Business Patterns: Difference between revisions
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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: | 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 | #grant-based | ||
#embedded in institutions | #embedded in institutions | ||
#operating as a prototype shop | #operating as a prototype shop | ||
#access fees | #access fees | ||
#educational activities<br> | #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. | Labs typically use a mix of these models. | ||
== grant-based == | == grant-based == | ||
Main income stream: public (or private) funding | Main income stream: public (or private) funding | ||
Main service provided: solving some problem the funding body has allocated money for | Main service provided: solving some problem the funding body has allocated money for | ||
Main advantage: running costs covered typically for several years | |||
Main | 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 | Main service provided: adding to the (core?) activities of parent institution (e.g. education, providing a workshop, enabling certain activities) | ||
Main | 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 | Main income stream: work for hire | ||
Main service provided: building prototypes according to specification, ideally together with the customer | |||
Main | Main advantage: FabLab can play in the innovation field | ||
Main | Main disadvantage: helping "inventors" can absorb large portions of lab's staffing time | ||
== | == access fees == | ||
Main income stream: | Main income stream: hourly, monthly or yearly access fees ("gym model") | ||
Main service provided: | Main service provided: access to workshop | ||
Main advantage: stable income stream | |||
Main | 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 | |||
Main disadvantage: | |||
<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:
- grant-based
- embedded in institutions
- operating as a prototype shop
- access fees
- educational activities
- techno tourism
- 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: