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Bringing Business into FOSS4G and FOSS4G to Business

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I gave this keynote talk at the FOSS4G Asia 2018 that was held at University of Moratuwa, Sri Lanka. I tried to share my experiences and thoughts around open source business at this talk.

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Bringing Business into FOSS4G and FOSS4G to Business

  1. 1. Bringing Business into FOSS4G and FOSS4G to Business 4th December 2018 Gaia3D, Inc. Sanghee Shin(shshin@gaia3d.com)
  2. 2. Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). FOSS4G is the acronym for Free and Open Source Software for Geospatial. <Source: Wikipedia & OSGeo>
  3. 3. <Source: Bloomberg>
  4. 4. What happened behind the scene?
  5. 5. Jeremy Helsby President of Savills <Source: In an interview with Chosun Daily on 28th March, 2015> “So, how do you invest in real estate?” “Just tree things to consider. Location, location, and location” Q: A:
  6. 6. <Source: "The Granularity of Growth", Patrick Viguerie, Sven Smit and Mehrdad Baghai, Wiley, 2008> Where’s the growth engine?
  7. 7. Are you heading in the right direction? Moving Walk Moving Walk Moving Walk Moving Walk
  8. 8. Open source leads the World Economy! <Source: https://www.openstack.org/analysts/> <Source: https://www.oss.kr/oss_trend> <Source: http://www.thegranitetower.com/> Global OpenStack Service Market Estimation Korea Open Source Market Estimation
  9. 9. So, are you ready to get on a rocketship now?
  10. 10. But, in reality…
  11. 11. Michael E. Porter Prof. of Harvard University 5 Forces Analysis
  12. 12. Free Riders < Source: http://piramvill2.org/wp/?p=82 >
  13. 13. < Source: http://piramvill2.org/wp/?p=82 >
  14. 14. Open Source Business Model
  15. 15. Wild Water Vs. Bottled Water <Bottled water><Collecting wild water>
  16. 16. James Dixon’s The Beekeeper Model <Beekeeper Model> <General Open Source Model> < Source: https://wiki.pentaho.com/display/BEEKEEPER/>
  17. 17. Core Product (Basic functions, symbols, experiences) Actual Product (Quality, design, brand, packages) Whole Product (Additional services) Market Offering (Additional benefits offered by partners) 1 2 3 4 What makes difference?
  18. 18. Software Integration Software Services Installation Training Insurance Other SW/HW Certification Support <Whole Product> <Open Source SW> Open Source Model is great at producing SW. But, customers want to buy the ‘Whole Product’!
  19. 19. Commercial Proprietary Business Model
  20. 20. Commercial FOSS4G Business Model
  21. 21. Customers Partners OEMs Open Source Software Community Commercial Open Source Company ‘Go To Market’ Sales, Marketing, Support, Services, Engineering, Product Mgmt. + + + Community can hear more functionalities & requests Customers can gain higher quality software at a better price The bigger community the more resources FOSS4G Ecosystem
  22. 22. Everything looks perfect! The only problem is everybody do the same thing!! And…
  23. 23. Youngme Moon Prof. of Harvard University Heterogeneous Homogeneity
  24. 24. Shampoos in the Market!
  25. 25. ‘Commercial’ Geospatial Products
  26. 26. Difference, difference, and difference!
  27. 27. Do what you do best, and outsource the rest. - Peter Drucker -
  28. 28. More Averaged More Differentiated Complement your weakness Strengthen your strengthsMost people do this. Few people do this. <Source: “Different: Escaping the Competitive Herd", Youngme Moon, Crown Business, 2011>
  29. 29. Albert Einstein Physicist or Violinist
  30. 30. Hanging Pictures on a Wall <Source: https://www.keribrownhomes.com>
  31. 31. "It doesn't matter whether a cat is black or white, as long as it catches mice."
  32. 32. In Summary…
  33. 33. Location, location, and location! Sell ‘Whole Product’ not ‘Open Source’
  34. 34. Differentiate yourself doing what you can do best! Get Job Done – Focus on customers pain!
  35. 35. Thank you! Sanghee Shin(shshin@gaia3d.com)