Business Ecosystem Design

Advanced Visual Business Modeling - or - How to »Prototype« a Business Ecosystem?Service Experience Camp Berlin, September 14th 2013

@Jan_Schmiedgen

Consumer Business-to-Business

Everyone wants to become a “Platform Business”

4Image Credit: © 2012 Subprint (http://subprint.com/blog/it%27s-the-ecosystem,-stupid)

Product/Service Ecosystems ≠ Business Ecosystem

http://subprint.com/blog/it%27s-the-ecosystem,-stupid














We all love the Business Model Canvas

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… and it’s manifold derivates! But they all have the same problem ...

!

Image Credits / Sources in order of appearance: Casadesus-Masanell, R., & Ricart, J. E. (2011). How to Design A Winning Business Model. Harvard Business Review, 89(1/2), 100–107. // Porter, M. E. (1996). What is Strategy? Harvard Business Review, (November - December). // Ouden, E. den. (2011). Innovation Design: Creating Value for People, Organizations and Society (1st ed.). Springer London. // Fjeldstad, Ø. D., & Stabell, C. B. (1998). Configuring Value for Competitive Advantage: On Chains, Shops, and Networks. Strategic Management Journal,, Vol 19, 413–437. // valuenetworksandcollaboration.com, 2011 // Tom Hulme (http://weijiblog.com/

startup-tools/) // Patrick Stähler (http://blog.business-model-innovation.com/tools/) // Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing Your Business Model. Harvard Business Review, 86(12), 50–59. // Fraunhofer IAO (http://moby.iao.fraunhofer.de/)

!

Choices & Consequences Activity Networks Value Flow Mapping for Ecosystems

Value Configuration Perspective: Chains/Shops/Networks Tom Hulmes Canvas (IDEO) Patrick Stählers Canvas (Fluidmind)

etc.Other »Scientific Conceptualisations« Fraunhofer IAO Canvas

Core Value Proposition

Complementary Offerings

Supplying and Enabling Network

Other Stakeholders

Higher Margins via Apple Price

Premium

LowestProduction

Costs

Goods & Services

Money & Credits

Information

Intangible Value

High Volume and Planning Certainty

Manufacturing Knowledge

Reputation

Hardware OEM's: e.g. Foxconn

OfficialAccessoryManufacturers:e.g. Belkin

Retail/Certified Partners: e.g. Gravis

Microsoft, Google,

etc.

???

IP royalties

Seamless UserExperience

Enriched UserExperience

AppPurchases

Comission

Sales Platform

Apple

New Business Ideas

DeveloperCommunity

Higher Margins :Apple Price

Premium

Broad ServiceStation Covering

Technical and Sales Training

Media Industries

Digital Sales Channel with DRM and wide Spread

Media Delivery

???

IP royalties / Commission

InfrastructureManagement

Service Contract

Technical BackendProviders: e.g. SAP

Sponsoring / Discounts

Apple on Campus

Bulk Purchases

Schools and Universities

Reputation and Awareness

Personal Data

Price Premium(Hardware, Media and App Sales)

AppleCommunities

AppleUsers

SoftwareDevelopers:e.g. Adobe

http://weijiblog.com/startup-tools/




http://blog.business-model-innovation.com/tools/

http://blog.business-model-innovation.com/tools/

http://moby.iao.fraunhofer.de

http://moby.iao.fraunhofer.de

!



!







Other Stakeholders


Premium

LowestProduction

Costs

Goods & Services

Money & Credits

Information

Intangible Value



Reputation




Microsoft, Google,

etc.

???

IP royalties



AppPurchases

Comission

Sales Platform

Apple

New Business Ideas

DeveloperCommunity


Premium



Media Industries


Media Delivery

???



Service Contract



Apple on Campus

Bulk Purchases



Personal Data


AppleCommunities

AppleUsers

SoftwareDevelopers:e.g. Adobe}

Systemic representations

!



!







Other Stakeholders


Premium

LowestProduction

Costs

Goods & Services

Money & Credits

Information

Intangible Value



Reputation




Microsoft, Google,

etc.

???

IP royalties



AppPurchases

Comission

Sales Platform

Apple

New Business Ideas

DeveloperCommunity


Premium



Media Industries


Media Delivery

???



Service Contract



Apple on Campus

Bulk Purchases



Personal Data


AppleCommunities

AppleUsers


Apple’s Business Ecosystem (Excerpt)




Other Stakeholders

®®

TM

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Premium

LowestProduction

Costs

Goods & Services

Money & Credits

Information

Intangible Value



Reputation

???

IP royalties



AppPurchases

Comission

Sales Platform

Apple Platform

New Business Ideas


Premium




Media Delivery

???



Service Contract


Apple on Campus

Bulk Purchases


Personal Data


Image Credit (in order of appearance): Allee, V. (2008). Value network analysis and value conversion of tangible and intangible assets. Journal of Intellectual Capital, 9(1), 5–24.; Design Thinkers Academy

It is not like … It is more like ...

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STAKEHOLDER MAPPING

EXAMPLES OF STAKEHOLDER

CUSTOMERSGOVERNMENT

EMPLOYEES SUPPLIERS CREDITORS

COMMUNITY

WHO ARE THE STAKEHOLDERS?

DATECOMPANY

$

VALUE NETWORK MAPPING

THE KEY RELATIONSHIPS BETWEEN STAKEHOLDERS

VALUES

MONEY POWER EXPOSURE EXPERIENCE

LOVE REPUTATION RIGHTS

ATTENTION TRUST SERVICE PRODUCT

INFORMATION CREDITS

EXAMPLE

EXAMPLE

DATECOMPANY

VALUES

MONEY POWER EXPOSURE EXPERIENCE

LOVE REPUTATION RIGHTS

ATTENTION TRUST SERVICE PRODUCT

INFORMATION CREDITS

EXAMPLE

EXAMPLE

Process Map, Net Map, Actors Map

Service Ecology Map Value Network Analysis (VNA)

Value Network/Ecosystem Mapping

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Your ChallengeReady for some action?




Other Stakeholders

Just-at-time!Airspeed transportation: delivered

to your window - when you want it and where you

want it.

last mile parcel delivery

emergency pharmaceuticals

Your Challenge: Call-a-Drone

12Image Credit: CC-licensed “Quadrocopter” from kaffeeringe → http://www.flickr.com/photos/kaffeeringe/8722017781/

pizza

P2P-parcel scheduling

air courier

FLYTOME

http://www.flickr.com/photos/kaffeeringe

http://www.flickr.com/photos/kaffeeringe

http://www.flickr.com/photos/kaffeeringe/8722017781/

http://www.flickr.com/photos/kaffeeringe/8722017781/

Exercise I: Collect Actors/Stakeholders

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Compatibilty with VP(positive, neutral, negative)

Influence(size of indicator)

Title/Function of Actor

Primary Motivations

Investment

Actors Role

EXERCISE

10:00MINUTESTime Horizon

(throughput time)

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Other Stakeholders

Exercise II: Group ActorsEXERCISE

05:00MINUTES

Goods & Services

Money & Credits

Information

Intangible Value

Exercise III: Define Value Flows

Goods & Services

Money & Credits

Information

Intangible Value

EXERCISE

15:00MINUTES

Economic community supported by a foundation of interacting organizations and individuals - the 'organisms' of the business world. [...] Over time they co-evolve in their

capabilities and roles, and tend to align themselves with the directions set by one or

more central companies.

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James F. Moore (1997)

„“

The Rise of EcosystemsNew Rules for Value Creation

Value propositions should be crafted: as a reciprocal exchange of value; described

in terms of perceived benefits or reduced costs; transparent about to whom that value should flow

and how; perceived as a fair exchange of value; delivered over a time frame longer than a single transaction; often co-created through interaction

between two or more parties; and, congruentwith the relationship objectives set

for a particular market.

Contemporary Understanding of Value Propositions

Ballantyne, Frow, Varey & Payne (2011)

„

“

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Business Ecosystem?

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“A value network model visualizes specific interactions within the network to provide a perspective for understanding value-creating roles and relationships,

and to offer a dynamic view of how both financial and non-financial assets are

converted into negotiable forms of value.”Elke den Ouden, Phillips Industry Consulting (2011)

Image Credit: http://www.elkedenouden.com/AboutElke.html

http://www.elkedenouden.com/AboutElke.html

http://www.elkedenouden.com/AboutElke.html

Customer Supplier Godfather Competitor

Intermediary Enabler Financier Provider of Content

Provider of Services Provider of Systems Provider of GoodsMarketing &

Communications

Goods & Services

Money & Credits

Information

Intangible Value

Align and Balance Value Flows

Goods & Services

Money & Credits

Information

Intangible Value


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Other Stakeholders


Premium

LowestProduction

Costs

Goods & Services

Money & Credits

Information

Intangible Value

High Volume Orders and Planning Certainty


Reputation



InofficialAccessoryManufacturers


Microsoft, Google,

etc.

???

IP royalties



AppPurchases

Comission

Sales Platform

Apple Platform

New Business Ideas

DeveloperCommunity


Premium



Media Industries


Media Delivery

???



Service Contract



Apple on Campus

Bulk Purchases



Personal Data


AppleCommunities

AppleUsers


Apple StoreLogistic Partners:e.g. TNT, UPS

IT-InfrastructurePartners: e.g. Akamai

Content

SaS Solutions

Premium Services/Software Purchases Personal

Data

Personal Data

Layers of a Value Web

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Premium

LowestProduction

Costs

Goods & Services

Money & Credits

Information

Intangible Value



Reputation




Microsoft, Google,

etc.

???

IP royalties



AppPurchases

Comission

Sales Platform

Apple Platform

New Business Ideas

DeveloperCommunity


Premium



Media Industries


Media Delivery

???



Service Contract



Apple on Campus

Bulk Purchases



Personal Data


AppleCommunities

AppleUsers





Other Stakeholders





Other Stakeholders

®®

TM

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Premium

LowestProduction

Costs

Goods & Services

Money & Credits

Information

Intangible Value



Reputation

???

IP royalties



AppPurchases

Comission

Sales Platform

Apple Platform

New Business Ideas


Premium




Media Delivery

???



Service Contract


Apple on Campus

Bulk Purchases


Personal Data


Virtuous Cycles

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Premium

LowestProduction

Costs

Goods & Services

Money & Credits

Information

Intangible Value



Reputation





Microsoft, Google,

etc.

???

IP royalties



AppPurchases

Comission

Sales Platform

Apple Platform

New Business Ideas

DeveloperCommunity


Premium



Media Industries


Media Delivery

???



Service Contract



Apple on Campus

Bulk Purchases



Personal Data


AppleCommunities

AppleUsers




Content

SaS Solutions


Data

Personal Data

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Virtuous Cycles


Premium

LowestProduction

Costs

Goods & Services

Money & Credits

Information

Intangible Value



Reputation





Microsoft, Google,

etc.

???

IP royalties



AppPurchases

Comission

Sales Platform

Apple Platform

New Business Ideas

DeveloperCommunity


Premium



Media Industries


Media Delivery

???



Service Contract



Apple on Campus

Bulk Purchases



Personal Data


AppleCommunities

AppleUsers




Content

SaS Solutions


Data

Personal Data

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Virtuous Cycles


Premium

LowestProduction

Costs

Goods & Services

Money & Credits

Information

Intangible Value



Reputation





Microsoft, Google,

etc.

???

IP royalties



AppPurchases

Comission

Sales Platform

Apple Platform

New Business Ideas

DeveloperCommunity


Premium



Media Industries


Media Delivery

???



Service Contract



Apple on Campus

Bulk Purchases



Personal Data


AppleCommunities

AppleUsers




Content

SaS Solutions


Data

Personal Data

Generic virtuous loop of a business ecosystem

Value of the core offer

Value of the total offer

Sales

Profits

Investment in thecore innovation

and capacity

Investment inthe business ecosystem

Value Flow Mapping in the Design Process

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Analysis (Think)

Concrete: Real World

Abstract: Modeled World

Synthesis (Make)

OBS

ERVA

TIO

NS

PRINCIPLES

PLANS

TESTS

1

2 3

4

5 6

7

Q&A /// Feedback

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STAY TUNED!

www.uservalue.de

@Jan_Schmiedgen

http://www.uservalue.de

http://www.uservalue.de

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Attributions

“Gears” symbol by Dima Yagnyuk // "Type Desgin" symbol by Andrew J. Young // “Compass” symbol by Adam Whitcroft // “Refresh” symbol by Joris Hoogendoorn // “Pointer” symbol by ___Lo // “Speaker” symbol by Harold Kim // “Book” symbol by Ahmed Hamzawy // “Unlock” symbol by Ugur Akdemir // “Heart” symbol by John Caserta // “Like” symbol by Marwa Boukarim // “Letter” symbol by John Caserta // “Lock” symbol by Dave Tappy // “Cess” symbol by Alessandro Suraci // “Social Services” by Jack Biesek, Gladys Brenner, Margaret Faye, Healther Merrifield, Kate Keating, Wendy Olmstead, Todd Pierce, Jamie Cowgill, Jim Bolek // “Building” symbol by Antonis Makriyannis // “Brain” symbol by Arjun Adamson // “Building Block” symbol by Michael Rowe // “City” by inna belenkey // “Basket” symbol by Roman J. Sokolov // “Unlock” symbol by Ugur Akdemir // “Hand” symbol by Jakob Vogel as well as "Home" and "Umbrella" from The Noun Project collection.

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Some References this Workshop/Presentation was based on:

Adner, R. Amazon vs. Apple: Competing Ecosystem Strategies. Harvard Business Review. Retrieved August 11, 2013, from http://blogs.hbr.org/cs/2012/03/amazon_vs_apple_competing_ecos.html.Brandenburger, A., & Nalebuff, B. (1996). Co-Opetition. New York: Doubleday.Caulfield, B. Apple’s Ecosystem. Forbes. Retrieved August 11, 2013, from http://www.forbes.com/2010/02/09/intel-nvidia-htc-technology-business-intelligence-apple.html.Dachis, J. Apple, a Love Note: The Power of an Ecosystem - Dachis Group. Dachis Group. Retrieved August 11, 2013, from http://dachisgroup.com/2010/01/apple-a-love-note-the-power-of-an-ecosystem/.McCann, J. It’s The Ecosystem, Stupid. subPrint Interactive. Blog, . Retrieved August 11, 2013, from http://subprint.com.Moore, J. F. (1997). The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems. New York: HarperBusiness.Moore, J. F. (2013). Shared Purpose: A thousand Business Ecosystems, a connected Community, and the Future.Ng, I. C. (2012). Value & Worth: Creating New Markets in the Digital Economy.Ng, I. C. L., & Smith, L. A. (2012). An Integrative Framework of Value. Review of Marketing Research, 9, 207–243.Ouden, E. den. (2011). Innovation Design: Creating Value for People, Organizations and Society (1st Edition.). Springer London.Senge, P. M. (2006). The Fifth Discipline: The Art and Practice of the Learning Organization. New York: Doubleday/Currency.and many more …

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About me …I am a Berlin-based innovation facilitator who helps organizations in strategically implementing service design, business model innovation and (branded) Ux methodologies, processes and tools.

My work is mainly based on the discovery of shared value which I researched at Berlin University of Arts and Zeppelin University Friedrichshafen.

Besides my advisory practice I am a »HPDTRP« research fellow at the Hasso-Plattner-Institute Potsdam, examining Design Thinkings level of diffusion in organizations worldwide.

I’m also co-developing GlobalWasteIdeas.org, an idea-sharing and collective intelligence platform dedicated to catalyze innovative ways to deal with waste.

@Jan_Schmiedgen

Design-driven strategic business planning

39Jan Schmiedgen // Fidicinstr. 41 // 10965 Berlin // GERMANY // +49 173 3 83 15 26 // [email protected]

Business Ecosystem Design

Business

Transcript of Business Ecosystem Design