Digital Networks & Platform Business Models (Masterclass)

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Benjamin Tincq @btincq Digital Networks & Platform Business Models São Paulo Masterclass – December 9th, 2016 @ WeFab

Transcript of Digital Networks & Platform Business Models (Masterclass)

Benjamin Tincq@btincq

Digital Networks & Platform Business ModelsSão Paulo Masterclass – December 9th, 2016 @ WeFab

| Introduction |The Long Tail of ProductionDigitalization: Platform EconomicsOpen. Collaborative. Decentralized.Toolkit: Platform Design

Benjamin Tincq

@[email protected]

Tim O’Reilly2015

Ronald Coase1937

Introduction

| The Long Tail of Production |Digitalization: Platform EconomicsOpen. Collaborative. Decentralized.Toolkit: Platform Design

2006

PROSUMERProducer + Consumer

1980 - Alvin Toffler

1990 - First Web PageTim Berners-Lee at CERN

1993-1994 - First BrowsersMosaic & Netscape Navigator

1993-1998 - First Search EnginesGoogle launched in 1998

Connectivity : The World Wide Web

Production Tools : Hardware

Production Tools : Software

Cost to Launch an Internet Startup

Source: Mark Suster / Graphics: AngelCube

Source: Kelly Services

data source by Deskmag picture courtesy of http://agoracollective.org/

3D Printer Laser Cutter CNC Router Desktop WaterJet

Digital Power Tools CNC Knitting Machine PCB Prototyping

Smart City → Smart Citizen

from PITOProduct In → Trash Out

to DIDOData In → Data Out

IntroductionThe Long Tail of Production| Digitalization: Platform Economics |Open. Collaborative. Decentralized.Toolkit: Platform Design

The world’s ...

… Largest taxi company owns no taxi (Uber)

… Largest accomodation provider owns no real estate (Airbnb)

… Largest telcos own no infrastructure (Skype, WeChat)

… Largest retailers own no inventory (Alibaba, Amazon)

… Largest media publisher creates no content (Facebook)

… Largest culture distributor do not produce (all) content (Netflix, Spotify)

… Largest software vendors do not write (all) apps (Apple, Google)

Source: Thinque 2015

Network Effects: when a product or a service becomes more valuable

as more people use it.

Source: a16z http://www.slideshare.net/a16z/network-effects-59206938

Source: a16z http://www.slideshare.net/a16z/network-effects-59206938

TOUGH QUESTIONS

Source: a16z http://www.slideshare.net/a16z/network-effects-59206938

MachineLearning

47% of existing jobs are likely to be automated within the next 20 years.

University of Oxford, 2013

85 people concentrate as much wealthas the poorest half of the world.

Oxfam UK, 2014

IntroductionThe Long Tail of ProductionDigitalization: Platform Economics| Open. Collaborative. Decentralized |Toolkit: Platform Design

CO-OPERATION

VS

OPEN & P2P

“Open means anyone can freely access, use, modify, and share for any purpose”

http://opendefinition.org

Commons-BasedPeer Production2006 - Yochai Benkler

“a new model of socioeconomic production in which large numbers of people work cooperatively to produce a commons”

CollaborativeDevelopment ofThe Linux Kernel

electronics

furniture

clothing

machine tools

bikes energy cars

agriculture

biology architecture

aerospace

cameras

First open source 3D printer(that is self-replicable)

Created in 2005 by Adrian Bowyerat the University of Bath (UK)

“If the Internet teaches us anything, it is that great value comes from leaving core resources in a

commons, where they're free for people to build upon as they see fit.”

Lawrence Lessig,founder Creative Commons

source: http://wikihouse.cc/partners/

Open =/= Free(Beer)

“ If your idea is unique, easily copied and can be sold on alocal market, it will be. ”

Nathan SeidleFounder of Sparkfun Electronics

1. PRODUCT DEVELOPMENT2. MARKETING & BRAND3. HAPPY USERS

image courtesy of OSVehicle

12 PROJECTS. 200 PARTICIPANTS.5 WEEKS OF CO-LIVING & CO-MAKING

BLOCKCHAINS

Declaration of Independence of CyberspaceJohn Perry Barlow - Davos, 1996

Internet has decentralized information exchange ...but value exchange still requires a “trusted intermediary”

as well as: banks, insurers, notaries, public registries, governance systems, online voting, labels and certifications, ...

Blockchain allows the

“Internet of Value”= decentralized value exchange without intermediary

TRANSACTIONSof Digital Assets

3 Main Categories of Blockchain Applications

SECURE REGISTERof Information

SMART CONTRACTS& DAOs (Decentralized

Autonomous Organizations)

#4 : “The World Computer”

Mist Browser

DApps (Decentralized Applications)& Smart Contracts

EVM (Ethereum Virtual Machine)+ languages, protocols, etc

Hardware Clients (Infrastructure)= computers of the network

Source: Benjamin Tincq / CC-BY

“A Smart Contract is a computerized transaction protocol that executes the terms of a contract.”

Nick Szabo, 1994

DecentralizedAutonomousOrganizations

“an organization that’s self-governing and not influenced by outside forces: its software operates on its own, with its by-laws immutably written on the blockchain, not controlled by its creators.”

Stephan Tual, Slockit

Technology is the answer.But what was the question?

Cedric Price

IntroductionThe Long Tail of ProductionDigitalization: Platform EconomicsOpen. Collaborative. Decentralized.

| Toolkit: Platform Design |

ROLES IN A PLATFORM

Platform Owners

Stakeholders Partners Peer Producers

Peer Consumers

players who owns the vision behind the realization of the market and ensure that the platform exists

entities that have a specific interest in platform success or failure, in controlling platform externalities and outcomes

professional entities that seek to create additional professional value and to collaborate with platform owners with a stronger relationship

entities interested in providing value on the supply side of the ecosystem/marketplace, seeking for a better performance

entities interested in consuming, utilizing, accessing the value that the is created through and on the platform

SUPPLY DEMANDIMPACT

AIRBNB EXAMPLE

1. EXPLORE THE ECOSYSTEM and the

MOTIVATIONS to JOIN and EXCHANGE VALUE

(BRIEFING)

2. IMAGINE TRANSACTIONS AND

INTERACTIONS (BRIEFING)

ROLE 3

3. FOCUS ON: THE EVOLUTIONARY PATHS

(BRIEFING)

4. NOW IT’S YOUR TURN!

THANK YOU!Let’s keep in touch

Benjamin Tincq

@[email protected]