Went to the mall, got very bored and started having these crazy thought....
I have been thinking about this group. We have all been brought here together by a specific technology that we are all starting to trust. But what really fascinates me and, I did anticipated, is that now we are an organization of 205 members, highly qualified and motivated people, from every part of the globe who have something in common and trust each other. Our work is already beyond that of sharing web2py knowledge. Now some of you are working on marketing. But there is more: if I needed to know, for example, how to open a bank account in China, I am sure somebody here would explain it to me within 24hrs. If I needed to find somebody to complete a web2py project for a client and I could pay for it, here I would find people willing to help me.
If we were a corporation we’d be the hell of a corporation!
So I thought that perhaps we can try create something revolutionary. People have invented Open Source Software, why don’t we invent the Open Source Corporation? I do not know yet what it is and how to make it work but I think together we can figure it out.
Please bare with me for a little longer.
Like a corporation we have a product, web2py, but do not sell the product because it is free. We sell our knowledge of the product, hence the Members of the Open Corporation are Consultants.
The goal of any corporation is to maximize the wealth of the shareholders. If we were to be some form of cooperative the Members would be both the workers and the shareholders therefore everybody would contribute in proportion to their consulting income and receive in proportion to their income. Bottom line: you make something with web2py, you sell it, you keep all the money. That’s it. Could not be simpler. If you were to give money to the Corporation, the Corporation would have to pay taxes on it, then give you back the leftover percentage and you would end up paying taxes twice. Why bother collection money at all?
So what’s the point? In some sense and Open Corporation could be something like a Club of Consultants. There would be benefits and duties for the members:
Members, when they bid for a contract, can claim to be part of a bigger organization and thus be more competitive (“how will support this product if you die?”)
The Corporation would also collect information about previous contracts thus proving some legal help in drafting new contracts.
Some Members may be better at finding clients and others may be better at developing solutions. The Corporation would help mediating and matching them, even across countries.
Members, would be listed on the Corporation web page including their profile and skills. Potential clients of the Memebers/consultants would be able to verify the information.
Members would be required to follow a code of conduct and share all (or some) of their code, information, and copy the contracts (taken as a members of the corporation) with the corporation.
There would be a centralized database of members, contracts, clients, job opportunities, ideas, code, tips, surveys, only accessible to members.
Anybody can ask to be a members and there will have to a committee that verifies the credentials of the applicants and decides on admissions.
If a member breaks the code of conduct he/she is out. They could also get out at any time as long they do not break agreements with other members.
The Corporation would have a centralized body for the only purpose of running a database with the core information, and taking care of global advertising.
National subcommittees would be in charge of local advertising campaigns and would collect funds among members for that purpose.
Members could be freelance consultants, people already employed by a different organization (if they do not complain, we do not complain), or entire companies. We would want to be associate with some professional organization. We could be sponsored by vendors of complementary solutions (hardware vendors, web hosting services, etc.)
While I think there are benefits of building such a thing there many issues I have not figured out yet. For example the organization will need some money to carry one its daily operation. It could collect small duties among members and/or ask corporate members to pay a fee. There need to be a reward mechanism to motivate people to share more code and more info with the rest of Corporation and void the “free rider problem”. One way would be to give titles to members (CEO, CTO, Manager, Regional Manager, etc), build a hierarchy initially based on seniority and using online voting to decide on promotions. Even if a title does not mean a salary (nobody would get a salary from the corporation) it does mean public recognition and thus potentially more/better contracts.
The most complex issue here is legal.
I am not suggesting we change this mailing list into something else. I am just thinking we can brainstorm this idea and if there is a next step, people from this list and people not on this mailing list, will be free to ask to join the new entity.
Am I gone crazy?
Massimo
--
'''过程改进乃是开始催生可促生靠谱的人的组织!
PI keeps evolving organizations which promoting people be good!
'''http://zoomquiet.org
Pls. usage OOo to replace M$ Office. http://zh.openoffice.org
Pls. usage 7-zip to replace WinRAR/WinZip. http://7-zip.org
You can get the truely Freedom 4 software.
On May 4, 2008, at 10:15 AM, Chris Leonello wrote:
>
> This is a fascinating idea. If I understand what your suggesting, this
> would be something between a traditional consulting company selling
> services for a technology(e.g. web2py) and a service or agency which
> connects clients with developers. Something between but also
> something more.
>
> If I understand what yarko was saying (this is what I think at any
> rate), a good corporation is not dependent on a specific product or
> technology. What makes a good corporation is the people and processes
> in place to identify products/service which fulfill customer's needs
> (i.e. product/market research and development), bring those to market
> (i.e. development and execution) and foster client relationships (e.g.
> business pursuit and support on both the front and back ends of the
> process).
I agree with you.
> So, connecting the dots, this "corporation" would be more about
> providing a process/structure for mostly independent developers to
> execute solutions for clients. The added benefit to clients would be
> the backing and support of a corporation behind the individual
> developer. Although it would be tied to a specific technology
> (web2py).
Only because this is what unites us and, to start, this is what can
give us an edge. It should not be limited to web2py but we should
have a set of open source core tenchology that members are familiar
with and are willing to support. We could include postgresql, apache,
openoffice.
> I see a lot of potential and upside here. Some of the issues which
> need addressed, though:
>
> What would be the business model for the corporation? Being an
> Engineer, I hate terms like "business model", but, if the purpose is
> to provide revenue for the "members", there needs to something in
> place to try and make that happen. It has to be more than an co-op of
> developers.
I agree this needs more thought but I am not sure we need a proper
business model here. The corporation in itself does not need to
generate revenues. Only the members need to do it and they are free
to do it as they please, since they keep the money the make. I think
of it more as a club that helps the members find jobs, share
information and helps the clients find qualified people. If the
corporation, for example, were allowed to receive any form of
funding, the investors would expect return on investment, this would
mean that some of the wealth produced by the members would have to be
used to pay back those investors. While this is common in many
industries, this model is not at all necessary in our line of
business since we do not need expensive equipment to do our job, thus
we do not need investors. We already have what we need: qualified
people! The only common expense is advertisement. We would have to
collect money from members for regional/local advertisement. There
are cheap ways to do advertisement anyway.
> The issues independent developers face trying to supply support to
> clients can't be overlooked. This corporation could solve that
> problem. There needs to be a mechanism in place for this. Someone
> else in the corporation needs to be familiar with the other member's
> product. How would this work?
That is why it cannot be completely open ended. We need to settle on
a set of core technologies and make list.
> There could be issues with non-disclosure agreements. Not necessarily
> legally, the corporation can provide the legal mechanisms to handle
> these. Clients may not feel comfortable with their proprietary data
> being available to members of such a loosely organized company,
> however. That is, how to "sell" the new "open source" corporation
> idea to customers so they like it better than the other guy.
This is not a problem as long as any non-disclosure agreement is
between the "corporation" and "the client". If the client prefers an
agreement between "the consultant" and the "client" then the
corporation would not collect information. This needs to be worked out.
> I am very interested in this idea. I'd like to be involved to help
> develop this idea however I can. Truthfully, I have a bunch of ideas
> on corporate structure, delegation, authority, revenue sharing, etc.
> It's difficult to brainstorm in this format, though.
Let's see how many people are interested and eventually we will move
this discussion on another thread and open a wiki to start sharing idea.
If anything else comes up to your mind, please let us know.
Massimo
You are an expert in Open Source Software and you want to start your
own consulting company. You will face some problems. They will ask
you: "how can we trust you?" "What have you build so far?" "what
happens if you go out of business?".
An individual or a small consulting company may have a hard time to
answer these questions. If we put ourself under one umbrella, let's
call it the Corporation for now, it may be easier to answer those
questions. The Corporation could also help you with advertisement,
marketing and some legal questions. The corporation will help you
match your skills with those of other members of the corporation in
order to build small groups and solve bigger problems faster.
You may be already employed but perhaps want to make some money on
the side and do not want to open your own consulting company. The
Corporation could help you because it would bill you customers and
pay you as capital distribution. The fact you are already employed
would benefit everybody else too because we could claim: "our members
work for IBM, Google, AT&T".
You may be a student or a professor and do not want to spend the time
forming your own company. The Corporation could help you find other
members who want to subcontract you jobs.
The corporation would not be making money from your work. It would
act more like a club or an "international association".
If our expertise were in car manufacturing we would need investors to
build us a factory and we would need a revenue scheme to attract
investors. Our line of business is software development and we
already own our means of production (our own laptop). The Corporation
would still have expenses but we can keep it lean and it would live
on a small yearly fees. If the Corporation were to make a profit it
would have to take part of the revenues of the members. To what
purpose? Hire new people? But the Corporation would not hire anybody.
Buy office space? What for?
In the beginning most of the clients will come from the bottom
(individual members will bring in project, will complete them and
will give the Corporation a reputation) but eventually clients will
start coming from the top (contact the Corporation because of it
reputation). At this point the Corporation may decide to keep a
finder's fee before assigning the to local members/consultants.
Agree with Yarko's analogy to the concept of FDA approval. The
Corporation would certify its members. Not everybody will be able to
join. At the beginning everybody on this list will be able to join
(if they ask), then only existing members can propose new members and
there will be a committee that checks and validate resumes. I do not
think the Corporation should check/approve the work of the members
but should check the satisfaction of the Customers (surveys) to make
sure the Member behaved appropriately and did not damage the image of
the Corporation. Over time the Corporation would build a database of
business solutions that Members can use to provide better service to
the customers.
Members would would be able to use the Corporation logo and name on
business cards and stationary and access to the Corporation database
of clients.
Would this be valuable to people?
Over time the value of the Corporation would surpass the sum of the
value of its parts and we may rethink the business model.
There are many legal issues here mainly related to billing, taxes and
liabilities. This is not my area.
Massimo
>
> Hi Massimo,
>
> Very encouraged by the lively discussion.
>
>> To clarify what I have in mind (and everything is negotiable). I am
>> not talking about something to capitalize on web2py.
>
> The corporation then wouldn't be limited to web2py solutions? I think
> this is necessary, since clients often demand (right or wrong) a
> specific tool or language that members may be quite capable of
> implementing. It would be a shame to pass up those opportunities.
> Also, although I feel web2py is the overall best web framework around,
> it is just a tool. To solve a problem, you have to pick the right
> tool or combination of tools.
We would have to build a toolbox and I agree web2py should play an
important role in it but, whatever is in toolbox, the corporation
should have a longer lifespan than any of those tools.
> You mention 3 classes of members:
>
>> You are an expert in Open Source Software and you want to start your
>> own consulting company.
>
>> You may be already employed but perhaps want to make some money on
>> the side and do not want to open your own consulting company.
>
>> You may be a student or a professor and do not want to spend the time
>> forming your own company.
>
> I believe you will find many interested developers in these groups.
> Even if you don't find a lot of interest on this group, you would find
> a few very interested developers among most other open source groups.
> How do you determine if/when to pursue this idea further? Based on
> response from this group? Do you have other channels looking for
> interest?
No. I have not discussed it with anybody else. It would be wise to
discuss with a lawyer and an accountant.
>
> You mention these benefits:
>
>> ..."how can we trust you?" "What have you build so far?" "what
>> happens if you go out of business?"
>> ... it may be easier to answer those
>> questions ...
>
>> ... The Corporation could also help you with advertisement,
>> marketing and some legal questions. The corporation will help you
>> match your skills with those of other members of the corporation in
>> order to build small groups and solve bigger problems faster.
>
>> Corporation could help you because it would bill you customers and
>> pay you as capital distribution.
>
>> members who want to subcontract you jobs.
>
> Again, this (should) appeal to many developers in those categories (it
> does to me), who only have time to focus on doing work, not billing,
> legal, marketing, etc. Who does those tasks, though? Is it hired out
> by the corporation? if so, how is payment for those services
> equitably charged to the members. Do they all pay the same fees?
> Different members will require different levels of help in these
> areas. Of course we can't really answer these questions at this
> point. These are items that I am thinking on though.
I am not sure how much the corporation should actually do other than
dealing with information in the most automated possible way. for
example I am not sure we can afford to have the corporation hire
layers (my experience is that they cost a lot and do very little) but
we can maintain of list of template contracts (posted by members and
anonymized) and a list of trusted laywers (also posted by the
members) with their fees and contact information. We could negotiate
rates for members.
The corporation could setup a web site that would print a PDF bill,
allow the customer to pay by credit card and 1) expense it
immediately by paying the member as subcontractor or 2) compute taxes
and credit the member for the remaining part as capital distribution
(I am assuming this is the legal way of doing it, we may need more
research). The corporation would pay an accountant once/year to sort
out details and pay corporate taxes.
>> The corporation would not be making money from your work. It would
>> act more like a club or an "international association".
>
> I think yarko was on to an idea with the social cause aspect.
> Although I would have to disagree that the corporation itself would
> focus on having a social conscious or mission. I think a corporation
> styled after a co-operative association with a very flat and
> decentralized structure would gain traction among the open source
> community, though. I think most of us working with and contributing
> to open source do it for something other than monetary gain.
I agree. I am not talking about something with a social cause
although I think there social value in having (software) products
developed by people who care as opposed to by underpaid employees of
large corporations who's only goal is increase the wealth of the
investors.
_real_success depends on methods for
more than just implementing solutions - but how to reach optimal
solutions (e.g. efficiency).
Massimo
Massimo
Welcome to all these ideas!
I think this will need a lot of thinking, but maybe it's the next step
in the software evolution.
+1 for me
Greetings from Argentina