open elements. The classic “build it and they will come”-principle only goes a little way in crafting a radically new business model. Instead it is the social design of the engagement that make up the secret sauce. This is also why the idea of making “system maps”, as briefly described above, makes a lot of sense because this exercise prompts the companies to consider the relationship between the opened elements and the users and actually design the interaction needed. For instance, what kind of channels or platforms need to be set up (or found elsewhere) to enable meaningful knowledge and idea exchange – and even concrete co-creation activities? And how do we get people to understand the opportunities now being made possible – and engage?
The system map exercise did a brilliant job in igniting creativity in this space. But that doesn’t mean it was easy. One company expressed it very bluntly:
“Honestly, the system map was a true pain in the ass in the beginning as we could not really make it work. Instead we tried to make some sketches on paper, and once they were done we tried again. Second time around it materialized!”. In general the system map was not only really helpful in talking through the different elements surrounding the product (and their interconnection), but it was also very useful to see where value actually appears in the system. Perhaps most importantly: All companies said how fun it was. In contrast to other similar exercises like the Business Models Canvas, which – while very useful in many ways and contexts – was rather quickly discarded in our early REMODEL tests with companies last year because it, quite frankly, was a bit of a drag to complete according to the companies. So kudos to Morelli and his team for making business strategy work playful and fun.
Here is an example of one of the early stage system maps made by one of the companies:
This has also opened up lots of discussion around value creation in the companies: What kind of value is it that the opening of certain (or all) elements can yield? Profit is of course one of the ways the value of any business model can be measured, but is direct increase in turnover the most attractive value a new business model can create? For instance, if you have to balance the cost of creating a stable and active community of, say, a thousand highly competent co-creators against the direct profit it will create in short term will probably not be lucrative. But the subsequent increase in innovation pace, boost in competitiveness and the direct relationship with your core customers in order to learn about their needs and habits in real-time might present something far more valuable. Also in terms of profits down the line. So value really can be measured in many other ways. We’ll get back to that later.
Overall we have now started to get our fingers dirty and are really excited to dive into the challenges of opening up manufacturing and harnessing the business value of open source hardware. Stay tuned for next week!
This is the third blog post of the REMODEL programme. Read number one and number two here.
Curious to follow the REMODEL program in more depth? Read more here or sign up for the newsletter. Eager to discuss? Join the conversation on Twitter under the #remodelDK hashtag or contact Danish Design Centre Programme Director Christian Villum on [email protected]
Originally published in danskdesigncenter.dk
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]]>This is part of a serious of blogposts about the REMODEL programme at The Danish Design Centre
The first three work packages of the REMODEL design sprint – which we call phases – took the companies from having little or no prior knowledge of the concept of open source towards discovering and understanding the basic principles as well as prompted them to start to imagine how that could be used in their own business.
Could the open sourcing of enzyme research in Novozymes or outdoor furniture from OUT-SIDER accelerate innovation? Could open sourcing parts of Grundfos’ water pump systems or TagTomat’s urban systems open up brand new markets? These and many more questions were on the table as the ten companies got ready to dive into the REMODEL programme.
The companies started out by learning the basics of open source principles by getting insights into some successful manufacturing companies who apply open principles already – in varying degrees. We used Tesla to exemplify a company which is only slightly open (and not open source by definition). Then we used OpenDesk as an example of a company which is partially open, and finally, we used Ultimaker to highlight how it works when a company is almost fully open.
These examples showed how going open can make up the foundation of a financially sustainable business strategy in different ways, as well as highlighted how being less open can actually limit a great business potential. This caused some very interesting discussions in many of the companies.
In the second week, the companies started diving into imagining what it would look like if they were to open source a product from their existing portfolio (or parts/elements of it). They also started looking into and selecting who their most important users are, through user stories, and, more importantly, started envisioning what might motivate these users to engage with their potentially open product in order to become co-creators. An interesting side bonus, unrelated to the open source theme, was that several of the companies explained how there were actually disagreements about which segments make up the companies key target audiences. So this provided a good opportunity to discuss some very basic tenets of the business foundation – as well to align around them.
Next, they started transforming one of their key user stories into more detailed storyboards that described the kind of interaction this user would have with the now open product. They also started to identify key elements in that interaction and discussed how to open some of these elements (for instance designs, data, documentation, etc.). These open key elements work as cornerstones in open business models and are the assets which communities of co-creators can potentially engage.
What have we learned from following the companies on their journeys through this first third of the REMODEL programme? It is still early stage, but already now (even before we have even gotten really deep into the realm of user testing, community building and more complex issues like licenses) that opening up products can be a little complex. However across the board of companies spirits are high; maybe even higher than at the outset of the programme: It is clear that they are starting to get a glimpse of the immense power embedded in creating the kind of radical user involvement and co-creation that open sourcing allows.
Stay tuned for the coming updates as the companies dive deeper into the intricacies of opening their products and building new business models for the Internet-age.
This is the second blog post of the REMODEL programme. Read the first one here.
Curious to follow the REMODEL program in more depth? Read more here or sign up for the newsletter. Eager to discuss? Join the conversation on Twitter under the #remodelDK hashtag or contact Danish Design Centre Programme Director Christian Villum on [email protected]
Originally published in danskdesigncenter.dk
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]]>Christian Villum: Giants such as Google and IBM have lately been followed by Canadian D-Wave, the leading developer of quantum computers, which opened up parts of their platform in January. But it’s not just the large, financially strong American technology companies who are painting the picture of open source as a global megatrend. Start-ups and small to medium-sized companies all over the world, and not just within the tech industry, are creating new and exciting open source-based physical products. 3D Robotics, Arduino and the British furniture company Open Desk, which is creating open design furniture in collaboration with 600 furniture creators all over the world, are just a few examples of how open source has become the foundation of some of the most innovative and interesting business models of our time.
Danish Design Centre has dived into this trend for the past year; a trend which is part of a large wave of technological disruption and digitization and which is currently top of mind for many companies. How do you get started with digitizing your business model, and how do you know if open source manufacturing is the future of your company? These questions aren’t easy to answer.
This is why we, in collaboration with a range of partners, have initiated REMODEL, which is a growth programme for Danish manufacturing companies who wish to explore and develop new business models based on open-source principles, and which are tailor-made to fit their industry and their specific situation. REMODEL demystifies a complex concept and helps the company develop economically sustainable business models which can open op new markets and new economies.
We do this by using strategic design tools, which make up the foundation of the programme, and which are based on strong design virtues such as iterative experimentation, the development of rapid prototypes and most importantly, focusing on the needs of the end-user. On top of this, REMODEL also involves a global panel of experts, CEOs and researchers within the field of open source, which allows the programme to pull on expertise from some of the world’s most visionary innovators.
REMODEL consists of a series of design-driven stages. Last year the programme was launched in a testing phase in which the Danish Design Centre collaborated with a handful of Danish manufacturing companies, including renowned hifi-manufacturing company Bang & Olufsen, who went through early modules of the programme over the course of the spring 2017. These modules were reiterated along the way based on the feedback from those tests.
The key learnings from these test as well as workshops with members of the expert panel then became the foundation for the official REMODEL programme, which launched on February 5, 2018, and where 10 pioneering companies are currently working their way through the programme, which has been set up as an 8 week design sprint. The outcome is for them to have gained a thorough strategic understand of the concept of open source hardware as it relates to their industry and furthermore a draft strategy to open one of the existing products in their portfolio.
Learnings, tools and methods from both the test runs and the main programme will be collected and shared in a REMODEL open source hardware business model toolkit, which will be freely available after the program.
On top of this we will be organising a REMODEL knowledge sharing summit in October 2018, where participating companies, the international expert panel, prominent speakers and anyone else who are interested are invited to Denmark to share their experiences and think about the next steps for open sourced-based business models and strategies for manufacture companies.
In March 2018, Danish Design Centre is yet again participating in the world’s largest technology event, SXSW Interactive, in Austin, Texas. We have been invited to host a panel debate as part of the official schedule under the title ‘Open Source Innovation: The Internet on Your Team‘, where speakers from Bang & Olufsen, Thürmer Tools and Wikifactory will discuss the topic in general as well as tell stories from the REMODEL program.
Curious to follow the REMODEL program in more depth? Read more here or sign up for the newsletter. Eager to discuss? Join the conversation on Twitter under the #remodelDK hashtag or contact Danish Design Centre Programme Director Christian Villum on [email protected]
Originally published in danskdesigncenter.dk
Lead image: Open Desk builds furniture as open design. (c) Rory Gardiner
Text image: CC-BY-NC Agnete Schlichtkrull
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