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An overview presentation focused on the evolution of the web and the opportunities and challenges posed to companies and management.
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Winning in ‘Network Society’
Professor N. Venkat VenkatramanBoston University@NVenkatraman
Ericsson Executive ProgramAugust 2011
1.Future State: The ‘Network Society’
2.Building Blocks: Evolution of the Web
3.Key to Winning: Strategy as Navigation
“The difficulty lies not so much in developing new ideas as in escaping from old ones.”
Industry versus Network
• Supply of products and services
• Competitors have ‘similar’ production methods
• Competitors are well-defined
• Linear, vertical supply-chain
• Competitors are NOT partners
• Demands of customer segments
• Competitors satisfy customer demands in different ways
• Competitors straddle different ‘industries’
• Complex, interconnected demand-chain
• Competitors often ARE partners
Bill Gates Testimony
Consulting
Applications
Tools
OS
Networking
Peripherals
Computers
Processors
Computer Industry (1980s)
Bill Gates Testimony
Consulting
Applications
Tools
OS
Networking
Peripherals
Computers
Processors
Computer ‘Industry’ (2002)
Consulting
Applications
Tools
OS
Networking
Peripherals
Computers
Processors
Microsoft’s PC Ecosystem
Portfolioof
Products
Portfolioof
Business
Portfolioof
Capabilities
Portfolioof
Relationships
What products & servicesdo we offer?
How do we assemble the requiredcapabilities to meet customer demands?
‘Inside-out’ ‘Outside-in’
http://blog.hiddenharmonies.org/wp-content/uploads/2011/01/facebook_december_2010.png
~ 700 Million
70% Outside USA
50% log on everyday
>35% log on using mobile devices& twice as active
Total time spent > Google
X750
By 2015.................We will reach 3 trillion internet video minutes per month...........
One million internet video minute every second!
3 billion views every dayAverage person 15 minutes per day48 hours of video uploaded every minute70% outside USA94% of Adverting Age’s 100 advertisers run campaigns on
“Building Blocks”Your Distinction
TodayYour Distinction
Tomorrow
Mobile Web
Social Web
Media Web
Real time Web
Machine (device) Web
Low - Medium - High Low - Medium - High
•Networks deliver distinct value to specific customer segments through a portfolio of capabilities linked through relationships
3
Early stages for business models in the digital,
network era
Ericsson’s role as a trusted business advisor in helping customers win in
the network society
“The difficulty lies not so much in developing new ideas as in escaping from old ones.”