opendms

crowd funding

what is it?

find out what crowd funding is all about and why it is the best model for open source

the proposal

what is opendms proposing in it's crowd funding initiative

how does this get paid for?

the pointy end of the stick; show me the money

the proposal

what is opendms proposing in it's crowd funding initiative

what is it?

Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet. Crowdfunding is a form of crowdsourcing and alternative finance. In 2019, over US$54 billion was raised worldwide by crowdfunding.

Although similar concepts can also be executed through mail-order subscriptions, benefit events, and other methods, the term crowdfunding refers to Internet-mediated registries. This modern crowdfunding model is generally based on three types of actors;

  • the project initiator – who proposes the idea or project to be funded;
  • the supporters –  individuals or groups who support the idea; and;
  • the moderator – the “platform” that brings the parties together to launch the idea.

Crowdfunding has been used to fund a wide range of for-profit, entrepreneurial ventures such as artistic and creative projects, medical research, travel, and community-oriented social entrepreneurship projects.

The fundamental opendms principal is “not-for-profit” and the founding members of the opendms project are dealers with one goal in mind, to wrest control of their information technology away from the disparate third-party organizations currently “running the show” and create a large community of dealers and co-operative third parties to give all dealers the control back and provide the on-going support and assistance needed to keep it all in control.

The best way to do this is to have all community members subscribe the above mentioned “small amount” to fund the opendms project for everyone and for all members to benefit accordingly. The more subscribers the less the single member cost and the more support for the opendms development process.

Currently some dealers are paying thousands, and in some cases tens of thousands of dollars a month for their combined IT support and DMS licence fees; the opendms team wants the crowdfunding subscriptions to be in the few hundreds.

Remember opendms is NOT for profit, all that the project initiator (the founding member dealers) want from the project is for it;

  • to become self funding;
  • to be supported by the dealer community world-wide;
  • to be able to build a viable product that answers the needs of every dealer in every segment of the market (included but not necessarily limited to automobile, agriculture, haulage, heavy equipment, leisure, marine etc.);
  • to attract third party contributors to add value to the core “open source” offering;
  • to attract individuals and groups to provide support for all aspects of dealership involvement in the opendms project (conversion management, data conversion services, go-live coordination, training and ongoing support;
  • to work with the OEMs to make sure the opendms project can seamlessly answer their requirements for asynchronous integration with their dealer groups; and,
  • to be able to get on with running their own businesses knowing that the opendms project is there to provide the products and services they need to “do the job” and can move quickly enough to answer the next new challenge.

The opendms project, if it is able to achieve the above goals, has the potential to revolutionize the role of information technology in a modern dealership but, more importantly, it has the potential to give dealers a common point of reference for support and a community with the potential to represent all dealers and innovate the industry.

the proposal

As mentioned above, crowdfunding endeavours usually have three actors; the project initiator, the supporters and the moderator. In the opendms model these are identified as;

  • the project initiator or initiators – the originating group of dealers who realized that the current state of information technology in their dealerships was completely unable to answer the day to day needs of their businesses and was NOT under their control;
  • the supporters – dealers including, but as mentioned above, not necessarily limited to automobile, agriculture, haulage, heavy equipment, leisure, marine etc.; and,
  • the moderator –  the opendms management team (the management team that works for the best interests of every community member).

We discuss elsewhere on this site the reasons behind the project initiators conceptualizing the opendms project but suffice to say, these dealers were already investing in their own information technology and working to reduce the reliance their businesses had and has on the traditional information and DMS services. They were prepared to design, develop and implement their own solutions BUT realized that without the support of all dealers to find a new way “for all dealers” their efforts were never going to be more than band-aids in a severed leg.

The question was “how do we create a community of dealers working together and guarantee its ongoing success”? It was agreed that this community had to have a small management team of hand-picked professionals being paid correctly for their expertise and that the management teams would;

  • have the skills to conceptualize and design the products and services needed to create a middleware between specific applications and programs and existing cloudware (open source, freeware, shareware and commercial) solutions; 
  • to be able to research and then recommend to the community which existing cloudware might be considered; 
  • be responsible for managing the outsourced development of these middlewares;
  • be responsible for the development of any specific applications considered core to the opendms project;
  • to manage and interact with any third-party contributors that may wish to add value with products and services through the middlewares; and,
  • most importantly, to be a liaison between the opendms community and any OEMs that wished to connect to their dealers using the opendms middleware.

Whilst a simplistic representation of the opendms ecosystem, this diagram helps put a picture to the words. In essence the opendms project offers any dealer access to a raft of products, expertise and support that they may struggle finding “doing it on their own”.

THE MODEL – how to make it work

opendms needs to find a number of people who have the following expertise and experience in;

  • DMS design;
  • the operations of information technology in a dealership-based business;
  • the design of middleware components using “current” technologies;
  • the implementation of application level solutions to DMS systems;

and further;

  • to liaise with all players in the opendms diorama with professionalism and conviction; and,
  • the vision to get ahead of the requirements of the automotive dealer in the current business world; and to stay there.

The skills required are very specialised and not going to manifest in a single person so it is expected that the opendms management team will consist of a number of people providing a cohesive solution to these requirements.

What is exciting about the opendms project is that it is building an open source community and the concept of this “openness” will extend beyond software and into a broader area of intellectual property. It is expected that the expertise and experience noted above might well be augmented by community members and a major role of the opendms management team might be the coordination of input from community members who can offer their expertise and experience and calls may be made to the community by the management team to seek just that help.

So, referring to the diagram above, the opendms management team will oversee the community assets by undertaking;

  • the management of the community membership;
  • the ongoing analysis of the cloudware world to keep abreast of the new offerings and how they may be used by the opendms community;
  • the design, development and control of the products considered “core” to the opendms project (effectively the elements that need to be added to any cloudware to provide, ultimately, a complete DMS solution);
  • the liaison with third party contributors to introduce the commercial developers and OEMs to the opendms middleware layers;
  • the management of the third-party service providers involved in DMS conversion programs, training and support for the core opendms products; and,
  • the task of keeping the content management systems used by the opendms project current and relevant.
THE DEALERSHIP – tapping into the project

To join the community costs nothing, you can tap into the support structures, source library and community forums with a simple community registration (and opendms will never share its membership list with anyone under any circumstances).

In the diagram below we’ll assume a given dealer group has automobile, agricultural and haulage dealerships but it extends to any dealership model.

The dealer group would create a community registration and, once complete, an X-Secret-Key would be generated and returned to the dealer group.

The dealer group would then create dealership memberships for the various dealerships within the group and each of these dealer memberships would attract a X-Access-Key (uniquely identifying the specific dealership within the dealer group) and a monthly fee.

how does this get paid for?

It is critical to stress that the opendms model is not for profit so the only income requirement is to cover the costs of the management company. The costs of running the opendms project will be limited to the direct operating costs of its day to day operation and these costs will be analysed on a quarterly basis (in arrears of course) and calculations made to establish the monthly membership that a dealer member would pay for access to the opendms portal and middleware suite for the next quarter.

In the very early days of operation, before the membership model becomes self funding, it is considered that a minimum monthly fee will apply but when the monthly income of the registered dealer members is sufficient will be replaced with;

  • monthly fee = (past quarter operating costs / dealer members).

It is the absolute intent of the opendms initiators that every dealership membership will only pay their share of what it costs to run the project.

opendms will not work without the complete and utter trust of each and every stakeholder. The right people for the job will be employed, they will be paid a fair salary, all accounts will be open to membership scrutiny and, each financial year the account balances will be calculated and any annual surplus calculated into the next quarter’s monthly fees.

SUCCESS OR FAILURE – what happens?

We have total confidence that opendms will be a successful enterprise, will meet its mission statement and fulfill it’s charter, be able to operate efficiently and be considered an extremely important part of every dealership member’s business model.

Equally so, we know that the business model is viable, that the open source ethos is sound, that the cloudware open source, freeware, shareware and commercial products are available and mature and that the middleware construct works and, most importantly, we can attract people to the management team with the skills and experience outlined above.

But what happens if the community doesn’t share our view?

The opendms initiators have no intention of asking for one dollar from any community member until;

  • a keystone product with real value to dealers has been developed (Project Forward);
  • a management portal to support the Project Forward offering is available;
  • the middleware layer to allow access to the management portal is mature and available to dealer members; and, most importantly,
  • if the opendms  project were to cease at that time, the Project Forward offering would be considered valuable to the dealer members in perpetuity.

The cost of Project Forward will be meet by the opendms initiators and documented and, if the project starts and is supported by the dealer community, will be added to the accounts for reimbursement accordingly. If, for what ever reason the project fails, those funding the project to that stage will consider it an investment risk.

No dealer member fees will be requested until Project Forward is finalized. Once again, opendms is all about community. If like-minded dealers see the value in the project and are prepared to join, they will end up with world class IT products that they control and own, and be capable of moving with the rapid changes in the business market-space and do all that at a fraction of the cost of their current IT solutions.

want in?

As mentioned above, no dealer memberships will be started until the opendms Project Forward has been completed. At that time a request will be made of community members to make a commitment to the project.

It is expected that there will be between a 6-12 month period (as of June 2020) of development where Project Forward will be actioned, the middleware moved into production and the cloudware services matured to full production.

The core products will be brought into beta and pilot in a staged approach and dealership members will be able to test the functionality for the core products, make suggestions and help with user testing.

When the core product’s modules move into stable release, community members will be able to decide when and if they want to transition to a dealer membership.

So, if this is of interest to you, join the community, watch the progress unfold and when a call to action is made, become a dealer member if your want.

It makes sense to consider the opendms project as a business investment (it is a crowdfunding endeavour after all) not a business expense; help us make it successful and everyone benefits.

If you want to wait and see, that’s fine too, just join the community and you will be able to monitor everything and offer your support when it suits you.

Once again (and you’re probably getting sick of hearing it), opendms is a not for profit, crowdfunded community project. The project initiators are not trying to make money out of the project; they want to make money in their businesses and believe that any product the opendms project generates will help them do that; as it would any other like-minded dealer group.