The concept of business ecosystems (Chapter 1) Flashcards
Competition
at least two parties strive for a goal which cant be shared -one’s gain = one’s loss
society
people sharing the same spatial or social territory
regulation
management of complex systems according to a set of rules and trends
markets
two parties gather to exchange goods or services
where must a market take place
in an environment governed by laws of supply and demand
can markets be physical or virtual
both
technology creates
new opportunities and threats
When to use Pestle
help understand opportunities and threats
PESTLE stands for
Political influences and events
Economic influences
Social influences
Technology influences
Legal influences
Ecological/ environmental influences
When to use porter’s five forces
look at the competitive environment
how to use porter’s five forces
look at the strength of each force
Porter’s five forces
New entrannts
Rivalry against competitors
Substitutes
Power of buyers
Power of suppliers
when to use Porter’s generic strategies
generate superior competitive performance
Porter’s generic strategies
cost leadership
differentiation
focus
how is technology affecting customers
causing them to have higher expectations
what is the issue with org’s trying to keep up with tech change
comes at a higher price
what are the drivers of the digital revolution
mobile and internet penetration
connected devices
data analytics and the cloud
user interface
global accessibility
increasing urbanization
mobile and internet penetration
more people with phones and access to the internet
connected devices
connects to internet
data analytics and the cloud
higher need for automated data analytics
user interface
more machines = faster and more efficient tasks
global accessibility
more people have access to the internet therefore higher connectivity
increasing urbanization
more people live in urban areas
the emergence of business ecosystems
the environment technology is creating: connected and open
simple and intelligent
fast and scalable
connected and open
new levels of trust and accountability with partners and consumers
simple and intelligent
decrease and covers complexity organisation can collect more information and use data analytics and insights for decision making
fast and scalable
transactions increase
costs decrease
business ecosystem
network of organizations who are involved in the delivery of a specific product or service through competition and co-operation
what are traditional markets and ecosystems made up of
interactions and participants
participants
individual players or organizations within the environment
what are participants defined by
function
ability to extend activity or interactions through the environment
range of activities that participants can pursue or undertake in the environment
interactions
products or services exchanged amoung participants
what are interactions defined by
set of implicit or explicit principles governing conduct in the environment
connecting elements through linkages
speed and direction of content or value exchanged
why must organization operate together
to produce something for mutual benefit of the organisation and ecosystems as a whole
organizations can
be part of many ecosystems
have different roles in different ecosystems
change roles as the ecosystem changes
how do participants in the ecosystem act together to deliver value
through orchestration and mutuality
orchestration
can be formal or informal co-ordination for interactions or collaborations among participants in the ecosystem
informal orchestration
culture of organisation
formal orchestration
rules
orchestrator
facilitates orchestartion
mutuality
enhanced level of co-ordination with shared ideals, standards or goals, formally or informally
what have participants done when an ecosystem thrives
developed patterns of behavior that streamline the flow of ideas, talent and capital
what are the goals of a business ecosystem
-to thrive
-have strong barriers of entry
-mechanisms to leverage technology
-achieve excellence in research and business competence
-compete effectively
-driving new collaborators to address rising social and environmental challenges
-trying to decrease costs and get new customers through creativity and innovation
-collaborate, share knowledge, expertise and insight
-create new ways to address needs and desires
value creation
the act of bringing something of value into existence
how do you create value
through product development or enhancement or make a new product
value capture
act or process of appropriating or allocating value
how is value captured
through transactions or indirectly through an orchestrator
value creation in traditional markets
linear
value creation in ecosystems
networked and mutual
ways to create value
-identify opportunities
-develop competencies
-leverage synergies
(LID)
how to determine how to capture value
ecosystem archetypes
what is used to measure ecosystem archetypes
orchestration and complexity
complexity
a function of the number and diversity of participants, the sophistication of activities within the ecosystem and the range and nature of relationships that exist within that ecosystem
high complexity
high barriers of entry
low threat of new entrants
role is secure because capabilities can’t be replicated
low complexity
low barriers of entry
high threat of new entrants
vulnerable position
orchestration
the extent of an organization’s influence over others within an ecosystem, the formality of ecosystem interactions and the degree of enforceability and compliance
tight orchestration
orchestrator can influence behavior or actions
loose orchestration
no one has significant influence and there’s no strong regulation
Where on the table is Hornets nest
High complexity, Loose orchestration
Where on the table is Lion’s pride
High complexity, Tight orchestration
where on the table is shark tank
Low complexity, Loose orchestration
where on the table is wolf pack
Low complexity, Tight orchestration
hornets nest
simple ecosystem
value is transferred by payment
lions pride
decrease threat of new entrants
orchestrator monitors activity
remunerates participants
shark tank
fend for themselves
identify opportunities
align capabilities
make connections
wolf pack
decrease barriers of entry
simple activities but complicated environment
why do participants need to interact and collaborate
-to create opportunity
-to give a unique experience to customers
what are the 3 questions participants need to ask to see if they’re contributing significantly
- The precise role of the participant in the environment
- Each participants reach through the environment
- the capability or key proposition
What are the challenges for regulators
-speed of change
-innovator’s find back door
-ecosystems evolve
-innovators cross lines of jurisdiction
speed of change
regulators need to understand what businesses are offering, their efficacy and consequences
difficult to do in a fast changing environment
ecosystems evolve
new business models
must make an even playing field but cant because of new models
what are the factors that drive customer demands
-contextualized interactions
-seamless experience across channels
-anytime, anywhere
-great service
-self service
-transparency
-peer review and advocacy
contextualized interactions
customers want products that’s tailored to their needs
anytime, anywhere
access to real time information about the product or service
inventory level, delivery time, track progress
how to keep ahead of customer demands
-design thinking
-experimental pilots
-prototyping
-brand atomization
design thinking
design many experiences for one customer
experimental pilots
look at how customers react to new experiences
prototyping
even if product isnt 100% ready, release it because you can get customer feedback
brand automization
-widely distributed
-offered by other providers
whats has changed in the new world
-creating value
-capturing value
-creating value and society
-regulation
-supply chains - delivering value
-delivering value - assets
-delivering value - building platforms
-delivering value - transforming business
creating value
more collaboration
capturing value
need new business models which are flexible and able to adapt quickly
creating value and society
create new alliances have open investors work effectively with external stakeholder
regulation
balance protecting public interests and allowing stakeholders to create new markets
supply chains - delivering value
strategic significance of supply chains has increased because of changes in supply chains
supply chains are also called
value webs
value webs
-decrease costs
-improves service levels
-mitigate risk of distribution
-deliver feedback
delivering value - assets
-can easily collaborate with firms without merge and acquisition
-need to look at complex consequences of the ecosystem
delivering value - bulding platforms
create and capture value
delivering value - transforming business
-be innovative
-adapt to change frequently
innovators cross lines of jurisdiction
new models blur the lines making it easier to cross them
