Types of open value networks

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Material conditions determine the type of an open value network (OVN).

Note related to infrastructure development

We are trying to set the bases of a self-organizing OVN. In other words, the network doesn't have a predefined structure, or an initial blueprint, it emerges in reaction to environmental conditions. The infrastructure needs to be flexible enough in order to allow the network to self-organize. The design of core elements of the infrastructure needs to take into consideration key characteristics of different types of environments in order to somewhat anticipate emergent structures and to make sure they are able to emerge. In short, self-organization depends on infrastructure, which needs to be designed in anticipation of future states of the network, based on some understanding of environmental conditions.

Different application of the OVN model

  • [High tech products] - example is SENSORICA
  • [Software development] - examples are metamaps.cc, the OVN-I development (the network building the infrastructure for this OVN model)
  • [Local food systems] - example [Greener Acres], not very active
  • [Accountability] - proposed by Steve Bosserman, related to his project in Tanzania, Africa, not developed yet.
  • [Waste management/recycling] - proposed by Dante, not developed yet.
  • [Local value ecosystem] - proposed by Yasir, related to creating value abundance (by creating innovative solutions - social innovation, technological innovation, services, etc) in a local ecosystem in collaboration with non OVN based models (traditional institutions). Example: Open-alliance (currently incubated at SENSORICA)

Important conditions

Type of value created

See on the Value page.

Value capturing method

There are different ways to capture value by

  • selling the product or selling access to use the product (Ex. consumers electronics, access to equipment and lab space, hosting)
  • offering services for a product (Ex. customization of Linux, training, consulting, maintenance)
  • add others...

Dependency on fixed material assets

Production (value creation) processes in large scale agriculture are very dependent on land and water. The notion of property is important in this case: who owns the land and who controls access to water. New forms of property are emerging (see Water Commons post from p2p foundation). Moreover, this dependency on fixed resources binds the OVN to the same geographical location.


The development process of high tech products/devices has been mostly virtualized, meaning that the design and the simulations can be done using computer programs and through online collaboration. This eliminates the need for agents/actors/affiliates to be in the same space at the same time, and reduces the dependency on material resources for prototyping. An OVN focused on the design of high tech products/devices can be geographically dispersed, like in the case of software development, and can scale to tens of thousands of agents/actors/affiliates co-creating value in a swarm-like manner.

Dependency on time

Agricultural production requires a high level of time coordination and synchronicity, because some important processes are fixed in time, like seeding and harvesting. The time scale in this particular case is quite large. Since the product is perishable, important time constraints are imposed in distribution and consumption. Services might have tighter schedules and require even better time coordination.


Examples

Service of translation

A group of translators may decide to form an OVN to offer translation services. Working in a larger group allows them to take on larger projects. In this example, the value produced is translation. Almost all affiliates works with text, some work on infrastructure development and maintenance (building and maintaining the website, etc.), some work on business-related activities (find customers, outreach and social media, etc.). It is not difficult to imagine a simple mechanism for assigning a value to someone’s contribution. Contributions the exchange value creation (translation) are in fact very easily quantifiable: proportional to the number of words translated. We can also imagine modulators for legal, technical, scientific, literary… translations. But this is almost it. In fact, this is the model used by translators to estimate price. Once we have a clearer idea about the value system, we need to think of a set of incentives that would encourage the proper behavior, in order to keep the OVN productive. In this example, the value produced by the network is translation of text. The value that the network offers to affiliates (which is motivating individuals to be affiliates within the OVN) is some form of remuneration used by affiliates to acquire basic necessities (to sustain their lives). By linking some behavioral characteristics to the value equation to affect the value to the affiliate (which is what motivates the affiliate to be part of the OVN in the first place), we influence behavior. In this case, the revenue of affiliates should be calculated from contributions to translation activities (how much text was translated), modulated by different parameters extracted from the how the contribution was made (quality of the translation, respect of deadlines imposed by the customer, overall customer service, etc.).

See Guerrilla Translation! for example.

Service of hosting

Let’s imagine a different type of OVN, in order to better understand how incentives should be linked to the value system. Suppose a group of individuals forms an OVN to share a space for housing. This example is very different from the previous one, in that the value it offers to members is not revenue, but a place to sleep. A set of incentives needs to be designed in order to induce proper behavior in this example as well. Proper behavior in this context would be to take care of the space, to participate in cleaning and maintenance, to participate in governance (participate in meetings where group decisions are made about the space), to respect other members, to respect agreed upon schedule, etc. Incentives need to be linked directly to the value provided to the member, which in this case is a place to sleep. Examples of negative incentives would be: a reduction in the number of days per week the person can use some common areas or appliances, a lower quality sleeping room, more work assigned for maintaining the property, etc. If incentives aren't directly related to the value the network provides to members it becomes more difficult to maintain the network well-structured and productive. This is a small network, in terms of number of members, and geographically bounded.

Others

Past ideas taken from SENSORICA's Value System document. - Please help integrate them to the rest of the page.