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Business Ecosystem Strategy
- 1. © Dr Florian Urmetzer, CSA, University of Cambridge
Don’t fall prey to business
ecosystem failure
Dr Florian Urmetzer
- 2. © Dr Florian Urmetzer, CSA, University of Cambridge
Overview
The aim is to:
Understand a definition of business ecosystems
Understand the value of the range of stakeholders in an
ecosystem: external partners, influencers, customers and how
such relationships can be leveraged.
The session is designed to give basic information on business
ecosystems
- 3. © Dr Florian Urmetzer, CSA, University of Cambridge
The surroundings of firms is changing
Firms
Product Delivery
Top Driven
Hierarchies
Managing
Contract
Partnerships &
Ecosystems
Complex Solution
Delivery
Local
Flat Hierarchies
Engaging
Relationship
The shift from
output focus to
outcome focus
has changed the
fundamentals of
competition
Competition Coopetition
- 4. © Dr Florian Urmetzer, CSA, University of Cambridge
Ecosystem (where to place)
This is only a “sleep well” definition,
so do not worry if you don’t agree!
- 5. © Dr Florian Urmetzer, CSA, University of Cambridge
Sleep Well Definition of Business Ecosystems
…a network of enterprises, firms and organisations, which
through both value exchanges aim to provide value
propositions, as seen through a particular perspective (e.g.
a customer), which represent more value than a value
firm could create individually…
But this definition is just indicative
- 6. © Dr Florian Urmetzer, CSA, University of Cambridge
We can show and understand the complexity
Enterprise
Partner
Customer End user
Influencer
Influencer
Competitor
Supplier
Suppliers’
supplier
Influencer
Traditional value
chains…
…have become more networked and
complex
Customer End user
Supplier
Suppliers’
supplier
- 7. © Dr Florian Urmetzer, CSA, University of Cambridge
Basic example
Food production industry / pharmaceutical
- 8. © Dr Florian Urmetzer, CSA, University of Cambridge
Cargo
Leisure
platforms
Business
passenger
1. Define the end customer:
An Airline
- 9. © Dr Florian Urmetzer, CSA, University of Cambridge
Universities
Technology Infrastructure
Research orgs
(e.g. Catapult)
Material providers
Components
Equipment and
tooling providers
Engineering services
And consulting
Systems and
equipment Cabin
Engine OEMs
Air-framers
Spares for MROs
In-flight service
providers
IFE content
providers
Aircraft and
parts recycling
MRO/FBO services
Consumables
Lessors
Information
providers
Advertising
agencies
Tou
rist
offi
ces
Comparison
sites
Cargo
Lounges
Ground
handling
Jet fuel
Catering
Security
Retail
Ground transport
(e.g. trains, taxis)
Border
security
Passenger
parking
Airport operator
Terminal
Control tower
Runway
SATCOM
providers
ATM
infrastructure
Communication
Service providers
Air navigation
Service providers
Logistics providers
Pilots/
Crew
Premium airlines
Value airlines
Low-cost airlines
Cargo airlines
Leisure
platforms
Business
passenge
r
Booking
platforms
Travel
agents
2. Define the Actors:
An Airline
Include:
- End Customer
- Your Company
- Supplier
- Partner
- Competitor
- Influencer
- 10. © Dr Florian Urmetzer, CSA, University of Cambridge
3. Cluster members
Enterprise
Influencer
Competitor
Supplier
Suppliers’
supplier
Influencer
e.g. Research partners
e.g. Producers
e.g. Buyers and Users
Customer End user
Buyer
Clustering can be based
on a range of attributes
Training
Equipment
Personnel
Information
Concepts & Doctrine
Organisation
Infrastructure
Logistics
- 11. © Dr Florian Urmetzer, CSA, University of Cambridge
Universities
Technology Infrastructure
Research orgs
(e.g. Catapult)
Material providers
Components
Equipment and
tooling providers
Engineering services
And consulting
Systems and
equipment Cabin
Engine OEMs
Air-framers
Spares for MROs
In-flight service
providers
IFE content
providers
Aircraft and
parts recycling
MRO/FBO services
Consumables
Lessors
Information
providers
Advertising
agencies
Tou
rist
offi
ces
Comparison
sites
Cargo
Lounges
Ground
handling
Jet fuel
Catering
Security
Retail
Ground transport
(e.g. trains, taxis)
Border
security
Passenger
parking
Airport operator
Terminal
Control tower
Runway
SATCOM
providers
ATM
infrastructure
Communication
Service providers
Air navigation
Service providers
Logistics providers
Grouping view
Pilots/
Crew
Premium airlines
Value airlines
Low-cost airlines
Cargo airlines
Leisure
platforms
Business
passenge
r
Research
parties
Aircraft
production
Aircraft
through-
life
Add-on
Informatio
n providers
Airport
infrastructu
re
Interfacing
parties
Customers
Airspace
infrastructu
re
Clustering
Travel
agents
Booki
ng
platfo
rms
3. Define the Clusters:
An Airline
- 12. © Dr Florian Urmetzer, CSA, University of Cambridge
Universities
Technology Infrastructure
Research orgs
(e.g. Catapult)
Material providers
Components
Equipment and
tooling providers
Engineering services
And consulting
Systems and
equipment Cabin
Engine OEMs
Air-framers
Spares for MROs
In-flight service
providers
IFE content
providers
Aircraft and
parts recycling
MRO/FBO services
Consumables
Lessors
Information
providers
Advertising
agencies
Tou
rist
offi
ces
Booki
ng
platfo
rms
Comparison
sites
Travel
agents
Cargo
Lounges
Ground
handling
Jet fuel
Catering
Security
Retail
Ground transport
(e.g. trains, taxis)
Border
security
Passenger
parking
Airport operator
Terminal
Control tower
Runway
SATCOM
providers
ATM
infrastructure
Communication
Service providers
Air navigation
Service providers
Logistics providers
Pilots/
Crew
Premium airlines
Value airlines
Low-cost airlines
Cargo airlines
Leisure
platforms
Business
passenge
r
Money flows up-stream
Dept of Education
SIG
ATI
Trade and investment
Unions
ISO
Regulators
(e.g. CAA, EASA)
Unions
DfT
4. Define the Monetary transfers:
An Airline
- 13. © Dr Florian Urmetzer, CSA, University of Cambridge
5. Prioritize Ecosystem Connections:
An Airline
- 14. © Dr Florian Urmetzer, CSA, University of Cambridge
Understand value propositions
VALUE DELIVERY
RISK
VALUE PROPOSITION Value proposition (VP):
products, services, solutions that a
company offers to the customers
Risk: Key risks that company
bares when it becomes
accountable for a given VP (e.g.
risks of guaranteeing performance,
risks of outsourcing, etc.).
Risk types: operational,
performance, financial, partner,
incentive, systemic, dynamic.
Value delivery (VD):
activities, resources, and skills
necessary to deliver a value
proposition.
- 15. © Dr Florian Urmetzer, CSA, University of Cambridge
Direct Value Creation and Capture
Considering the ecosystem partners
- 16. © Dr Florian Urmetzer, CSA, University of Cambridge
Show a map
- 17. © Dr Florian Urmetzer, CSA, University of Cambridge
Experiences:
- 18. © Dr Florian Urmetzer, CSA, University of Cambridge
Ecosystem Strategy: One day course
What will you learn?
Understand what your business ecosystem is and why it is vital in service
delivery
Explore the different options and models in understanding the wider ecosystem
Understand how to build partnerships to share capability and capacity across
multiple companies
Understand how innovation can work through partnerships
Learn how to identify weaknesses in your ecosystem and what approaches you
can take to address them
When: 22 November 2017
http://www.ifm.eng.cam.ac.uk/ifmecs/ifm-ecs-courses/ecosystem-strategy/
- 19. © Dr Florian Urmetzer, CSA, University of Cambridge
References and Resources
Florian Urmetzer, Andy Neely, and Veronica Martinez. Engineering Services: Unpacking Value Exchange.
In: Yufeng Zhang and Mike McGregory. Value Creation through Engineering Excellence: Building Global
Network Capabilities, Palgrave Macmillan 2017
http://cambridgeservicealliance.eng.cam.ac.uk/news/2016AprilPaper
Florian Urmetzer, Andy Neely, Veronica Martinez. The Ecosystem Value Framework: Supporting Managers
to Understand Value Exchange between Core Businesses in Service Ecosystems. EurOMA 2016,
Trondheim, Norway
http://cambridgeservicealliance.eng.cam.ac.uk/news/2016DecPaper
Florian Urmetzer, Veronica Martinez, Andy Neely, Mohamed Zaki, Jingchen Hou, Alexi Nicolay et. al.
Executive Briefing: Process for B2B Partnerships. University of Cambridge 2017
http://cambridgeservicealliance.eng.cam.ac.uk/resources/Downloads/Monthly%20Papers/B2BBriefing26Ja
nuary.pdf
Florian Urmetzer, Veronica Martinez, Andy Neely. Business Ecosystems: Towards a Classification Model.
5th P&OM world conference, Havana, Cuba
http://cambridgeservicealliance.eng.cam.ac.uk/resources/Downloads/Monthly%20Papers/copy_of_2017Apr
ilPaperBusinessEcosystemsFTU.pdf