Shifting Platform and Ecosystem Dynamics


As platform business models increasingly gain board-level attention, the ecosystem conversation intensifies. David Kish – a TCS colleague – recently worked with the broader team (Kevin Mulcahy, Rose Rodriguez, Bill Quinn, Bill Bosak)  to author an article focused on shifting platform and ecosystem dynamics. I am sharing Dave’s article via this guest post.


Since the advent of the internet, the combinatorial effect of innovation in science and digital technologies has rapidly driven the world toward a platform economy where software, apps and APIs enable every human activity and radically change how people interact and create value. Companies like Google, Microsoft, Facebook, Amazon, Apple, Alibaba and Tencent, which represent seven of the top ten valued companies by market capitalization, are leading this transformation and have created an imperative for all companies: develop platform capabilities and adapt your strategy to survive and succeed in the platform economy.

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Ecosystems in the Context of Digital Transformation


I recently authored an article on ecosystems and digital transformation along with leading platform strategist Simon Torrance. Here is a brief abstract of the article. You can read it Here on the TCS website – along with other perspectives on digital transformation.


ABSTRACT

As Frank Diana and Simon Torrance explain in “Defining Your Digital Ecosystem: The First Step in a Machine First™ Transformation,” many leaders are no longer looking at strategy and industry structure in the ways of a non-digital world. Business 4.0 and EcosystemsInstead, they’re analyzing how emerging ecosystems—networks of stakeholders, including business partners, suppliers, customers, and competitors that interact digitally to create value are supplanting traditional industries as the organizing construct. For example, in a mobility ecosystem, automakers no longer just make cars; they must redefine the very notion of automobile ownership and how people get around.

 

 

Ecosystem Readiness


As the world continues its march towards platform-supported ecosystems, organizational readiness becomes a critical area of focus. Four facets of an organization contribute or detract from success in an ecosystem world:

  1. The mental models that drive an organization
  2. The lens in which an organization views value creation and capture
  3. The orientation of an organization – which in most cases is shareholder value
  4. The organization’s culture

The growth engine that ecosystems represent will serve as a forcing function, pushing Organizations to Mature across these key facets. For example, I firmly believe that over time, a transition occurs from shareholder value to stakeholder value. This transition places purpose at the center, with shared value at its core (Click on the Visual to expand).

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Unlearning May be our Biggest Challenge


The illiterate of the 21st century will not be those that can’t read or write, but those who cannot learn, unlearn, and relearn – Alvin Tofler, Rethinking the Future. 

As we all become life long learners, unlearning could be our biggest challenge. Our mental models prevent us from seeing the need for change. We are creatures of the only world we have individually known. Even if you are one hundred years old, the mental models established after humanities second Tipping Point dominate your thinking. They form our intuitions and belief systems.

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Monetization Strategies in Emerging Ecosystems


Emerging Ecosystems

As horizontal ecosystems become the primary means of value creation and capture, organizations will embrace various monetization strategies. Given the proven growth potential of platforms (the foundation of ecosystems) and the increasing collapse of Industry boundaries, the urgency to understand ecosystem dynamics is growing. Ecosystems enable producers and consumers to interact in ways that create shared value. In many cases, stakeholders will play either role at any given time – a phenomenon some have called side switching.

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Higher Education in the Age of Artificial Intelligence


In a recent book titled, Robot-Proof: Higher Education in the Age of Artificial Intelligence, Northeastern University president Joseph Aoun proposes a way to educate the next generation of college students, supporting society in ways that artificial intelligence cannot. His underlying premise is that the existing model of higher education has yet to adapt to the seismic shifts rattling the foundations of the global economy – I firmly agree. It was Alvin Tofler that said: The illiterate of the 21st century will not be those that can’t read or write, but those who cannot learn, unlearn, and relearn.

This conversation is broader than a focus on school-aged young adults. What Tofler pronounced applies to all of us. In his book, Mr. Aoun presents a new model of learning that enables us to understand the highly technological world around us, allowing us to transcend it by nurturing the mental and intellectual qualities that are unique to humans – namely, their capacity for creativity and mental flexibility. He calls this model Humanics. These Human Traits represent our future skills profile, including many of the right brain characteristics visualized below. We will want explorers, problem solvers, dot connectors, continuous learners, and those not afraid to challenge the status quo.

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