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FLOSS Strategic thinking: a
proposed framework to support
strategic decision for commercial
     open source companies

  LEONARD Landry - Université Lyon 2
 FLOSS Workshop 2010 - Jena University
Introduction:

 Research question:

 How to form and implement an effective strategy for the
 Open Source commercial companies?



 Strategic intent and configuration implementation (HAMEL &
 PRAHALAD, StrategicIntent, 1989) can’t be efficient without a
 broader strategic FLOSS thinking.




FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies
                                                      LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
Litterature:

 An incomplete literature: a non operational strategic intent
 Economic approach seek to understand the incentives of market to the participation
 in a project FLOSS :



 The second approach, focus on the legal characteristics, studies the framework of legal
 protection of the software (Patent, Copyright) or the characteristics and the role of the
 license in the development (diffusion) of the open projects :



 « Community approach », is a very attractive research topic, since it informs us
 about the open private/public innovation :




FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies
                                                      LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
Literature:
 An incomplete literature: a non operational strategic intent
 FLOSS research field is important and wide.
 We can find this three principals axes of investigation.




 These papers investigate FLOSS phenomena and it different aspect. However, these
 studies do not generate a general Framework. Company executives can begin
 formulating its strategic intent, but they can’t take operational descion.
FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies
                                                      LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
Methods and Cases sudies:

 •Analyze use a qualitative methods and a series of
 interviews in each companies or organizations.

 •First interviews have given first indications that are
 integrated at other converses with actors.

 •The proposed model results from a mix of theory
 and empirical.




FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies
                                                      LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
Methods and Cases studies:
 This research on FLOSS strategy is based on French companies:
 few representative cases to explore commercial open source
 companies.

 •Astartup editing GPL software and its associated services: the
 sample includes little project case and inherent strategy.
 •Large open source companies are represented by two cases:
 1. The first is a FLOSS pure player. Totally based on open
    source software, this medium company generates a
    profitable activity around services and software editing.
 2. The second case is a large company with international
    components.FLOSS has only a little share of company’s
    activity, which is oriented to technology consulting.

FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies
                                                      LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
Methods and Cases studies:
 In the same time, we made few interviews to explore
 commercial open source environment.

 In the model, we argue that FLOSS environment is also
 composed by public or private organization that support actors
 and by association. (not only communities and companies)

 To incorporate such actors, we have contacted, with lower
 detail:
 •a FLOSS association that regroup regional actors
 • a FLOSS specialized organization that escort emerging
 business projects (partly finance by public and regional
 institutions)

FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies
                                                      LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
Model of strategic intent formulation:




FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies
                                                      LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
Model of strategic configuration implementation:




FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies
                                                      LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
Dilemma:

Dialogy: in each dynamics, we find a tension between two terms, two logics
opposed but complementary

 Resolve one of this dilemma or dialogy impose to analyze impact on possible
chooses in others dynamics

Legal dynamics: tension between protection and diffusion

Economic dynamics: tension between opportunity and sustainability

Socio-political dynamics: tension between integration and diversification

Psycho-cognitive dynamics: tension between motivate and mobilize

Technological use dynamics: tension between innovation and regulation



FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies
                                                      LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
Dilemma:
Socio-political dynamics: tension between integration and diversification
• FLOSS environment, not LIMITED to the Community Project Only
• Companies must creating the conditions for collaboration to ensure
consistency, quality work environment project (integration), which groups players
sensitivities, skills, behaviors distinct (differentiation).
• Field configuring event

Psycho-cognitive dynamics: tension between motivate and mobilize
• Manage seduction and reluctance of FLOSS actors
• It is necessary to motivate (to encourage participation) and to mobilize, sensitize
the usefulness of all and appoint the best user developer to development tasks
(arbitration psychology / competence).
• Your actions influence actors thinking and theirs own actions

Technological use dynamics: tension between innovation and regulation
• A source code generator of software and cooperation
• The modularity routing skills
• The ICT as tools for structuring
FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies
                                                      LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
Thank you for your attention

            Questions?

   LEONARD Landry - Université Lyon 2
  FLOSS Workshop 2010 - Jena University

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FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies

  • 1. FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry - Université Lyon 2 FLOSS Workshop 2010 - Jena University
  • 2. Introduction: Research question: How to form and implement an effective strategy for the Open Source commercial companies? Strategic intent and configuration implementation (HAMEL & PRAHALAD, StrategicIntent, 1989) can’t be efficient without a broader strategic FLOSS thinking. FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
  • 3. Litterature: An incomplete literature: a non operational strategic intent Economic approach seek to understand the incentives of market to the participation in a project FLOSS : The second approach, focus on the legal characteristics, studies the framework of legal protection of the software (Patent, Copyright) or the characteristics and the role of the license in the development (diffusion) of the open projects : « Community approach », is a very attractive research topic, since it informs us about the open private/public innovation : FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
  • 4. Literature: An incomplete literature: a non operational strategic intent FLOSS research field is important and wide. We can find this three principals axes of investigation. These papers investigate FLOSS phenomena and it different aspect. However, these studies do not generate a general Framework. Company executives can begin formulating its strategic intent, but they can’t take operational descion. FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
  • 5. Methods and Cases sudies: •Analyze use a qualitative methods and a series of interviews in each companies or organizations. •First interviews have given first indications that are integrated at other converses with actors. •The proposed model results from a mix of theory and empirical. FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
  • 6. Methods and Cases studies: This research on FLOSS strategy is based on French companies: few representative cases to explore commercial open source companies. •Astartup editing GPL software and its associated services: the sample includes little project case and inherent strategy. •Large open source companies are represented by two cases: 1. The first is a FLOSS pure player. Totally based on open source software, this medium company generates a profitable activity around services and software editing. 2. The second case is a large company with international components.FLOSS has only a little share of company’s activity, which is oriented to technology consulting. FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
  • 7. Methods and Cases studies: In the same time, we made few interviews to explore commercial open source environment. In the model, we argue that FLOSS environment is also composed by public or private organization that support actors and by association. (not only communities and companies) To incorporate such actors, we have contacted, with lower detail: •a FLOSS association that regroup regional actors • a FLOSS specialized organization that escort emerging business projects (partly finance by public and regional institutions) FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
  • 8. Model of strategic intent formulation: FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
  • 9. Model of strategic configuration implementation: FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
  • 10. Dilemma: Dialogy: in each dynamics, we find a tension between two terms, two logics opposed but complementary  Resolve one of this dilemma or dialogy impose to analyze impact on possible chooses in others dynamics Legal dynamics: tension between protection and diffusion Economic dynamics: tension between opportunity and sustainability Socio-political dynamics: tension between integration and diversification Psycho-cognitive dynamics: tension between motivate and mobilize Technological use dynamics: tension between innovation and regulation FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
  • 11. Dilemma: Socio-political dynamics: tension between integration and diversification • FLOSS environment, not LIMITED to the Community Project Only • Companies must creating the conditions for collaboration to ensure consistency, quality work environment project (integration), which groups players sensitivities, skills, behaviors distinct (differentiation). • Field configuring event Psycho-cognitive dynamics: tension between motivate and mobilize • Manage seduction and reluctance of FLOSS actors • It is necessary to motivate (to encourage participation) and to mobilize, sensitize the usefulness of all and appoint the best user developer to development tasks (arbitration psychology / competence). • Your actions influence actors thinking and theirs own actions Technological use dynamics: tension between innovation and regulation • A source code generator of software and cooperation • The modularity routing skills • The ICT as tools for structuring FLOSS Strategic thinking: a proposed framework to support strategic decision for commercial open source companies LEONARD Landry – Université LYON 2 -FLOSS Workshop 2010
  • 12. Thank you for your attention Questions? LEONARD Landry - Université Lyon 2 FLOSS Workshop 2010 - Jena University