Kim Hiort Nielsen presented on the topics of digital transformation, platforms, and network effects. Some key points include:
- CxOs expect industry convergence to have the biggest impact on their businesses in the next 3-5 years.
- Technologies like cloud computing, mobile solutions, and IoT are expected to revolutionize businesses.
- Platforms that create network effects can unlock new value from spare resources and user generated content.
- Many of the largest and fastest growing companies today do not own significant physical assets but instead create value through platforms and networks.
4. CxOs expect industry convergence to
have the biggest impact on their
business
Total CEO CFO CHRO CIO CMO COO
70%
60%
50%
40%
30%
20%
10%
0%
Industry convergence
The “anywhere” workplace
Rising cyber risk
The redistribution of
consumer purchasing power
The sustainability imperative
Alternative finance and
financing mechanisms
The sharing economy
Top trends to impact business (in 3 to 5 years)
5. External forces impacting the enterprise (in 3 to 5 years)
For the first time, the entire C-suite selected
technology as the main game changer
Technology
factors
Market
factors
Regulatory
concerns
Macro-
economic
factors
People skills Socio-
economic
factors
Globalization Geopolitical
factors
Environmental
issues
72%
71%
55%
51%
48%
34%
31% 31%
27%
6. The technologies that CxOs expect to
revolutionize business tomorrow are already
in play today
Cloud computing and services
Mobile solutions
Internet of Things (IoT)
Cognitive computing
Advanced manufacturing technologies
New energy sources and solutions
Bioengineering
Man-machine hybrids
63%
61%
57%
37%
28%
23%
12%
10%
Technologies revolutionizing business (in 3 to 5 years)
13. The Product Business Model is Broken
In 2009, BlackBerry had nearly 50% market share in
U.S. operating systems, according to IDC. Now: 2.1%
2008 2009 2010 2011 2012 2013
50%
40%
30%
20%
10%
0%
14. 1980-2000 Microsoft Platform Beats
Apple Product
Apple launched the PC revolution but Microsoft licensed widely, built a
huge developer ecosystem, 6X larger.
15. Apple Feb 5, 1996
Michael Dell - ”Shut it down
and give the money back to
the shareholders.”
19. Each Side Attracts More of the Other
eBay Buyers
Uber Riders
Xbox Gamers
Amex CardHolders
Aga Khan Patients
YouTube Viewers
AirBnb Renters
Tesla Car Drivers
Mechanical Turk Jobs
LinkedIn Employees
Android Users
eBay Sellers
Uber Drivers
Xbox Developers
Amex Merchants
Aga Khan Doctors
YouTube Videographers
AirBnb Rooms
Tesla Charge Stations
Mechanical Turk Laborers
LinkedIn Employers
Android Developers
20. In any market with network effects, the focus of
attention must shift from inside to outside the
firm.Reason: You can’t scale network effects
inside as easily as outside.
Source: Marshall Van Alstyne
21. To have an external focus,
you must have an API
strategy.
... this implies ...
22. and growth is accelerating dramatically
APIs represent a new,
fast-growing channel
opportunity
Business
models are
evolving stores (800) ###s web sites web APIs
According to Gartner,
by 2016, 75% of the
top 50 global banks
will have launched an
API platform
By 2016, 50% of B2B
collaboration will take
place through Web APIs.
Sources: Gartner, Predicts 2012: Application Development, 4Q, 2011; Gartner, Govern Your Services and Manage Your APIs with
Application Services Governance, 4Q 2012; Gartner, Open for Business: Learn to Profit by Open Data, 1Q 2012
APIs are a path to new business opportunities
Web APIs are the
new, fast-growing
business channel
Businesses
are Evolving
stores (800) ###s web sites
23. Exposing systems of
record to Mobile
apps
• Enterprises are taking existing businesses into the mobile world. Their data resides on-premise.
For mobile apps to be interesting & useful, they need access to this on-premise data.
• APIs provide a secure and simple way to allow mobile apps to access existing on-premise data.
Accelerate internal
development
• APIs don’t always have to be exposed to the world. Many companies build much of their internal
code in form of APIs, for reusability.
• Result: a library of useful components that can be reused to greatly accelerate app development
Expand the reach of
your business
• Increasingly, businesses are expecting to consume your product/service in the context of other
related services. This means interacting with your business not through your web page or store,
but through APIs
• APIs enable partners, entrepreneurs, developers to build/embed your service into theirs
Build hybrid cloud
applications
• The canonical hybrid cloud app resides in the public cloud, and accesses data that must remain on-
premise for legal, security, regulatory reasons.
• APIs provide a secure and simple way to allow hybrid cloud apps to access on-premise data
Monetize data and
services
• Businesses often have high-value data and services that they can provide and sell to others
• Peugeot (French auto manufacturer) sells their connected car data to external business partners
via APIs, resulting in a new revenue stream
1
2
3
4
5
What are some common use
cases in the API Economy?
24. • Estimate global taxi market
• Estimate market share
• Est. risk adjusted cash flow
• Consider proprietary methods, barriers
to competition
• Value: $5.9 Billion
Aswath Damodaran: NYU
Finance professor, Corporate
Valuation author, Herb Simon
Prize.
25. Bill Gurley: Venture Capitalist,
OpenTable, Zillow, Uber
All true but overlooking
network effects.
Source: David Sacks, COO PayPal, CEO Yammer
Value: $17 Billion
26. Platforms Unlock New Value from Spare
Resources
and User Generated Content
What Changes :: Supply Chains
27. AirBnb sells users’ spare rooms, competing
with hotels that must own them
RelayRides sells users’ spare cars,
competing with rental firms that must
own them
28. Instagram sold for $1B
not because of contributions from 13 employees
but from 30 million users
31. ’’In 2015, Uber, the world’s largest
taxi company owns no vehicles,
Facebook the world’s most popular
media owner creates no content,
Alibaba the most valuable retailer
has no inventory, and Airbnb the
world’s largest hotelier owns no
real estate.’’
Tom Goodwin, Sr. VP of Strategy Havas Media
32. Why are the old competitors
not the new competitors?
Isn’t afraid of …
publishing
broadcast
electronics
cars
watches
delivery
+
but should fear …
33.
34. Disruptions in Pharma
• Empowered patients
• Health Gamification
• Argumented reality and virtul reality
• Genomics and truly personalized medicine
• Body sensors
• 'Do it yourself' biotechnology
• 3D printing revolution
• End of human experimentation
• Medical decision making with artificial intelligence
• Nanorobots
40. Hvis dette har vakt din interesse så skriv endeligt til mig.
Hinweis der Redaktion
Introduction to yourself –
David an Goliath story
A few years ago, CxOs could see the competition coming. The biggest risk was the advent of a new rival with a better or cheaper product or service. And you could fend off the threat by improving or expanding the range of products and services you offered, or getting to market more efficiently and imaginatively.
Today, the competition’s often invisible until it’s too late.
Source: Q1.3 Which of the following trends will impact your business in 3 to 5 years? [Rank up to 3]
CxOs are acutely aware of the change.
We asked them to identify which business and technological developments they expect the next "wave" to consist of.
Industry convergence clearly eclipses any of the other trends they anticipate in the coming three to five years.
Source: Q1.1 What are the most important external forces that will impact your enterprise in 3 to 5 years? [Select 5 without ranking]
But now, for the first time ever, the other members of the C-suite also see technology as the main game-changer.
While CxOs overwhelmingly agree on the importance of technology, they’re more uncertain about its impact.
On the one hand, CxOs welcome the chance to develop better goods and services, utilizing more efficient manufacturing techniques and more sustainable energy sources.
On the other hand, CxOs are desperately trying to cope with a “technological onslaught.”
Source: Q1.4 Which of the following technologies will revolutionize your business in 3 to 5 years? [Rank up to 3]
Most CxOs, regardless of their role, were fairly consistent in their view that cloud computing, mobile solutions and the Internet of Things (IoT) are likely to predominate in the coming three-to-five years.
Cognitive technologies (systems that understand natural language and are not programmed, but learn) lie next on the horizon, as the bridge to new levels of personalization and insight from exploding volumes of data.
Children say “Google it”
Children say “Google it”
Lightbulb lasts longer than your lease. Why would you buy?!?
NOT stupid people, Each company made right decision by old business model. Under their world view, it used to be the right business model (use also for Sony)
Children say “Google it”
Hvem er jeres konkurrenter
The goal is more matches and more transactions volume creating more customer value.
the fact is that by dec 2013, it crossed 10000 api
shows the exponential growth of APIs, almost doubling every 5 months
Key message from Gartner that 75% of the fortune 1000 will have a public API by the end of this year. Shows how rapidly this is being adopted. And, given that many will first do an internal or partner API, this is very fast adoption.
Peugeot story at:
https://w3-connections.ibm.com/blogs/WSSuccessStories/entry/websphere_and_big_data_technology_help_peugeot_charge_into_car2car_and_mobile_to_offer_innovative_connected_car_services?lang=en
Customer-facing slide on Peugeot reference in this APIM references deck:
https://w3-connections.ibm.com/communities/service/html/communityview?communityUuid=3fd24b59-2d55-4fd1-a470-107cec8cf057#fullpageWidgetId=W2f2ef9e89a68_4f7c_95d2_663c9eefccdd&file=2198f2c3-7dfe-46f2-a9ba-5da01fdf012a
Toyota knows how to compete with Ford but now with Uber or Google Car (invented JIT inventory!)
Market cap Honda $56B, Ford $58B, Uber $41B! Jan, 2015
