Objective of the study
The objective of this study was to develop a new business model with a plan for alternative revenue streams for Design Factory Global Network (DFGN). The term “alternative” in this context refers to revenue streams that will complement the current funding that comes from the Finnish government. At the time of writing this thesis, an important question which was under scrutiny was whether annual membership fees should be introduced to all members of the network.
Methodology
The grounded theory was used since there were no previous empirical studies on the research topic and there is a need to create a structured model based on the qualitative data. As such, the instruments of inquiry were interviews, observations and data from secondary sources.
Findings
The key finding of this research was that new members of the network were willing to pay annual membership fees with the expectation that they will get returns on their investments. Old members were not willing to pay annual membership fees but they were ready to provide financial support through other means. Data also revealed that there was a need for improvement in the governance guidelines of the network, especially as they relate to documentation and decision rights of all stakeholders.
Summary and Recommendations
As per the research objective, a new business model was successfully developed for Design Factory Global Network (DFGN). The model was based on Osterwalder’s (2004) Business Model Canvas. The following recommendations were also made:
* Official documents should be signed as part of the registration process of new members and the rights and obligations of every member – new and old – should be made explicit.
* Only new members should be charged annual membership fees for a minimum of three years.
* An integrated web-based system should be developed to serve as one-stop-shop for Design Factory Global Network (DFGN).
Regarding the plan for alternative funding sources, the following revenue streams were suggested:
1. Companies pay annual subscription fees to join the “integrated system” platform
2. Companies pay to participate in the global students’ projects
3. Companies pay to participate in short ideation challenges aimed at solving companies’ mission-centric problems
4. Governments’ funds for “special” projects
5. Members pay annual subscription fees to access ‘’advanced functionalities’’ on the integrated system
6. A fraction of the income generated by complementors from users of the proposed integrated system
7. Philanthropic support from companies or wealthy individuals who are passionate about innovations in education
8. Endowment funds for innovation in education
9. Fees from special exclusive events during International Design Factory Week (IDFW)
10. Revenue from the alumni association of Design Factory Global Network (DFGN)
11. Generate revenue from non-intrusive data
Conclusion
The continuing increase in the membership of Design Factory Global Network (DFGN) suggests that academic institutions are beginning to realise the importance of interdisciplinary education that is student-centric and focused on solving real-world challenges
