Business Model Innovation Map For Open Assets
This section of the toolkit leverages the Business Model Innovation Map (downloadable for reference) to help you identify and explore successful business models that utilize open source elements (software – OSS, data – OD, or hardware – OH).
The toolkit uses a multi-step approach:
1. It starts by helping you clarify your main open asset business objective.
2. Then it supports you to identify the source and form of value you want to create.
3. Finally it offers filtering options to narrow down the possibilities based on the type of open source element (OSS/OD/OH) you’re considering.
| Business model | Open asset type | Example | Value from | Value details | Value Example |
|---|---|---|---|---|---|
| Corporate development without distribution | Open Source Software | Google, Facebook | Indirect Value | Accelerate own development | Reduce own costs |
| Increase quality through participation, Cost avoidance | Open Data | Raw data, basic data, Datasets, databases, Complementary or aggregated data | |||
| Increase quality through participation, Cost avoidance | Open Data | Indirect Value | Increase quality of dat | Avoid costs (e.g. linked data) | |
| Crowdfunding, Reverse bounty, Research/academic proj, Student classroom dev | Open Source Software | Kickstarter, AppBackr,, BountyOSS, Numenta NuPIC; BlueJ | Indirect Value | Achieve a project goal | Push forward research or get experience |
| Memberships and donations, Stipends | Open Source Software | Mozilla, Apache and Eclipse foundations, Google Summer of Code | Indirect Value | Develop FOSS continuosly or specific purpose (e.g. social) | |
| Consortium, Government mandate and funding | Open Source Software | OCaml consortium, OpenStack foundation, Linaro, PRPL | Indirect Value | Strive for a collective mission | Governmental intervention |
| Commercial buy-out, FOSS buy-out | Open Source Software | Xen, JBoss, MySQL, OpenOffice, Blender | Indirect Value | Transition from FOSS to closed | |
| Market disruption | Open Source Software | SAPDB; OpenOffice.org; Sun; IBM; Cisco; Apache TomCat (Sun); | Indirect Value | Disrupt current market | Defacto standards, tech. push Defacto standards, tech. push |
| OH Not-for-profit/NGO | Open Hardware | Indirect Value | Tech. access or innovation | Aim for strategic solutions | |
| Open core, Update subscriptions | Open Source Software | IBM; Cloudera; Eucalyptus | Combined components, Aggregated components | Income from enhanced capabilities (e.g. extensions) or quick updates and bug fixes | |
| Open core, Update subscriptions | Open Source Software | IBM; Cloudera; Eucalyptus | FOSS related services | Income from technical support | |
| Proprietary with FOSS extensions, Delayed FOSS | Open Source Software | Early versions of Blender, Maya, MediaMonkey, Photoshop, Id Software, 3D Realms. | Core assets | Income from technical support and enhanced versions | |
| Dual-licensing/Selling exceptions | Open Source Software | MySQL; Qt; Asterisk; MongoDB; Java | Core assets, Combined components, Aggregated components | Income from additional rights (e.g. right to modify or distribute without FOSS license terms | |
| Packaged suite | Open Source Software | ToolsCloud; Ubuntu; many FOSS operating system distributions; Bitnami | Core assets, Combined components, Aggregated components | Income from convenience of integration (e.g. better interoperability, user experience) | |
| Packaged suite | Open Source Software | ToolsCloud; Ubuntu; many FOSS operating system distributions; Bitnami | FOSS related services | Income from support | |
| Freemium, Dual-licensing, Charging for changes, Open source, Free as branded advertising | Open Data | Datasets, databases | Income from complete datasets or higher quality dataset | ||
| Infrastructural razor and blades | Open Data | Complementary or aggregated data | Income from complementary or dependent data | ||
| OH Maker-oriented | Open Hardware | Components, collection of kits | Income from fast prototyping or do-it-yourself kits | ||
| OH Solution- or product-oriented | Open Hardware | Final prodcuts, solutions | Income from tailoring solutions or providing compatible product | ||
| SaaS without distribution of server software, SaaS with distribution of server software | Open Source Software | Google, Yahoo, Salesforce, WordPress, SugarCRM. | Combined components, Aggregated components | Added features | |
| SaaS without distribution of server software, SaaS with distribution of server software | Open Source Software | Google, Yahoo, Salesforce, WordPress, SugarCRM. | FOSS related services | SaaS income | |
| Auxiliary Services | Open Source Software | FOSS related services | Support, maintenance customization (e.g. OEM) income | ||
| Auxiliary non-software services | Open Source Software | EclipseCon; OSCON; FISL (Brazil); FOSDEM (Belgium); Linux Foundation events | Other services | Income from other assets | Income from conferences, book |
| Sponsorship, Support+services, Demand-oriented plf, Supply-oriented plf, White-label dev, Premium | Open Data | Other services | Income from data services apps, catalogs or availability of data | ||
| Sponsorship, Support+services, Demand-oriented plf, Supply-oriented plf, White-label dev, Premium | Open Data | Complementary or aggregated data | Income from high quality or reliable data | ||
| Advertising | Open Source Software | Mozilla Firefox (from Google as default search engine), mAdServe | Value form linked assets | Advertising (e.g. linked to app stores and software dev. kits) | |
| Selling user data | Open Source Software | Value form linked assets | Get user knowledge | ||
| Software certification | Open Source Software | Value form linked assets | Brand licensing | Standards, trust-frameworks | |
| Corporate development and distribution | Open Source Software | IBM development of Linux kernel, Raspberry Pi | Value form linked assets | Reduce costs (e.g. production/maintenance) | |
| Corporate strategic partnership | Open Source Software | Linux Foundation Visa cards | Value form linked assets | Shared revenue | |
| Supporting primary busines | Open Data | Value form linked assets | Support to primary goals | ||
| OH Customised solution provider | Open Hardware | Value form linked assets | Income from integrated software solution |
Development driven
Internal development
Corporate development
Corporate development without distribution (14)
Organizations (both non-profit and commercial) pay full-time or
part-time developers to customize and extend FOSS for their own
organizational needs; they keep these modifications internal
without distributing them (either because they are too
organization-specific to be generalized, or for proprietary
reasons). Consulting companies or independent software vendors
might use FOSS inside custom projects delivered to customers.
This can be used to accelerate development, or to lower costs
of production of the end product.
- OWN SOFTWARE Contributor aspect: Internal modifications
without distribution
- INDIRECT VALUE: Accelerate own development, Reduce own
costs
Examples
Google, Facebook
OD Cost-saving
Increase quality through participation, Cost avoidance
This model involves increasing participation to co-creation value
with the goal of generating higher margins
- EXTERNAL OD/OH User aspect
- OWN DATA Contributor aspect
- INDIRECT VALUE: Increase quality of data, Avoid costs
(e.g. linked data)
Indirect Strategic aims
Project-based
Crowdfunding (4), Reverse bounty (16), Research/academic
proj. (18), Student classroom dev. (27)
Project-based models involve defined projects with specific
goals, budgets, and timelines. These models can be initiated by
project owners or developers and often rely on contributions
or participation from interested parties. The objective is to
complete well-defined development work through collaborative or
incentivized efforts.
- OWN SOFTWARE Contributor aspect
- INDIRECT VALUE: Achieve a project goal, Make research or get
experience
Examples
Kickstarter, AppBackr, Sun Microsystems’s “$1 Million Open
Source Community Innovation Awards Program”, Mozilla’s “Security
Bug Bounty Program”, BountyOSS, The R language libraries; Numenta
NuPIC; BlueJ
Sponsorship
Memberships and donations (6), 17 Stipends (17)
Sponsorship models involve requesting financial contributions
from individuals or organizations to support the development and
distribution of Free and Open Source Software (FOSS) products.
The organizations that develop the FOSS products retain control
in deciding how to allocate the contributions. Sponsorship can
come in the form of memberships, donations, stipends, or grants.
Some organizations offer various levels of memberships with
different fees, while others explicitly ask for donations or
raise funds through selling branded merchandise.
- OWN SOFTWARE Contributor aspect
- INDIRECT VALUE: Develop FOSS continuously or specific
purpose (e.g. social)
Examples
Mozilla Foundation, Apache Foundation, Eclipse Foundation,
Wikimedia Foundation (MediaWiki platform), Perl Foundation, Tor
Project, GNU LilyPond, Google Summer of Code, Core Infrastructure
Initiative
Strategic funding
Consortium (12), Government mandate and funding (26)
Strategic funding models involve collective efforts and
significant investment from organizations or government entities
to support and steer the development of FOSS projects. These
models are characterized by their structured and coordinated
approach to funding, often with specific objectives and
governance structures to guide the development and direction of
the projects.
- OWN SOFTWARE Contributor aspect
- INDIRECT VALUE: Strive for a collective mission,
Governmental intervention
Examples
OCaml consortium, OpenStack foundation, Linaro, PRPL, AllSeen
Alliance, Open Interconnect Consortium
Buy-outs
Commercial buy-out (24), FOSS buy-out (25)
Buy-out models involve the acquisition of FOSS projects by
larger commercial enterprises or through community funding to
transition proprietary software to FOSS. These models typically
occur at a stage where the product has proven its potential and
can attract significant investment or support. The buy-out model
is often an intermediate stage, transitioning the project from
its initial development phase to a new phase under different
ownership or management.
- OWN SOFTWARE Contributor aspect
- INDIRECT VALUE: Transition from FOSS to closed, Transition
from closed to FOSS
Examples
Xen, JBoss, MySQL, OpenOffice, Blender, and many projects
acquired by Sun Microsystems before it was bought out by Oracle.
Market disruption
Market disruption (19)
The project owner initiates a project or an interested corporate
developer injects code into an existing project in order to
undercut a competitor, change the competitive landscape,
establish a de facto standard, or push a technology in a
direction that is favorable to their business. The development
of a FOSS product is meant to erode or devalue competitor market
share or is used as a bulwark against potential competitors. The
created FOSS project aims to undercut competitive pricing or
separate a competitor from a community.
- OWN SOFTWARE Contributor aspect
- INDIRECT VALUE: Disrupt current market, Defacto standards,
tech. push
Examples
SAPDB; OpenOffice.org; Sun; IBM; Cisco; Apache TomCat (Sun);
Eclipse; Apache Axis (IBM); Apache Harmony (IBM and Intl);
Apache Geronimo; Apple’s WebKit; Twitter’s Bootstrap
OH Not-for-profit/NGO
- OWN HARDWARE Contributor aspect
- INDIRECT VALUE: Tech. access or innovation, Aim for strategic
solutions
Business driven
Asset based
Open core
Open core (11), Update subscriptions (8)
A provider (often also the creator) releases FOSS software and
along with it, they sell proprietary extensions that provide
enhanced capabilities. Examples include operating system or
database extensions, or distinct software linked with FOSS
libraries.
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect: Income from enhanced
capabilities (e.g. extensions) or quick updates and bug fixes
- VALUE FROM SERVICES: Income from technical support
Examples
IBM; Cloudera; Eucalyptus
Open environment
Proprietary with FOSS extensions (20), Delayed FOSS (21)
Open environment models integrate elements of both proprietary
and FOSS software, creating a hybrid approach to software
development and distribution. These models encourage community
contributions to extend and enhance the core software, whether
through APIs, SDKs, or delayed transitions to FOSS. This
approach allows developers to protect their investments while
fostering an ecosystem of innovation and collaboration.
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect: Income from technical
support, Income from enhanced versions
Examples
Early versions of Blender, Maya, MediaMonkey, Photoshop, Id
Software, 3D Realms.
OD Freemium
Freemium, Dual-licensing, Charging for changes, Open source,
Free as branded advertising
Freemium models involve offering a basic version of a product
for free, with the option for users to pay for additional
features, enhancements, or extended use. This approach allows
users to access the core functionality at no cost, while
monetizing advanced capabilities or prolonged access. Various
sub-models within freemium leverage open source principles, dual
licensing, or specific charges for modifications and branding.
- EXTERNAL OD/OH User aspect
- OWN DATA Contributor aspect: Income from complete datasets or
higher quality dataset
OD Parts of tools
Infrastructural razor and blades
A razor-blade business model entails selling a product for a low
price in order to generate revenues from the complementary product.
- EXTERNAL OD/OH User aspect
- OWN DATA Contributor aspect: Income from complementary or
dependent data
Dual strategies
Dual-licensing/Selling exceptions (5)
The software is available under a typical FOSS license. Users
(normally organizational) who want to modify the software and
distribute it without adhering to FOSS licensing terms pay to
obtain such authorization.
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect: Income from additional
rights (e.g. right to modify or distribute without FOSS license
terms)
Examples
MySQL; Qt; Asterisk; MongoDB; Java
Packaged offerings
Packaged suite (15)
A company chooses a set of FOSS, integrates or aggregates this
set of software, and then sells, supports or distributes the
complete package, either as FOSS or maybe non-FOSS, or as
software as a service. The editorial work adds value by
preselecting from a large pool of similar FOSS those that work
well together, or that offer a good user experience. Users pay
for the convenience of the integration.
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect: Income from convenience of
integration (e.g. better interoperability, user experience)
- VALUE FROM SERVICES: Income from support
Examples
ToolsCloud; Ubuntu; many FOSS operating system distributions;
Bitnami
OH Maker-oriented
- EXTERNAL OD/OH User aspect
- OWN HARDWARE Contributor aspect: Income from fast
prototyping or do-it-yourself kits
OH Solution- or product-oriented
- EXTERNAL OD/OH User aspect
- OWN HARDWARE Contributor aspect: Income from tailoring
solutions or providing compatible product
Service based
SaaS models
SaaS without distribution of server software (13), SaaS with
distribution of server software (7)
SaaS (Software as a Service) models provide software over the
internet, typically through a subscription-based approach. These
models can either distribute the server-side software or keep it
proprietary, often using freemium pricing strategies. SaaS
models leverage FOSS principles to varying extents, sometimes
offering community versions of the software while monetizing
enhanced or hosted versions.
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect: FOSS core (Internal
modifications without distribution) with added features for
value
- VALUE FROM SERVICES: SaaS income
Examples
Google, Yahoo, Salesforce, WordPress, SugarCRM.
Software related services
Auxiliary Services (2)
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect
- VALUE FROM SERVICES: Support, maintenance customization
(e.g. OEM) income
Non-software related services
Auxiliary non-software services (22)
Events and other services related to FOSS are used to generate
income. People might register and pay to attend a conference,
and exhibitors pay to demonstrate their products. The event is
sponsored by an independent third-party, not by a creator of
FOSS. This model might also involve the sale of books about FOSS
and other similar services.
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect
- VALUE FROM SERVICES: Income from other assets
OD Premium
Sponsorship, Support+services, Demand-oriented plf,
Supply-oriented plf, White-label dev, Premium
Premium models involve providing high-quality products or
services, often with additional value or guarantees, in exchange
for payment. These models focus on monetizing enhanced features,
support, or exclusive offerings. Premium models can involve
sponsorship, support services, demand-oriented platforms,
supply-oriented platforms, white-label development, and high-end
data products or services.
- EXTERNAL OD/OH User aspect
- OWN DATA Contributor aspect: Income from high quality or
reliable data
Extended business
Advertising
Advertising (1)
Advertisements are displayed directly (in the functioning
software or in the installation process) or indirectly (in the
website or manuals) which generate revenue. The software owner
contracts the ads either directly or through an advertising
network, perhaps using a provided software development kit. In
the mobile app variation of this model, the app store provider
is also involved.
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect
- VALUE FROM LINKED ASSETS: Advertising (e.g. linked to app
stores and software dev. kits)
Examples
Mozilla Firefox (revenue from Google as default search engine),
SourceForge (ad-supported repository), AdBlock Plus (revenue to
grant “acceptable advertising” status), WordPress.com
(advertising on hosted websites), MoPub, mAdServe
Selling user data
Selling user data (9)
Collecting data about usability, user feedback, user preferences,
etc., developers can leverage that knowledge to develop better
applications and features. Developers could instrument
applications like they do today with advertising frameworks to
provide data. FOSS applications could use the framework to use
the provided data to fund applications development.
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect
- VALUE FROM LINKED ASSETS: Get user knowledge
Software certification
Software certification (10)
Software can be provided under a FOSS license, but requires
certification to use a branding mark or claim to be
interoperable. In one variation, original equipment
manufacturers (OEM) might use the certified software in their
hardware devices. In another variation, the project owners
register service marks (for example “Moodle”) around the world,
then create a trust- and royalty-based scheme where only
licensed partners can use the software or project name in their
promotions and service descriptions. The mark becomes a
standard for those looking for support services (e.g. hosting,
development, training, etc.)
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect
- VALUE FROM LINKED ASSETS: Brand licensing
Corporate development and distribution
Corporate development and distribution (3)
Organizations (both non-profit and commercial) pay full-time or
part-time developers to customize and extend FOSS for their own
organizational needs; then they distribute some or all of their
modifications at no charge to the FOSS community for the
continued improvement of the original FOSS product. For hardware
vendors, this can be a way to enable hardware sales or reduce
the vendor’s cost of operating system production and
maintenance. This is distinct from the model where they make
such modifications and keep them internal without distributing
them (that is “Corporate development without distribution”,
described as a distinct business model.)
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect
- VALUE FROM LINKED ASSETS: Reduce costs (e.g.
production/maintenance)
Corporate strategic partnership
Corporate strategic partnership (23)
A FOSS vendor provides preferred marketing opportunities to
selected for-profit vendors that allow them to approach its
membership with a business offer, with the FOSS vendor receiving
a share of any revenue generated.
- EXTERNAL FOSS User aspect
- OWN SOFTWARE Contributor aspect
- VALUE FROM LINKED ASSETS: Shared revenue
OD Indirect benefit
Supporting primary business
This model entails releasing data towards supporting the primary
goals and processes of a business or organization.
- EXTERNAL OD/OH User aspect
- OWN DATA Contributor aspect
- VALUE FROM LINKED ASSETS: Support to primary goals
OH Customised solution provider
- EXTERNAL OD/OH User aspect
- OWN HARDWARE Contributor aspect
- VALUE FROM LINKED ASSETS: Income from integrated software
solution
