Open Business
Open business = a business that operates around the principles that are similar to those of the free software and open source movements, i.e. with 'free' and 'open' content.
There is also a website and weblog of the same name, monitoring developments in this area. See below.
Definition
Our own proposed definition is the following:
- An open business is based on open forms of content and does not rely on IP protection
- An open business has a partnership-based (non-manipulative) relation with its customers, the community of producers of the open content, and co-nurtures the Commons from which it lives
- The open business is run collaboratively, in a non-authoritarian fashion and uses transparent processes
See here for a more detailed look at the definition of Open Organizations
Discussion of Open Business characteristics
Definition by Openbusiness.cc
http://www.openbusiness.cc/2006/06/05/what-is-an-openbusiness-part-ii/
A recent thread on OpenBusiness.cc sought to identify characteristics which merit or disqualify a business from being 'open'. The following positive indicators summarise parts of the discussion. Among other dimensions the main concern appears to be:
Should our definition of "Openness" include a normative dimension?
If "Openness" is essentially a smart strategy to make profits whilst enabling users to share content, yet does not allow them to make derivatives, is this a boundary which should apply?
It may be important to remember what Richard Stallman, the father of free software, notes in this regard: "While free software by any other name would give you the same freedom, it makes a big difference which name we use: different words convey different ideas". He is right and opposed the term Open Source software, because he wanted to make a normative point. Free software is associated with the freedom to tinker, adapt and build upon, not with giving away product for gratis. In this sense "Free business" might have been the better term for describing a trend, which leads to more open business practises. But we do not seek a definitive definition for what Open Business is, rather we are seeking to find common characteristics of what an OpenBusiness is, as delineated from traditional business structures, norms and conventions.
Practices 'libre' / 'copyleft' notions of IP
Typically this dimension implies a business that uses Creative Commons licenses to distribute their digital works or a comparable spirit in its firm's dealings, particularly in its licensing practices. It's a matter of contributing to the commons or public domain by avoiding private appropriation. There are many conceptions of what it means to be 'libre', electing not to restrict distribution of your digital works being a low standard, whilst many argue derivations must be permitted.
To which aspects of a business can these notions be applied? The concept of 'code' now extends from its original software context to the materials and resources underlying a creative project. For example in a musical context, code entails multi-track recordings, 'parts' or samples, perhaps even details of the specific artists and recordings which influenced a product. How the notion of code can be extended in this regard is an especially interesting topic on which contributions and examples are needed.
In this regard, a further distinction deserves more thought. Whilst it is fairly simple to designate outputs as open, it is also possible to pursue open notions to your production processes or inputs. For example, a business might focus on works resulting from collaboration or decentralised production, or it might encourage derivations from CC-licensed works.
Sharing content and services i.e. giving something away gratis
By giving something away for free, a business can develop extensive networks, communities and platforms which can then generate opportunities to create revenue. Precisely what a business has to share is a function of its particular business model. For example, record labels (e.g. Beatpick, Loca) can facilitate the sharing of their recordings whilst charging for higher quality versions, whilst web 2.0 services such as Flickr offer free platforms for sharing of pictures.
There is however, given its capacity for generating revenue, a potentially cynical and profiteering aspect to this approach to sharing. For example, criticism has recently been levelled at MySpace for its submission to Rupert Murdoch, and subsequent revision of its conditions of usage.
Progressive governance and organisational structures
It may be possible to share the code underlying a business, meaning the intricacies of administering a sustainable business. This might involve writing and publishing a logistics guidebook, covering a range of simple and generic organisational practices, or perhaps even detailed examples on how to structure deals or agreements with media partners, suppliers and clients. Publishing and sharing this aspect of code is heretical in the culture of 'industry secrets', yet it is very appealing to those accustomed to the principles of free-software.
Also, open can indicate that the business itself has been created cooperatively and owned collectively, as opposed to the more traditional private/public ownership structures. Workers are greatly incentivised by having a higher stake in a concern, in part from feelings of responsibility and opportunity, but also from the likelihood of higher remuneration. A business can be more open still if it is owned by its members / users, managed by its stakeholders and develops entirely transparent accounting procedures.
"A business that does not use copyright or patents to privatise intellectual contributions, but leaves it in the public domain, while building a service model around it. An open business model uses and enriches the Commons, focusing on the monetisation of the services."
"I consider a company which depends on secrets to be less open than one which relies on patents, which is in turn less open than one that relies on neither."
"'Open Businesses' create value for people and companies without slowing down economic or cultural flow with unnecessary fences. Rather than locking customers into a gated world, Open Businesses put the customer at the centre of their value proposition, collaborating with competitors to use standards to improve customer's actual experience."
"Open Business is really a return to business or commerce fundamentals."
More Information
Please check our directory of P2P Business Concepts [1] and our directory of P2P Companies [2].
Some related Delicious Tags to monitor developments:
The Open Business site and weblog
URL = http://openbusiness.cc/
Information on the Open Business site
"Creative Commons England/Wales board-member Christian Ahlert has just launched OpenBusiness. This is the result of an intensive research project into "open" business-models that don't rely on overbroad copyright/patent/trademark rights or are based on free/open source software and open content under Creative Commons licenses. It consists of case-studies aimed at entrepreneurs and funders who are trying to get their heads around what the characteristics of a successful open business are." (from cory doctorow at boing boing)
"The two main aims of the openBusiness project are to build an online resource of innovative business models and to publish this resource in hardcopy as The openBusiness Guide. This website has been designed to gather business models from around the world.
Editorial Process: Using this website, openBusiness is gathering business models and collating community comments and suggestions to create a comprehensive resource that supports both new and existing open business ideas. Before becoming a part of The Guide, an idea is first published as a model. This starts with a member of the OB community submitting a model, which is immediately published onto the site. Once a model is published the process of peer review begins. All members of the openBusiness site are invited to comment on the models. The discussion that members generate will produce ideas, strategies and revisions which will assist the author to further develop or fine-tune their own business. After this process of peer review the model will be transferred into The openBusiness Guide. The Guide is a wiki, meaning that every user is able to contribute to the guide and correct mistakes or omissions. The collection of models on the website will serve as the main source for content in The openBusiness Guide."