2. What is an ecosystem?
A convergence between IT, Media, Entertainment and hardware
3. Why are ecosystems important?
The network effect, creating products that support each other
Base platform product/service
Additional Service Additional Product
Client
Service
Additional ProductAdditional Service
Additional value Provided by partners
Each product enhances and extends the value of previous
products
4. But…
Base platform product/service
Additional Service Additional Product
Client
Service
Additional ProductAdditional Service
Additional value Provided by partners
THE UNDERLYING PRINCIPLE OF WHAT WE WANT TO ACHIEVE
5. Homogenous ecosystems
Each product is similar or has a common use or goal
Eg. Nike products are centred around sport and fitness
6. Heterogeneous ecosystems
Products are unrelated, they have little bearing on the core service
being offered, however they still compliment each other
Eg. Apple iPod – music device, not related to Apple’s core business
when they first came out, iPhone a step once again out of core
product cycle
7. Smart strategy means evolution
Apple demonstrates a smart strategy, a seemingly heterogeneous
ecosystem becomes homogenous through evolving technology
Apple is now homogeneous
8. Where does innovation lie?
Building an ecosystem from disparate products with a long term
vision, homogenous integration, and accessibility
Innovation lies at the point of turning heterogeneous into
homogenous, eg. A phone that becomes part of a digital
ecosystem – the smartphone is born
9. Does heterogeneous win?
No.
Companies with disparate product offerings are bought out, split, or
sold
Eg. Blackberry, currently focused on business/enterprise security, the
smartphone ecosystem failed
10. Why?
Quality, quality, quality
Ecosystems need to be integrated and well managed, accessibility
is key
Never think about individual products, ecosystem all the way
11. 3 keys
Connection: how easily others can plug into the platform to share
and transact
Gravity: how well the platform attracts participants, both producers
and consumers
Flow: how well the platform fosters the exchange and co-creation
of value