Soo Y. Chang

Industrial and Management Engineering Department

Pohang University of Science & Technology

Sharing and Technology IncorporatedAcademic Society for Appropriate Technology

syc@postech.ac.kr+82-54-279-2198 (Office) +82-17-520-3198 (Cell)

New entrepreneurial opportunities for the ICT empowered general public

in platform economy

Key concepts and emphases…

Platform economy

ICT empowered general public

3 entrepreneurial opportunities

(1/21)

The 4th Industrial Revolution

Network Effect( a.k.a. network externality / demand-side economies of scale )

is the effectthat an additional user of a good or service has on

the value of that product …

the product value increases according to the number of users.

Telephone, Fax, Internet/Computer, Platform Biz.

https://en.wikipedia.org/wiki/Network_effect

(Examples)

(2/21)

1st Mechanical 2nd Electrical 3rd Computer 4th Network

Prosuming Users

ICT empoweredGeneral Public

(3/21)

from PipelinePlanningPlanning Concept

DevelopmentConcept

Development System-LevelDesign

System-LevelDesign Detail

DesignDetail

Design Testing andRefinement

Testing andRefinement Production

Ramp-UpProductionRamp-Up

to PlatformProducing

Consuming

Two Views on TechnologyTechnological Determinism

“Technology shapes our lives”

vs.

Social ConstructivismTechnology is a social construct.

Pessimism

Optimism

“We, the people, should control”

Democratic way !!!(4/21)

Democratization of Technology

Henry Chesbrough, UC Berkeley

Eric Von Hippel, MIT

(5/21)

Open Innovation

a distributed innovation process based on purposively managed

knowledge flows across organizational boundaries, …

not solely firm-centric; it also includes

creative consumers and communities of user innovators. …

companies cannot afford to rely entirely on their own researchshould buy or license processes or inventions from other companies

https://en.wikipedia.org/wiki/Open_innovation

(6/21)

User Innovationhttps://en.wikipedia.org/wiki/User_innovation

Innovation by intermediate users, individual end-users or user communities,

rather than by producers or manufacturers…

a concept closely aligned to co-designdesign developed or at least refined by users

... user communities reinterpret and reinvent

the meaning of emerging technological opportunities.

(7/21)

What Open/User Innovation points at?

Maker MovementDIYLiving Lab.

(8/21)

Collaborative commons

Jeremy Rifkin

IoT(Internet of Things)

From each according to his ability, to each according to his need

(9/21)

Information / Energy / Transportation

Open Source & Maker Movement

(10/21)

“Adafruit’s business modelmay look somewhat counter intuitive.

We can achieve fastest technological progressby opening up our technology.

Our customers can make useful technical commentsregarding various technological issues of our product only if we open up our technology.…In fact, AdaFruit is an education business.”

Limor Fried(11/21)

RACHEL(Remote Area Community Hotspot for Education and Learning)

Raspberry Pi + Linux + Open source servers + Cisco engineers contribution

(12/21)https://store.worldpossible.org/products/rachel-plus

https://www.youtube.com/watch?v=ABYSzeZ01Zw

Bonguino: Tanzanian version of Arduino

Sensing and driving actuators

(13/21)

https://tanzict.wordpress.com/2014/11/23/towards-establishing-mini-fabrication-lab-at-buni-hub/

Made in Africa: 3D Printing

(14/21)

https://edition.cnn.com/2017/11/28/africa/3d-printer-electronic-waste/index.html

UNESCO Mobile phone project

Empowerment by mobile phone

Mobile Phone in Africa

(15/21)

https://www.youtube.com/watch?v=LXFUIRU22FI

M-PESA in Kenya

44% GDP of Kenya in 2015

(16/21)

https://en.wikipedia.org/wiki/M-Pesa

The 6th (7th) Industry

(17/21)

https://www.youtube.com/watch?v=Q9DD-975bHE

Human being, a Being with a root

(18/21)

MIT Personal Farming1 billion more farmers on earth!

https://www.youtube.com/watch?v=AMbZyVlHF_k

(19/21)

Farming Robot

Image processing

Open Source

Smart Farming at POSTECH

Dome

Food Processing

(20/21)

SovereigntySmall-scale / Self motivated / Self directed

Minimum dependence Individual / Community / NationFinancial / Cultural / Political

with Maximum connectivity

Keywords for …

(1) Open source knowledge/solution providerDIY ICT electronics / Self health Care / Home schooling

(2) Living lab for nomadic livelihood6th (7th) industry / tourism / animal smart farming for self sufficiency

(3) Shared information/transportation platform

New entrepreneurial opportunities

Culture Food Community

ENoLL

(21/21)

Reference Material

URL linksGreen Development Policy of Mongolia, white board video illustration, GGGI (4Min)

https://www.youtube.com/watch?v=fnfYei5T6Gw

Mongolia Stories of Change: Transition to Green Development (8Min) https://www.youtube.com/watch?v=hgvGQC1zzDg

Nomadic livestock husbandry in Mongolia (17Min)https://www.youtube.com/watch?v=Pk1Avw9M0tk

Empower Youth to Sustain the Planet - Innovate Your Future (3Min) https://www.youtube.com/watch?v=tNV0CWFWxY8

UNESCO Radio ICTs project is empowering local communities in Africa (18Min) https://www.youtube.com/watch?v=EV1srcwMy1E

URL linksYouth, ICTs and Agriculture (5Min)

https://www.youtube.com/watch?v=vTDvQT_Kenw

Mobile Phones: The Farmer’s New Tool (2Min) https://www.youtube.com/watch?v=LXFUIRU22FI

Technology for Good: ICT & Sustainable Development Goals (4Min) https://www.youtube.com/watch?v=IRhl40rXOgs

ICTs FOR A SUSTAINABLE WORLD (8Min) https://www.youtube.com/watch?v=4764_NwlLAw

ICT for Development (3Min) https://www.youtube.com/watch?v=7zMNjraEMvY

Senary 6/7th Industry, a New Paradigm in Agriculture (5 Min) https://www.youtube.com/watch?v=Q9DD-975bHE

URL linksSustainable Entrepreneurship (8Min)

https://www.youtube.com/watch?v=D7k15vh3wa0

Towards Sustainable Entrepreneurship: (5Min) https://www.youtube.com/watch?v=XwcfTXqmYkU

Circular economy entrepreneurs (11Min) https://www.youtube.com/watch?v=D9FSc3T8PcE

Empowering women: fostering entrepreneurship (3Min) https://www.youtube.com/watch?v=4m4szn83WWI

Technology Empowering Women (6Min) https://www.youtube.com/watch?v=wlrZlknyIww

Better ICT for Women Entrepreneurs (1Min) https://www.youtube.com/watch?v=RNElOUsHtvY

URL linksSustainable Development in the Fourth Industrial Revolution (57Min)

https://www.youtube.com/watch?v=9kuGOvOQYvw

Entrepreneurship and the Fourth Industrial Revolution (3Min) https://www.youtube.com/watch?v=GzBUqIAvS0c

Neovia - Farm of the future (2Min) https://www.youtube.com/watch?v=ruVQpGBymr4

How to be self sufficient in LA (15Min) https://www.youtube.com/watch?v=u9xYPkSjpco

The Future of Living: Self-Sustaining Villages James Ehrlich (12Min) https://www.youtube.com/watch?v=QdNAEbAkThA

Pipeline to Platformhttps://www.youtube.com/watch?v=Guebxnu7aSc Welcome to the platform 2 Min

https://www.youtube.com/watch?v=DrzDGcSYeU4 The difference 5.5 Min

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Transaction platformsA transaction platform is

a technology, product or service that acts as a conduit (or intermediary)

facilitating exchange or transactions between different users, buyers, or suppliers.

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Innovation platformsAn innovation platform is

a technology, product or service that serves as a foundation on top of which other firms

(loosely organized into an innovative ecosystem) develop complementary technologies,

products or services.

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Integrated platformsAn integrated platform is a technology, product or service

that is both a transaction platform and an innovation platform. This category includes companies such as

Apple, which has both matching platforms like the App Store and a large third-party developer ecosystem

that supports content creation on the platform.

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Investment platformsInvestment platforms consist of

companies that have developed a platform portfolio strategy and act as a holding company, active platform investor or both.

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Sangeet Paul Choudary is an INSEAD Entrepreneur-in Residence and the founder and CEO of Platformation Labs. He is also a co-author of Platform Revolution and is on the 2016 Thinkers50 Radar, a global ranking of management thinkers.

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(1) “follow-the-rabbit-strategy” builds on an existing non-platform success by using a demonstration of the company’s track record.

Consider Amazon, which, before becoming a platform business operated an effective pipeline business that used online product listings to attract consumers.

Once it had a thriving customer base, it converted itself into a platform by starting Amazon Marketplace, opening its system to external producers, which enables merchants to sell to its customers, while Amazon takes a slice of revenue from every transaction.

If you’re starting a platform from scratch, however, you could consider “staging” value creation. The Huffington Post started out by hiring writers to create high quality blog posts to attract readers, who began contributing blog posts, which in turn fed a higher level of readership. The platform could also be designed to attract one set of users first; for example, making it easy for vendors to join, building a critical mass and then making it widelyavailable to an audience that will discover the value.

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(2) “piggyback strategy” is the platform connecting an existing user base from a different platform to the value units on offer on your platform.

Justdial, India’s largest local commerce marketplace, did this by seeding its initial database by borrowing listings from existing yellow pages as well as collecting information by going to businesses door-to-door.

With this information, it launched a phone directory service.

When customers called in looking for a service, Justdial would pass on the lead to producers. Grateful for the leads, merchants became subscribers, building outthe platform.

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(3) “seeding strategy”, the platform takes the task of value creation upon itself by acting as the first producer.

When Google launched its Android smartphone operating system to compete with Apple’s iOS, it seeded the market by offering US$5 million in prizes to developers who created the best apps across ten categories. Winners became market leaders, attracting large numbers of customers.

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(4) “marquee strategy” provides incentives to attract members of a certain type onto your platform.

In 2009, the Swiss postal service transformed itself into a digital message-delivery platform using scanning and archiving technology from the Seattle-based company, Earth Class Mail.

To attract holdout customers who stuck with traditional mail delivery, Swiss Post gave away thousands of iPads to households, encouraging rural communities to switch from physical to electronic messaging, greatly reducing its resources in hand-delivered mail.

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(5) “single-side strategy” creates a business around products or services that benefit one set of users and later converts itself into a platform by attracting a second set to engage with the first.

OpenTable, the restaurant reservation system, was in a classic chicken-or-egg situation. Without a large base of restaurants, why would customers visit the website? But without patrons, why would restaurantsbother to participate?

OpenTable solved it by first distributing booking management software to restaurants then once they had enough restaurants on board, they built out the customer side and started collecting fees for lead generation.

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(6) “producer evangelism strategy” Involves designing a platform to attract producers who can then persuade their customers to become users of the platform.

Crowdfunding platforms such asIndiegogo and Kickstarter thrive in this regard By targeting creators who need funding with the infrastructure to host content about their idea and manage the fundraising campaign.

(7) “big bang adoption strategy” involves using traditional opportunistic push marketing to attract attention.

Tinder, a location-based dating app, achieved its breakout in 2012 by launching during a frat party at the University of Southern California.

Already a hotbed of young men and women looking to connect, Tinder made it easier and in the process achieved critical mass during the party in a small, contained location.

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(8) “micromarket strategy” targets a tiny market where members are already engaging in interactions, enabling the platform to prove its effectiveness at matching.

Facebook’s decision to launch in the closed community of Harvard University was a masterstroke that enabled it to solve the chicken-or-egg problem.Attracting 500 users in the concentrated university community ensured the creation of an active community at launch.

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