the simplification of ecosystems to support management decision making
TRANSCRIPT
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
goo.gl/DqbPLP
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