Comments on: Could “Free” be the new price of your innovation? http://www.15inno.com/2009/07/13/could-free-be-the-new-price-of-your-innovation/ Open innovation and intrapreneurship Thu, 11 Mar 2010 16:02:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Craig Taverner http://www.15inno.com/2009/07/13/could-free-be-the-new-price-of-your-innovation/comment-page-1/#comment-300 Craig Taverner Fri, 17 Jul 2009 14:18:18 +0000 http://www.15inno.com/?p=620#comment-300 This was certainly an interesting read. Despite not having heard the term 'freemium' before, that is exactly the business model we are following at AmanziTel. Our inspirations for this approach come from the successful open source software markets, and consequently we have an open source product. However, we are targeting a niche market, using a services revenue basis. The free products are lead generators for services work, as well as for later premium upgrades. However, the business model cannot be based on premium upgrades alone, due to the niche nature of the market. A services business is required as well. Regarding open innovation, we have found an interesting situation where most potential collaborators in the same market are unable to think in that way. However, we have found much better collaborative responses to open innovation in the general software development community, probably due to the long term exposure to open source. This was certainly an interesting read. Despite not having heard the term ‘freemium’ before, that is exactly the business model we are following at AmanziTel. Our inspirations for this approach come from the successful open source software markets, and consequently we have an open source product. However, we are targeting a niche market, using a services revenue basis. The free products are lead generators for services work, as well as for later premium upgrades. However, the business model cannot be based on premium upgrades alone, due to the niche nature of the market. A services business is required as well.

Regarding open innovation, we have found an interesting situation where most potential collaborators in the same market are unable to think in that way. However, we have found much better collaborative responses to open innovation in the general software development community, probably due to the long term exposure to open source.

]]> By: P Sud http://www.15inno.com/2009/07/13/could-free-be-the-new-price-of-your-innovation/comment-page-1/#comment-299 P Sud Wed, 15 Jul 2009 18:57:52 +0000 http://www.15inno.com/?p=620#comment-299 Thanks for bringing this to focus, Stefan, to you as well as to Chris. Freemium is the pulse of the hour. I recently worked on developing such a model for one of my clients. While doing the research I found a important challenge. Most of the companies in the webworld, are not able to sustain to see the premium aspect of their business or are not able to decide on the right product mix to offer for free or to charge for. Open innovation here will be the unique partnerships that will make money for the network when all the products are combine i.e. sum of all products will yield some money which can be distributed amongst all partners. Thanks for the insight. Thanks for bringing this to focus, Stefan, to you as well as to Chris. Freemium is the pulse of the hour. I recently worked on developing such a model for one of my clients. While doing the research I found a important challenge. Most of the companies in the webworld, are not able to sustain to see the premium aspect of their business or are not able to decide on the right product mix to offer for free or to charge for.

Open innovation here will be the unique partnerships that will make money for the network when all the products are combine i.e. sum of all products will yield some money which can be distributed amongst all partners.

Thanks for the insight.

]]> By: Will Robben http://www.15inno.com/2009/07/13/could-free-be-the-new-price-of-your-innovation/comment-page-1/#comment-298 Will Robben Wed, 15 Jul 2009 13:21:01 +0000 http://www.15inno.com/?p=620#comment-298 Stefan, the easy answer is "Yes", the difficult bit is "How". The latest book of Jeff Jarvis "What Would Google Do" is filled with multiple examples. Stefan, the easy answer is “Yes”, the difficult bit is “How”. The latest book of Jeff Jarvis “What Would Google Do” is filled with multiple examples.

]]> By: Innovation for free? Chris Anderson’s new book raises some questions « InnovationManchester http://www.15inno.com/2009/07/13/could-free-be-the-new-price-of-your-innovation/comment-page-1/#comment-297 Innovation for free? Chris Anderson’s new book raises some questions « InnovationManchester Wed, 15 Jul 2009 09:19:22 +0000 http://www.15inno.com/?p=620#comment-297 [...] he has a new book out  called The Future of the Radical Price which according to Stefan Lindegaard may well have implications for [...] [...] he has a new book out  called The Future of the Radical Price which according to Stefan Lindegaard may well have implications for [...]

]]> By: Martin http://www.15inno.com/2009/07/13/could-free-be-the-new-price-of-your-innovation/comment-page-1/#comment-296 Martin Wed, 15 Jul 2009 05:45:49 +0000 http://www.15inno.com/?p=620#comment-296 Dear Stefan, i believe that for the 'internet space' as mentioned by Pradeed, the challenge is rather to leave the 'free' model asap and start finding some real business models and incomes. I know this might not sound popular, and not mentioning tons of startups, but Facebook and even more Twitter, despite their great audience success (and i am myself a Twitter fan and user), have more than ever to prove their sustaibility in time of economic downturn through a concrete business model still to come. About your point on how to link Open Innovation and Freemium, i see quite obviously 'Crowdsourcing' as the best demonstration of it : http://nextstreams.blogspot.com/2009/04/une-belle-initiative-de.html Best Martin Dear Stefan,
i believe that for the ‘internet space’ as mentioned by Pradeed, the challenge is rather to leave the ‘free’ model asap and start finding some real business models and incomes. I know this might not sound popular, and not mentioning tons of startups, but Facebook and even more Twitter, despite their great audience success (and i am myself a Twitter fan and user), have more than ever to prove their sustaibility in time of economic downturn through a concrete business model still to come.
About your point on how to link Open Innovation and Freemium, i see quite obviously ‘Crowdsourcing’ as the best demonstration of it : http://nextstreams.blogspot.com/2009/04/une-belle-initiative-de.html

Best
Martin

]]> By: Pradeep Mukerjee http://www.15inno.com/2009/07/13/could-free-be-the-new-price-of-your-innovation/comment-page-1/#comment-295 Pradeep Mukerjee Tue, 14 Jul 2009 13:47:56 +0000 http://www.15inno.com/?p=620#comment-295 Dear Stefan, you raise some very interesting questions. While the concept has become a common practice in the net and IT space (open software, Google's OS offerings now matched by Microsoft), it is a matter of time before we find it in the physical world. I think the key here is what you can incorporate in your offering that you 'build' or 'buy' which you offer free because it channelizes or creates needs which you then service by charging a premium. One has to find applications where the free 'something' entices a person to buy 'the other' for which a payment is required. Good questions raised. Dear Stefan, you raise some very interesting questions. While the concept has become a common practice in the net and IT space (open software, Google’s OS offerings now matched by Microsoft), it is a matter of time before we find it in the physical world. I think the key here is what you can incorporate in your offering that you ‘build’ or ‘buy’ which you offer free because it channelizes or creates needs which you then service by charging a premium. One has to find applications where the free ’something’ entices a person to buy ‘the other’ for which a payment is required. Good questions raised.

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