the use of ecosystem visualisation to identify value flows at abb in the context of the internet of...

The use of ecosystem visualisation to identify value flows in the context of the internet of things, services and people (IoTSP)

Aston Spring Servitization Conference, May 2016

Michelle Künzli, Dr Shaun West, Dr Zied Ouertani, Dr Christopher Ganz

Künzli, West, Ouertani & Ganz, 2016

IntroductionThe problem and the purpose of this paper

…to describe an approach that links both the product and the service development

In the IoTSP the relationship and value exchange between actors can be difficult to identify and understand…to describe the process used to discover the interrelationships

between actors in the ecosystem

Purpose of this paper

… to describe the process of ecosystem discovery for manufacturing firms to understand the ‘spaghetti’ of transactions…

Problem


IntroductionIntroducing the IOT and ecosystems

Internet of Things-‐ The IoT enables more complex services-‐ Willingness to share data is critical for the IoT

Ecosystem-‐ There are many interdependencies in an ecosystem-‐ Some interests contrast each other

The IoT requires more collaboration and co-‐creation, breaking linear supply chains

Value is not inherent in the product or service – it is measured with what people are willing to give in return


MethodologyFour steps were used to understand the ecosystem and value exchanges

The objective was to create a simple process that could be used within the firm


Analysis of the ecosystem mappingIdentification of the roles in the ecosystem

Process-‐ The different actors were identified and placed on the ecosystem

-‐ Several iterations were needed

Lessons-‐ The process takes time -‐ Input from different sources is critical

Identification of the roles was not a simple process and required iterations

Core Company

Community

Custo

mer

Supp

lier

Business Ecosystem

Extended Business

Core Business

Projects/ Systems

Channel 2

Products

Unions

Sub-Supplier B

Supplier B

CompetitorsRegulators

Customer-Partner C

Customer-Partner B

Customer-Partner A

Customer D

Customer C

Customer A

Customer B

Services

Channel 3

Consultant

Sub-Supplier C

Sub-Supplier A

Channel 1

Supplier A


Analysis of the empathy map for each actor in the ecosystemThis process identifies the motivation for each actor in the ecosystem

Process-‐ Helps understand ’irrational’ behaviour-‐ Takes a long time for each actor-‐ 2-‐3 iterations are required

Lessons-‐ Provided rich discussions within ABB-‐ Valuable new insights gained-‐ Tangibles and intangibles identified-‐ Emotional issues often had a rational basis

New insights into each actor were identified using the empathy map

My job is the most important

and I can show it by hitting the

firms key metrics

Likes an easy job Does not like it

when the

unexpected happens

Says: wants the cheapest

Does: always buys from the OEM

Pains• Fuel consumption• On time arrival• Equipment maintenance

Gains• More automated work• Focus on other tasks • Peace of mind


Analysis of the ecosystem mappingIdentification of the relationships within the ecosystem

Process-‐ Value exchanges were segmented into four layers-‐ Each layer was given a different colour

Lessons-‐ The ecosystem now resembles spaghetti-‐ Layering provides more details-‐ The conventional value chain is no longer valid-‐ A time ’layer’ should be investigated

How can the spaghetti be made useful for business decisions?

Core Company

Community

Custo

mer

Supp

lier

Business Ecosystem

Extended Business

Core Business

Projects/ Systems

Channel 2

Products

Unions

Sub-Supplier B

Supplier B


Customer-Partner C

Customer-Partner B

Customer-Partner A

Customer D

Customer C

Customer A

Customer B

Services

Channel 3

Consultant

Sub-Supplier C

Sub-Supplier A

Channel 1

Supplier A

ServicesMonetaryInformation

Goods


Analysis of the ecosystem maps with visual layersApplying layers gives different views of the exchanges within the ecosystem

Core Company

Community

Custo

mer

Supp

lier

Business Ecosystem

Extended Business

Core Business

Projects/ Systems

Channel 2

Products

Unions

Sub-Supplier B

Supplier B


Customer-Partner C

Customer-Partner B

Customer-Partner A

Customer D

Customer C

Customer A

Customer B

Services

Channel 3

Consultant

Sub-Supplier C

Sub-Supplier A

Channel 1

Supplier A

Goods

Core Company

Community

Custo

mer

Supp

lier

Business Ecosystem

Extended Business

Core Business

Projects/ Systems

Channel 2

Products

Unions

Sub-Supplier B

Supplier B


Customer-Partner C

Customer-Partner B

Customer-Partner A

Customer D

Customer C

Customer A

Customer B

Services

Channel 3

Consultant

Sub-Supplier C

Sub-Supplier A

Channel 1

Supplier A

Monetary

The supplier/customer relationships between actors are now much clearer


Analysis of the ecosystem maps with visual layers Applying layers gives different views of the exchanges within the ecosystem

The supplier/customer relationships between actors are now much clearer

Core Company

Community

Custo

mer

Supp

lier

Business Ecosystem

Extended Business

Core Business

Projects/ Systems

Channel 2

Products

Unions

Sub-Supplier B

Supplier B


Customer-Partner C

Customer-Partner B

Customer-Partner A

Customer D

Customer C

Customer A

Customer B

Services

Channel 3

Consultant

Sub-Supplier C

Sub-Supplier A

Channel 1

Supplier A

Information

Core Company

Community

Custo

mer

Supp

lier

Business Ecosystem

Extended Business

Core Business

Projects/ Systems

Channel 2

Products

Unions

Sub-Supplier B

Supplier B


Customer-Partner C

Customer-Partner B

Customer-Partner A

Customer D

Customer C

Customer A

Customer B

Services

Channel 3

Consultant

Sub-Supplier C

Sub-Supplier A

Channel 1

Supplier A

Services


Analysis of value propositions within the ecosystemThe focus was on the customer side of the value proposition

Process-‐ ’Job-‐to-‐be-‐done’ for each actor was identified-‐ Pains and gains were taken from the empathy maps-‐ The data was tabulated

Lessons-‐ The IoTSP drives towards intangible aspects-‐ IoTSP solutions often created new risks-‐ It was simpler to identify customer value propositions that supported customer outcomes

The focus was on the customer side as this is the ’problem’ definition


Analysis of value propositions within the ecosystemPartial example of customer job, pains and gains

Role Customer Job Pains Gains

Channel A Offer equipment from different suppliers (can be part of initial sale); own the equipment; sometimes selling it in own name; storing it at focal company; offer general services

Stock of unsuccessful equipment; too much storage cost; changes in regulations or integrity

Easy implementation in further developed equipment; equipment needs many spare parts

Channel B Offer end-‐product/ plant with products from different suppliers; do the different parts function together?

Reliability; products from different suppliers need to be able to be combined; time and budget; parts do not function together

Collaboration between suppliers to co-‐create; easy installation

Channel C Uses products and further develops them; offers equipment

Products change Better performance but same dimensions

This provided a detailed understanding of what was important for each actor


Analysis of co-‐creation and co-‐deliveryDifferent levels of involvement collaboration are possible

-‐ Co-‐creation and co-‐delivery was important-‐ Not all actors have all the answers-‐ Not all the actors have all the tools

-‐ The amount of OEM involvement can change-‐ Over time -‐ With particular situations

The OEM should not assume that they have all the solutions

Do It Yourself

Do It For MeDo It With Me


Analysis of single-‐sided relationships Why is it important to identify and understand single-‐sided relationships?

-‐ ’Give-‐and-‐take‘ supports a balanced relationship-‐ Imbalances can lead to mistrust-‐ There are many forms of value exchange-‐ Exchanges may be separated by time

Sustainability of relationships becomes a risk in single-‐sided relationships

Core Company

Community

Custo

mer

Supp

lier

Business Ecosystem

Extended Business

Core Business

Suppliers

Customer

Services

Services IoTSPServicesGoods

MonetaryInformation IoTSPInformation IoTSP


Analysis of data over timeInformation is not just data and over time brings knowledge and wisdom

-‐ Data alone is not valuable-‐ Information allows for management action-‐ How to move from date to wisdom when data is fragmented-‐ Lost of data may mean lost future opportunities-‐ Long-‐term cooperation is required between the actors

Do not lose your data; it may have value in the future


ConclusionsThere are a large number of stakeholders with significantly different value propositions

The customer value proposition plays a central role

Customer as a key partner and their role may change over time

Co-‐creation and co-‐delivery are critical within the IoTSP

The identification of the ecosystem, the actors and what they value is not a trivial task to undertake

Single-‐sided value exchange may not be sustainable


RecommendationsFurther research and application of the process should be undertaken

A process to describe the ecosystems simply should be developed

Use of the customer as a key partner needs further research

The timing implications of value exchange should be investigated

The process is being operationalised by ABB so that they are able to better use the ecosystem to support their customers

Important to identify and managing single-‐sided value exchange


Thanks for your time!Questions over coffee…