DIGITAL ECOSYSTEMS AND BUSINESS MODELS: SMART EXAMPLES FROM THE - PowerPoint PPT Presentation

DIGITAL ECOSYSTEMS AND BUSINESS MODELS: SMART EXAMPLES FROM THE SMART HOME SECTOR ANDREA CARUGATI AARHUS BSS ANDREA CARUGATI ASSOCIATE-DEAN FOR DIGITALIZATION

AGENDA Define Ecosystems  Ecosystems drivers  Examples from the smart home market  Strategies to participate in ecosystems  2 2

ECOSYSTEMS?  Technology ecosystems are product platforms defined by core components made by the platform owner and complemented by applications made by autonomous companies in the periphery.  Ecosystems offer a larger system of use than the original platform owner created.  The value of an ecosystem is larger than the sum of the single parts.  Innovation happens outside the platform  Assets are outside the platform 3 3

ECOSYSTEMS  Ecosystems create customer dependencies .  Customers make decisions about products based on whose ecosystem they want to be a part of. They commit to, and invest in, ecosystems that can integrate seamlessly with their personal and work environments.  Customers will invest in the ecosystem – not in products. 4 4

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WORKS WITH … 6 6

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GOOGLE VISION FOR THE THOUGHTFUL HOME 9 9

ECOSYSTEM “SHAPES” 10

OPTIONS IN THE ERA OF ECOSYSTEMS 11 11

VALUE GENERATION IN ECOSYSTEMS: DATA 7 billion people and more than 30 billion devices connected to the internet by 2020,  Digital platforms — wherein participants with different goals and objectives are connected  on a commission basis — will be the mechanisms to mediate relationships in ecosystems. Ecosystems enable companies to exchange products and services for information or  analytics. It’s important to understand the changing definition of “value” that ecosystems create. Value: data, monetary, reputation, services, privacy (dynamically leveraged)  12 12

CONCLUSIONS  Understand or define your ecosystem  Move out of the supplier box  Position your organization to be an ecosystem driver – possible?  Position your organization to be a modular producer – safer bet?  Insure value creation and generation 13 13