Goals of software vendors for         partner ecosystems         – a practitioner´s view         Dr. Karl Popp         Cor...
Background information                              http://www.drkarlpopp.com/BusinessMod     Business Models          els...
Definitions      • An economic ecosystem is a set of        companies that exchange products or        services to serve a...
Software Ecosystem                                            Software Acquisition                                Partners...
Software Ecosystem                                                Software   Acquisition                                  ...
Types of Ecosystems                                            Software   Acquisition                              Partner...
Financial goals      • Monetize on the partner ecosystem            – Increase existing or create new revenue             ...
Revenue streams (examples)                                 Software                                 Partners              ...
Product related goals      • Strengthen market presence            – Diversified partnership strategies for regional      ...
Network effect related goals      • Maximize ecosystem gravity            – Hypothesis: increasing the number of          ...
Summary      • Software vendors define goals for their        partner ecosystems      • Software vendors engage in win-win...
Background information                              http://www.drkarlpopp.com/BusinessMod     Business Models          els...
Video lessons      • Get your education online at        mindbites.com:      • http://www.mindbites.com/lesson/13903-     ...
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goals of software vendors for their partner ecosystems

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goals of software vendors for their partner ecosystems

  1. 1. Goals of software vendors for partner ecosystems – a practitioner´s view Dr. Karl Popp Corporate Development SAP AG karl.michael.popp@sap.com http://www.drkarlpopp.comCopyright © 2010 Dr. Karl Popp
  2. 2. Background information http://www.drkarlpopp.com/BusinessMod Business Models elsintheSoftwareindustry.html in the software industry Profit from Software Ecosystems ISBN-13: 978-3842300514 Business Models, partnership models and ecosystems in the software industry Examples from over 50 software companiesCopyright © 2010 Dr. Karl Popp
  3. 3. Definitions • An economic ecosystem is a set of companies that exchange products or services to serve a common goal or to achieve higher levels of individual goals. • A software ecosystem is an economic ecosystem that forms around a software vendorCopyright © 2010 Dr. Karl Popp
  4. 4. Software Ecosystem Software Acquisition Partners Targets Software Suppliers Customers vendor Open Source Comm. System IntegratorsCopyright © 2010 Dr. Karl Popp
  5. 5. Software Ecosystem Software Acquisition Partners Targets Software Suppliers Customers vendor Open Source Comm. System Integrators Products, Assets or Payments ServicesCopyright © 2010 Dr. Karl Popp
  6. 6. Types of Ecosystems Software Acquisition Partners Targets Software Suppliers Customers vendor Customer Open Ecosystem Source Comm. System Integrators Focus of this presentation Supplier Partner Ecosystem EcosystemCopyright © 2010 Dr. Karl Popp
  7. 7. Financial goals • Monetize on the partner ecosystem – Increase existing or create new revenue streams – E.g. by letting partners sell products or by charging fees for certification • Save cost – Lower cost of development, support, maintenance, education, marketing – E.g. by outsourcing tasks to partners like support, maintenance, sales, trainingCopyright © 2010 Dr. Karl Popp
  8. 8. Revenue streams (examples) Software Partners Software License Customers vendor revenues Revenue streamsCopyright © 2010 Dr. Karl Popp
  9. 9. Product related goals • Strengthen market presence – Diversified partnership strategies for regional and local markets • Strengthen software vendor´s offerings – Partners fill whitespaces and provide complementing solutions • Innovate and co-innovate solutions – A sound innovation strategy of a software vendor contains a mix of internal and external innovation.Copyright © 2010 Dr. Karl Popp
  10. 10. Network effect related goals • Maximize ecosystem gravity – Hypothesis: increasing the number of participants in the ecosystem attracts even more new members for the ecosystem. • Maximize retention of participants in the ecosystem – Retention of participants in the ecosystem is based on two important factors: incentives and lock-in.Copyright © 2010 Dr. Karl Popp
  11. 11. Summary • Software vendors define goals for their partner ecosystems • Software vendors engage in win-win partnerships that create revenue and save cost • Software vendors plan for and leverage network effects in partner ecosystemsCopyright © 2010 Dr. Karl Popp
  12. 12. Background information http://www.drkarlpopp.com/BusinessMod Business Models elsintheSoftwareindustry.html in the software industry Profit from Software Ecosystems ISBN-13: 978-3842300514 Business Models, partnership models and ecosystems in the software industry Examples from over 50 software companiesCopyright © 2010 Dr. Karl Popp
  13. 13. Video lessons • Get your education online at mindbites.com: • http://www.mindbites.com/lesson/13903- software-business-model-basics • http://www.mindbites.com/lesson/13904- software-revenue-modelsCopyright © 2010 Dr. Karl Popp

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