Business Ecosystem Strategy
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Presentation from Florian Urmetzer on how you can use your business ecosystem to find new opportunities for innovation and value.
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Business Ecosystem Strategy
- 1. © Dr Florian Urmetzer, CSA, University of Cambridge Don’t fall prey to business ecosystem failure Dr Florian Urmetzer
- 2. © Dr Florian Urmetzer, CSA, University of Cambridge Overview The aim is to: Understand a definition of business ecosystems Understand the value of the range of stakeholders in an ecosystem: external partners, influencers, customers and how such relationships can be leveraged. The session is designed to give basic information on business ecosystems
- 3. © Dr Florian Urmetzer, CSA, University of Cambridge The surroundings of firms is changing Firms Product Delivery Top Driven Hierarchies Managing Contract Partnerships & Ecosystems Complex Solution Delivery Local Flat Hierarchies Engaging Relationship The shift from output focus to outcome focus has changed the fundamentals of competition Competition Coopetition
- 4. © Dr Florian Urmetzer, CSA, University of Cambridge Ecosystem (where to place) This is only a “sleep well” definition, so do not worry if you don’t agree!
- 5. © Dr Florian Urmetzer, CSA, University of Cambridge Sleep Well Definition of Business Ecosystems …a network of enterprises, firms and organisations, which through both value exchanges aim to provide value propositions, as seen through a particular perspective (e.g. a customer), which represent more value than a value firm could create individually… But this definition is just indicative
- 6. © Dr Florian Urmetzer, CSA, University of Cambridge We can show and understand the complexity Enterprise Partner Customer End user Influencer Influencer Competitor Supplier Suppliers’ supplier Influencer Traditional value chains… …have become more networked and complex Customer End user Supplier Suppliers’ supplier
- 7. © Dr Florian Urmetzer, CSA, University of Cambridge Basic example Food production industry / pharmaceutical
- 8. © Dr Florian Urmetzer, CSA, University of Cambridge Cargo Leisure platforms Business passenger 1. Define the end customer: An Airline
- 9. © Dr Florian Urmetzer, CSA, University of Cambridge Universities Technology Infrastructure Research orgs (e.g. Catapult) Material providers Components Equipment and tooling providers Engineering services And consulting Systems and equipment Cabin Engine OEMs Air-framers Spares for MROs In-flight service providers IFE content providers Aircraft and parts recycling MRO/FBO services Consumables Lessors Information providers Advertising agencies Tou rist offi ces Comparison sites Cargo Lounges Ground handling Jet fuel Catering Security Retail Ground transport (e.g. trains, taxis) Border security Passenger parking Airport operator Terminal Control tower Runway SATCOM providers ATM infrastructure Communication Service providers Air navigation Service providers Logistics providers Pilots/ Crew Premium airlines Value airlines Low-cost airlines Cargo airlines Leisure platforms Business passenge r Booking platforms Travel agents 2. Define the Actors: An Airline Include: - End Customer - Your Company - Supplier - Partner - Competitor - Influencer
- 10. © Dr Florian Urmetzer, CSA, University of Cambridge 3. Cluster members Enterprise Influencer Competitor Supplier Suppliers’ supplier Influencer e.g. Research partners e.g. Producers e.g. Buyers and Users Customer End user Buyer Clustering can be based on a range of attributes Training Equipment Personnel Information Concepts & Doctrine Organisation Infrastructure Logistics
- 11. © Dr Florian Urmetzer, CSA, University of Cambridge Universities Technology Infrastructure Research orgs (e.g. Catapult) Material providers Components Equipment and tooling providers Engineering services And consulting Systems and equipment Cabin Engine OEMs Air-framers Spares for MROs In-flight service providers IFE content providers Aircraft and parts recycling MRO/FBO services Consumables Lessors Information providers Advertising agencies Tou rist offi ces Comparison sites Cargo Lounges Ground handling Jet fuel Catering Security Retail Ground transport (e.g. trains, taxis) Border security Passenger parking Airport operator Terminal Control tower Runway SATCOM providers ATM infrastructure Communication Service providers Air navigation Service providers Logistics providers Grouping view Pilots/ Crew Premium airlines Value airlines Low-cost airlines Cargo airlines Leisure platforms Business passenge r Research parties Aircraft production Aircraft through- life Add-on Informatio n providers Airport infrastructu re Interfacing parties Customers Airspace infrastructu re Clustering Travel agents Booki ng platfo rms 3. Define the Clusters: An Airline
- 12. © Dr Florian Urmetzer, CSA, University of Cambridge Universities Technology Infrastructure Research orgs (e.g. Catapult) Material providers Components Equipment and tooling providers Engineering services And consulting Systems and equipment Cabin Engine OEMs Air-framers Spares for MROs In-flight service providers IFE content providers Aircraft and parts recycling MRO/FBO services Consumables Lessors Information providers Advertising agencies Tou rist offi ces Booki ng platfo rms Comparison sites Travel agents Cargo Lounges Ground handling Jet fuel Catering Security Retail Ground transport (e.g. trains, taxis) Border security Passenger parking Airport operator Terminal Control tower Runway SATCOM providers ATM infrastructure Communication Service providers Air navigation Service providers Logistics providers Pilots/ Crew Premium airlines Value airlines Low-cost airlines Cargo airlines Leisure platforms Business passenge r Money flows up-stream Dept of Education SIG ATI Trade and investment Unions ISO Regulators (e.g. CAA, EASA) Unions DfT 4. Define the Monetary transfers: An Airline
- 13. © Dr Florian Urmetzer, CSA, University of Cambridge 5. Prioritize Ecosystem Connections: An Airline
- 14. © Dr Florian Urmetzer, CSA, University of Cambridge Understand value propositions VALUE DELIVERY RISK VALUE PROPOSITION Value proposition (VP): products, services, solutions that a company offers to the customers Risk: Key risks that company bares when it becomes accountable for a given VP (e.g. risks of guaranteeing performance, risks of outsourcing, etc.). Risk types: operational, performance, financial, partner, incentive, systemic, dynamic. Value delivery (VD): activities, resources, and skills necessary to deliver a value proposition.
- 15. © Dr Florian Urmetzer, CSA, University of Cambridge Direct Value Creation and Capture Considering the ecosystem partners
- 16. © Dr Florian Urmetzer, CSA, University of Cambridge Show a map
- 17. © Dr Florian Urmetzer, CSA, University of Cambridge Experiences:
- 18. © Dr Florian Urmetzer, CSA, University of Cambridge Ecosystem Strategy: One day course What will you learn? Understand what your business ecosystem is and why it is vital in service delivery Explore the different options and models in understanding the wider ecosystem Understand how to build partnerships to share capability and capacity across multiple companies Understand how innovation can work through partnerships Learn how to identify weaknesses in your ecosystem and what approaches you can take to address them When: 22 November 2017 http://www.ifm.eng.cam.ac.uk/ifmecs/ifm-ecs-courses/ecosystem-strategy/
- 19. © Dr Florian Urmetzer, CSA, University of Cambridge References and Resources Florian Urmetzer, Andy Neely, and Veronica Martinez. Engineering Services: Unpacking Value Exchange. In: Yufeng Zhang and Mike McGregory. Value Creation through Engineering Excellence: Building Global Network Capabilities, Palgrave Macmillan 2017 http://cambridgeservicealliance.eng.cam.ac.uk/news/2016AprilPaper Florian Urmetzer, Andy Neely, Veronica Martinez. The Ecosystem Value Framework: Supporting Managers to Understand Value Exchange between Core Businesses in Service Ecosystems. EurOMA 2016, Trondheim, Norway http://cambridgeservicealliance.eng.cam.ac.uk/news/2016DecPaper Florian Urmetzer, Veronica Martinez, Andy Neely, Mohamed Zaki, Jingchen Hou, Alexi Nicolay et. al. Executive Briefing: Process for B2B Partnerships. University of Cambridge 2017 http://cambridgeservicealliance.eng.cam.ac.uk/resources/Downloads/Monthly%20Papers/B2BBriefing26Ja nuary.pdf Florian Urmetzer, Veronica Martinez, Andy Neely. Business Ecosystems: Towards a Classification Model. 5th P&OM world conference, Havana, Cuba http://cambridgeservicealliance.eng.cam.ac.uk/resources/Downloads/Monthly%20Papers/copy_of_2017Apr ilPaperBusinessEcosystemsFTU.pdf