Case Study OSS Business Model by svo89594

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									   Case Study:
OSS Business Model


     Dorcas Muthoni
    General Manager
    OPENWORLD LTD
         Kenya

muthoni@openworld.co.ke


   Presented at Idlelo3, Dakar, Mar 2008   1
                         Scope

    OSS SWOT

    OSS Strengths

    OSS Weaknesses

    OSS Opportunities

    OSS Threats

    Some Business Models

    http://openworld.co.ke/

               Presented at Idlelo3, Dakar, Mar 2008   2
                                  OSS SWOT
Strengths                                      Weaknesses

  Stability                                       No dedicated marketing & sales function.
  Security                                        Non-conventional development model
  Robust scalable model.                          Non-conventional distribution model
  Commitment to open source.                      Don't have huge budgets (for marketing
  Always ready for localization                   or infrastructure setup)
  Standards adherence                             Shortage of successful OSS businesses




  Opportunities                                Threats

     Applicable to assignments of any             Patent threats
     size or complexity                           New idea & therefore hard to sell.
     Support from big                             Open Source not yet universally welcome.
     vendors/companies                            (i.e threat that Open Source takes too
     Support from governments                     long to become mainstream




                           Presented at Idlelo3, Dakar, Mar 2008                         3
             OSS Strengths:
      What do they mean for Business?

 Stability

 Security

 Robust scalable model.

 Commitment to open source.

 Always ready for localization

 Standards adherence


             Presented at Idlelo3, Dakar, Mar 2008   4
          OSS Weaknesses:
            What to do?

 No dedicated marketing & sales function.

 Non-conventional development model

 Non-conventional distribution model

 Don't have huge budgets (for marketing or
infrastructure setup)

 Shortage of successful OSS businesses


             Presented at Idlelo3, Dakar, Mar 2008   5
          OSS Opportunities:
         What can you exploit?

 Applicable to assignments of any size or
complexity

 Support from big vendors/companies

 Support from governments

 Learning from successful technology
companies



             Presented at Idlelo3, Dakar, Mar 2008   6
              OSS Threats:


 Patent threats

 New idea & therefore hard to sell.

 Open Source not yet universally welcome.
(i.e threat that Open Source takes too long
to become mainstream

 Human Issues within organizations




             Presented at Idlelo3, Dakar, Mar 2008   7
           Some Business Models

    Subscription business              
                                           Loyalty business model
    model                              
                                           Collective business

    Razor and blades                       models
    business model (bait               
                                           Freemium business
    and hook)
                                           model

    Multi-level marketing              
                                           Direct sales model
    business model
                                       
                                           Professional open-

    Network effects
                                           source model
    business model

    Distribution business
    models
                  Presented at Idlelo3, Dakar, Mar 2008          8
          http://openworld.co.ke/

    Loyalty business model            
                                          Razor and blades
                                          business model (bait

    Subscription business                 and hook)
    model
                                      
                                          Network effects

    Direct sales model                    business model

    Professional open-                
                                          Collective business
    source model                          models
                                      
                                          Multi-level marketing
                                          business model



                 Presented at Idlelo3, Dakar, Mar 2008            9
          http://openworld.co.ke/

    Our services

    Designed products: OpenCabinet, e-SME,
    CallCenter

    Custom Solutions: Cut across software
    development, integration and customization

    Training: Professional Development and Essentials
    Courses

    Professional open-source services: Subscription
    support and hourly technical aid


                   Presented at Idlelo3, Dakar, Mar 2008   10
Thank you and Qs




 Presented at Idlelo3, Dakar, Mar 2008   11

								
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