A Systemic Approach on Business Strategy for the Companies that have strong bonds with the Internet

1. Analyzing the External Environment for e-Business A Systemic Approach on Business Strategy for the Companies that have strong bonds with the Internet Andreas C. Bitros HSSS 2011 Antonis G. Ventouris

3. Rapid Changes

4. Interoperability“Good industry analysis does not just list pluses and minuses but sees an industry in overall, systemic terms” M. Porter 2008

5. The conventional optical view Social Economic Macro External Environment Micro External Environment Creditors Special Interest Groups Funding Suppliers Company Competitors Government Communities Employees Trade Associations Shareholders Customers Political Technology

7. Porter’s 5 Forces

9. Porter’s 5 Forces Potential Entrants Suppliers Byers Industry Rivalry Substitutes

10. Priority Matrix Probable Impact on Corporation High Medium Low High Priority High Priority Medium Priority High High Priority Medium Priority Low Priority Probability of Occurrence Medium Medium Priority Low Priority Low Priority Low

11. How are these methods used? PEST + 5F = Priority Matrix Priority Matrix + Action Plans = Actions Actions + Monitoring = Feedback

12. Internet as a System – Assumptions In order to better understand a system we must first specify it’s defining function in a wider system In our case the defining function of the internet is “to provide value to direct and indirect users”

14. Moore’s & Metcalfe’s Laws

18. Essential parts can’t operate on their own

20. Time

21. Actors

22. Environment: what is out of your network horizon

24. Resources (resource ties)

25. Actors (actor bonds)

26. Further elements were added:

27. Commitments (Easton, 2009)

29. Triangulation of data (Beverland and Lindgreen, 2010)

30. The study is of exploratory nature

32. 5 airlines join forces - Orbitz

33. Technology + business moves

34. Reactions from agents

35. Reactions from other airlines

37. Network Pictures - After

39. Netflix launches a Subscription based Model

40. Technology + Early Adopters

41. Building the competitive advantage

42. Reactions from Studios

44. Network Pictures - After

45. The 3 Methods’ Weaknesses

46. Strategic Points Potential Entrants Potential Entrants Potential Entrants Potential Entrants Suppliers Byers Industry Rivalry Suppliers Byers Industry Rivalry Suppliers Byers Industry Rivalry Suppliers Byers Industry Rivalry Substitutes Substitutes Substitutes Substitutes

47. Strategic Points O’ Reilly Web 2.0 Summit #w2smap

49. Infrastructure

50. Platforms & Mobile

51. OS & UI

52. Social Activity & Location

53. Identity & Consumer Web

54. Search

55. Commerce & e-Payment

56. Content & Media & Games

57. Advertise

59. Early Adopters

60. Early Majority

61. Late Majority

62. Laggards

63. Government

64. VC & Other Funding

66. Strategic Points

67. Strategic Points

68. Strategic Points

71. Social Activity & Location 64%

72. Identity & Consumer Web 73%

73. Search 64%

74. Best Customer - Partner

77. Strategic points help by treating different groups as having multiple roles - but the concept needs additions.

78. Strategic points don’t refer specifically to competition – it can come from everywhere.

79. It’s important to define the kind of connections (actors, resources, activities?).

80. Time is of essence

82. Not all Strategic Points are represented in each case

83. The model is based heavily on online factors

85. Depth interviews/focus groups: how actors identify the network