Digital Evolutions: Startups, Platforms and Ecosystems

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This presentation was first released as Lecture in two Startup Accelerators lately. The presentation recaps on several digital trends and correlates them with Platform Design, previously covered in the record breaking "Future Proof Design" presentation available here: In search for new ideas to frame Platform Design as a discipline in a more global discourse regarding the digital market, I went in search of complementary theories: most of this research have been consolidated in this lecture In parallel, the Platform Design canvas is transforming into a more comprehensive Toolkit. See context here:

Transcript of Digital Evolutions: Startups, Platforms and Ecosystems

  • Digital Evolutions Startups, Platforms and Ecosystems Mentorship Lecture - 25th/26th Sept. 2013 by Simone Cicero - - @meedabyte
  • Exponential Times Digital Ecologies Platform Design Thinking Digital Evolutions Understanding Dynamics
  • Exponential Times
  • everyone is networked with everithing
  • everyone is networked with everything
  • Tech Cycles (every 10 years) Now its time for Wearable Image from KPCB Internet Trends 13
  • Two main disruption drivers A growing computing density in matter Growing possibilities in AI and Machine Learning
  • Connectedness = Sharing more and more
  • Text Pictures Videos Sounds Data Consolidated Explosive Growth Ramping up fast Emerging Emerging Mobile chats, Social networks Vine, Intenet Cams Sound sharing, video chats (eg: Snapchat) Personal Tracking, Quantified Self
  • Lifelogging!
  • Data is all & all is Data
  • Everything its personalized. Data are connected and socialized. Devices are allover the place. Its the Digital Market today.
  • Nature Humans Technology Interactions Order doesn't come by itself Benoit Mandelbrot
  • chaos
  • We're just increasing our humanness and our ability to connect with each other, regardless of geography Amber Case, (Cyborg Anthropologist) - SXSW Keynote 2012
  • Non linear dynamics
  • Its kinda hard to predict stuff
  • Illustration: Simon Wardley
  • Digital Ecologies
  • All this demand for innovation drives componentization* as a buyer you push down price and ask for standardization: this creates your competition. * breaking down into cost competitive and interchangeable pieces.
  • Illustration: Simon Wardley Increasing competition in demand and supply
  • Red Queen Effect (evolutionary biology) Regardless of how well a species adapts to its current environment, it must keep evolving to keep up with its (also evolving) competitors.
  • competition = coevolution
  • Fortune 500 companies life expectancy in 2013 is 15 years. Was 70 in 1930.
  • Software is eating the world Marc Andreessen
  • Access + Componentization + Collaboration = the highest disruption rate ever
  • Long tail = Diversification Diversification = Niches Niches = Economies of Scope
  • Whereas economies of scale for a firm primarily refers to reductions in the average cost (cost per unit) associated with increasing the scale of production for a single product type, economies of scope refers to lowering the average cost for a firm in producing two or more products The Age of Economies of Scope
  • Designers are increasingly dealing with designing tools that allow users to create value on their own (and within a community). Switching from Economies of scope (multiple products) to User Centric experiences (user customizable products)
  • Toolkits for user innovation allow producers to abandon attempts to understand user needs in favor of transferring need-related aspects of product and service development to users along with an appropriate toolkit". Eric Von Hippel
  • Unleash your creativity by customizing select products to create exactly what you want with eBay Exact. Simply select a product, choose a design, and add your own personal flair to create a unique item for yourself or someone special
  • "Once you finish assembling it, youre emotionally attached to that. Youve basically gone through the process to build your own phone Moto X head product manager - Lior Ron
  • tools Facilitated Contexts/Channels
  • Consumers can also become Producers and Designers themselves. Roles can change
  • allowing peer to peer production
  • Understanding Dynamics
  • Digital Market: opportunities & huge competition What Dynamics?
  • Pioneers Thrive in uncertain times Search for Experimentation Accept Failure Players that face poorly understood markets, trying to define gaps and opportunities, constantly undergoing changing dynamics and small numbers. They want to create the future. Startups
  • Settlers Learn from feedbacks Investigate needs Spot new trends Players that face increasing demand, growing market opportunities for mature products and revenues that grow accordingly Platforms & Ecosystems
  • Town Planners Search for self disruptions Base business on measures and scientific models Optimize for operations Leaders/players that face standardized demand and fight growing competition on mature markets. Always focus on essential cost of doing Business. Ecosystems & Industrialization
  • The ILC Cycle Illustration: Simon Wardley Innovate Leverage Commoditize (repeat)
  • Facebook Doesnt Want To Be Cool, It Wants To Be Electricity
  • FB Identity Services Opengraph Payment Services ValueChain Genesis Custom Built Product Commodity/Utility Social Networking
  • Different Dynamics Illustration: Simon Wardley Startups Platforms Ecosystems
  • In the Platform phase you must - nurture community - create community support services - identify emerging behaviors - model channels to cope with interactions In this way You increase resilience by enabling peer segments to create their own interactions inside your platform
  • In the Ecosystem Phase you must - drive cost down and outperform competitors value - be cool with utility like consumption patterns - allow new startups/platforms to grow and monitor use case innovation In this way You increase resilence by enabling other business players to create complex higher value proposition on top of your interface*
  • Innovation happens: on top of the interface*: higher value systems (use case innovation) under the interface*: process maturity, elastic provisioning, measuring (competition) ValueChain *interface: a shared and commonly adopted or standardized protocol or practice
  • Arduino Most of the innovation happens above the interface (higher value: smaller size, specific features, etc) as Arduino has become a standard community of knowledge (interface) Microduino (microsize) Flutter (long range) Smartduino (modularity)
  • Amazon AWS Established Amazon Machine Images as the ruling interface in cloud deployments. Enabled the birth and growth of several (higher) value proposition. Commoditized specific frequent uses cases (eg: Elastic Map Reduce for big data = now a commodity). ValueChain Genesis Custom Built Product Commodity/Utility Amazon Elastic Map Reduce AWS Elastic Beanstalk (beta) AWS OpsWorks PaaS Currently built on AWS Spotted growing usage
  • Joining an existing Platform and Ecosystem (outstanding opportunities) Typical Stakeholders and contexts: Over The Top players ecosystems Brand related initiatives Corporate innovation strategies Open ecosystems (rare)
  • The App Ecosystem