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From YouTube: Startup Camp - Open Hardware Business Models
Description
This video discusses business models for open hardware, and 3 specific examples that have worked for OSE: building Seed Eco-Homes, Brick Presses, and 3D Printers.
-----------------
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A
Okay,
welcome
everybody
to
the
open
source
microfactory
startup
camp.
This
is
our
session
on
open
hardware,
business
models
now
just
open
business
models,
open
hardware,
business
models,
building
an
open
source
software,
but
we'll
talk
about
what
this
whole
situation
is.
So,
first
of
all,
let's
clarify
some
terms.
When
people
talk
about
open
hardware,
business
models,
people
tend
to
associate
something
like
well.
What
is
that
I
mean?
How
do
you
make
always?
The
question
comes
up?
How
do
you
make
money
when
your
stuff
is
free?
A
Well,
so,
let's
back
up
a
little
bit
and
talk
about
business
models
in
general.
So,
first
of
all,
the
more
accurate
description
of
open
hardware
business
model
would
be
a
business
model
that
simply
includes
open
hardware,
meaning
that
intellectual
property
is
not
what
you
are
selling
your
sewing
value
on
top
of
that,
so
any
business
model
has
to
have
value
associated
with
it
and
that
value
in
our
case,
it's
about
a
business
model.
A
Any
business
model
has
to
produce
some
form
of
value,
and
you
have
to
have
a
an
operation,
a
team,
a
way
to
make
money.
Revenue
revenue,
though
the
one
missing
thing
out
of
many
open-source
projects,
but
there's
not
much
more
more
difference.
You
still
have
to
think
about
creating
a
viable
business.
That's
that's
the
idea,
and
how
do
you
do
it
without
intellectual
property?
So
there's
there's
various
ways
in
open-source
software,
various
solutions
have
been
provided.
A
So,
let's,
let's
start
looking
at
open
software
as
what
have
people
done
it
if
you're
collaboratively
developing
software
collaborative
developing
Linux,
free
CAD
or
anything,
where
is
the
revenue,
so
there
are
very
successful
business
models
for
open
source
software.
First
of
all,
Red
Hat
was
perhaps
one
of
the
earlier
ones.
Red
Hat
of
WordPress
and
Red
Hat
has
been
a
billion-dollar
company
for
a
long
time.
Let's
go
through
the
wiki,
and
let
me
share
my
screen
here
to.
A
A
A
You'll
go
to
open
source
comm,
so
these
are
like
the
standard
for
business
models
that
people
have
seen
an
open
software,
so
open
source
comm
for
successful,
open
source
business
models
to
consider
so
support
and
services,
and
this
is
an
obvious
one.
So
if
your
core
of
software
is
free
for
anybody,
you
can
obviously
sell
things
on
top
of
that
so
services,
so
Red
Hat
canonical.
They
both
offer
software
free
of
charge
to
individuals.
A
But
if
you're
a
business-
and
you
want
technical
support
and
installations
of
various
other
things,
you
can
you
can
hire
Red,
Hat
or
canonical
advertising
partnerships
example
being
say:
I
mean
that's
getting
into
standard
marketing,
stuff
or
advertising,
of
course,
is
a
big
big
deal.
So
Mozilla
Corporation
struck
a
deal
with
Yahoo
to
use
the
search
engine
Firefox
yeah,
who
struck
a
deal
with
Mozilla
Corporation
to
make
Yahoo
the
default
default
search
engine.
So
there
was
an
advertising
partnership
for
three
hundred,
seventy-five
million
dollars
and
so
forth
paid
additional
features.
A
So
that's
that's
a
common
thing
that
kind
of
the
premium
or
freemium
model
the
base
model
is
free.
If
you
pay
for
additions
on
top
of
things,
which
means
that
maybe
the
other
things
on
top
of
the
open
core
model,
this
controversy
around
it
open
core
being
the
base,
is
free,
but
the
additional
features
are
paid.
So
that
means
the
additional
features
are
not
any
longer
open
source
or
they
may
or
may
not
be,
and
then
software-as-a-service.
A
A
What's
the
difference
between
software
and
hardware
and
what
are
the
strengths
so
in
hardware
we're
talking
about
what
are
the
differences?
I
mean
first
of
all,
hardware
in
the
scheme
of
the
global
economy.
Hardware
is
still
about
five
times
as
large,
at
least
as
the
software
economy.
So
so,
let's
not
forget
that
hardware
is
still
a
much
larger
part
of
the
economy
than
software
and
therefore
the
potential
for
open
source
is
much
greater
and
on
top
of
that
being
the
idea
that
open
source
hardware
can
meet
such
tangible
and
material
needs.
A
So
it's
not
like
software.
You
cannot
necessarily
eat
software,
but
you
can
eat
open-source
food,
that's
grown
with
open
source
tractors
and
so
forth.
So
there
are
differences
in
the
potential,
the
kind
of
impact
that
software
versus
hardware
can
have
at
OS
c
we
talk
about
the
open
source
economy,
meaning
an
economy,
that's
based
on
collaborative
product
design
as
opposed
to
patents.
We
talk
about
the
concept
of
distributive
enterprise,
which
means
that
the
types
of
enterprises
that
we
set
up
are
such
that
we
welcome
anybody
else
to
replicate
collaborate.
We
reduce
our
development
costs.
A
A
Distributive
enterprise
would
published
at
first
in
2012
the
concept
that
the
the
role
of
a
business
is
that
it
should
spread
that
it
could
be
replicated
by
many
others
to
prevent
the
reinvention
of
the
wheel
to
create
effective,
efficient
development
where
everybody
is
just
not
doing
the
same
thing
competing
and
doing
a
lot
of
competitive
waste.
Let's
have
anybody
have
access
to
the
best
so
that
the
world
can
move
on
to
other
problems,
so
that
leads
into
the
the
strength
of
open
hardware,
and
that
is
I
would
say.
A
The
number
one
strength
is
that
it
would
allow
you
to
work
on
much
larger
problems.
There
are
tangible
problems
like
poverty
and
wealth,
distribution
and
warfare
and
ecocide
various
issues.
If
we
solve
the
hardware
equation
of
providing
needs
effectively,
we
can
move
on
to
solve
these
bigger
problems.
So
I
would
say
that
the
strengths
of
open
hardware,
which
means
global,
large-scale
collaboration,
would
be
towards
solving
massive
problems,
so
open
source
hardware
definitely
lends
itself
that
kind
of
development
lends
itself
to
solving
even
bigger
issues.
A
A
It's
we
pretty
much
have
a
throwaway
Society,
but
the
unique
feature
of
open
hardware,
perhaps
the
greatest
about
one
of
its
greatest
value
propositions-
is
the
concept
of
lifetime
design,
idea
that
if
you
produce
something
and
the
blueprints
are
open
and
the
manufacturing
tool
chains
are
open,
then
you
can
maintain
something
forever,
so
the
supply
chains
become
easier,
more
localized.
So
a
huge
impact
that
that
open
hardware
can
have
is
on
a
circular
economy,
with
lifetime
design
and
especially
multi-purpose
design
as
well.
A
So
the
big
potential
in
open
hardware
is
that
it's
its
market
size
is
just
so
much
larger
like
at
least
five
times
larger
than
software.
So
that's
why
we're
we're
interested
in
it.
So,
let's
talk
about
what
what
we
do
at
all
I
see
right
now,
and
the
obvious
models
and
hardware
are
things
like
kits.
We
do
kits
are
a
definite
thing.
You
can
do,
there's
say:
there's
a
number
of
people
developing
open
hardware.
Selling
kits
is
a
kind
of
an
easy
entry-level
thing.
A
lot
of
people
can
do.
A
We
follow
a
business
model
of
Education
and
production
experience
creation.
So
what
we
do
is
workshops
where
you
can
build
something:
get
an
immersion
training
experience
and
we're
building
revenue
models
around
that.
Where,
on
one
side
you
can
sell
a
product
that
comes
out
of
that
experience
and
you
can
be
charging
for
the
education
as
an
immersion
learning
experience.
A
A
Got
back
a
couple
of
years,
you
got
the
open
source
leadership.
Some
of
that's
last
year,
I'll
go
into
this
presentation
because
I
did
cover
a
number
of
topics
on
open
heart.
But
what
does?
What
do
the
economics
of
what
we
do?
Look
like
so
I'll
start
with
a
couple
of
main
examples
of
the
kind
of
work
that
right
now
we
feel
is
ready
for
mass
replication.
A
There's
several
things:
work
on
the
3d
printers
building
of
houses,
building
brick
presses
for
construction.
So,
let's
start
with
the
most
spectacular
one,
which
is
housing,
I
mean
a
lot
of
people
are
interested
in
housing,
and
so
we've
built
houses
and
greenhouses
like
this
in
our
extreme
manufacturing
workshops
which
are
five-day
swarm,
based,
builds
where
this
example
right
here,
the
CD
Cajon
built
in
five
days
with
50
people.
So
this
is
an
example
of
our
immersion
training
education
experience
as
a
business
model
for
producing
practical
things.
A
House
is
the
most
practical
thing,
so
the
revenue
talking
about
the
revenue
model
in
that
so
we're
charging
people
for
an
experience
of
learning
a
lot
of
hands-on
skills
and
second,
we
have
a
product
that
is
sellable
at
the
end
of
the
day.
So
imagine
a
client
getting
this
house
at
a
fraction
of
industry
standard
costs
because
we're
very
efficient
based
on
open
source
design,
collaborative
build,
which
is
like
community
based
building,
but
kennis
model
scale.
So
that's
that's
the
question
we're
exploring
currently,
but
in
this
case
the
client
was
was
open,
building
institute.
A
As
far
as
the
revenue
from
the
the
tuitions
for
the
50
people,
it
was
twenty
five
thousand
dollars
that
five
hundred
dollars
a
seat
for
a
week-long
workshop.
Our
goal
here
is
to
sell
this
house
at
one-third
the
cost
of
industry
standard.
So
what
we're
looking
at
is
30,000
materials
to
in
order
to
sell
a
house
to
a
client
for
about
seventy
thousand
turnkey
cost.
A
So
in
that
seventy
thousand
after
the
materials
there's
forty
thousand
of
a
service
fee
that
the
operator
the
Builder
of
this
can
can
get,
and
if
the
Builder
is
operating,
the
extreme
manufacturing
building
building
model.
There's
another
25k
intuition
that
we
have
seen
as
a
vehicle
milestone
question
is:
can
you
get
people
to
show
up
to
this?
Can
this
be
replicable
and
and
taken
to
a
larger
scale?
Well,
that's
a
business
problem!
A
That's
a
question
of
starting
an
enterprise
using
enterprise
savvy
and
all
the
standard
standard
elements
of
what
an
enterprise
looks
like
so
product
team,
marketing
and
sales
HR,
your
you
got
to
have
your
team.
You
got
to
have
a
product.
You
got
to
have
a
business
around
that
so
so
this
is
definitely
a
worthwhile
question.
To
solve,
I
mean
there's
challenges
in
terms
of
building
houses
in
terms
of
logistics,
involve
or
permits
to
be
had
those
are
business
problems,
but
we'd
love
to
see
this
kind
of
a
model.
A
That's
a
1400
square
foot
house
selling
that
at
about
seventy
thousand
dollars,
is
a
turnkey
product
for
people.
So
that's
one
example
were
how
you
know:
how
do
we
get
these
costs
down
like
this?
Well
part
of
it
is
the
open
design
where
the
architecture
costs
the
design
costs
are
all
open
source.
That's
we
have
collaboratively
developed
that
that's
open.
You
can
actually
download
these
plans
right
now.
Do
you
want
to
start
a
business
doing
this
download
our
plans
download
the
plans
for
the
aquaponic
greenhouse?
A
That's
that's
a
greenhouse
there
that
we
had
that
built
in
another
five
day
workshop
and
that
that
in
itself
could
be
an
amazing
business
model.
So
so
the
invitation
is
clearly
out
there.
I
mean
this
is
not
easy
to
do.
It
requires
many
skills.
Imagine
a
small-time
operator
of
a
family
business,
a
few
people
doing
this
well
at
the
economics
I'm
showing
here
there
are
$65,000
net
revenue
per
event.
A
Okay
well
run
one
of
these
every
three
months
or
so
that's
enough
to
support
a
staff
of
three
very
easily
or
staff
of
six
two
to
execute
this
business
staff
of
six
getting
paid
about.
Ten
thousand
dollars
a
month,
that's
like
a
hundred
K,
salary
or
so
of
a
business,
but
the
numbers
here
are
working
out
and
are
made
possible
by
clever
design.
Some
of
the
features
here
is
I
mean
it's
a
highly
integrated
design,
I
like
the
the
aquaponic
greenhouses.
A
They've
got
a
lot
of
features
from
the
fish
to
the
the
growing
beds,
towers,
mushroom,
growing
chickens,
and
it's
it's
a
complex
ecological
system.
Just
like
the
house,
the
house
is
off
great.
Actually
this
particular
one
running
on
unfillable
takes.
It's
got
an
open-source
hydronic,
stove
and
ground
in
floor
heating,
open
source
water
collection
system,
collecting
water
from
the
roof
and
a
bio
digester,
a
toilet.
That's
that's
connects
to
a
bio
digester
for
producing
gas
for
heating,
and
we
haven't
actually
run
that
yet
we're
still
testing
in
the
testing
phase
of
gas
production.
A
So
this
is
an
active
experimental
model.
They
were
still
shaking
down
all
the
systems,
but
definitely
a
huge
case
for
revenue
you
so
so
going
back
to
the
initial
question,
with
an
open
business
model.
Well,
can
an
open
business
model
work?
Yes,
you
have
to
have
a
business.
The
information
that
makes
this
work
is
all
open,
but
you
have
to
have
the
the
sweat
and
tears
to
make
it
happen
as
a
business
as
a
risky
venture
and-
and
this
is
one
of
the
enterprises
that
we
certainly
invite
people
to
collaborate
on
with
us.
A
Let's
develop
this:
let's
get
a
product,
that's
more
advanced,
cheaper,
better,
faster
than
anything
else
out
there,
because
we're
simply
not
not
engaging
in
a
lot
of
the
competitive
practices
or
wasteful
organ
ominous
or
anything
like
that.
So
combine
this
with
open-source
equipment,
that's
low
cost
like
say,
site,
grading,
open-source
equipment,
bulldozers,
tractors,
open-source
tools,
like
you
know,
Believe,
It
or
Not,
cordless
drills
I
mean
in
an
experience
like
this.
You
have
50
people
there
like
25,
cordless
drills,
a
lot
of
them
get
broken
well
in
the
case
like
this
open
source.
A
Drills
actually
make
a
lot
of
sense,
so
tools
that
last
a
lifetime
that
certainly
lowers
the
cost
associate
on
all
all
aspects
from
reducing
the
design
cost.
The
tooling
cost
the
and
then
the
labor
model
were
using
as
immersion
training,
which
means
that
a
person
gets
a
full
rich
experience
of
doing
things
they
have
never
done
before.
Without
requiring
any
skill
upfront,
we
teach
people.
So
it's
a
teaching
and
building
experience
in
one
so
definitely
worth
doing
now.
Let's
go
to
another
model.
A
So
in
summary,
this,
what
we're
showing
here
is
a
model
$65,000
net
revenue
per
event,
after
all
costs,
and
can
we
make
a
vehicle
business
out
of
that?
That's
the
question
and
it's
definitely
worth
pursuing,
because
the
numbers
do
add
up.
Okay
next
model,
we've
built
a
lot
of
the
brick
presses,
so
the
brick
press
was
actually
the
first
machine
of
the
global
village
construction
set.
We
have
run
a
number
of
workshops
on
these,
producing
these
and
selling
these
to
a
client.
A
So
the
economics
here
looked
like
$10,000
in
revenue,
so
we
run
these
typically
as
three
day
workshops.
One
day
build,
maybe
build
a
power
cube
on
a
second
day
and
maybe
run
it
the
third
day,
but
the
numbers
here
work
out
as
we're
selling
the
Machine
about
ten
thousand
dollars.
So
it's
five
thousand
dollars
above
the
middle
materials,
so
we
have
a
net
of
five
thousand
dollars
on
the
machine
itself
and
then,
once
again
we
run
the
immersion
education
experience.
A
So
a
training
workshop
where
we
teach
fabrication,
welding,
torching
tool,
use
metalwork
and
the
tuition
from
an
event
like
that.
We
typically
we're
charging
like
three
hundred
dollars,
or
so
so,
twelve
or
fifteen,
or
sixteen
people
or
so
at
three
hundred
dollars.
That's
that's
a
fully
a
for
me.
That's
completely
affordable
three
days,
three
hundred
dollars
for
immersion
training
like
that
you
can
probably
charge
500
or
600
or
whatever,
but
a
dozen
or
so
people
show
up
you
capture
the
revenue
from
the
education,
immersion,
training
and
then
there's
the
sale
value
of
the
product.
A
So
the
revenue
model
here
is
ten
thousand
dollars
net
for
a
three-day
workshop.
If
you
have
a
torch
table
for
cutting
all
the
steel,
this
can
be
made
very
highly
replicable.
So
we
do
have
the
CNC
cutting
files
for
the
scene
for
the
the
brick
press
here.
So
we
have
digitized
this
being
digitized.
This
can
be
a
disruptive
thing
according
to
Peter.
Diamandis
is
five
days
of
disruption
there,
where,
if
it's
digitized
it
can
be
scaled,
it
can
be
treated
like
software.
A
This
this
kind
of
enterprise
can
grow
and
be
replicated
because
people
can
learn
and
download
it.
It's
much
easier
to
replicate
this
as
a
digital
to
this
is
a
basically
a
modern
digital
social
building
process
and
the
numbers
do
work
out
now.
So
why
isn't
everybody
doing
this?
Well,
one
demand
for
brick.
Press
is
not
super
high.
Yet
then
it
does
require
a
lot
of
skill.
Once
again.
A
A
lot
of
these
are
high
skill
kind
of
endeavors,
where
the
person,
if
it's
a
small
operation,
a
couple
of
people,
two
or
three
people
you'd,
have
an
instructor.
You
have
a
person,
that's
doing
the
organization,
you
have
a
person,
that's
doing
the.
Maybe
the
tech
lead
of
the
technical
build
in
the
workshop,
but
you
know
as
a
small,
diversify
the
enterprise.
That
means
you
as
a
small
business,
you're,
doing
all
those
things.
So
the
skill
level
required
is
pretty
high,
but
say
you
run
one
of
these
a
month
for
a
client.
A
You
know
five
$10,000
for
three
people.
Well,
$3,000
a
month
that
kind
of
gets
possibly
acceptable.
You
can
think
about.
So
that
means
you
know.
If
you
have
two
people
running
this
business,
you
got
$5,000
a
month
or
so
or
if
you
do
an
event
where
it's
a
little
larger
and
you
build
two
brick
presses
which
is
completely
doable.
We
think
that
between
2
and
4,
brick
presses
are
completely
doable
in
a
model
like
that.
So
then
the
economics
look
like
say
that
you
double
the
people.
A
That
means
like
10,000
revenue
from
tuition
$20,000
from
the
revenue
from
the
actual
brick
presses,
so
say
thirty
thousand
dollars
per
month
from
a
little
larger
event.
That's
$30,000
$10,000
per
month
per
person,
revenue
in
this
kind
of
a
model,
so
definitely
doable
and
you'd,
say
maybe
okay.
Well,
how
many
people
are
gonna?
You
get
brick
presses.
Well,
maybe
markets,
not
so
huge.
A
But
if
this
operation
is
based
on
open
source
blueprints,
you
can
produce
the
brick
press,
you
can
produce
a
tractor,
you
can
produce
a
backhoe
or
a
mini
tract
or
whatever,
so
so,
with
open
source
blueprints
and
a
CNC
torch
table
which
can
cut
that
out.
Digitally
you
can
have
a
diversified
operation
which
can
produce
a
lot
of
these
different
things
as
a
completely
viable
business
and
the
space
requirements
for
an
app
for
something
that
can
do.
A
Well,
there's,
if
they're
open
source
welders,
you
can
reduce
the
cost
of
your
startup
quite
a
bit.
Our
workshop
is
built
out
of
compressed
earth
blocks,
so
we
we
were
able
to
build
that
very
cheaply
using
our
compressed
brick
press
here.
So
it's
you
can
see
the
kind
of
a
product
ecology
emerging
that
you're,
reducing
your
cost
to
be
very
competitive
and
with
the
eventual
goal
of
simply
eliminating
the
cost
of
living.
That's
them.
A
The
goal
here
is
that
we're
transcending
the
the
idea
that
it's
hard
to
make
a
living
that
you
know
everyone
struggles
to
just
to
make,
make
a
livelihood
we're
trying
to
work
work,
a
paradigm
work
collaboratively,
it's
easier.
You
can
start
up
a
business
easier,
just
simply
reducing
barriers
to
entry,
the
same
old
same
old.
So
that's
a
second
second
revenue
model.
A
Third
example
is:
this
is
now
all
based
on
a
kit,
the
immersion
education
workshop,
which
is
the
extreme
manufacturing
model,
but
the
third
model
we
have
shown
as
a
3d
printer,
so
the
the
way
it
works.
We
can
hold
a
one
day
workshop
where
you
can
complete
a
build
in
a
single
day.
We
charge
300
people
up,
so
people
would
take
these
home
actually
and
this
this
3d
printer
model,
twelve
people,
maybe
doubling
up
as
people
like
24
people,
building
them
or
12
12
to
24
people
taking
home
12
printers.
A
A
That
can
make
sense.
That's
not
bad
if
a
person
is
skilled
in
making
these
3d
printers.
If
you
have
a
small
print
cluster
to
produce
all
the
3d
printed
parts,
if
the
design
is
super
simple
modular
and
you
have
off-the-shelf
common
parts,
then
this
the
barriers
to
starting
such
a
business
are
quite
low
and
that's
what
we
invite
people
to
do
so
we're
doing
this
ourselves
we're
trying
to
scale
this
model
quite
a
bit,
and
if
you
talk
about
3,600
dollars
for
a
day
workshop
I
mean
that's,
that's
good.
A
A
There's
no
body
out
I
mean
currently
as
far
as
I
know,
nobody
in
the
world
that
offers
a
regular,
ongoing,
3d
printer
workshop
today
outside
of
open
source,
ecology,
so
I
think
the
reason
for
that
is
it's
hard
to
master
all
the
skills
to
lead.
One
of
these
workshops
to
have
a
lot
access
to
a
low-cost
printer
like
an
open-source
printer
or
just
having
the
industrial
productivity
that
this
printer
can
embody.
There
is
nobody
else
doing
this,
so
there's
definitely
room
for
people
doing
education.
A
Experiences
around
this
and
we're
in
this
unique
niche
where
I
think
the
main
block
to
it
is
just
the
skill
set
required.
You
know,
because
anybody
who
has
the
skill
set
to
produce
printers
they're
just
gonna
start
mass
producing
them,
for
example,
Prusa
printers.
They
started
doing
a
bit
of
workshops
here
and
there
I
mean
now
they
produce
8,000
printers
per
month,
it's
more
profitable
to
do
a
just
mainstream
production
as
opposed
to
this
immersion
education
training
model.
So
but
that's
the
space
we're
in
we're.
A
We
care
about
training,
people
upskilling
people
so
that
we
transition
society
to
a
productive
society
from
a
consumer
society,
because
our
belief
here
is
that
you
you're
not
going
to
get
to
a
democratic
society
through
the
centralized
production
system
that
we
have
today.
So
it's
imperative
that
we
train
people
in
regaining
the
the
very
valuable
and
rewarding
skills
of
productivity
on
all
kinds
of
fronts,
from
building
your
house
to
building
a
printer
to
building
the
brick
press
or
anything
in
the
world.
A
Your
own
car
people
participating
with
that
and
therefore
making
it
a
the
value
proposition
real,
the
what
I
just
discussed
before
the
lifetime
warranty
the
lifetime
design
issue.
Where,
if
you
build
it
yourself,
you
truly
truly
own
it.
You
are
your
warranty.
You
know
how
to
fix
everything
we
design
our
our
models
to
be
extremely
easy
to
build
using
common
off-the-shelf
parts
which
really
not
really
when
you're
in
manufacturing.
A
You
don't
do
that
you
get
pretty
specialized
and
I
mean
to
give
you
an
example
like
like
lulzbot
is
open
source,
for
example,
but
it's
it's
very
hard
to
replicate
a
machine.
It's
got
a
lot
of
custom
parts,
it's
not
designed
for
public
production
or
public
engineering,
as
we
call
it
where
you
have
for
us.
We
pay
a
lot
of
attention
to
a
production
engineering
that
lends
itself
to
minimal
tool,
use
and
easiest
parts.
A
A
couple
of
external
components
were
completely
recycling,
for
example
the
control
panel
and
for
the
the
motion
system.
We
are
enlarging
it
according
to
this
modular
scalable
design,
to
make
a
much
bigger
machine
for
cutting
metal
for
all
these
kinds
of
tools.
So
that's
a
that's
an
example
of
what
kind
of
nutshell
the
kind
of
business
models
we
use
here
with
the
values
that
we
have
being
primarily
the
distribution
of
productive
power
to
many
people
around
the
world.
A
That's
the
distributive
enterprise
concept,
so
there's
the
distinction
between
distributed
and
distributive
distributed
is
that
it's
happening
in
many
locations.
Distributive
means
that
the
business
itself
tends
to
promote
that
distribution.
That's
what
we
do.
We
educate
people
to
to
produce
everywhere,
so
we
call
it
distributive,
so
the
distributive
enterprise
produces
distributed
enterprises
as
the
idea
I'll
go
through
a
couple.
A
More
pictures
just
to
show
you
a
few
more
important
results
so
so
based
I
mean
what
we've
done
so
far
over
the
last
decade,
and
this
is
a
graph
of
how
started
from
between
2008
and
2013
when
we
lost
track
of
all
that
we're
doing,
but
there's
some
early
records
of
the
the
number
of
prototypes
we
did
2008.
We
did
the
first
Brett
prize
by
2013.
A
We
had
a
67
prototypes
of
all
different
things,
so
the
point
of
this
to
take
home
is
we've
done
tons
of
prototyping
we've
got
machines
that
are
ready
for
market
like
if
you
talk
about
the
most
most
complete
were
over
all
in
the
global
village,
Construction
Set
over
33
percent
done,
but
a
3d
printer
is
completely
ready
for
enterprise,
the
micro
house
with
a
seed
eco-home,
that's
completely
ready
to
for
enterprises.
Somebody
wants
to
take
on
so
the
distinction
between
a
product
of
sorry,
a
project
and
a
product
or
business.
A
So
here
these
are
projects
not
yet
commercial
machines.
But
here
what
you
see
here
at
the
point
where
we've
done
sufficient
prototyping
I've
been
built
so
many
printers.
So
many
brick
presses
tractors,
power
cubes
that
they
are
ready
to
go
to
the
next
step.
But
the
next
step,
which
is
product
ization,
is
perhaps
even
harder
than
just
getting
to
the
product
so
or
at
least
it's
half.
So
you
have
to
have
the
product,
and
then
you
have
to
work
on
the
business
not
to
work
on
the
product.
You
have
to
work
on
the
business.
A
The
second
phase
and
the
goal
of
the
global
village
Construction
Set,
is
that
we
develop
those
open
businesses.
That
means
open
blueprints,
open,
manufacturing,
open
Quality,
Control,
open
source
marketing
assistance,
training,
certification
and
all
the
assets
that
a
person
would
need
to
create
a
business,
and,
just
personally
speaking,
the
very
surprising
thing
about
this-
is
that
so
so
little
replication
has
happened
so
far,
I
mean
there
have
been
a
number
of
builds
around
the
world,
but
this
is
not
taking
off
anywhere
where
the
potential
is
okay.
This
is
the
next
John
Deere.
A
This
is
the
next,
whatever
industry
that
that
is
produced
by
open
source,
just
like
Linux,
has
done
it
with
dominating
completely
the
software
landscape.
This
is
the
same
thing
is
waiting
for
hardware,
but
hardware
is
just
so
much
harder,
so
that's
the
block.
The
other
thing
that
we've
noticed.
Regarding
that
entrepreneurship
side,
a
lot
of
people
are
already
like
the
super
entrepreneurs
that
we
need
to
to
do
this
they're
only
doing
their
things,
that's
one
of
the
main
main
challenges,
maybe
in
more
traditional
enterprises,
not
ones
that
are
folk,
that
that
are
open-source
centric.
A
But
we
believe
that
truly
that
this
is
just
coming
up
as
then
as
the
next
next
deal.
So
replications
have
happened.
I
mean
just
to
go
through
some
pictures
of
brick
presses
tractors,
more
brick,
presses
and
brick
press
brick,
fittest
producing
operation
and
house
building.
Many
things
have
happened
and
we
have
done
our
first.
Ever
we
we've
discovered
in
2012.
That
was
that
the
the
collaborative
production
engineering
actually
works
with
it.
So
basically,
the
foundation
of
the
business
model
that
were
working
around
is
the
rapid
build.
A
So
in
2012
we've
built
the
brick
press
for
the
first
time
with
12
people.
It
was
a
long
day.
We
stayed
up
to
like
midnight,
but
we
finished
it
pretty
much.
We
did
not
get
to
the
controller.
We
did
not
actually
get
this
to
run,
but
it
was
a
first
proof-of-concept
that
Wow
a
machine,
a
heavy
machine
like
that
that
weighs
a
ton,
twelve
inexperienced
people
myself
and
maybe
another
person
guiding
that
as
technically
experienced
some
with
more
technical
experience.
A
But
you
can
we
found
that
you
can
take
average
citizens
and
train
them,
so
the
person
welding
would
would
maybe
do
some
simple
welds
on
non-critical
parts
after
practicing
for
30
minutes,
and
then
they
start
making
parts
and
then,
by
the
end
of
the
day,
they're
making
the
more
difficult
parts
and
things
like
that.
So
this
kind
of
model
works.
A
You
just
really
dive
into
this
deep
dive
and
we
found
it
works
and
is
the
foundation
of
our
extreme
build
model
right
now
where
we
can
build
a
house
in
five
days
or
a
tractor
in
a
single
day
that
requires
good
instructionals,
like
a
IKEA
style
fabrication
diagrams
a
lot
of
infrastructure
that
our
team
that
built
that
the
modularity
is
the
other
business
value
proposition.
So
you
see
we
use
a
lot
of
common,
reusable
materials
like
the
stock
tubing
or
power
cubes,
which
are
engine
units
that
can
be
used
on
any
machine.
A
This
is
another
example
of
the
modular
tubing.
This
is
modular
to
being
used
in
a
machine
that
cuts
one-inch,
thick
steel,
the
iron
worker
machine,
Universal,
rotors
that
are
used
in
in
this
big
trench
or
so
pulverizer.
So
we've
learned
a
lot
about
of
the
modularity
aspect,
and
this
this
really
works.
I
mean
this.
It's
a
it's
a
huge
value
proposition
because
you're
going
through
a
design
spending
all
the
time
to
work
out
how
a
thing
goes
together.
A
But
then
you
find
out
that
oh
wow,
if
I,
can
build
a
tractor
I
can
build
a
bulldozer
or
a
backhoe
or
a
truck
bed
or
whatever
so
you've
just
text
your
ability
to
do
things
with
a
with
a
Construction
Set
approach.
So
that's
one
of
the
main
findings
that
underlie
the
modular,
build
methods
that
we
do
like.
A
The
house
is
made
of
a
lot
of
different
modules
made
in
parallel
and
they
can
be
reconfigured
to
another
house
or
many
different
houses
so
that
that's
the
power
of
modular
design
by
using
this
simple
modularity
and
simplest
design,
we've
been
able
to
reduce
the
prototyping
cycle
for
months
to
days,
and
this
the
point
of
that
being
that
the
economic
value
is
created
by
that,
so
so
in
this
first
iron
worker
machine
we've
built
over
six
months.
Well,
if
you
count
six
months
of
labor
by
a
person
but
I'm
doing
that,
that
is
absolutely
impossible.
A
If
you're
gonna
sell
that
it
would
cost
$100,000
to
to
to
produce
this,
you
know
ten
or
twenty
thousand
dollar
machine.
You
know
so
we
simplified
went
to
modularity.
So
we
discovered
that
by
simplifying
the
design,
you
can
reduce
the
the
build
times
from
months
to
days,
which
translates
to
now,
you
can
have
a
viewable
business,
no
longer
a
project.
This
is
something
that
you
can
monetize.
You
can
go
into
production
with
that.
A
A
So
we
know
that
certainly
mechanical
things
lend
themselves
to
mechanical
to
construction
set
approaches,
but
that
applies
to
anything
like,
for
example,
right
now,
we're
using
the
modular
control
panel
on
a
3d
printer,
so
applying
the
modularity
concept
to
electronics
still
works
and
you
still
get
the
multi-purpose
devices.
That
means
you'd
once
again
10x
the
thing
that
you
can
do
with
a
number
of
small
number
of
components.
A
Documentation
is
super
important.
We
document
everything
and
the
revenue
model.
You
know
here's
some
pictures
of
us
building
the
micro
houses.
So
that's
what
you
know.
The
events
look
like
that's
what
the
product
looks
like
with
the
brick
press
and
power
cube
in
the
back
and
some
of
these
bigger
things
like
where
we're
now
taking
50
people
to
do
that.
That
was
five
days
for
the
green
house
five
days
for
the
house,
and
this
is
what
it
it
looks
like
when
it's
planted
up
the
aquaponic
greenhouse,
so
hugely
valuable
products
and
this
stuff
works.
A
So
so,
basically
it's
if
you
talk
about
creating
a
business
model,
there's
a
product
that
you
have
to
have
and
and
the
potential
to
change
the
economy
is
huge,
because
right
now,
open
hardware
just
does
not
exist.
People
are
not
aware
that
you
can
do
things
using
this
way.
The
idea
of
common
collaborative
development.
A
A
But
that's
you
know,
that's
kind
of
like
the
main
points
I
wanted
to
cover
in
this
presentation.
Regarding
open
hardware,
we
certainly
think
that
open
hardware
is
that
is
the
future,
and
it's
just
the
natural
evolution
when
we
get
enterprises
to
be
more
and
more
efficient,
and
actually
maybe
I'll
leave
off
with
this.
But
what
would
it
take?
What
would
be
the
tipping
point
towards
the
open
hardware
economy?
We
think
that
you
know
just
going
through
some
really
rough
numbers.
A
A
We
take
the
tipping
point
concept
which
says
that
after
10%
of
people
doing
something
everybody
starts
to
do
this,
and
so
here
we're
basically
taking
the
hundred
trillion
global
economy
and
we're
saying
what
percentage
of
that
is
required
for
a
transition
or
a
landslide
into
the
open
source.
We're
saying
10%
tipping
point,
we're
saying
you
only
need
30%
of
that
10%,
because
only
30%
of
the
world
is
Hardware.
Open
refers
to
open
Harvard,
in
other
words
the
first
and
second
sectors
of
the
economy,
nee
natural
resources
and
manufacturing.
A
That's
where
open
hardware
comes
in
the
rest
of
that
is
all
the
services
economy.
7%
is
services
economy,
not
the
third
sector,
tertiary
sector
of
the
economy,
and
then
salaries
is
I
mean
that's
what
it
boils
down
to
how
many
people
get
their
livelihood
from
open
hardware.
Well,
salaries
are
about
40
percent
of
GDP,
so
we're
taking
this
really
rough
number
10%
times
30%
times
40%
of
the
entire
global
economy.
You
end
up
with
nine
forty
billion.
A
So
that's
what
we're
saying
our
simple
formula:
there's
GDP
times
the
tipping
point
times
the
fraction
of
first
and
second
sectors,
times
salaries,
get
you
to
about
940
bill,
so
we're
saying
that
once
we
get
to
a
trillion
which
is
about
1%,
now
right
now,
we're
going
to
live
in
a
global
economy
of
100
trillion
and
that's
not
not
counting
the
speculative
economies
of
derivatives
and
all
the
financial
funny
money.
That's
out
there.
This
is
a
more
of
the
realist
that
hundred
trillion
dollar
economy.
The
way
it's
accounted
more
like
that.
A
A
What
do
you
think
about
this
presentation
and
he
feedback
on
comments
or
suggestions
or
insights
that
you
might
have
from
this,
but
otherwise
join
us
in
designing
open-source
products
we're
working
on
what
we
call
the
open
source
everything
store.
So
the
idea
of
this
this
tipping
point.
We
see
enterprises
they're
bigger
than
current
Amazon-
that
the
collaborative
development
of
open
hardware
we're
calling
it
the
open
source
everything
store,
which
is
the
transition
of
Amazon
to
once,
people
regain
control
production
within
their
communities.
A
Well,
that's
a
business
much
bigger
than
Amazon,
so
we're
talking
about
the
next
trillion-dollar
economies,
but
we're
not
talking
about
a
trillion
that
now
you
have
one
owner
and-
and
you
know
further,
a
concentration
of
capital
like
is
shown
in
this.
This
graph
here,
which
shows
the
Gini
coefficient
which
is
about
so
look
up
the
genic
of
what
the
Gini
coefficient
is
it's
a
measure
of
the
distribution
of
wealth
which
is
currently
at
about
0.7.
A
It's
not
getting
better.
So
when
you
talk
about
that
that
historic
transfer
of
wealth
next
trillion-dollar
con,
it's
not
about
some
person
owning
that
it's
about
that
being
distributed
to
many
more
producers
and
lives
becoming
better
for
everybody.
So
I'll
leave
it
at
that.
This
is
a
brief
discussion
on
open
hardware
business
models
where
it's
essentially
it's
just
like
any
business,
whether
it
relies
on
open
information
or
closed
information.
You
still
need
the
business
model
main
takeaway
is
that
it
doesn't
take
a
product
to
make
a
business.
A
It
takes
working
on
a
business
to
make
a
business
so
right
now
we're
transitioning
open
source
ecology
to
developing
some
of
these
open
business's
publishing.
Of
course,
all
those
results
openly
so
that
we
have,
we
can
have
this
historic
transfer
of
wealth
from
the
few
to
the
many
that
we
talk
about
the
open
source
economy
in
the
future,
so
join
us
and
please
comment
below
this
video.
So
thanks
a
lot
we'll
talk
to
you
soon,.