This post seeks to clarify People, Ideas & Objects revenue model and provide an understanding of the flow of funds within the associated communities. Needless to say all the funds flow from the Producers, however that is where the money is. I’ll break down the general flow to show how each of the different groups are sustained over the long term.
To start we need to clearly identify the three different groups that are supported directly by the producer firms. These groups include (1) People, Ideas & Objects, (2) the user communities and (3) the Community of Independent Service Providers (CISP). The need for this financial support is as follows.
- People, Ideas & Objects assesses an annual rental on all producers for access to the software applications, cloud computing infrastructure and the communities involved in the development. These funds are assessed based on an annual rental for each barrel of oil equivalent of the producer. This rental has been set at $1.00 per barrel of oil equivalent for the 2010 calendar year. In addition, assessments are due and payable by March 31, of each year. Producers are subject to a 300% penalty for any late payments. All producers are required to pay the rental from 2010 forward.
- The second group that receives producer funds are the users themselves. These users are the producers employees or consultants that they hire to do the work within their organizations and Joint Operating Committees. These funds are incurred indirectly as a result of the individuals doing their jobs and are not necessarily a direct cash payout. These costs are incurred by the users on behalf of the producers in working with the Community of Independent Service Providers and the People, Ideas & Objects developers. The work the users are compensated for is in defining and designing the systems they and the producers want and need.
- The third group that receives direct funding from the producers is the Community of Independent Service Providers. This community is engaged by the producers to handle many of their specific systems related needs. Accounting integration and systems development are the two areas where the CISP will be used most often.
What happens to these funds is also important to note.
- People, Ideas & Objects incurs the costs associated with the hosting of the infrastructure for running the application and software development environment. We also have the developers on staff who are working with the Community of Independent Service Providers and user groups to define and enhance the systems they need and want. Lastly we directly compensate the CISP for the work that is done concerning the applications development.
- Users are direct recipients of the funds they earn in their positions with the producer firms.
- The Community of Independent Service Providers are independent in that they are not affiliated with one specific producer or Joint Operating Committee. They are service providers to the oil and gas industry. Their services to People, Ideas & Objects and subscribing producers are provided as independent organizations.
Society is put in peril when world oil production declines. There is evidence that the world's oil production has declined. Therefore the world needs to have the energy industry expand its production. To do so requires that we reorganize to enhance the division of labor and specialization within the industry. As economic development has proven, reorganization would achieve far greater oil and gas production. Management of the industry is conflicted in expanding the output of the industry. The less they do, the higher the oil and gas prices and the better they appear to perform. This managerial conflict must be addressed and the performance of the industry unleashed. To do so requires the current management of the industry to fund People, Ideas & Objects and build the systems as defined in the Draft Specification. Please join me here.