the simplification of ecosystems to support management decision making

5th InternationalConferenceonBusinessServitization,Granada2016 ||West,Kuenzli,Kujawski,Ouertani andGanz

Thesimplificationofecosystemstosupportmanagementdecisionmaking5th InternationalConferenceonBusinessServitization,Granada2016

24 November 2016

DrShaunWest,DominikKujawski,MichelleKuenzli,DrZiedM.Ouertani,DrChristopherGanz

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5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

IntroductionThisstudyusesthreecasestohelpusunderstandecosystems

Todescribehowthevalueexchangessupportsdecisionmaking

Thesimplificationprocessofanecosystemhasrelevancetomanufacturingfirmswithcomplicatedsupplychainswheretheproductprovidedisinstalledintoanenduser’soperations

Todescribevalueflowbetweenkeyplayerinadigitalecosystems

Purposeofthispresentation

Ecosystemsofindustrialmanufacturersarecomplex– howcantheybesimplifiedtosupportdecisionmaking?

Problem

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

BackgroundManufacturer’ssupplychainasanidealcase

- Simpletounderstand- Easytomakedecisions- Commonintheliterature- Notthecasewithmanylargemanufacturers- IOTintegrationisnotconsidered

Therelationshipswereverysimplehoweveritisnotreality

Supplier Manufactuer Installer End-user

Service

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

BackgroundArealexampleofamanufacturer’ssupplychainforbothproductandserviceactivities

- Complextounderstand- Difficulttomakedecisions- Presentinmoremodernliterature- Typicallythecasewithmanylargemanufacturers- IOTintegrationisconsidered

Core Company

Community

Custo

mer

Supp

lier

Business Ecosystem

Extended Business

Core Business

Projects/ Systems

Channel 2

Products

Unions

Sub-Supplier B

Supplier B

CompetitorsRegulators

Customer-Partner C

Customer-Partner B

Customer-Partner A

Customer D

Customer C

Customer A

Customer B

Services

Channel 3

Consultant

Sub-Supplier C

Sub-Supplier A

Channel 1

Supplier A

ServicesMonetaryInformation

Goods

Howcanamanagerunderstandthisspaghettiofinteractions

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

BackgroundWhyistheunderstandingofecosystemssoimportant?

- Focusingonthecustomertodefinetheproblem- Understandingvalueexchangesbetweenactors- Valuecreation/capturebyeachactor- Makingdecisionsthatprovidemultipleoutcomes

Core Company

Community

Custo

mer

Supp

lier

Business Ecosystem

Extended Business

Core Business

Projects/ Systems

Channel 2

Products

Unions

Sub-Supplier B

Supplier B

CompetitorsRegulators

Customer-Partner C

Customer-Partner B

Customer-Partner A

Customer D

Customer C

Customer A

Customer B

Services

Channel 3

Consultant

Sub-Supplier C

Sub-Supplier A

Channel 1

Supplier A

ServicesMonetaryInformation

Goods

Understandingecosystemsisaboutfindingtheactorsandtheirrelationships

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

MethodologyServicedesignthinkingtoolsprovidedthebasisfortheanalysis

- IdentificationofthreedisruptiveIOT-basedentrants- Publiclyavailableinformationasaninput- Analysisusingbasedon

- ecosystems,valueexchangebetweenactors,personas,empathymaps,customerjourneymapping,situationanalysis,customervaluepropositionanditerations

- Crosscaseanalysis

Understandingecosystemsisaboutfindingtheactorsandtheirrelationships

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5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

OverviewofcasesThreecaseswereusedtocomparetraditionaland“new”ecosystems

Uberwillbeusedintheanalysisasanexample

Uber(B2CandB2B)DisruptiveentrantLargesttaxifirm,withoutanytaxisFeedback/collaborationbetweenecosystemactors

Airbnb(B2CandB2B)DisruptiveentrantLargesthotelfirm,withoutanyhotelsFeedback/collaborationbetweenecosystemactors

Amazon(B2CandB2B)DisruptiveentrantLargestbookstore,nowsellingmanyothergoodsFeedback/collaborationbetweenecosystemactors

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

ResultsandanalysisEcosystemmappingtoidentifytheactorsintheecosystem

Ubercontrolsandmanagesthesystem– itisdominantinthisecosystem

Actor Outcomes

Uber Tointegratethesystem

Customer TotravelsafelyfromAtoBwith knowncostsandtime

Driver1 Tohavearegular incomewithknownhours

Driver2 Tobetransportfee-payingcustomers

City Tomaintain taxilicenceincomeTohaveanintegratedtransportsystem

Insurancefirm To insuredriverswithknownrisk

Bank TolendmoneywithknownrisksToleasecarstodrivers

Cardealer To sellandservicecars

Customer

Uber

Driver2Insurancefirm

City

Cardealer

Banks

Driver1

Firm

Customers

Suppliers

Community

Uberisthefocusintheecosystem

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

ResultsandanalysisEmpathymapstounderstandthebehavioursofthekeyactors

Empathymapsprovidedinsightsintowhatwasimportantforthekeyactors

Examplehereisthecustomer- Mustcreateforakeyactors- Empathymappedneedforeachsituation- Extendedtopersonastoprovidedetailedinsights- Pains/gainshelptounderstandcustomerneeds- Itisthenpossibletoquantifysomepains/gains

Itischeaperbutisitsafe?

Ihavenomoney–canIusethecard?

Clearcommunication

Easytouse

Idonotlikewhenunexpecteditislate

Hasacarbutstillusestaxi

Priceisimportant

”Iwilltakethebus”butifrainingtakesataxi

WhenIhavetopayincash

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

ResultsandanalysisSituationanalysisisimportasitdescribesthecontextualissuesfortheindividualactor

Examplehereisthecustomer- Confirmthecontextandthejob-to-be-done– donotassumeeither…

- Thisrequiresbroadunderstandingofsituationandthecustomerjobs

- Theempathymapsunderpinstheintangibleaspects- Differentsituationsrequiredifferentsolutions

(note:howmanyendcustomersshouldneedtobeanalysed)

Jobsarenotjustaboutfunction– contextisimportanttounderstandandfocusontheoutcome

Ihavetimeandthesunisshining:

Iwillwalk

ItisrainingandIamlate:IcallUber

ItisrainingbutIamontime:Itakethebus

Weareagroup:IwillcallUberitwillbecheaper

Ihavetime:Iwillwalk

Job-to-be-done:Ineedtogofromtheofficetomyhome

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

Traditionaljourney:onlypartialfulfilmentofoutcomes

ResultsandanalysisDoor-to-doorcustomerjourneyshowingoutcomesforeachstep

Examplehereisthecustomer- Journeymustmatchthesituation- Journeystartsbeforeandendsafterthetaxiride- Outcomesateachpointmeasured

Eachcustomerjourneyisaslicethroughtheecosystem

Decideonataxi- Howlongtowait?- Whatisthecost?

Bookataxi- Driversafety- Driverrating- Collectionpoint- Whendoesthetaxiarrive?

Taxiarrivesatpickuppoint- Whereisit?- Hasitarrived?

Travelintaxitodestination- CanItellothers?- WhendoIarrive?

Arrive- AmIattherightplace?- Isthefeeasexpected?

Payfortaxi- Payment- Recordoftaxi- Feedbackmanagement

ItisrainingandIamlate:IcallUber

Weareagroup:IwillcallUberitwillbecheaper

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

ResultsandanalysisCVPproblemstatementcapturesthecustomersproblemanddescribesthesolution

Lessons- Focusoncustomer’sproblem(situationandjob-to-be-done)

- Morethanonesolutionperproblem- Actorsarebothcustomersandsuppliers(somehavebothroles)

- LeantoolSIPOCmayprovideadditionalanalysis

InessencetheCVPsays”what’sinitforme?”andthenshowshowitisdelivered

Problemdescription- contextspecific

Solutiondescriptions

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

FindingsCrosscaseanalysisandtherelevanceforindustrialleaders

Issue Uber Airbnb Amazon Forindustryleaders

Ecosystem Acts asthesystemintegratorandmanagesinformationflows

Acts asthesystemintegratorandmanagesinformationflows

Acts asthesystemintegratorandmanagesinformationflows

Identify allactorsandmapexchanges

Empathymaps/personas

Understandstheactorsandtheiroutcomes

Understandstheactorsandtheiroutcomes

Use datatoprovideadditionaloffers

Criticaltounderstandingtheproblemandbuildingsolutions

Situationanalysis Differentsolutionsfordifferentsituations

Differentsolutionsfordifferentsituations

Limitedtovalueoftime(eg,rapiddelivery)

Differentsituationsrequiredifferentsolutions

Customerjourneys

End-to-endcustomerjourney,relationshipmaintained

Endtoendandsupportvalueinthelocation,relationshipmaintained

From buy todelivery,relationshipmaintained

Consider widerdefinitionofcustomerjourney

Customervalueproposition

UnderstandtheCVPforallactors

UnderstandtheCVPforallactors

UnderstandtheCVPforallactors

Mustunderstandvaluecreationforallactors

WhenbuildingIOTsolutionsindustrialplayersmustconsiderthecustomerscontext

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

FindingsTheanalysisidentifiedanumberofdifferencescomparedwithtraditionalsupplychains

Ecosystems- Thenewentrantsunderstoodtheecosystem,theactorsandthevalueexchanges

Actors- Ateachstepconsider”what’sinitforme”Valuecreationandcapture- OftenbypassesthetraditionalecosystemsactorsServicedesign- Putthecustomerinthecentreandthere-engineeringtheprocesstomaximizethevalue

Digitizationandinformation- Thissupportedthedecisionmakingprocessandthecustomervaluecreation

Tomakebetterdecisionsthebusinessmustunderstandtheecosystemandcontrolinformationflows

Core Company

Community

Custo

mer

Supp

lier

Business Ecosystem

Extended Business

Core Business

Projects/ Systems

Channel 2

Products

Unions

Sub-Supplier B

Supplier B

CompetitorsRegulators

Customer-Partner C

Customer-Partner B

Customer-Partner A

Customer D

Customer C

Customer A

Customer B

Services

Channel 3

Consultant

Sub-Supplier C

Sub-Supplier A

Channel 1

Supplier A

ServicesMonetaryInformation

Goods

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

FindingsAfivestepmodelwithiterationswasbuildfromtheservicedesigntoolbox

Theanalysistakestimehoweveritbuildsadetailedunderstandingoftheproblemandsolutions

Ecosystemvisualization- Analysistoidentifykeyactors

Empathymaps/Personas- Describerelationshipsbetweentheactors

Situationalanalysis- Understandvalueintheecosystem

Customerjourney- Understandvalueateachstageofthejourney

CustomerValueProposition- Describevalueanditsdelivery

1(perbusinessmodel?)

1peractor(persituation?) Foreachidentified

customerForeverysituation Foreverysituation

Foreverytransaction

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

ConclusionsThebusinessmustunderstandtheecosystemactorsandthevalueexchange

TheIOTelementsarealreadyavailabletodayandcompanieswereusingthemtodeliverservices– anewmindsetisneededtobenefitfromtheopportunitiesitoffers

Thetraditionalvaluechainisnolongervalid

Valueflowbetweenactorsintheecosystemneedtobedetermined

Situationalanalysisisimportantforvaluecreationintheecosystem

Customerjourneysupportsunderstandingcustomervalue

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

RecommendationsFurtherresearchandapplicationoftheprocessshouldbeundertaken

MoreresearchisneededinthisareaifindustrialfirmsaretotakeadvantageoftheirecosystemsinwaylikeUberhavedone

Howtousevisuals(orothertools)toimproveunderstanding

Waystomodelecosystems(naturalsystems?)

Theuseoftheleantool’SIPOC’shouldbeinvestigated

Thelessonsneedtobetranslatedtomanagerscanusethem

5th InternationalConferenceonBusinessServitization,Granada2016 |West,Kuenzli,Kujawski,Ouertani andGanz

Thanksforyourtime!Slidesonwww.slideshare.net/ShaunWest