agenda 2016: corporate strategy and digital diplomacy
TRANSCRIPT
Agenda 2016
Peter Evans, PhDVice PresidentCenter for Global Enterprise
Photo by Maria Carrasco Rodriguez
Corporate Strategy and Digital Diplomacy
EEC15- Reshaping the Future of the Digital Economy
Bilbao, SpainNovember 18-19th, 2015
2
CorporateStrategyAgenda2016
Complex forces of change
Firm
Age of
Networks
Mesh networks linking physical, digital and social Age of
Data
Surge in availability data and tools that
can manage and analyze data
Age of
Platforms
New business models that achieve that leverage
networks and intelligence
We will see these trends continue and intensify in 2016
Source: P. Evans, “Networks, Data and Platforms,” in Growing Global: Lessons for the New Enterprise, Center for Global Enterprise, 2015.
4
IoT… from basic necessities …
4
5
> 8,500 apps
… to strategic platforms
>11,000 developers have accessed Nest’s APIs
> Billions of calls
Industrial Internet/ Industry 4.0Steam & gas turbines 52 million man-hours per year: $7 billion in labor services
6
IoT speed and scale
Jeff Immelt, GE Minds & Machines conference, San Francisco, Nov. 2012
Tim Cook, Apple Special Event, San Francisco, Sept 2014
Industrial Internet vs. consumer internet
9
8
Will the Industrial Internet catch up to the Consumer Internet?
Source: Rahul Basole and Peter Evans, API Economy Visualized, Center for Global Enterprise, 2015
Information = API Economy
9
10Source: Rahul Basole and Peter Evans, API Economy Visualized, Center for Global Enterprise, 2015
11
Social Mapping eCommerce Images Music
API mashupsTop sectors building on open APIs
Source: Peter Evans and Rahul Basole, with data from ProgrammableWeb, Center for Global Enterprise, 2015
Open API mashups
Source: Peter Evans and Rahul Basole, with data from ProgrammableWeb, Center for Global Enterprise, 2015
Other areas lag social, mapping and images
Weather Medical Health Energy Sustainability
12
API Economy: Core vs. Periphery
Source: Peter Evans and Rahul Basole, with data from ProgrammableWeb, Center for Global Enterprise, 2015
Social media / web
Job search / work
E-commerce
Tools / analytics / big data
Payments
API Clusters
Messaging services
Walmart
Amazon
Companies
Enterprise
Amazon SNS
Alexa Web Inform
Amazon Marketplace
Amazon SimpleDB
Amazon Product Advertising
Amazon CloudWatch
Amazon Flexible
Amazon Redshift
Amazon SC2
Amazon S3 Amazon Mechanical TurkAmazon RDS
Amazon DynamoDB Amazon Queue Service
Walmart
13
Amazon vs. Walmart
14
What companies will move from periphery to the core
of the API economy?
Internet of thingsHow many firms are actively engaged?
1,550
Source: Peter Evans and Rahul Basole, IoT Alliance Database, Center for Global Enterprise and GT, 2015
17
Internet of Things- large vs. small companies
150 companies
>$1billion sales
1,400 companies
Source: Peter Evans and Rahul Basole, IoT Alliance Database, Center for Global Enterprise and GT, 2015
18
Companies most actively developing new products and services
<$1billion sales
IoT large vs. small industry
2016
Today
2001 2004 2007 2010 2013
Open Mobile Alliance
Source: P. Evans, CGE, 2015
Proliferation of alliances
19
“Before you go to war, assemble allies”
Carl Shapiro and Hal R. Varian
Art of Standards Wars
IoT companies by alliance
Source: Peter Evans and Rahul Basole, IoT Alliance Database, Center for Global Enterprise and GT, 2015
21
20
IoT Alliances To balance or bandwagon?
Platform businessExpanding value through matching, interaction and innovation
Platform companies
Innovation
Software developers MatchingSupply +
Demand
Interaction
Ecosystem
23
Global rise of platform companies135 Companies – Market cap $3.7 trillion
Source: P. Evans, Global Platform Database, Center for Global Enterprise, 2015
92% of market cap
8% “
24
Platform companies by region135 Companies – Market cap $3.7 trillion
N. America Asia EuropeAfrica &
L. America
Source: P. Evans, Global Platform Database, Center for Global Enterprise, 2015
63/ $2.8 trillion 42/ $670 billion 27/ $161 billion 3/ $61 billion
25
Platform employment135 Companies – over 1.3 million direct employees*
Source: P. Evans, Global Platform Database, Center for Global Enterprise, 2015
Africa & L. America
EuropeAsiaN. America
Note: Given the challenges in collecting accurate employment for the 78 private platform companies, this figure only includes direct employment for the 57 publically traded platforms.
26
1.3 million
Platforms and innovation hubsKey clusters around the world
Source: Global Platform Database, Center for Global Enterprise, 2015
Note: Hubs represent cities with 4 or more platform companies that have a market value of $1 billion or more and includes publicly traded as well as private platform companies.
27
EU leaders Call for “Digital Union”*
Digital “Unions” globally
China Europe
* “A Digital Single Market: The Key to Europe's Industrial Leadership in the Digital Economy” Günther Oettinger, EU Commissioner for Digital Economy and Society at ICT2015, October 20, 2015.
United States
28
Will digital diplomacy
succeed in making Europe
more competitive?
Future of the digital economy
1. IoT speed and scale… consumer vs. industrial
2. API economy … periphery vs. core companies
3. IoT alliances… to balance or bandwagon
4. Digital diplomacy… digital unions and competitiveness
Positioning for change in 2016
29
Agenda 2016
Peter Evans, PhDVice PresidentCenter for Global Enterprise
Photo by Maria Carrasco Rodriguez
Corporate Strategy and Digital Diplomacy
EEC15- Reshaping the Future of the Digital Economy
Bilbao, SpainNovember 18-19th, 2015