Examples of Forward looking value equation
This page presents examples of Forward looking value equations implemented by different OVNs.
- Forward looking applies best to economic processes (ventures) for which the revenue is already known beforehand or at least approximated, for which the deliverable is known or at least predictable, have a budget and a planning for their execution. One example is a service requested by another entity. Another example is a donation or a grant to realize something. In this case, the % of total revenue for every contributor is calculated based on a projection of contributions, evaluated against a plan.
In these cases, the entity that issues the service request needs to be reassured that the resources it commits to it will be properly allocated, that the work is going to be done according to requirements and in time. The way SENSORICA sought to mitigate the risk perceived by the external entity was first, to separate the project into different Milestones, for example: design considerations, design, prototyping and production. The external entity will release resources (funds or others) one milestone at the time, and can revoke the service request after each milestone, if it is not satisfied with the work done. Second, a budget and a plan of activities for every milestone are created. The entire budget was split into milestones and further split into different types of activities, like Outreach, Coordination and Facilitation, Technical activities (mechanical and electronic design and software development, ...).
SENSORICA's PV Characterization project
Queen's University commissioned SENSORICA to develop an open source scientific instrument with the highest social impact, for $20,000. Open project page. This is an example of a service request, with a price tag attached to it. Open the budget. You can see the value equation HERE.
About the relation between Queen's University and SENSORICA: One can model this relation as a client - service provider. It is in some sense, but the classical understanding of this relation doesn't hold properly in this case. It is in fact a 4 parties relation:
- the University, entity requesting a service
- the SENSORICA OVN, through which the service is provides
- a Custodian, the interface between the SENSORICA OVN and the University
- the world, the global society, which will be the beneficiary of the service, along with the University
The goal of this project is to create an open source scientific instrument with the highest social impact.
About the flow of funds: The funds go from Queen's University to CAKE, the Custodian of SENSORICA Montreal. The arrangement here is to create a device that Queen's University will use, but also to create social value, by making it open source and by building a community around it. CAKE plays the role of fiscal sponsor, transferring the $20,000 fund to a network (SENSORICA affiliates) that executes the task.
SENSORICA's Barda project
About the relation between Queen's University and SENSORICA: This relation is of a type client - service provider, but it is in fact a 3 parties relation:
- Barda, a client requesting a service
- an Exchange firm to interface with the client
- The SENSORICA OVN, through which the service is provides