VALUE CHAINS &ECOSYSTEMSRODRIA LALINE, MENNO VAN DIJK

VALUE CHAINSSTORE OPEN: 9AM-5PMECONOMIES OF SCALECATEGORY BASEDOUTPUT-DRIVEN

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BUSINESS ECOSYSTEMSSTORE OPEN: 24/7ECONOMIES OF SCOPEN:N MARKETINGINTERNET BASED

BUSINESS ECOSYSTEMS

POST & TELECOM

BANKING

RETAIL BUSINESS

FOOD INDUSTRY

HOTELS

AUTOMOTIVE

ELECTRONICS

ENTERTAINMENT

TRAVEL TOURISM

REAL ESTATE

VALUE CHAIN

CONTENTPROVIDERS

CONTENT ORGANIZERS

DISTRIBUTORS APP DEVELOPERS

• What value chains is your Accelerator project part of? • How might you expand the existing ecosystem your Accelerator is part of?• What parties from other value chains can you identify that may join, add

value, complement, or potentially overtake your ecosystem?

EXERCISE

• Ecosystem services may be provided by independent parties• The overall scenario may not be under the control of any party

ENTERPRISE ARCHITECTURE

OPEN PLATFORMS

3.0

CUSTOMER EXPERIENCE

JOURNEY

OPEN PLATFORMS & ECOCYSTEMSGOVERNANCE

ECOSYSTEMSPECIES

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Separate suppliers, delivering to competing producers, who are delivering to separate customers

VALUE CHAINS (FOOD CHAINS)

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Symbiotic relationships between customers, competitors, suppliers and other stakeholders.

SECTORS (ECOSYSTEMS)

THE ECOSYSTEM IS SELF-DEVELOPED, LIVING HOME OF VARIOUS CREATURES

DYNAMIC AND CO-EVOLVING COMMUNITIES OF DIVERSE ACTORS

THAT CREATE AND CAPTURE NEW VALUE

THROUGH BOTH COLLABORATION AND COMPETITION

• Disruption and variability unravelling static structures and favouring adaptability and honouring optionality.

• Competition and transparency expelling inefficiency and driving specialization and survival of fittest.

• Increasing rate of development (learning systems) bringing about increasingly complex structures.

FACTORS DRIVING THE UPSURGE IN ECOSYSTEMS

SPECIALISTS

Where not, could/should you build outsource to specialized actors to deliver a specific function?

ENTERPRISE NATURE

Small enterprises that perform one specific function extremely well and allow a large corporate to outsource a particular function. As a result, “virtual companies” emerge, consisting entirely of specialists.

Dunnhumby provides CRM analytics for big retailers, earning their loyalty, and uncovering new retail opportunities.

Cleaner fish remove dead skin and ectoparasites from other fish, benefiting both

species.

COOPETITORS

Which direct competitor would you like to collaborate with?

Philips and Sony jointly set new industry-standards when developing the first CD-player. Also the open source movement is a form of coopetition.

ENTERPRISE NATURE

In the animal kingdom, different species sometimes hunt together(e.g., coyotes & badgers) to form

unlikely but mutually beneficial partnerships.

Direct competitors working together to share the cost of development, set standards, develop an new market, while maintaining their competitive offers in the market.

CROSS FEEDERS

Which institution’s success would much benefit you, without you selling to them?

ENTERPRISE NATURE

“Wintel”, a partnership between Microsoft and Intel, to produce micro-processors for Windows PCs

Bees pollinating flowers enabling fertilization and reproduction of both

parties, and resulting in nuts and fruits.

Companies that pursue their own interests and benefit from each others success. E.g., because one company’s product creates demand for the other company’s product. Or two companies that stimulate each other to go to ever higher levels of performance.

SYSTEM DEVELOPERS

Which initiatives would qualify, promote, cleanse your sector?

Industry associations, audit firms, guilds, and comparison sites.

ENTERPRISE NATURE

Institutions that provide market information, quality audits, industry promotion, lobbying, standard setting, etc. – i.e., activities that advance the health of a industry.

Bush fires allow certain plants to reproduce and evolve.

INFOMEDIARIESA special breed of system developers, infomediaries gather and link information on particular subjects on behalf of commercial organizations and their potential customers. It also works to help them take control over information gathered about them.

ENTERPRISE NATURE

What type of information would improve ecosystem functioning?

Skyscanner aggregates the most up-to-date flight prices from different travelwebsites;Human Rights Watch researches and monitors human rights compliance around the world.

Vervet monkeys have a distinct alarm call for leopard predators; flocking birds serve as

warning sign for approaching lions.

SYSTEM SERVICE PROVIDERS

Which services would empower sector growth?

Think MailChimp offers customer support services; Hyper Island offers tech education.

ENTERPRISE NATURE

Institutions that provide resources and services that empower the growth of a sector, e.g., educational institutions, technology providers, support service providers (administration, logistics, consulting, etc.).

Soil nutrients, “circle of life”, insects.

SECTOR SHAPERS

Identify the orchestrator in your ecosystem. What is your ecosystem positioning? Can and should you assume an orchestrating role?

Apple, Google, Microsoft, Salesforce, Tesla, Nike

ENTERPRISE NATURE

Homo Sapiens

Companies that attempt to shape an industry by trying to define its structure, incentives, rules of conduct in order to develop the entire market (and its own share in it).

AGGREGATORS

Would your service be more valuable when combined with others?

Virgin, Amazon (the company)

ENTERPRISE NATURE

Companies that bundle products or services (produced by others) to provide an integrated service, a rich variety of choice or buyer assurance

Grasslands, the Amazon (the rainforest)

OPEN PLATFORMS

Where could demand and supply meet in your industry?

EXAMPLES NATURE

Market places, exchanges, catalogues, libraries, trade markets: opportunities for buyers and sellers to convene, connect, trade, compare and settle prices.

Ebay, Force.com, NY Stock Exchange Water pools

INTERMEDIARIES

Where is your industry off balance, in turmoil, confused, muddled – what opportunity does this provide?

EXAMPLE NATURE

. Companies that intermediate between buyers and sellers, either in distribution and access (retailers) or in deal making and price setting (re-sellers, market makers, brokers. These exploit market inefficiencies and lower transaction costs, so tend to be marginalized in stable ecosystems as players “go direct”.

Scavengers, like vultures and rats, feed on dead animal and plant material.

Consultants, real estate brokers

SECTORS

If you are in a sector, not an industry, can you articulate your system contribution?

ENTERPRISE NATURE

Industries that consist of a rich variety of players, cooperating, competing, servicing each other in a system instead of a chain.

Coral reefs bring together innumerable amounts of species for co-existence and

evolution.

The complexity of medical devices forces/incentivizes the health care sector to jointly produce innovative products.

CLUSTERS

EXAMPLES NATURE

Clusters are sub-groups of actors operating in a particular sector that work together with universities and public sector to grow their sector and promote its interests (e.g., through public financing, favourable treatments).

How might you group with cross-sector actors to jointly promote your interests?

French defense industry Sea gulls circling around fisher’s boats to get access to fish.

GEOGRAPHIC HUBS

EXAMPLES NATURE

Geographic areas, e.g., a city or a district, typically with a leading educational institution and a leading corporate in the middle that concentrate on research and development in a particular industry and include specialist firms, start-ups, conferences, venture capital.

Can you identify geographic hub(s) that will help you gain enhanced access to resources, knowledge and expertise?

Anting, Shanghai’s car industry hub Savannah

ADAPTORS

How does your offering adapt with changing needs of our customers over time?

EXAMPLE NATURE

Rather than offering a static product or service, businesses are offering value that evolves with changing conditions and needs over time.

Hibernation: chipmunks and bears going into a a deep sleep during

winter time.

Zara business model is designed around rapid market adaptation, chasing latest trends by creating short turn-over cycles (from initial design to sales).

COMMUNITIES

EXAMPLE ANIMAL KINGDOM

Is your enterprise part of a community?

Groups of consumers, producers or suppliers that combine efforts to protect or further their interests.

Herds, i.e., large groups of animals that live and move together for joint survival.

Buyer groups, cooperatives.

• What kind of actor/species are you? What is your ecosystem positioning?• Using these levers, map the different actors that make up the your

ecosystem.

EXERCISE

PRIVILEGED PARTNERSHISSPANNING ECOSYSTEM BOUNDARIES BY FORGING PARTNERSHIPS WITH STAKEHOLDERS

BRIEF

• Identify and find a partner you’d like to collaborate with for your Accelerator.

• In pairs of two, “date, engage, marry” (apply “immediate actions”).

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THNKINNOVATION

FLOW EXPLORE AND FORGE “PRIVILEGED PARTNERSHIPS” WITH STAKEHOLDERS

WEST SIDE STORY

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WEST SIDE STORYWHEN NEEDED RATIONALE

Explores new opportunities for collaboration offered by modern business ecosystems as traditional industry boundaries dissolve.

Provides a strategy to forge long-term partnerships with other ecosystem stakeholders, building capacity, new capability and create more value for all.

Creates direction, alignment and commitment among stakeholders beyond purely transactional exchanges.

I need a strategy to guide stakeholder collaboration to

success

I want to explore possible

partnerships with other ecosystem

partners

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WEST SIDE STORYESSENCE POINTERS

Identify a preferred partner (e.g., a shareholder, competitor, customer, cross-sector actor from the private/public/non-for-profit sphere) you would like to establish a privileged partnership relationship with.

DATE – “What am I and who are you?” What makes each of you unique and distinctive? In the dating phase, each party states its core identity and explores the partner’s identity to understand potential fit .

ENGAGE – “What do we have in common? What can we do together?” Think about what brings you together, expanding boundaries to find similarities and common ground. Through engagement, you can start acting together on a cause of common interest.

MARRY – “What do we want to build together?”. Contributing your unique skillsets and common purpose, think about what you would like to pursue and create through joint exploration, co-creation, and co-evolution in a way that drives joint and continued prosperity and eventually leads to a new and different joint identity.

Explore and forge “privileged partnerships” with stakeholders.

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WEST SIDE STORY

DATING MARRYING

IMMEDIATE ACTIONS

ENGAGING

1. DEFINE OWN BOUNDARIESFOR SAFETY

• List own values, purpose, objectives, strong points, gaps. Focus on what is unique.

• State preferred rules of engagement with partner.

2. UNDERSTAND OTHER’S BOUNDARIES FOR RESPECT

• Step in shoes of the partner, read their values, etc. and add a few that seem missing, yet consistent with their identity.

• Circle the ones that seem most at their core; clarify and discuss these with partner and amend where needed.

3. SUSPEND BOUNDARIES FOR MUTUAL TRUST

• Jointly identify values, purpose, objectives that both parties have in common.

• Jointly identify informal, personal similarities and connections (e.g. mutual friends).

4. EXPAND BOUNDARIES FOR SHARED OWNERSHIP

• Jointly identify a cause emerging from shared values, objectives, etc. that both parties can identify with and undertake collective action towards.

• Set a stretch goal for this joint undertaking.

5. OVERLAY BOUNDARIES FOR INTERDEPENDENCE

• Identify a series of small-scale projects that can only be carried out when pooling complementary resources drawn from both partners, where success is a function of each partner contributing something special.

6. CROSS-OVER BOUNDARIES FOR NEW IDENTITIES

• Jointly dream about a new future that is beyond the current horizon of objectives, and that can only be reached through a fully integrated identity, where both parties have to submerge into a new entity.

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WEST SIDE STORY

DATING MARRYING

ADDITIONAL ACTIVITIES

ENGAGING

1. DEFINE OWN BOUNDARIESFOR SAFETY

• Create a safe space for the group and individual team members. Internally, decide on your decision-maker, collaboration preferences, core values and objectives.

2. UNDERSTAND OTHER’S BOUNDARIES FOR RESPECT

• Invite other groups to join your team meeting and vice versa. Share ideas and unique perspectives. In doing so, you look across boundaries between the two parties, but keep them intact.

• Facilitate the exchange of information and viewpoints across boundaries. Invite groups members to share insights and learning.

3. SUSPEND BOUNDARIES FOR TRUST

• Create a neutral space that is neither mine nor yours for individuals from both parties to come together, take owndership and allow group members to interact as individuals.

• Organize events and opportunities to create further connection and trust; create a fixed meeting rhythm.

4. EXPAND BOUNDARIES FOR SHARED OWNERSHIP

• Decide on joint rules of engagement. How will you make sure both parties are heard and honored? How do you hold each other accountable to agreements, and shared goals?

• Move outside your smaller group boundary into a new, larger boundary that is shared by all involved. Create a joint sense of community; share work.

5. OVERLAP BOUNDARIES FOR INTERDEPENDENCE

• Establish cross-functional teams, and carry out simple, small-scale projects for cross-boundary groups to gain experience at low risk.

• Cast the creative clash to uncover new opportunities and solutions: challenge openly, debate furiously, then (reconcile conflict) and act as one.

6. CROSS-OVER BOUNDARIES FOR NEW IDENTITIES

• As a new and joint entity, re-imagine what is and what could be – explore alternative futures and emergent possibilities to determine long-term direction. How might you marshal wide-ranging expertise to unearth new opportunities and ideas?

ECOSYSTEM POSITIONING • What kind of actor(s) / ”species” are you? What is your ecosystem positioning?• Using these levers, visually map the different actors that make up your ecosystem.1. SPECIALISTSSmall enterprises that perform one specific function extremely well and allow a large corporate to outsource a particular function

2. COOPETITORSDirect competitors working together to share the cost of development, set standards, develop an new market, while maintaining their competitive offers in the market.

3. CROSS FEEDERSCompanies that pursue their own interests and benefit from each other’s success. E.g., because one company’s product creates demand for the other company’s product.

5. INFOMEDIARIESA special breed of system developers, infomediaries gather and link information on particular subjects on behalf of commercial organizations and their potential customers.

6. SYSTEM SERVICE PROVIDERSInstitutions that provide resources and services that empower the growth of a sector, e.g., educational institutions, technology providers, support service providers (administration, logitistics, consulting).

7. SECTOR SHAPERSCompanies that attempt to shape an industry by trying to define its structure, incentives, rules of conduct in order to develop the entire market (and its own share in it).

4. SYSTEM DEVELOPERSInstitutions that provide market information, quality audits, industry promotion, lobbying, standard setting, etc. – i.e., activities that advance the health of an industry.

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9. OPEN PLATFORMSMarket places, exchanges, catalogues, libraries, trade markets: opportunities for buyers and sellers to convene, connect, trade, compare and settle prices.

10. INTERMEDIARIESCompanies that intermediate between buyers and sellers, either in distribution and access (retailers) or in deal making and price setting (re-sellers, market makers, brokers). They exploit market inefficiencies and lower transaction costs, so ted to be marginalized in stable ecosystems as players “go direct”.

11. SECTORSIndustries that consist of a rich variety of players, cooperating, competing, and servicing each other in a system instead of a chain.

13. GEOGRAPHIC HUBSGeographic areas (cities, districts), typically with a leading educational institution and a leading corporate that concentrate on R&D in a particular industry and include specialist firms, startups, conferences, and venture capital.

14. ADAPTORSRather than offering a static product or service, business are offering value that evolves with changing conditions and changes over time.

15. COMMUNITIESGroups of consumers, producers, or suppliers that combine efforts to protect or further their interests.

12. CLUSTERSSub-groups of actors operating in a particular sector that work together with universities and the public secor to grow their sector and promote its interests (e.g., through public financing, favourabletreatments).

8. AGGREGATORSCompanies that bundle products or services (produced by others) to provide an integrated service a rich variety of choice of buyer assurance.