Agenda 2016

Peter Evans, PhDVice PresidentCenter for Global Enterprise

Photo by Maria Carrasco Rodriguez

Corporate Strategy and Digital Diplomacy

EEC15- Reshaping the Future of the Digital Economy

Bilbao, SpainNovember 18-19th, 2015

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CorporateStrategyAgenda2016

Complex forces of change

Firm

Age of

Networks

Mesh networks linking physical, digital and social Age of

Data

Surge in availability data and tools that

can manage and analyze data

Age of

Platforms

New business models that achieve that leverage

networks and intelligence

We will see these trends continue and intensify in 2016

Source: P. Evans, “Networks, Data and Platforms,” in Growing Global: Lessons for the New Enterprise, Center for Global Enterprise, 2015.

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IoT… from basic necessities …

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> 8,500 apps

… to strategic platforms

>11,000 developers have accessed Nest’s APIs

> Billions of calls

Industrial Internet/ Industry 4.0Steam & gas turbines 52 million man-hours per year: $7 billion in labor services

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IoT speed and scale

Jeff Immelt, GE Minds & Machines conference, San Francisco, Nov. 2012

Tim Cook, Apple Special Event, San Francisco, Sept 2014

Industrial Internet vs. consumer internet

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Will the Industrial Internet catch up to the Consumer Internet?

Source: Rahul Basole and Peter Evans, API Economy Visualized, Center for Global Enterprise, 2015

Information = API Economy

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10Source: Rahul Basole and Peter Evans, API Economy Visualized, Center for Global Enterprise, 2015

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Social Mapping eCommerce Images Music

API mashupsTop sectors building on open APIs

Source: Peter Evans and Rahul Basole, with data from ProgrammableWeb, Center for Global Enterprise, 2015

Open API mashups

Source: Peter Evans and Rahul Basole, with data from ProgrammableWeb, Center for Global Enterprise, 2015

Other areas lag social, mapping and images

Weather Medical Health Energy Sustainability

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API Economy: Core vs. Periphery

Source: Peter Evans and Rahul Basole, with data from ProgrammableWeb, Center for Global Enterprise, 2015

Social media / web

Job search / work

E-commerce

Tools / analytics / big data

Payments

API Clusters

Messaging services

Walmart

Amazon

Companies

Enterprise

Amazon SNS

Alexa Web Inform

Amazon Marketplace

Amazon SimpleDB

Amazon Product Advertising

Amazon CloudWatch

Amazon Flexible

Amazon Redshift

Amazon SC2

Amazon S3 Amazon Mechanical TurkAmazon RDS

Amazon DynamoDB Amazon Queue Service

Walmart

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Amazon vs. Walmart

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What companies will move from periphery to the core

of the API economy?

Internet of thingsHow many firms are actively engaged?

1,550

Source: Peter Evans and Rahul Basole, IoT Alliance Database, Center for Global Enterprise and GT, 2015

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Internet of Things- large vs. small companies

150 companies

>$1billion sales

1,400 companies

Source: Peter Evans and Rahul Basole, IoT Alliance Database, Center for Global Enterprise and GT, 2015

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Companies most actively developing new products and services

<$1billion sales

IoT large vs. small industry

2016

Today

2001 2004 2007 2010 2013

Open Mobile Alliance

Source: P. Evans, CGE, 2015

Proliferation of alliances

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“Before you go to war, assemble allies”

Carl Shapiro and Hal R. Varian

Art of Standards Wars

IoT companies by alliance

Source: Peter Evans and Rahul Basole, IoT Alliance Database, Center for Global Enterprise and GT, 2015

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IoT Alliances To balance or bandwagon?

Platform businessExpanding value through matching, interaction and innovation

Platform companies

Innovation

Software developers MatchingSupply +

Demand

Interaction

Ecosystem

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Global rise of platform companies135 Companies – Market cap $3.7 trillion

Source: P. Evans, Global Platform Database, Center for Global Enterprise, 2015

92% of market cap

8% “

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Platform companies by region135 Companies – Market cap $3.7 trillion

N. America Asia EuropeAfrica &

L. America

Source: P. Evans, Global Platform Database, Center for Global Enterprise, 2015

63/ $2.8 trillion 42/ $670 billion 27/ $161 billion 3/ $61 billion

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Platform employment135 Companies – over 1.3 million direct employees*

Source: P. Evans, Global Platform Database, Center for Global Enterprise, 2015

Africa & L. America

EuropeAsiaN. America

Note: Given the challenges in collecting accurate employment for the 78 private platform companies, this figure only includes direct employment for the 57 publically traded platforms.

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1.3 million

Platforms and innovation hubsKey clusters around the world

Source: Global Platform Database, Center for Global Enterprise, 2015

Note: Hubs represent cities with 4 or more platform companies that have a market value of $1 billion or more and includes publicly traded as well as private platform companies.

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EU leaders Call for “Digital Union”*

Digital “Unions” globally

China Europe

* “A Digital Single Market: The Key to Europe's Industrial Leadership in the Digital Economy” Günther Oettinger, EU Commissioner for Digital Economy and Society at ICT2015, October 20, 2015.

United States

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Will digital diplomacy

succeed in making Europe

more competitive?

Future of the digital economy

1. IoT speed and scale… consumer vs. industrial

2. API economy … periphery vs. core companies

3. IoT alliances… to balance or bandwagon

4. Digital diplomacy… digital unions and competitiveness

Positioning for change in 2016

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Agenda 2016

Peter Evans, PhDVice PresidentCenter for Global Enterprise

Photo by Maria Carrasco Rodriguez

Corporate Strategy and Digital Diplomacy

EEC15- Reshaping the Future of the Digital Economy

Bilbao, SpainNovember 18-19th, 2015