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Open Lessons from the iStore

So, you may or may not have heard about Ethan Nicholas from Wake Forest, North Carolina.  He is the developer whose bills were piling up so he had the idea to build a an iPhone app in his spare time.  Over $700,000 later he’s amazed at how the open and collaborative community works.

The details are all here, but the lessons I take from this story are:

1. An open community allows the best content and ideas to rise to the top unlike a closed and proprietary model that is hierarchical and often stifles creativity.
2. An open community moves faster than a closed and proprietary model – this app was thought up, built, and released in six weeks.
3. In an open community, consumers of a product or service get more choices and options than just what the closed and proprietary model chooses to offer.

Fundraisers Embracing the Open Model

This time last week I was at the DMA Nonprofit Federation conference in Washington, DC. Along with all the usual sessions looking at fundraising innovations, new media channels and last year’s success stories, cost-cutting and efficiency seemed to be the buzz words of the day. This is no surprise given the times, but what got me excited is that most people were not simply talking about classic cutbacks. Rather, much of the conversation was around new models of operating and how technology is allowing organizations to do more with less.

Naturally, interest in Open Source technologies was high. I actually led a session on “Demystifying Open Source CRM” along with David Michael Jeremiah of Turning Point and Brian Bitler of America’s KESWICK (You can download the presentation here).

One of the things I stressed in the presentation was that open source software is not inherently better than proprietary software. Rather, open source software is simply a model for developing and delivering software. But the open source model is proving to be an inherently more effective way to build and distribute software.

The analogy I made was with You Tube and Wikipedia. Both are a new and open way for creation and delivery of video and topical information. Both forgo the old ‘top-down’ model and instead leverage the creativity, knowledge and contributions of millions of ‘amateurs’. And, crucially, both are reliable, trusted and used primarily by people who may never edit or contribute something themselves. In those aspects, they are analogous to how open source software works. David and Brian then walked our session through what that has meant for their organizations in concrete terms. The new model is not only exciting, it is proven.

In all the engaging conversations I had with folks at the conference, I realized people are really beginning to understand this model, not only because open source saves them 40-70% in total cost of ownership, but also because they are getting better–often much better–software. In difficult times, we are forced to adopt new models and innovative approaches. The net result can be a better, more effective way of operating.

So, what does it mean?

The below video is an excellent reminder of how quickly and powerfully the world is changing.

After watching this, I had a few thoughts relating to nonprofits and technology when they showed that final question, “So what does it all mean?”

• Flexibility and adaptability are key
• In the coming years, many potential donors could increasingly be foreign, speaking English as a second language, with differing cultures and values.
• With such rapidity of change, a personal connection and individual human stories become more vital than ever.
• If your systems, software and processes are not agile and adaptable, they will be obsolete.
• No one can predict what 2 years will bring, much less 10. Couple that with the proliferation of communications channels and we begin to see that there will be no ‘dominate’ channel. Facebook and Twitter are not the future, but are important so long as people use them to communicate.
• The Internet is not a channel, it is a technology for information and application sharing based on a protocol that contains countless communication channels.
• The nature of human beings does not change nor do basic needs (survival, love, purpose, creativity), but the avenues and means of meeting those needs is changing more rapidly than ever before in human history.

In one sentence, the agility to be continually learning and innovating is essential in the 21st century. New models are emerging everywhere and old axioms, though still proclaimed, are already dead.  If your processes, systems, software and operational ethos are not dynamic, open and collaborative, you will not thrive and may not even survive. But, if they are, you will not only be successful, you will be a catalyst in one of the most exciting moments in human history.

The World is Open

Happy new year! After a December blogging hiatus, I thought I would begin 2009 with a bit of a reflection on 2008 (novel I know). Really it is more of personal observation that has come after the busiest year of travel in my life to date.

In 2008, I spent significant time in 9 countries including Australia, Bahrain, Egypt, England, Germany, Ireland, Oman, United Arab Emirates (my new home) and, of course, America. This certainly doesn’t set any records, but it was a wide enough sampling for me to observe some interesting patterns.

1. Inexpensive, instantaneous communication is becoming ubiquitous. While many people have been able to text, email and make and receive calls from mobiles while traveling internationally for much of this decade, it has not been cheap (though it is getting more so). What I find particularly exciting was that I was routinely able to have Skype calls, often with video and on the spur of the moment, with friends, family and business colleagues. While Skype has been around for a while, it was just this year that every one I wanted or needed to talk to seemed to use it. I am convinced in the last year Skype saved me and my employers thousands of dollars. Access to ubiquitous and inexpensive (or free) communication is a hallmark of an open world.
2. Grassroots, collaborative models are becoming a preferred method of operating. In politics and governance,  business and society at large, I saw this trend in most every country. The most obvious, Barack Obama’s election victory and grassroots supporter base, would have been unthinkable 20 years ago (for a myriad of reasons). But, beyond the macro, I saw time and again collaborative grassroots operations from Dublin to Sydney (and places in between like Cairo and Dubai) springing up to do everything from change local laws to help businesses share costs and launch new products. This goes beyond simply campaign activism or ’strategic partnerships’. It is a distinctive way of operating jointly and openly that multiplies efforts, shares costs and builds foundations together. Your specific needs or concerns can then be addressed from that common foundation. Transparency and collaboration have an inherent efficacy that people are using to bring change and speed innovation.
3. The myth of proprietary ideas and proprietary technology. I will admit to a bit of hyperbole there. Both obviously exist. But I found regularly that ideas I thought unique to one place had striking resonance with what I heard elsewhere–perhaps in different cultural clothing–whether I was talking to a Saudi business man or a Tasmanian taxi driver. That does not mean the ideas were identical (and certainly not their interpretation for practice), but it reminded me of the Biblical quote, “There is nothing new under the sun.” And I found this to be true of technology as well. I saw many exciting and innovative pieces of software and technology. But, the most exciting element was that many of these groups had built upon other’s work from the same open source code base, simply adding the features and functionality unique to their needs and region. Time and again I was told how they developed in months what use to take them years. The age of ‘owning’ all your code, or all your ideas, is quickly evaporating as people innovate on common platforms.

Nothing I have said here is in itself new. What struck me is the ubiquity of it. This is not just a few trail blazers or early adopters I observed. These are small town entrepreneurs and local individuals from diverse cultures doing this organically. This ubiquity drove home that the paradigm has shifted.  The world is open and it is incredibly exciting and empowering, especially as the economic crisis forces us all to find a better way to operate.

We Want Collaborative Criticism

I recently read an excellent dialogue on WSJ.com between the founder of Wikipedia and the editor-in-chief of Encyclopedia Britannica. It was a good exchange and one in which both sides made valid points. Jimmy Wales, the founder of  Wikipedia, made a point that resonated particularly deeply for me: “We are open and transparent and eager to help people find criticisms of us. Disconcerting and unusual, I know. But, well, welcome to the Internet.” 

This is the heart of the new paradigm, not just on the Internet, but in technology, business, politics and more. No product, movement or idea of any consequence has ever been beyond criticism and, as a result, improvement.  There is no such thing as perfection, especially when it comes to software and technology.  

That is why my ethos and the culture I am thrilled to be a part of at MPower is one that mimicks Mr. Wales. We are open and transparent and eager to listen to criticisms of us and our products. Disconcerting and unusual, I know. But, well, welcome to…open source.

Open source is founded on the belief that criticism, transparency and collaboration is not only constructive but essential to produce the best possible technology. The user empowerment and freedom that comes through community and open access to products and their underlying source code makes the products better and organizations more effective. Most companies I have worked with under closed, proprietary models invested huge amounts of energy in deflecting, distilling and drowning criticisms of the company or the product. Our goal is to invest that same energy into listening and jointly improving weaknesses and meeting needs. 

I learned the term ‘constructive criticism’ in grade school. I have attempted to live by it in my adult life. Personal improvements come from listening, responding to and working on those things others point out. For some reason, most software companies have never understood that. From talking to their marketing people or sales reps, you’d think their software was saving the world and flooding organizations with money, constituents and results simply by using it. If an individual talked that way, I think the appropriate designation is pathological narcissism.

So, please, criticize away. We need it. It makes the software better. But remember, we are open source. So, if you find a problem and have a good way to fix it, we are empowering you to do just that. Think you can do it better? We’re counting on it!

OSS Adoption Becoming Ubiquitous

Gartner recently came out with a new report on open source software adoption . The wholesale adoption of open source software (OSS) across the enterprise seems to continue unabated. The firm found that 85% of companies are using OSS somewhere in the enterprise and that the remaining 15% plan too within the next 12 months.

Considering the looming recession, it is no surprise that respondents “consistently said that lower total cost of ownership (TCO) and reduction in development of cost-prohibitive factors were major factors for selecting OSS.” 

The simple fact is that open source software, with functionality that meets or exceeds that of older proprietary brethren,  allows you to focus your dollars where they are most needed: customization, marketing/fundraising, and service delivery. It no longer makes sense to invest significant money upfront for software licenses. Invest in what drives results.

Open Source Advantage: Simple, Powerful and Low-Cost

I read a great post by Matt Asay the other day referencing how during SalesForce’s user conference, the company pressured a hotel to move their competitor, SugarCRM, to another hotel. 

SugarCRM is a competing product that has grown very quickly. The product is not only robust, but it is open source and very inexpensive. As Matt Asay phrased it, “Value wins in a recessionary economy, to the extent that anyone does, and these open-source vendors are providing a heck of a lot of value…for a very low price.”

We actually switched to SugarCRM from SalesForce recently for similar reasons. Naturally we are very pro open source. But no one buys a product just because it is open source…and no one should. You buy the products that help you operate most effectively while being simple to use and provide the best value for the lowest cost.

That is precisely why we moved to SugarCRM. We have found it easier to use, more effective in our daily operations and we are saving a significant amount of money.

That is precisely what we strive to do for our clients. We are aiming to provide powerful, friendly tools that make it simple for you to be more effective and create value at low-cost. Open source is the best way to do that, even for the 80% of our customers who will never read or write a line of code.

Community First

 

Matt McCabe, VP of Community

I am so excited about our announcement today that Matt McCabe is joining MPower as Vice President of Community. This is all about the ethos at MPower that puts community first. Always.

Noticing Matt’s last name, you may be wondering if we are related. Matt is my brother and, naturally, I am thrilled about getting to work together. But, I am even more excited by Matt’s “journey” and resulting vision for community that he has as a result of his years working with nonprofits here in the US, the UK and elsewhere around the world.

Having both grown up in the nonprofit community–our father has been working with nonprofits on marketing, fundraising, management and more for nearly 35 years, we have both spent most of our careers working in and around the nonprofit sector. However, we have taken very different paths on our respective journeys, rarely getting to collaborate directly.

Over the last 12 months, though, our conversations about the market and what organizations need truly began to resonate around two common themes:

1. Nonprofits need better technology with greater flexibility, more choice and lower costs. This is why MPower is open source.
2. Technology is a powerful tool, but users require support, training, expertise and strategy to be effective and derive strong results. From implementation to business processes to best practices, there is a wealth of information, knowledge and technology widgets out there dispersed across nonprofits and the organizations that serve them. No single company or small coalition of service providers can meet all of these needs effectively. That is why MPower is the platform committed to building community across nonprofits. This is why community will always come first.

I encourage you to connect with Matt to hear his vision and where it came from in more detail. He has consulted for the largest and most well-known organizations in the world. But he has also consulted with nonprofits with less than $250,000 in annual revenue. Whether working with groups large or small, Matt has seen the need for community, and his passion has both influenced me personally and also led him to MPower professionally.

With the addition of Matt, I am more confident than ever that we have the best leadership team in the industry. Beyond each of our company leaders proven expertise and innovation in their fields — whether it is Leo who has been developing and deploying open source solutions for leading companies for more than 20 years or Bryan who has implemented collaborative, value oriented software distribution models for top software companies, we have a leadership team that has not only talked about putting nonprofits’ needs first, but has a consistent record of operating that way.

So, please join me in welcoming Matt. He welcomes input from anyone with any interest in or advice about building  community, to email him at matt dot mccabe at mpoweropen dot com. In building community, we will partner with nonprofits and those who serve them. Community first!

Economic Crisis Makes Open Source Clear Choice

I have noticed recently that the pundits are aptly noting the growing importance of open source software. With the economic crisis, everyone is looking to cut costs and they will naturally look toward open source.

A great article in Express Computer relates that “Gartner predicts that by 2010 it will account for 20% of the global software market.” Open source is growing and, while the article outlines a number of reasons, I think Santosh Dsouza, Chief Technologist, Sun Microsystems, sums it up best, “There are a number of features in a product that only a few customers demand. It is not feasible for software vendors to spend time working on such features. In case of open source, the community contribution helps bridge this gap. This not only gives a customer more insight into the product but also helps in increasing the product quality as quality issues can be more proactively addressed and comprehensive testing can be done.” As software vendors have to tighten their belts (especially those that are publicly traded or trying to go public), you can bet they will have to cut back on staff and will not be able to maintain product velocity.

This is exactly why our ethos at MPower is community first. Let’s leverage technology and expertise across nonprofits so you don’t have to rely on us for everything. That way we can focus on the core product (product governance) rather than a bunch of customizations that distract us, which is what takes up significant amounts of most software vendors’ time.

In CIO, JT Smith recently did an excellent analysis of why open source will expand even more rapidly due to the economic crisis. Basically, there is an open source solution that is as good or better than proprietary solutions for almost everything you do.  As Smith ends the piece, “Open source applications don’t have one thing that their closed-source brethren have: licensing fees. Certainly you’ll still have support, deployment, and possibly hosting costs; but you have those costs with closed source software as well. The difference is that you’ll save the money you would have put toward licensing fees and now you have that to put toward implementation and support costs.”

I truly think moving toward open source makes great sense for so many organizations right now because of cost and flexibility. Some have asked me if it makes sense for smaller organizations without much or any IT staff. I say absolutely. Open source can be hosted and on-demand so you have no infrastructure issues (albeit some additional cost, but much less than hiring IT professionals). And even if an organization never reads or writes a line of code, they benefit. They benefit from the community fixing bugs and adding features, and they benefit from a better quality product since we remain focused on the core product. They can even become integral participants in the community through user tips, answering questions and getting top quality fundraising advice. 

But more on the community aspects soon. We are about to make some exciting announcements regarding the future of the MPower Community.