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The Network Multiplier - A 2.5 Day Program

A 2.5 Day Curriculum for the Network Imperative and how leaders business and mental models are impacting how they make and spend their capital to create value.

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The Network Multiplier - A 2.5 Day Program

  1. 1. Yoram  (Jerry)  Wind   The  Lauder  Professor  and  Professor  of  Marke9ng   Director,  SEI  Center  for  Advanced  Studies  in   Management   Academic  Director,  Wharton  Fellows  Program   Presented  to  Wharton  Fellows   Jerry  Wind,  SEI  Director   Barry  Libert,  SEI  Senior  Fellow   October  29-­‐31st.  2014   1   copyright,  OpenMaVers,  LLC  
  2. 2. The  material  in  this  curriculum  is  the  property  of   Wharton’s  SEI  Center  and  OpenMa<ers,  LLC  and   shall  not  be  reproduced  and/or  distributed   without  our  express  authorizaDon 2   copyright,  OpenMaVers,  LLC   NOTICE  
  3. 3. Agenda  for  Wednesday  evening,  10/29/2014 5:00-­‐7:00pm   I.  Wayfair   7:00-­‐7:30pm   Travel   7:30-­‐9:00pm   II.  Introduc0on,  dinner,  ini0al  design  of  a  supply   network,  group  presenta0ons  and  discussion   3   copyright,  OpenMaVers,  LLC  
  4. 4. 8:00-­‐8:30am   I.  Introduc0on:  Key  challenges  facing  the  par0cipants   8:30-­‐9:30am   II.    Iden0fying  and  challenging  your  mental  models   9:30  -­‐9:45am   Break-­‐out  Teams:  Iden9fying  and  challenging  the  mental  model   underlying  your  business  and  revenue  models   9:45-­‐10:00am   Break   10:00-­‐10:15am   III.  Business  models,  Mul0pliers,  and  innova0on   11:15-­‐11:30am   Break-­‐out  Teams:  Iden9fying  your  business  models   11:30-­‐12:00pm   Group  reports  and  discussion   12:00-­‐1:00pm   Lunch   1:00-­‐2:00pm   V.  Transforming  your  business  model  to  achieve  the  Network   Mul0plier   2:00-­‐2:15pm   Break-­‐out  Teams:  Transforming  your  business  models   2:15-­‐2:45pm   Group  reports  and  discussion   2:45-­‐3:30pm   VI.  Reflec0ons  and  ac0on  plans   3:30-­‐6:30pm   FIELD  TRIP:    Acquia     6:30-­‐9:00pm   FIELD  TRIP:    The  Media  Lab  -­‐-­‐  Andrew  Lippman   Agenda  for  Thursday,  10/30/2014 4   copyright,  OpenMaVers,  LLC  
  5. 5. Agenda  for  Friday,  10/31/2014 8:00-­‐9:00am   I.  Adap0ve  experimenta0on  and  designing  and  organiza0onal   architecture  for  network  orchestra0on   9:30-­‐12:00pm   FIELD  TRIP:      Kayak   12:00-­‐3:00pm   FIELD  TRIP:    Berklee   3:00-­‐4:00pm   IV.  Break-­‐out  Teams:  Group  and  individual  plans  for  a  network   experiment   4:00-­‐5:00pm   V.  Presenta0on  of  plans  and  discussion   5:00-­‐6:00pm   VI.  Final  reflec0ons  and  conclusion   5   copyright,  OpenMaVers,  LLC  
  6. 6. Summary  thoughts 1  Key  premise:    Digital  technologies  together  with   new  mental  models  drive  new  business  models 2  Best  pracDces:    Every  organizaDon  has  dormant   networks  that  they  can  acDvate  to  drive  value 3  (Really  4)  steps:  To  drive  value  in  today’s  digital   and  networked  age 6   copyright,  OpenMaVers,  LLC  
  7. 7. Lessons  from  Wayfair Wednesday  evening,  10/29/2014     A  U.S.-­‐based  mul9na9onal  e-­‐commerce   company.  The  company  began  selling   furniture  online  in  2002,  and  now  sells   many  other  home  furnishings,  luggage,   toys,  and  pet  items.     Year  founded   2002   #  employees   2,000   Market  cap   $2B   Revenue   $1.1B   Mul9plier   1.94x   Profit  margin   -­‐5.29%   Business  model   Asset  Builder   Fast  facts   7   copyright,  OpenMaVers,  LLC  
  8. 8. IniDal  design  of  a  supply  network 8   copyright,  OpenMaVers,  LLC  
  9. 9. It’s  Thursday 9   copyright,  OpenMaVers,  LLC  
  10. 10. I.  Key  challenges  facing  the  parDcipants   10   copyright,  OpenMaVers,  LLC  
  11. 11. A.  Advances  in   Science,   Technology,   and  Biology   C.  Broad  Changes  in   the  Business  and   regulatory   Environment   B.  Emergence  of   the  empowered     Consumer,   employee  and   investor   And  do  your  challenges  reflect…   11   copyright,  OpenMaVers,  LLC  
  12. 12. A.  Advances  in  science  and  technology,  such  as… social  networks… cloud… internet  of  things… home   ecosystem  of   the  future… wearable  compuDng… Vigo  –  Human   energy  gauge MIT  Human  Dynamics  Lab  starts   publishing  in  1990 Nike+   FuelBand arDficial  intelligence… Why  Google  is  Involved  in  Deep  Learning   Mobile…   personalized  medicine... 12   copyright,  OpenMaVers,  LLC  
  13. 13. B.  Emergence  of  empowered  consumers  &  B2B  customers Converging  on   Communi0es:    Let   me  be  a  part  of  it   Converging  on  Channels:   I  want  to  call,  click  and  visit   Converging  on  Compe00ve   Value:    Give  me  more  for  my   money   Converging  on   Choice:   Give  me  tools  to   make   beSer  decisions   Converging  on  Customeriza0on   and  Personaliza0on:  Make  it   mine   Source:  Wind  and  Mahajan,  Convergence  Marke9ng,  Financial  Times/Pren9ce  Hall,  2001   more  skep7cal  than  ever  before 13   copyright,  OpenMaVers,  LLC  
  14. 14. C.  Other  changes  in  the  business  environment •  The  changing  global  markets   •  Challenges  facing  socie9es     •  The  changing  regulatory   environment     •  The  changing  compe99ve   environment     •  The  increasing  importance  of   networks     •  The  global  risks  [and   opportuni9es]  landscape     14   copyright,  OpenMaVers,  LLC  
  15. 15. What  are  the  implicaDons  of  all  these  challenges?   15   copyright,  OpenMaVers,  LLC   ?  
  16. 16. II.  IdenDfy  and  challenge  your  mental  models 16   copyright,  OpenMaVers,  LLC  
  17. 17. To  drive  value,  you  have  to  challenge  and  change  your…     Mental  models     17   copyright,  OpenMaVers,  LLC  
  18. 18. à  What  are  mental  models? Let’s  consider… What  just  happened? Robbery  at  Knifepoint     Updated  March  11,    2013  8:55am     18   copyright,  OpenMaVers,  LLC  
  19. 19. The  reality  of  the  situaDon  did  not  change,     our  mental  model  did!   Our  beliefs,  actudes,   feelings  and  behaviors  are   driven  by  our  Mental   Models,  not  reality. 19   copyright,  OpenMaVers,  LLC  
  20. 20. Mental  Models What  is  a  mental  model? Mental model From  Wikipedia,  the  free  encyclopedia     A  mental  model  is  an  explana9on  of  someone’s  thought  process  about  how   something  works  in  the  real  world.    It  is  a  representa9on  of  the  surrounding   world,  the  rela9onships  between  its  various  parts  and  a  person’s  intui9ve   percep9on  about  his  or  her  own  acts  and  their  consequences.    Mental  models   can  help  shape  behavior  and  set  an  approach  to  solving  problems  (akin  to  a   personal  algorithm)  and  doing  tasks.     20   copyright,  OpenMaVers,  LLC  
  21. 21. Challenging  your  mental  models Inner  City Alterna7ve  Medicine Roger  Bannister  breaks  the  4  Minute  Mile   on  May  6,  1954 Source:    Gallup  Daily,  April  2014   hVp://     21   copyright,  OpenMaVers,  LLC  
  22. 22. What  is  common  to  these  innovaDons?   Napster   Samsung     SGH-­‐E760     $2000  Car   MIT’s  Media  Lab   $100  laptop   Apple  iPad   Microsoft  Xbox   360  Kinect   Google   Glasses   They  changed  the  mental  models  of  their  industries. 22   copyright,  OpenMaVers,  LLC  
  23. 23. Mental  models  and  leadership  over  the  ages Power   Emo9onal   Intellectual   Network       Technology   Time   23   copyright,  OpenMaVers,  LLC  
  24. 24. Four  examples  of  mental  and  leadership  models 24   copyright,  OpenMaVers,  LLC  
  25. 25. The  key  points:   “Without  changing  our  pa<ern  of  thought,  we  will  not  be  able   to  solve  the  problems  we  created  with  our  current  pa<ern  of   thought.” -­‐  Albert  Einstein   •  Mental  Models  are  cri7cal.   25   copyright,  OpenMaVers,  LLC  
  26. 26. III.  InnovaDve  business  models  and  their  market  MulDpliers 26   copyright,  OpenMaVers,  LLC  
  27. 27. Business  models  are  driven  by  mental  models What  is  a  business  model?   27   copyright,  OpenMaVers,  LLC  
  28. 28. Different  ages,  different  business  models Industrial   revolution  -­‐  1800   Services   revolution  -­‐  1975   Information   revolution  -­‐  1990   Network     revolution  -­‐  2010   Technology   Time   28   copyright,  OpenMaVers,  LLC  
  29. 29. Different  business  models  scale  differently exponential     algebraic  growth   arithmetic  growth   geometric  growth   Time   Growth   29   copyright,  OpenMaVers,  LLC  
  30. 30. Business  models  scale  with  different  marginal  costs Network     Facilitators   Technology   Facilitators   Service   Facilitators   Asset   Facilitators   The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. make  many,  sell  many   make  one,  sell  many   hire  one,  sell  one     make  one,  sell  one   zero  marginal  cost   low  marginal  cost   medium  marginal  cost   high  marginal  cost   30   copyright,  OpenMaVers,  LLC  
  31. 31. The  four  business  models… Network   Orchestrator   Technology   Creator   Service   Provider   Asset   Builder   Digital  divide   31   copyright,  OpenMaVers,  LLC  
  32. 32. …and  their  Revenue  MulDpliers 4 Network   Orchestrator   Technology   Creator   8 1 Service   Provider   Asset   Builder   2 Digital  divide   32   copyright,  OpenMaVers,  LLC  
  33. 33. 4 Network   Orchestrator   Technology   Creator   8 1 Service   Provider   Asset   Builder   2 Examples  of  companies Credit  card  companies   Stock  exchanges   Social  Networks   Biotech     Software   Pharmaceutical     Retails   Industrials   Manufacturing   Consultants   Financial  Services   Insurance   Digital  divide   33   copyright,  OpenMaVers,  LLC  
  34. 34. Why  “8”  type  business  models  are  criDcal Networks   Services  Assets   Technology   8 Business  that  are  8’s  scale  using   other  people’s  money,   intelligence  and  relationships,   creating  less  need  for  capital  and   more  future  opportunity  for  open   innovation  in  a  flat  world   Digital  divide   34   copyright,  OpenMaVers,  LLC  
  35. 35. Exercise:    What  type  of  business  model  are  you? 4 Network   Orchestrator   Technology   Creator   8 1 Service   Provider   Asset   Builder   2 Investment   Tangible   Intangible   Orienta9on   External  Internal   35   copyright,  OpenMaVers,  LLC  
  36. 36. IV.  IdenDfy  your  dormant  networks 36   copyright,  OpenMaVers,  LLC  
  37. 37. Networks  are  all  around  you NETWORK  CATEGORY   POSSIBLE  VALUE  PROVIDED   Customers   •  Increased  loyalty/brand  awareness   •  Data  assets  about  customer  profile  or  ac9vity   •  Marke9ng  or  product  ideas   Employees   •  New  product  and  marke9ng  ideas   •  Opera9onal  improvements   •  Expert  support  –  both  internal  and  external   Suppliers  and  Partners   •  Improved  market/compe9tor  awareness   •  More  efficient  rela9onships   •  New  sales  and  marke9ng  channels   Investors   •  Sugges9ons  to  improve  valua9on   •  Market  awareness   •  Crowd  funding  solu9ons  –  e.g.  new  sources   Communi9es  (geographic,   business,  etc.)   •  Source  new  employees   •  Understand  local  poli9cs/news  as  it  affects  company   •  Advocacy  and  support     37   copyright,  OpenMaVers,  LLC  
  38. 38. Customers   1   2   3   4   5   6   7   8   9   10   Employees   1   2   3   4   5   6   7   8   9   10   Suppliers   1   2   3   4   5   6   7   8   9   10   Distributors   1   2   3   4   5   6   7   8   9   10   Partners   1   2   3   4   5   6   7   8   9   10   Investors   1   2   3   4   5   6   7   8   9   10   Communi9es   1   2   3   4   5   6   7   8   9   10   Other   1   2   3   4   5   6   7   8   9   10   Not  at  all   valuable   Extremely   valuable   What  networks  do  you  have  and  how  do  you  acDvate  them? 38   copyright,  OpenMaVers,  LLC  
  39. 39. V.  Transform  your  business  to  achieve  the  MulDplier  Effect   39   copyright,  OpenMaVers,  LLC  
  40. 40. What  can  you  do  to  transform  your  business  or   organizaDon  to  benefit  from  the  Network  MulDplier? ?   40   copyright,  OpenMaVers,  LLC  
  41. 41. First,  think  like  an  investor:    Diversify Assets   Services   Technology   Networks   Allocate  at  least  10%  to  building  your  networks! 41   copyright,  OpenMaVers,  LLC  
  42. 42. Potential network assets 1. Choose your most valuable network to start 2. Add a technology platform 3. Recruit early members with content and value 4. Expand by sharing rewards with participants Consumer networks Employee networks Supplier networks Other networks Take  CARE:  4  steps  to  acDvaDng  your  networks 42   copyright,  OpenMaVers,  LLC  
  43. 43. Case  study:  Nike+   Select  a  network:  runners  who   want  to  log  runs       Create  incen9ves  to  par9cipate:   ability  share  runs  with  social   groups  (pride  and  recogni9on)     Seed  the  network  with  content:   mo9va9on  and  training  advice       Connect  the  network:  Wireless   devices,  apps,  and  integra9on   with  Facebook   1:  Choose  the  network   4.  Expand  with  incen9ves  3.  Recruit  members  with  value     2.  Add  technology   43   copyright,  OpenMaVers,  LLC  
  44. 44. Case  study:  AT&T   Select  a  network:  employees       Create  incen9ves  to  par9cipate:   Recogni9on  of  peers,  face9me   with  leaders     Seed  the  network:  ask  managers   and  leaders  to  par9cipate         Connect  the  network:  Online   plarorm  to  propose  and  vote  on   ideas   1:  Choose  the  network   4.  Expand  with  incen9ves  3.  Recruit  members  with  value     2.  Add  technology   44   copyright,  OpenMaVers,  LLC  
  45. 45. Case  study:  Nest  thermostat   Select  a  network:  high-­‐end   thermostat  users     Create  incen9ves  to  par9cipate:   Improved  energy  efficiency   through  big  data  analysis     Seed  the  network:  begin  with   public  data  about  temperatures   and  energy  uses     Connect  the  network:  Internet   networked  devices   1:  Choose  the  network   4.  Expand  with  incen9ves  3.  Recruit  members  with  value     2.  Add  technology   45   copyright,  OpenMaVers,  LLC  
  46. 46. Exercise:    Create  a  new  network  asset   Select  a  network  to  develop.     Look  for  one  that  is  large,  ac9ve,   underserved,  and  aware  of  your   company     Create  incen9ves  for  par9cipants   to  begin  adding  content   themselves.    Incen9ves  could  be   recogni9on  or  shared  revenus     Seed  the  network  with  content,   informa9on,  and  products  in   order  to  grow  awareness  and   membership.     Use  a  technological  solu9on  to   connect  the  network.    Begin  with   something  inexpensive  and  quick   to  implement.   Discuss  the  following  steps  for  a  high  poten9al  network   1:  Choose  the  network   4.  Expand  with  incen9ves  3.  Recruit  members  with  value     2.  Add  technology   46   copyright,  OpenMaVers,  LLC  
  47. 47. What  will  your  network  experiments  be? •    •    •    •    •    •    •    47   copyright,  OpenMaVers,  LLC  
  48. 48. VI.  ReflecDons  and  acDon  plans   48   copyright,  OpenMaVers,  LLC  
  49. 49. Lessons  from  Acquia   Friday  10/31/2014   A  sosware-­‐as-­‐a-­‐service  company   providing  products,  services,  and   technical  support  for  open-­‐source   web  content  management  plarorm   Drupal.    Acquia  is  financed  by   venture  capital.   Fast  facts   Year  founded   2007   #  employees   500   Enterprise   customers   3,800   Total   investment   $118.6M   Revenue   Est.  $70M   Mul9plier   unknown   Business  model   Network   Orchestratorer   49   copyright,  OpenMaVers,  LLC  
  50. 50. Lessons  from  The  Media  Lab The  MIT  Media  Lab  is  an  interdisciplinary   research  laboratory  at  the  MassachuseVs   Ins9tute  of  Technology  devoted  to  projects  at   the  convergence  of  technology,  mul9media,   sciences,  art  and  design.    As  of  2014,  it  has   diversified  its  research  into  neurobiology,   biologically-­‐inspired  fabrica9on,  socially-­‐ engaging  robots,  emo9ve  compu9ng,  bionics,   and  hyperinstruments.  The  One  Laptop  per   Child  (OLPC)  was  one  of  the  notable  research   efforts  which  grew  out  of  the  Media  Lab.   Fast  facts   Year  founded   1985   Faculty  &   principal   inves9gators   28   Graduate   students   146   Current  projects   350+   Annual   opera9ng   budget   $45M   50   copyright,  OpenMaVers,  LLC  
  51. 51. It’s  Friday 51   copyright,  OpenMaVers,  LLC  
  52. 52. II.  IdenDfy  and  challenge  your  mental  models We  cannot  solve  our  problems  with  the   same  thinking  we  used  when  we   created  them.   52   copyright,  OpenMaVers,  LLC  
  53. 53. The  new  theory  of  the  firm 53   copyright,  OpenMaVers,  LLC  
  54. 54. BeneBits  of  Experimentation:   1.  Learning  &  Better  Decisions   2.  Forces  Measurement   3.  Enhances  Innovation   4.  Fosters  an  Innovative  Culture   5.  Confuses  the  Competition         Response   x $ Response   x $ ½x   2x   X   X   X   -­‐  -­‐  -­‐  -­‐  -­‐      -­‐  -­‐  -­‐       Have  you  adopted  the  adap-ve  experimenta-on  philosophy?  And  what  have   you  learned  from  the  natural  experiments  occurring  around  you?   I.A.  AdapDve  experiment   Others?   54   copyright,  OpenMaVers,  LLC  
  55. 55. -­‐  Vision   -­‐  Objec9ves   -­‐  Value  Proposi9on   -­‐  Business  Models   -­‐  Strategies   Cultures  &  Values   People   &  Competence   Value  Crea9on   &  Network   Orchestra9on   Processes   Ownership,   Governance,   Structure,   &  Network   Orchestra9on   Resources   Technology   Facili9es   Metrics  /     Dashboard   The  Organiza9onal  and   Network  Stakeholders   Customers   Employees   Shareholders   Partners   Suppliers   Government   Communi9es   Other     How  will  you  go  about  crea0ng  a    Crea0ve  Culture  and  Architecture?       Address  the  key  challenges  of:     •  Aligning  rewards  and  incen9ves     •  Balancing  short  and  long  term   perspec9ves  and  resources   •  Groom  and  support  champions     •  Balancing  growth  of  core   business  with  experimenta9on   with  breakthrough  innova9on   •  Bridging  the  internal  and   external  silos   •  Other?     I.B.  Design  an  OrganizaDonal  Architecture  &  Network   OrchestraDon 55   copyright,  OpenMaVers,  LLC  
  56. 56. IdenDfy  and  overcome  obstacles  to  implementaDon 56   copyright,  OpenMaVers,  LLC  
  57. 57. Lessons  from  Kayak KAYAK  is  a  travel  search  engine  operated   by  the  KAYAK  Sosware  Corpora9on.   KAYAK's  products  are  available  in  more   than  20  languages.  The  company  also   runs  travel  search  engines  checkfelix  and   swoodoo.  KAYAK  was  acquired  by  The   Priceline  Group  on  November  8,  2012.   Year  founded   2004   Acquisi9on  by   Priceline   2012   Acquisi9on  price   $1.8B   Revenue  at   acquisi9on   $300M  (2012)   Mul9plier  at   acquisi9on   6x   Profit  margin   -­‐5.29%   Business  model   Network   Orchestrator   Fast  facts   57   copyright,  OpenMaVers,  LLC  
  58. 58. Lessons  from  Berklee The  largest  independent  college  of   contemporary  music  in  the  world.  Known   primarily  as  the  world's  foremost  ins9tute  for   the  study  of  jazz  and  modern  American  music,   it  also  offers  college-­‐level  courses  in  a  wide   range  of  contemporary  and  historic  styles,   including  rock,  flamenco,  hip  hop,  reggae,   salsa,  and  bluegrass.   Year  founded   1945   Campus   enrollment   4,200  students   Online  enrollment   5,000  students   Tui9on  &  fees   revenue   ~$180M   Total  revenue   (incl.  grants)   ~$200M   Fast  facts   58   copyright,  OpenMaVers,  LLC  
  59. 59. IV.  Individual  or  group  plans  to  transform  your   organizaDon  to  a  Network  OrganizaDon 59   copyright,  OpenMaVers,  LLC  
  60. 60. AcDvate  your  most  valuable  asset:  your  networks   Networks   60   copyright,  OpenMaVers,  LLC  
  61. 61. Four  steps  to  create  your  network  mulDplier  effect                      Orient   Assess   Act   Measure   Understand   your   current   business   and  mental   models   Inventory  all   your   Networks   and  other   intangible   assets   Allocate   capital  to  your   networks  and   take  small   steps  to  insure   success   Add  network-­‐ focused  key   performance   indicators   (KPIs)  to  your   financial     repor9ng   61   copyright,  OpenMaVers,  LLC  
  62. 62. Mental  models  drive  business  model  rewards BEST  PRACTICES Drive  Business  Models   What  Leaders  believe   and  do   How  leaders  measure  success   How  leaders  invest  capital   Mental  Models   62   copyright,  OpenMaVers,  LLC  
  63. 63. Today’s  leaders  allocate  capital  to  technology  &  networks   BEST  PRACTICES Network(Orchestrator( Technology( Creator( Asset( Builder( Service(Provider( 63   copyright,  OpenMaVers,  LLC  
  64. 64. Asset  Builder:  Using  assets  to  manufacture  cars BEST  PRACTICES 1 General  Motors   64   copyright,  OpenMaVers,  LLC  
  65. 65. Service  Provider:    Using  people  to  deliver  services BEST  PRACTICES 2 Accenture   65   copyright,  OpenMaVers,  LLC  
  66. 66. Technology  Creator:  Changing  the  world  through  IP BEST  PRACTICES 4   66   copyright,  OpenMaVers,  LLC  
  67. 67. Network  Orchestrator:  ConnecDng  people BEST  PRACTICES 8 Facebook   67   copyright,  OpenMaVers,  LLC  
  68. 68. Comparison:    Amazon  versus  Best  Buy BEST  PRACTICES AmazonBest Buy 4 2 68   copyright,  OpenMaVers,  LLC  
  69. 69. 0%  10%   30%  60%   10%  10%   20%   60%   Lesson:    Reallocate  capital  to  align  with  today’s  sources  of  value BEST  PRACTICES Yesterday Today 69   copyright,  OpenMaVers,  LLC  
  70. 70. Mental  Model   Business  Model   What  leadership…   •  Believes  is  important   •  Has  developed  their  own  skills   •  Gives  9me  and  aVen9on   •  Measures  and  reports   How  a  company…   •  Spends  and  makes  money   •  Hires  people  and  develops  skills   •  Uses  and  leverages  technologies   •  Engages  with  customers   Drives •  Enterprise  value   •  Revenue  growth   •  Profitability   Value  and   performance   Determines Result:    Mental  and  business  model  connect  to  create  results BEST  PRACTICES   70   copyright,  OpenMaVers,  LLC  
  71. 71. And  have  you  considered  the  following  implicaDons: Existing technology we currently use Existing technology we do not use New technology Existing market we currently serve Existing market we do not serve New market Exploration into new markets Exploration with new technologies New-category products Next- generation products for core markets Adjacent growth Improvements, extensions, variants, and cost reductions Knowledge of Technology KnowledgeofMarket 1.  New  mental  models  for  making  sense  of   the  changing  environment  and  for   innovaDng  your  business  model  and   strategies 3.  Consumers  as  partners  –  co   producers,  co  designers,  co   distributors,  co  marketers… 2.  AcDvaDng  your  networks                  and    taking  the  role  of                  network  orchestrator 4.  Open  innovaDon  for  all  your  key   domains  of  acDviDes 5.  AdapDve  experimentaDon  as  the  new   strategic  philosophy  and  lessons  from   natural  experiments 6.  Reallocate  your  pornolio  resources  to   reflect  the  above 71   copyright,  OpenMaVers,  LLC  
  72. 72. ReBlections  and  Action  Plans   ReflecDons  and  AcDon  Plan 72   copyright,  OpenMaVers,  LLC  
  73. 73. Summary  thoughts 1  Key  premise:    Digital  technologies  together  with   new  mental  models  drive  new  business  models 2  Best  pracDces:    Every  organizaDon  has  dormant   networks  that  they  can  acDvate  to  drive  value 3  (Really  4)  steps:  To  drive  value  in  today’s  digital   and  networked  age 73   copyright,  OpenMaVers,  LLC  
  74. 74.     Jerry  Wind   Director,  SEI  Center   Wharton     Barry  Libert   CEO   OpenMaVers   hVp://             Contact  info
  75. 75. About  DeloiSe   DeloiVe  refers  to  one  or  more  of  DeloiVe  Touche  Tohmatsu  Limited,  a  UK  private  company  limited  by  guarantee  (“DTTL”),  its  network  of  member  firms,  and  their  related  en99es.  DTTL  and  each  of   its  member  firms  are  legally  separate  and  independent  en99es.  DTTL  (also  referred  to  as  “DeloiVe  Global”)  does  not  provide  services  to  clients.  Please  see  for  a  detailed   descrip9on  of  DTTL  and  its  member  firms.  Please  see  for  a  detailed  descrip9on  of  the  legal  structure  of  DeloiVe  LLP  and  its  subsidiaries.  Certain  services  may  not  be   available  to  aVest  clients  under  the  rules  and  regula9ons  of  public  accoun9ng.       36  USC  220506     This  presenta9on  contains  general  informa9on  only  and  OpenMaVers  is  not,  by  means  of  this  presenta9on,   rendering  accoun9ng,  business,  financial,  investment,  legal,  tax,  or  other  professional  advice  or  services.  This   presenta9on  is  not  a  subs9tute  for  such  professional  advice  or  services,  nor  should  it  be  used  as  a  basis  for  any   decision  or  ac9on  that  may  affect  your  business.  Before  making  any  decision  or  taking  any  ac9on  that  may   affect  your  business,  you  should  consult  a  qualified  professional  advisor.  OpenMaVers  shall  not  be  responsible   for  any  loss  sustained  by  any  person  who  relies  on  this  presenta9on.      
  76. 76. Yoram  (Jerry)  Wind   The  Lauder  Professor  and  Professor  of  Marke9ng   Director,  SEI  Center  for  Advanced  Studies  in   Management   Academic  Director,  Wharton  Fellows  Program   Barry  Libert   CEO,  Open  MaVers   Senior  Fellow,  SEI  Center  for  Advanced   Studies  in  Management   Presented  to  Wharton  Fellows   Jerry  Wind   Barry  Libert   October  29-­‐31st.  2014   76   copyright,  OpenMaVers,  LLC