OSE Chapters Concept
Introduction
We are looking for entrepreneurial makers to take an a program of collaborative literacy training to become part of the OSE movement as leaders of localized branches, the OSE Chapters. In 2020, OSE is taking on a campaign for starting chapters worldwide to further the OSE Vision, and to collaborate in completing the GVCS by 2028.
Currently, OSE, a 501(c)3 nonprofit organization incorporated in the state of Missouri, USA, is generating revenue from 2 main sources: 3D printer sales, and running STEAM camps and related immersion build training events - or Extreme Manufacturing workshops. While both are in their startup phase, they are also large-value items that may be replicated in their current form. Combined with nonprofit donations when incorporated as a nonprofit organization - these 3 revenue streams have been sufficient to fund OSE over the last decade as a shoe-sting budget operation. OSE believes that we are well-position at this point - based on the existing 3D printer designs and production engineering, proofs of concept of the Extreme Manufacturing Workshops, and innovative collaborative design techniques developed over the last decade - to train others to replicate OSE operations in other locations as regional or national chapters of OSE.
There is a significant learning curve involved in starting an OSE Chapter.
For the 3D printer, some of the main skills involve:
- Building the printer
- Understanding sourcing
- Understanding how to create new designs
- Understanding how to scale the design to any size
- How to market the 3D printer effectively.
For the STEAM camps, some of the main skills inolved are:
- Building 3D printers
- Teaching FreeCAD
- Using Part Libraries for collaborative development, and a good understanding of the OSE Collaboration Protocol.
- 3D printing - ability to design and print anything in different materials
- Microcontrollers and electronics - being able to build a microcontroller from scratch and feed it with the Arduino environmen, ability to design basic circuits in KiCad, and to generate toolpath files using FreeCAD path workbench.
These are some of the technical skills required, but there is another skill set that is required - Collaborative Literacy - which allows the Chapter to be engaged more fully in a large-scale, global, collaborative, open development process. OSE has been innovating on collaborative, modular, scalable development processes, such as Extreme Manufacturing. More recently, we have begun developing a model for Extreme Enterprise. We believe that these are prerequisite to GVCS completion, as a larger collaborative process is required to attain the Distributive Enterprise results that we are seeking.
Immersion Training Program
The OSE immersion program is intended for Collaborators to start official OSE Chapters worldwide. An OSE Franchise Contract will spell out the specifics, but in a nutshell, the intent is to create collaborating Chapters so that the GVCS is completed by 2028. Some of the main ways that chapters coordinate work with OSE International are
The funding model is initial sponsorship of the training by the Collaborator, where OSE assists the Collaborator in making a pitch to local (to the chapter) enterprise interests to gain the necessary support.
The applicant is expected to be an entrepreneurial maker with a strong, open source culture that allows them to collaborate effectively with a larger global team. We are currently just starting the immersion program, and can accept up to 24 candidates in the first cohort in various developed countries around the world where the economic situation can sustain an open source hardware production and education enterprise.
Each chapter produces 3D printers (and other products as we develop them), provides immersion STEAM Camps, and collaborates with OSE on continuing product development. Each chapter sets up their own website if mutually agreed upon, and collaborates with OSE on the OSE wiki, Discourse Forum, and the Open Source Everything Store.
The collaboration focuses around open source product development - developing innovative and transformative Distributive Enterprises, towards completion of the GVCS by 2028. Each chapter is reviewed after 2 years of operation. If success is present - the chapter has a chance to renew their charter for another 2 years. Quarterly review provides feedback on operation. The basic requirement for Chapter renewal is collaboration on a common plan of action.
We emphasize here that the nature of the involvement is a long term, large scale goal of transformation, according to the OSE Mental Model and the OSE Model of Change. As such, because we are developing and testing large-scale collaboration protocols intended to transition development from proprietary to collaborative - all Chapters are required to work on this common goal. We see the potential of open development becoming the norm in hardware, but at the same time, we recognize how difficult that is. In order to develop products effectively as a large-scale collaboration - an unprecedented level of innovation in collaboration is required. We are beginning to test large-scale collaborative development of enterprise via the Extreme Enterprise method. We are solving for having enough people show up to execute a complex, iterative, modular, agile development process - with coordination that transcends Brook's Law. This is no small task - and it requires that we have enough people on board to make this feasible. This starts with coordinating development - with everyone's input - on specific projects. Going forward, it should be clear to OSE Chapters that they do not work on just any projects - but on the common, focused, prioritized, and coordinated projects set upon with OSE International. Once OSE grows to thousands of people, it may be possible for chapters to have more autonomy in selecting their projects, but until then - we are all working in a highly coordinated fashion until, first - the 50 GVCS tools are complete, and their 500 constituent modules are all open-sourced. This will allow for unleashed productivity across the globe, and is the first step in OSE's path - to be completed by 2028.
Basic Terms
- 2 Year or 1 Year duration - 1 year full time, or 2 year part time requirement.
- Weekly schedule - bulk of the time is spent in hands-on learning, with 1 hour meeting with OSE to provide guidance. Areas covered focus on technological knowhow for building things, running workshops, and collaborating effectively. The curriculum is shown at OSE Chapter Training Calendar
- Tracks - All chapters engage in education and production work - but can specialize in several areas depending on the skill set of the collaborator. For each track, we can provide additional guidance.
- Software and IT development - platform and back end, and FreeCAD development
- Research and Development - focusing on new product releases, design and production optimization
- Education - building relationships with schools, colleges, and universities
- Community Economic Development - training other entrepreneurs in their local area
- Leadership Track - community management, coaching of others
- Each OSE Chapter produces all the machines and hardware that they sell or use in their programs.
- When STEAM Camps or workshops are run, they typically happen all at the same time to optimize collaboration.
- We expect to begin running one or more Extreme Enterprise events per year, and each chapter
- Each chapter sets up their own website, and are featured on the OSE Inernational website as an official branch
- Each chapter uses OSE branding for each product.
- Expected net revenue after completion of training - is $50k.
- OSE takes a 5-10% franchise fee from all chapters to cover marketing, continuing education, ongoing product development, land and facility acquisition, and other costs.
- Collaborator gains free access to all OSE workshops, but needs to pay for travel or materials
- $10,000USD tuition and certification fee for the 2 year program, and $10k materials cost. Sum to be paid to OSE upon acceptance into the 2 year program.
- Fee includes certification to run as an official OSE chapter,
- Final exam involves building a printer, using FreeCAD to design a product collaboratively with other team members, building that product, and productizing the product at the Open Source Everything Store. This shows that the collaborator is fully capable of producing to OSE Specifications.
Chapter Duties
- Each chapter coordinates closely with OSE International
Chapter Benefits
- OSE is repsonsible for marketing, and budgets will be allocated to make sure that revenue goals are met for each facility. The base revenue goal for each chapter is $50k per chapter operator. Chapters can train and hire additional staff as needed.
- We will create an annual conference once there is a sufficient number of chapters or collaborators in training.
- Each chapter has the option to receive additional training and certification in producing new products as they are rolled out. Official cerfication is required for the product to be sold under the OSE label.
- Each chapter can apply to OSE International for funding to acquire additional facilities or land.
- Each chapter has continuing education opportunities for free tuition to all ongoing education. Materials or logistics costs may be extra.
Application and Requirements
Candidates must be open to pursuing Distributive Enterprise - meaning publishing all results not only for how to design products - but how to run enterprises that provide mutually assured abundance.
To apply for the immersion program, candidates submit a video of interest, and do one or more interviews. The steps required for formal acceptance are:
- Video of interest and 1-2 interviews, with 2-3 work references provided
- Producing a slide deck, and securing both a mentor and a sponsor.
- Securing $20k funding from sponsorships. OSE can assist with this process by providing guidance or access to resources.
See more about OSE Chapters Financial Terms.
At least 20 hour per week avaialability is required to pursue the immersion training.
Each cohort of Chapter Training involves a minimum of 2 trainees.
The costs are US $10k for the 2 years of the program paid to OSE, and another $10k for materials, which include a filament maker, shredder, CNC torch table, circuit mill, a 3D printer cluster, and additional tools. Sourcing must be localized to the Chapter (ie, Collaborator performs the sourcing as part of the learning program), with the weekly schedule as in OSE Chapter Training Calendar. Each week involves a 1 hour meeting with OSE, logging work on the OSE wiki, and majority of the time with hands-on learning.
Revenue Figures
Here we present some basic revenue numbers for reference of what we've observed so far.
Note: this is our experience from the USA, so other locations may be different.
For the 3D printer D3D Pro, material costs are currently $500-600, production cost is $750 including packing and shipping, marketing cost is negotiable, and anything above that is considered net revenue. This means that a basic business can be started by selling 10-20 machines per month, depending on sale price.
For the STEAM Camps, roughly speaking - the material costs are $500, and price per seat is $250 per day. Thus, 10-20 participants per month for multiple day events suffice to make this a business. We have run events in the $1500 price range, where $500 goes to the instructor, $500 covers materials, and $500 covers OSE costs.
Success of the enterprise model depends on the resourcefulness and effort of the Collaborator - their ability to produce kits, organize events, and market them successfully with OSE assistance. OSE provides assistance in this effort by making marketing lists available, with a basic social media posting strategy for continuous engagement, and collaborative marketing guidance. As part of this, we will be creating an Open Source Everything Store website to feature all enterprises created, and to teach others how to build things. This is an entrepreneurial situation with risk, and OSE makes no guarantees about the success of the enterprise, outside of running such an enterprise with limited success over the last 2 years and providing state-of-art, open source, replicable technology.
Mentorship Sponsorship
Local chamber of commerce, business, private, or other sponsorship is required. Each. As part of a Chapter's application, the chapter requires recruitment of a mentor to provide additional guidance. There are 4 parties total:
- OSE
- Collaborator
- Chamber of Commerce, Community Economic Development organization, corporate sponsor, benefactor.
- Advisor/mentor/thought partner to mastermind the operation. See OSE Chapters Community Partners.
We know that rock stars create startups. But can we replicate the same to other startups, by helping them along? Can we find people who are interested in solving pressing world issues as their job? How do we market this?
"We build local open source microfactories that change their economy to circular by producing essential goods for their community to bring wealth back to town - as a means to people leading more fulfilling lives doing by shifting to what is most meaningful for them once the threat of survival is removed. We achieve this by collaborating on industrial productivity on a small scale."
Broader Financing Terms for OSE Work
OSE's current funding strategy is bootstrapping.
A lot of times we are asked about 'raising money'. But that begs a fundamental question - can a centralized funding mechanism lead to a decentralized economy? From first principles, this seems incongruent. For this reason MJ has not been particularly excited about 'raising capital' along the standard route.
If somebody invests - a stake or part ownership is the reward. The issue with this is that this tends to concentrate wealth, as those with money get to make more money for doing no actual work in the business. This does not appear to be a good formula for general human prosperity.
But what if someone invests, but the money stays in the company's actual agents or customers, and thus contibutes positively to the historic transfer of wealth from the few to the many? Does anyone do this? Does anyone invest, not in a donation way - but in an 'investment way'. Take the following case. An investor pumps in a boatload of money and gets a share of the company on paper - would they do that if the company never sells? Is there a way to structure this relationship in a way where the investor can sell his share to another investor, and make money, but never take money out of the actual operation so all the wealth stays with the agents and customers? This is still an active question - there may be an innovative way to do this.
That leads to grants or donations. But so far, we have not succeeded in attracting any major investment as such. The best we did was $720k from Shuttleworth Foundation in 2012.
We are pursuing concepts such as crowd funding ($200k revenue from 2 campaigns), Incentive Challenges, and now Extreme Enterprise as well as a Crowd Supply campaign for an advanced 3D printer.
As we build extreme development techniques and collaborations, we may be in a good position for some $1-2M grants or investments to deploy the Open Source Microfactory. However, developing OSE Chapters, product sales, and STEAM Camps seems like a great way to scale the organization. In terms of readiness for market, the product sales are first. The current 3D printer productization, OSE Chapter development, and related STEAM Camps development remain as high priorities.