Neocommercialization

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Description

Concept proposed by Marcin Jakubowski:

"Neo-commercialization means that we can both ‘commercialize’ a product - make it available for sale at competitive prices to others - and help others replicate the enterprise itself. We are interested not only in production, but also in business replication by others, because it’s good for the world. The replication goal is grounded firmly on the open source nature of the entire development program.

The concept of neo-commercialization embodies both our own ability to produce and earn from the products, as well as our interest to disseminate the products via open franchising. Open franchising means that our products and production processes are under an unrestricted, open license, where users are free to decide for themselves as to how they will use, develop, or market the technologies. There are no strings attached. It is our private interest to have people contribute back to open production capacity, but we are not interested in policing the use of our creations. We are interested in maximum dissemination, because we believe that our products have a beneficial contribution to society. People are free to make living from our products, and modify them how they choose."

Components

Neocommercialization has 5 components:

  1. Development of open design
  2. Collaborative microfunding of production facilities
  3. Optimization of product and production process
  4. Production that is competitive with standard commercial enterprise
  5. Replication via training and capitalization assistance

The framework for neocommercialization is localization and decentralization. Small, neocommercial enterprise may be run by one or few skilled workers. It may provide a viable, large-scale production mechanism competitive with mass production if widespread replication of the open enterprise takes place.

Test Scenario

Factor e Farm is currently (1.2008) testing the neocommercialization economic model with its Compressed Earth Block (CEB) press. The CEB press is part of a greater set of products towards which neocommercialization is being applied.

Detail of Process

OSE is proposing the following set of steps for neocommercialization:

  1. We start with an assumption that there’s a package of technologies that should be in wide use, but isn’t. We are proposing a method to put these technologies into widespread production, via a P2P economic process, to maximize human prosperity.
  2. Here is how:
    1. Develop product in the open source framework to OSE Specifications
    2. Co-fund an optimized production facility with voluntary contributions
    3. Produce at competitive cost
      1. R&D costs are risk-shared by a large number of stakeholders
      2. Advanced flexible and digital fabrication facility, also known as Fab Lab is co-funded by volunteers
        1. We call this digiflex production - it requires flexible skill on the part of the producer and is assisted by digital means of machine control
      3. At-cost price structure allows producer to capture significant value from productive labor
      4. Management, marketing, and overhead costs are negligible in small, localized facilities, and competitive waste is eliminated
    4. Replicate facility to enable production capacity sufficient to meet a large market
      1. Training materials are published openly for independent producers
      2. Apprenticeships are available, and are an integral part of the business model
        1. Apprenticeships provide fabrication training, and critical equipment may be fabricated within the apprenticeship period for the trainee to use in a replicated enterprise
        2. Capitalization assistance may be provided via earning opportunities during the apprenticeship period
      3. Open source design repository allows for product replication via digital fabrication
    5. This constitutes an alternative to mass production via flexible specialization and digital fabrication
  3. Such a program should be fundable due to its merits.
    1. Voluntary funding is used to
      1. Fund technological development
      2. Recruit full-time technical developers to head parallel development
    2. Funding continues on monthly cycles based on a proposed budget and deliverable
    3. Funding continues until each project is complete up to a working production facility and a replication training program