nick coutts monday 26 november 2012 veolia imperial pathfinder (vip) programme
TRANSCRIPT
Nick CouttsMonday 26 November 2012
Nick CouttsMonday 26 November 2012
Veolia Imperial Pathfinder (VIP) ProgrammeVeolia Imperial Pathfinder (VIP) Programme
• Visiting lecturer: systemics and systems design, business and computing, design engineering
• Innovation and incubation• Incubator senior coach, InnovationRCA
• Chair of enterprise committee of Projectics: http://projectics.estia.fr/
• Author: IP valuation - Routledge• MA economics, Cambridge• Entrepreneur
• Waratek• gleXnet• Smartology• Repindex
• IBM Vice President Global Distribution Channel Strategy
Who am I? Who am I?
What’s going on?What’s going on?
Switching costs are falling Switching costs are falling
Everything changes!
What does this mean?What does this mean?
producer customer
supply demand
build to forecast build to order
targets goals
remote from customer close to customer
cost value
command and control context
hierarchical horizontal
fear trust
command dialogue
hard soft
male female
internal external
design, make, ship clock rate
local global
opportunity sustainability
complicated complex
linear non-linear
inflexible agile
functions attributes
inertia momentum
chain network
efficiency effectiveness
producer efficient supply chain
customer effective demand network
transaction business process
business process people
cost
tangiblelinear
value
intangiblecurved
cost
allowed by IA38
value
not allowed by IA38
Push to PullPush to Pull
Continuing wave of change
Progressive digitisation
shifts business models from push efficiency to pull effectiveness and adaptability
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PUSH
Manufacturer Analogue channels
Distributor ResellerCreator Producer
Structure of physical businessStructure of physical business
Producers ‘own’ knowledge in this physical world Producers ‘own’ knowledge in this physical world
MACROMEDIANETWORK
KNOWLEDGENETWORK
UniversitiesBig technology research
Peer organisationCompetitors
MACROMEDIANETWORK
Digital gives the customer their own networkDigital gives the customer their own network
UniversitiesBig technology research
Peer organisationCompetitors
UniversitiesBig technology research
Peer organisationCompetitors
PostersCommentators
AggregatorsCurators
Re-constructorsKNOWLEDGENETWORK
MICROMEDIANETWORK
and access to the knowledge
network
and access to the knowledge
network
Digital channels
PULL
Exchange(vendormarket)
Consumer technical Interface
Creator technical interface
The changes generate digital business modelsThe changes generate digital business models
The end gameThe end game
Digital channels
Consumer technical interface
Exchange(vendormarket)
Creator technical interface
PULLThe customer is the creator and
vice-versa
EcosystemsEcosystems
Network diagram
The business ecosystem is the system of systems that compose the whole market and its interactions
i.e the business system + all the interacting systems that create the exogenous variables which interact with it
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VendorProductsServicesSupport
Customerssegments
Serviceprovider
Distributor
RetailerWeb site
Field sales
Contact centre
InfluencersMedia
AnalystsUser groups
Upstream networks
Downstream networks
Complementary assets
Network effectsNetwork effects
The exponential increase in value obtained by adding nodes to a network
The network effects of social media
– Increase in value for users– Overall increase in power users have in respect of
other interacting networks and businesses
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Uservalue
User value with no network effect
User value with network effect
Number of users
Tipping point
How the number of users affect valueHow the number of users affect value
Multiple network membershipMultiple network membership
Membership dynamics •Almost all are exposed to the major media - macromedia•Most participate in some degree in social media networks -- micromedia•Some belong to one or more of the different sub-networks
– that make up the knowledge network•And there are many other networks that impact expectation and behaviour•In all cases, network members:
– play network roles– enact the tension between belonging (adaptation) and
individuation (differentiation)
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Membership dynamicsMembership dynamics
In all networks, members play network roles– They interact in part according the roles they are
playing• Multiplayer games exhibit the role-play most clearly• Members play different roles in different sub-groups
– Sub-groups (tribes) are important elements of networks
• They obey the Dunbar number– Optimum size is 10-15 – Groups always sub-divide as they approach 50
– In social media, interaction is strongly influenced by the the tension between belonging (adaptation) and individuation (differentiation)
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Customer powerCustomer power
Increasing power of the customer from increasing control:
Capacity for self-creationIncreasing ability to customise or modifyControl of when, where and howExtensive choice and pricing power
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POWER
Motivation to exercise powerMotivation to exercise power
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