business ecosystem design
DESCRIPTION
Design Thinking Barcamp 2013 - Hamburg / Service Experience Camp Berlin - 2013. Slides of my input session on how to visualize/prototype "ecosystems".TRANSCRIPT
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
We all love the Business Model Canvas
5
… 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
!
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}
Systemic representations
!
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
Apple’s Business Ecosystem (Excerpt)
Core Value Proposition
Complementary Offerings
Supplying and Enabling Network
Other Stakeholders
®®
TM
9
Higher Margins via Apple Price
Premium
LowestProduction
Costs
Goods & Services
Money & Credits
Information
Intangible Value
High Volume and Planning Certainty
Manufacturing Knowledge
Reputation
???
IP royalties
Seamless UserExperience
Enriched UserExperience
AppPurchases
Comission
Sales Platform
Apple Platform
New Business Ideas
Higher Margins :Apple Price
Premium
Broad ServiceStation Covering
Technical and Sales Training
Digital Sales Channel with DRM and wide Spread
Media Delivery
???
IP royalties / Commission
InfrastructureManagement
Service Contract
Sponsoring / Discounts
Apple on Campus
Bulk Purchases
Reputation and Awareness
Personal Data
Price Premium(Hardware, Media and App Sales)
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 ...
10
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
11
Your ChallengeReady for some action?
Core Value Proposition
Complementary Offerings
Supplying and Enabling Network
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
Exercise I: Collect Actors/Stakeholders
13
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)
14
Core Value Proposition
Complementary Offerings
Supplying and Enabling Network
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.
16
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)
„
“
18
Business Ecosystem?
19
“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
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
Apple’s Business Ecosystem (Excerpt)
22
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 Orders and Planning Certainty
Manufacturing Knowledge
Reputation
Hardware OEM's: e.g. Foxconn
OfficialAccessoryManufacturers:e.g. Belkin
InofficialAccessoryManufacturers
Retail/Certified Partners: e.g. Gravis
Microsoft, Google,
etc.
???
IP royalties
Seamless UserExperience
Enriched UserExperience
AppPurchases
Comission
Sales Platform
Apple Platform
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
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
23
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 Platform
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
Core Value Proposition
Complementary Offerings
Supplying and Enabling Network
Other Stakeholders
Apple’s Business Ecosystem (Excerpt)
Core Value Proposition
Complementary Offerings
Supplying and Enabling Network
Other Stakeholders
®®
TM
24
Higher Margins via Apple Price
Premium
LowestProduction
Costs
Goods & Services
Money & Credits
Information
Intangible Value
High Volume and Planning Certainty
Manufacturing Knowledge
Reputation
???
IP royalties
Seamless UserExperience
Enriched UserExperience
AppPurchases
Comission
Sales Platform
Apple Platform
New Business Ideas
Higher Margins :Apple Price
Premium
Broad ServiceStation Covering
Technical and Sales Training
Digital Sales Channel with DRM and wide Spread
Media Delivery
???
IP royalties / Commission
InfrastructureManagement
Service Contract
Sponsoring / Discounts
Apple on Campus
Bulk Purchases
Reputation and Awareness
Personal Data
Price Premium(Hardware, Media and App Sales)
Virtuous Cycles
25
Higher Margins via Apple Price
Premium
LowestProduction
Costs
Goods & Services
Money & Credits
Information
Intangible Value
High Volume Orders and Planning Certainty
Manufacturing Knowledge
Reputation
Hardware OEM's: e.g. Foxconn
OfficialAccessoryManufacturers:e.g. Belkin
InofficialAccessoryManufacturers
Retail/Certified Partners: e.g. Gravis
Microsoft, Google,
etc.
???
IP royalties
Seamless UserExperience
Enriched UserExperience
AppPurchases
Comission
Sales Platform
Apple Platform
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
Apple StoreLogistic Partners:e.g. TNT, UPS
IT-InfrastructurePartners: e.g. Akamai
Content
SaS Solutions
Premium Services/Software Purchases Personal
Data
Personal Data
26
Virtuous Cycles
Higher Margins via Apple Price
Premium
LowestProduction
Costs
Goods & Services
Money & Credits
Information
Intangible Value
High Volume Orders and Planning Certainty
Manufacturing Knowledge
Reputation
Hardware OEM's: e.g. Foxconn
OfficialAccessoryManufacturers:e.g. Belkin
InofficialAccessoryManufacturers
Retail/Certified Partners: e.g. Gravis
Microsoft, Google,
etc.
???
IP royalties
Seamless UserExperience
Enriched UserExperience
AppPurchases
Comission
Sales Platform
Apple Platform
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
Apple StoreLogistic Partners:e.g. TNT, UPS
IT-InfrastructurePartners: e.g. Akamai
Content
SaS Solutions
Premium Services/Software Purchases Personal
Data
Personal Data
26
Virtuous Cycles
Higher Margins via Apple Price
Premium
LowestProduction
Costs
Goods & Services
Money & Credits
Information
Intangible Value
High Volume Orders and Planning Certainty
Manufacturing Knowledge
Reputation
Hardware OEM's: e.g. Foxconn
OfficialAccessoryManufacturers:e.g. Belkin
InofficialAccessoryManufacturers
Retail/Certified Partners: e.g. Gravis
Microsoft, Google,
etc.
???
IP royalties
Seamless UserExperience
Enriched UserExperience
AppPurchases
Comission
Sales Platform
Apple Platform
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
Apple StoreLogistic Partners:e.g. TNT, UPS
IT-InfrastructurePartners: e.g. Akamai
Content
SaS Solutions
Premium Services/Software Purchases Personal
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
27
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
37
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.
------------------------------------------------------------------------------------------------------------------------------------------------------------
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 …
38
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]