WEEK 5 COURSE HANDOUT

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1 WEEK 5 COURSE HANDOUT

2 CROWDSOURCING

3 What is the cause of Crowdsourcing?

4 High modularity What are the conditions for crowdsourcing? Low granularity

5 OPENSOURCING

6 What is free software? Allows anyone to run the program freely GPL

7 What is open source? Software where source code is provided with binaries

8 Individual contributors Students / hobbyists Corporate employees Professional organisations How is open source software created? Created by groups of people around the world

9 Gift economy Revenues / employment opportunities Why create free software? Reaction to industry control Satisfy a personal itch Self actualization in a community of peers

10 To reduce costs Higher security, lower virus threats Less re-invention of the wheel Why are organisations using open source? Allows customisation Licensing allows easy distribution Easier to switch suppliers

11 Open source business strategy Innovation and IT Management OS Business Strategy Product Strategy Service Strategy Platform Strategy Firm owns product and retains copyright Give product as open source & charge customers for customisations & extensions Example - Red Hat Build service skills around open source Revenues are based on service billing for maintenance, extensions and support Create an open source platform that is used to create other commercial products Example - Java. Eclipse

12 Open source licenses Innovation and IT Management License Author Modification Patent grant Should source be made available when modified? Apache License Apache Software Foundation Allowed Yes Free to distribute without source code BSD License Regents of the University of California Allowed No Free to distribute without source code GNU General Public License Free Software Foundation Allowed No Source code should be made available MIT license / X11 license MIT Allowed No Free to distribute without source code

13 MANGING OUTSIDE INNOVATION

14 Open innovation What is outside innovation? Crowd innovation

15 Challenges for managers Innovation and IT Management What type of innovations can be set up for external innovators? What will motivate external innovators? How can a platform be designed to allow innovators to work on problems?

16 Type of innovations Innovation and IT Management Crowdsourcing works best for relatively unresearched or open problems for situations where knowledge accumulation helps communities build on past knowledge

17 Motivation for external innovators Innovation and IT Management Income Personal satisfaction Career Prospects Extrinsic Motivations Gift (expectation) Reputation Professional Status Intrinsic Motivations Intellectual challenge

18 Platform design Innovation and IT Management External Contributors Customers App Developers Platform Android users Android App (Google Play) platform

19 . This document has been authored by Rahul De and is permitted for use only within the course "MOOC Name" delivered in the online course format by IIM Bangalore. No part of this document, including any logo, data, illustrations, pictures, scripts, may be reproduced, or stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior permission of the author.

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