Difference between revisions of "Business Patterns"

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Since Fab7 there is talk (and questions) about the 7 "business models" we have identified -- I'd rather call them business design patterns, since they revole around some basic thoughts how a FabLab could generate enough income to sustain itself.  The 7 patterns are:
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Since Fab7 there is talk (and questions) about the 7 "business models" we have identified -- I'd rather call them business design patterns, since they revole around some basic thoughts how a FabLab could generate enough income to sustain itself.  The 7 patterns are:  
  
#grant-based
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#grant-based  
#embedded in institutions
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#embedded in institutions  
#operating as a prototype shop
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#operating as a prototype shop  
#access fees
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#access fees  
#educational activities<br>
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#educational activities<br>  
#techno tourism
+
#techno tourism  
 
#gurus for hire (managers of existing labs offer their insights for money to new labs)
 
#gurus for hire (managers of existing labs offer their insights for money to new labs)
  
Labs typically use a mix of these models.
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Labs typically use a mix of these models.  
  
== grant-based ==
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== grant-based ==
  
Main income stream: public (or private) funding
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Main income stream: public (or private) funding  
  
Main service provided: solving some problem the funding body has allocated money for
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Main service provided: solving some problem the funding body has allocated money for  
  
== embedded in institutions ==
+
Main advantage: running costs covered typically for several years
  
Main income stream: none, but running costs are covered by parent institution
+
Main disadvantage: dependent on goals of funding body which are outside the control of the lab
  
Main service provided: adding to the (core?) activities of parent institution (e.g. education, providing a workshop, enabling certain activities)
+
== embedded in institutions  ==
  
== operating as a prototype shop ==
+
Main income stream: none, but running costs are covered by parent institution
  
Main income stream: work for hire
+
Main service provided: adding to the (core?) activities of parent institution (e.g. education, providing a workshop, enabling certain activities)
  
Main service provided: building prototypes according to specification, ideally together with the customer
+
Main advantage: if part of core business of parent institution a view to long-term sustainability
  
== access fees ==
+
Main disadvantage: institutions and open access are often hard to combine
  
Main income stream: hourly, monthly or yearly access fees ("gym model")
+
== operating as a prototype shop  ==
  
Main service provided: access to workshop
+
Main income stream: work for hire
  
== educational activities ==
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Main service provided: building prototypes according to specification, ideally together with the customer
  
Main income stream: course and workshop fees
+
Main advantage: FabLab can play in the innovation field
  
Main service provided: (ideally: officially approved/accredited) educational activities, lead by FabLab instructors
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Main disadvantage: helping "inventors" can absorb large portions of lab's staffing time
  
== techno tourism ==
+
== access fees  ==
  
Main income stream: event or activity based fees
+
Main income stream: hourly, monthly or yearly access fees ("gym model")
  
Main service provided: leasurely encounters with digital manufacturing technology
+
Main service provided: access to workshop
  
== gurus for hire ==
+
Main advantage: stable income stream
  
Main income stream: consultancy or support fees
+
Main disadvantage: possible conflict with open access principle
  
Main service provided: access to knowledge, access to "official" cirquit of labs
+
== educational activities  ==
 +
 
 +
Main income stream: course and workshop fees
 +
 
 +
Main service provided: (ideally: officially approved/accredited) educational activities, lead by FabLab instructors
 +
 
 +
Main advantage: stable income stream
 +
 
 +
Main disadvantage: relatively high barriers for entry into the market (accreditation), dependent on money avaliable for external activities in the education system
 +
 
 +
== techno tourism  ==
 +
 
 +
Main income stream: event or activity based fees
 +
 
 +
Main service provided: leasurely encounters with digital manufacturing technology
 +
 
 +
Main advantage: relatively stable income stream
 +
 
 +
Main disadvantage: dependent on tourism economy
 +
 
 +
== gurus for hire  ==
 +
 
 +
Main income stream: consultancy or support fees
 +
 
 +
Main service provided: access to knowledge, access to "official" cirquit of labs  
 +
 
 +
Main advantage: relatively stable income stream as long as number of labs keeps growing
 +
 
 +
Main disadvantage: even with rapid growth there is only room for a small number of "gurus for hire" labs, potential accusation of creating a ponzi scheme&nbsp;
 +
 
 +
Main disadvantage:&nbsp;
  
 
<br>
 
<br>

Revision as of 20:15, 1 January 2012

Since Fab7 there is talk (and questions) about the 7 "business models" we have identified -- I'd rather call them business design patterns, since they revole around some basic thoughts how a FabLab could generate enough income to sustain itself.  The 7 patterns are:

  1. grant-based
  2. embedded in institutions
  3. operating as a prototype shop
  4. access fees
  5. educational activities
  6. techno tourism
  7. gurus for hire (managers of existing labs offer their insights for money to new labs)

Labs typically use a mix of these models.

grant-based

Main income stream: public (or private) funding

Main service provided: solving some problem the funding body has allocated money for

Main advantage: running costs covered typically for several years

Main disadvantage: dependent on goals of funding body which are outside the control of the lab

embedded in institutions

Main income stream: none, but running costs are covered by parent institution

Main service provided: adding to the (core?) activities of parent institution (e.g. education, providing a workshop, enabling certain activities)

Main advantage: if part of core business of parent institution a view to long-term sustainability

Main disadvantage: institutions and open access are often hard to combine

operating as a prototype shop

Main income stream: work for hire

Main service provided: building prototypes according to specification, ideally together with the customer

Main advantage: FabLab can play in the innovation field

Main disadvantage: helping "inventors" can absorb large portions of lab's staffing time

access fees

Main income stream: hourly, monthly or yearly access fees ("gym model")

Main service provided: access to workshop

Main advantage: stable income stream

Main disadvantage: possible conflict with open access principle

educational activities

Main income stream: course and workshop fees

Main service provided: (ideally: officially approved/accredited) educational activities, lead by FabLab instructors

Main advantage: stable income stream

Main disadvantage: relatively high barriers for entry into the market (accreditation), dependent on money avaliable for external activities in the education system

techno tourism

Main income stream: event or activity based fees

Main service provided: leasurely encounters with digital manufacturing technology

Main advantage: relatively stable income stream

Main disadvantage: dependent on tourism economy

gurus for hire

Main income stream: consultancy or support fees

Main service provided: access to knowledge, access to "official" cirquit of labs

Main advantage: relatively stable income stream as long as number of labs keeps growing

Main disadvantage: even with rapid growth there is only room for a small number of "gurus for hire" labs, potential accusation of creating a ponzi scheme 

Main disadvantage: