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Enterprise Apps - Will Future Enterprise Software come from App Stores?
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Enterprise Apps - Will Future Enterprise Software come from App Stores?



19. Handelsblatt Jahrestagung „Strategisches IT-Management“

19. Handelsblatt Jahrestagung „Strategisches IT-Management“



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Enterprise Apps - Will Future Enterprise Software come from App Stores? Enterprise Apps - Will Future Enterprise Software come from App Stores? Presentation Transcript

  • Enterprise Apps – Will Future Enterprise Softwarecome from App Stores?Prof. Dr. Alexander Maedche19. Handelsblatt Jahrestagung „Strategisches IT-Management“Munich, January 29th 2013
  • Objectives of this talk  Review history of enterprise systems and identify key issues. 1  Introduce platform-based ecosystems and provide selected views 2 on their underlying mechanisms.  Outline strategies for leveraging platform-based ecosystems in an 3 enterprise IT environment. 2
  • Historic Perspective on Enterprise Systems:Evolution of Paradigms & Key Issues Calculation Functional Integrated Service-oriented Systems Systems Systems Systems Module 2 ERP Module 3 SOA Middleware Module Module 1 2 Module 1 Single Module Module Module 1 Module 2 Mdule x Module 3 1 2 Purpose Module Module Module Module Module 3 Module 4 3 4 Module 3 4 1950 1960 1970 1980 1990 2000 2010 Time Limited Inconsistency, He Complexity, Governance, functional terogeneity, Silo- Inflexibility, Development & scope based Competitive Maintenance Costs, Decisions,TCO Advantage? Lacking Capabilities 3
  • Important Principle of Successful Consumer IT Providers Demonstrate platform leadership and establish a vibrant ecosystem of partners, developers, users, customers, and communities. Ecosystem Platform … (Gawer & Cusumano, 2002); (Simon, 2011) 4
  • Definition: Platforms & EcosystemsPlatforms are defined as an “… extensible Desktop OS: Unix, Mac, Windows Game Consoles: Wii, Xbox, Playstationcodebase of a software-based system that Payment Systems: Paypal, Google Checkout, Visa, Apple, Mobile Felicaprovides core functionality shared by the Mobile Devices: iPhone, Android, Symbian,modules that interoperate with it and the Blackberry Social Networks: Facebook, LinkedIn, XINGinterfaces through which they interoperate.” Web Search: Google, Bing+Yahoo!, Baidu Ebooks: Amazon Kindle, iPad, Sony(Tiwana et al., 2010) …“The collection of the platform and themodules specific to that platform represent Ecosystemthe platform‟s ecosystem.” Module … Module(Gawer & Cusumano, 2002) InterfacesWinners in a platform market generallyhave the “best” platform strategy, not Platformnecessarily the “best” product. (Cusumano, 2010) 5
  • Platform-based Ecosystems: Architecture, Governance andEnvironmental Dynamics„Evolution of platform-based ecosystems depends on choices of theplatform owners and exogeneous environmental dynamics.“ (Tiwana et al., 2010) Internal Fit Platform Architecture Platform ArchitecturePlatform Governance Modularity Modularity Decision Rights, Control Decomposition, Decomposition, Mechanisms, and and Design Rules and Design Rules Ownership Environmental dynamics Environmental Fit Convergence, Multihoming costs, Complementors 6
  • Integration vs. ModularityLearning from Product Development Modularity is a very general set of principles for managing complexity. However, complex systems are not fully decomposable. (Simon, 1962) Integrated System Modular System Product architecture: (Ulrich, 1995) Arrangement of functional elements, Mapping of functional elements to physical components, and Specification of interfaces among physical components. Methods such as the Design Structure Matrix (DSM) help to analyze and optimize the product structure. Design Structure Matrix 7
  • „One Size Fits All“- Platform Approach does not work:Learning from the Automotive IndustryPlatform-based product development has been introduced in theAutomotive Industry already at the end of the 90s. Costs could besuccessfully reduced. However, branding issues and cannibilizationeffects appeared.Volkswagen: Different Assembley Kits depending on class/price e.g. Volkswagen Modularer Querbaukasten (MQB):  Harmonized Interfaces  Basis for 40 different models (A3, Polo, Golf, Passat, …) until 2018  Intensified Collaboration with First-Tier Suppliers 8
  • Today„s Enterprise System Landscapes:A Platform-based Perspective Self Dev … 3rd Party … Mobile App Mobile App Comm. Interfaces Self Dev Sharepoint App Interfaces Extension iOS Office / Sharepoint… - Architecture? ABAP ISV-based Custom Module 1 Interfaces Extension - Governance? - Environmental Dynamics? ERP 9
  • New Technology Concepts become available:Platform-as-a-Service …(Rymer and Ried, 2012) 10
  • Managerial Implications for CIOsSix Enduring Principles for Managing Strategy & Innovation in anUncertain World (Cusumano, 2010) Pull, Don„t just push Platforms & Capabilities Services Scope, Not Just Scale Not just strategy Not just products Flexibility, Not Just Efficiency Agility to lead Establish innovation or adapt to ecosystems & hybrid change business models 11
  • Towards Platform-Based Enterprise SystemsCorporate IT becomes driver of platform-based ecosystem(s) from anarchitecture, governance, and environmental dynamics perspective: Platform-based Systems Calculation Functional Integrated Service-oriented Systems Systems Systems Systems Ecosystem Module 2 Tailor-based Standard ERP Module (LoB) Module by ISV … Module 3 Module SOA Middleware Module 1 2 Module 1 Shared Shared … Single Module Module Module 1 Module 2 Mdule x Module 3 1 2 Purpose Module Module Module Module Module 3 Module 4 Module Module Provided 3 4 Module 3 4 Platform by IT 1950 1960 1970 1980 1990 2000 2010 Time ERP Mdule x Module Module 1 2 Module Module 3 4 12
  • Summary • Historic perspective of Enterprise Systems has 1 been characterized by multiple trade-offs: limited scope, heterogeneity, inflexibility, governance, … 2 • Platform-based ecosystems have shown to be a powerful concept in various domains. • Corporate IT needs to adopt platform thinking and 3 build the required capabilities towards platform- based Enterprise Systems. 13
  • Thank you for your attention! Q&A Prof. Dr. Alexander Mädche +49 621 181 3606 maedche@es.uni-mannheim.de Chair of Information Systems IV, Business School and Institute for Enterprise Systems, University of Mannheim http://eris.bwl.uni-mannheim.de http://ines.uni-mannheim.de 14
  • ReferencesCusumano, M. 2010. Staying Power: Six Enduring Principles for Managing Strategy andInnovation in an Uncertain World. Oxford University Press.Gawer, A. and Cusumano, M. 2002. Platform Leadership: How Intel, Microsoft, and CiscoDrive Industry Innovation. Harvard Business Review Press.Simon, P. 2011. The Age of the Platform: How Amazon, Apple, Facebook, and GoogleHave Redefined Business. Motion Publishing.Tiwana, A., Konsynski, B., and Bush, A. A. 2010. “Research Commentary - PlatformEvolution: Coevolution of Platform Architecture, Governance, and EnvironmentalDynamics,” Information Systems Research (21:4), pp. 675–687.Rymer, J. R. and Ried, S. 2011. The Forrester Wave™: Platform- As-A-Service For AppDev And Delivery Professionals, Q2 2011.Ulrich, K. 1995. The role of product architecture in the manufacturing firm”, ResearchPolicy 24, 1995, pp. 419-440.Simon, H.A., 1962. The architecture of complexity. In: Proceedings of the AmericanPhilosophical Society, 106, pp. 467–482Steward, D.V. 1981. The Design Structure System: A Method for Managing the Design ofComplex Systems. IEEE Transactions on Engineering Management. 28(3), pp. 71-74. 15