1. Internet as a
Socioeconomic
System
Andreas Bitros

2. As a young graduate...
๏ Confident about Business Strategy
๏ Trained for International projects
๏ Geek & Internet Literate
๏ Startup enthusiast
...and I had no idea what I should do to
Actually help a startup!

3. Meet the Internet

4. Internet as an Environment
๏ Complex
๏ Borderless
๏ Fast
๏ International
๏ Full of social perspectives
๏ Plenty of interconnected parts

5. Houston, we have a problem
๏ The problem:
- How should we analyze the external
environment of companies, that have strong
bonds with the Internet? – What are the key
parts?
๏ The (not really effective) solution:
- Search the Internet -> TMI
- Search Bibliography -> NSMI (Not So Much
Information)

6. O’Reilly Web 2.0 Summit
#w2smap

7. Was it enough?
...nop!
The interesting part is how these sectors
interact through time

8. Systems Thinking
๏ A really strong methodology for
investigating complex situations, because
it:
- Focuses on what things “do”, and not what
they “are”
- Is dynamic, so the perspective of time is
included
- It indicates relationships among parts

9. The purpose of the Internet
The purpose of a system is what it does...
So what’s Internet’s “purpose”?
The purpose of the Internet is:
“To provide value to direct and indirect
users”

10. The Internet as a System
Principles:
๏ Basic economic principles
๏ Moore’s & Metcalfe’s Laws
๏ It consists of two essential parts

11. The Internet as a System
Sectors
Strategic Strategic Strategic
Strategic
Point B Point C Point n
Point A
Perceived
Value- Money - Labor
Experience
Group A
Interest
Groups
Group n
Group C
Group B

12. Essential Parts’ Properties
Essential Parts’ Properties :
๏ Every essential part has an impact on the
properties or/and behavior of a system
๏ Essential parts can’t operate on their own
๏ If parts of a system are organized into
subsystems, then they have the same
properties with the essential parts

13. Sectors
๏ Semiconductors ๏ Search
๏ Infrastructure ๏ Commerce & e-
Payment
๏ Platforms &
Mobile ๏ Content &
Media & Games
๏ OS & UI
๏ Advertise
๏ Social Activity &
Location ๏ Enterprise
Solutions
๏ Identity &
Consumer Web

14. Sectors
Cause Loops
Sector 1st length 2st length 1st length 2st length
Semiconductors - - 0 0
Outer
Layer
Infrastructure 1 - 0 0
OS & UI 3 9 2 4
Platforms & Mobile 3 8 2 4
Enterprise Solutions 5 21 2 7
Social Activity & Location 8 45 5 22
Identity & Consumer Web 7 43 5 19
Layer
Inner
Search 6 36 4 18
Content & Media & Games 8 45 5 19
Commerce & e-Payment 9 49 5 21
Advertising 8 45 4 16

15. Interest Groups
๏ Innovators/ Alpha ๏ Government
Geeks
๏ VC & Other
๏ Early Adopters Funding
๏ Early Majority ๏ Enterprises
๏ Late Majority ๏ Academia
๏ Laggards

16. Perspective
What it is
What they see

17. Lessons Learned
๏ The “Game”
- Use available resources
- Create resources if needed
- Anticipate for the right trends
- Combine trends
- Always remember the Users!
๏ The (Big) Players
- They have portfolios
- They create options
- Developers are a major resource

18. “S” Curves
๏ By applying the “S” Curves theory, in
every sector, you may have a better
perspective of what is “emerging” in the
system and how the system evolves
๏ Remember, no part by itself, can increase
the size of the system – (bubble alert)
๏ There is Always something happening

19. Policy Makers
Better Interventions (if necessary):
๏ The “Next Silicon Valley” quest
๏ ACTA & Net neutrality
๏ New Technologies
๏ Subsidies for companies & startups

20. Remember...
... we are all part of it!