Irene ngalmaden2013
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  • Product and Service Evaluation Energy Usage InitiativesVisitor Experience Technology Smarter Social MediaCloud Solutions Mobile TechnologyData Intelligence Smart MaterialsPlastic ElectronicsAdvanced ALM Capability
  • Product and Service Evaluation Energy Usage InitiativesVisitor Experience Technology Smarter Social MediaCloud Solutions Mobile TechnologyData Intelligence Smart MaterialsPlastic ElectronicsAdvanced ALM Capability
  • Like water coming down a mountain, market form
  • Like water coming down a mountain, market form

Irene ngalmaden2013 Irene ngalmaden2013 Presentation Transcript

  • The University of Warwick Facts and ................................. Figures  Established 1965  Undergraduates 12,979  Postgraduates 10,441  League table positions – Times and Sunday Times (2012) - 8th  International students 6,411 – Guardian (2012 guide) – 6th  International students 27% – Independent (2012 guide) - 8th – RAE 2008 – 7th overall  Total staff 4,912 – QS* World University Ranking (2011) – 50th  Academic staff 687 – We aimed to be in the top 50 by 2015  International staff 25%  International working  Turnover £419m – Formal working relationships with Boston  Campus size 292 hectares University, Monash University, IIT Kharagpur, Jawaharlal Nehru University  Academic departments 28 and Nanyang Technological University  Research centres 48  Overseas alumni 44,194 * Quacquarelli Symonds Ltd
  • WMG Research and DevelopmentCentres International International Automotive Manufacturing Centre Research Centre Engineering International Digital Management Building Laboratory (IDL)
  • New Centres International Institute for Product and Service Innovation (IIPSI)
  • Global Partners 4
  • International Digital Laboratory Product Life-Cycle Management RoboticsDigital Experiential EngineeringManufacturing Product Evaluation Technologies Embedded Systems Simulation and Modelling Cloud Computing Security Privacy Enhancing TechnologiesInstitute for Data Loss Monitoringe-Security Vulnerability Research Trust Management Health Informatics e-HealthInstitute of Neural EngineeringDigital Healthcare Biomedical Engineering Virtual Reality Medical Training VisualisationDigital Digital MediaTechnologies e-Business
  • International Institute of Product& Service Innovation (IIPSI) Irene C L Ng Professor of Marketing & Service Systems, WMG Director, International Institute of Product & Service Innovation irene.ng@warwick.ac.uk @ireneclng http://uk.linkedin.com/in/ireneclng bit.ly/vcssblog www.warwick.ac.uk/go/sswmg www.ireneng.com
  • International Institute of Product & Service Innovation (IIPSI)15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Digital Software Innovation (techdemonstrators) Cloud for Business Mobile for Business Smarter Social Media Data to Intelligence
  • Polymer Innovation (sample techdemonstrators) Adding Functionality to Plastic Parts Low Volume Production Polymer Recycling
  • Experience-led Innovation (sample tech demonstrators) User Focussed Product/Service DesigCustomer Engagement Visitor Experience Energy Usage Behaviour 15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • IIPSI Service Systems & Business+ • Technology disruptions cause challenges to existing business models (e.g. Kodak) • Adaptability, transformation needed – both for their business models (the firm’s capability to serve the market) and their economic models (the way they derive their revenues and the market exchanges they participate in) • Business+ research into value creating service systems, digitisation/virtualisation, service-dominant logic (e.g. Bombardier, Rolls Royce, GSK); also into pricing/revenue models, methodology for new transactions & markets • Transdisciplinary team of social science, technology, business & engineering • 4 RCUK/EPSRC DE projects, NEMODE virtual collaboration host
  • 17 Markets Practice Scale Inform IIPSI Marketspace 2 1 corporate Mkt modularity 6 space 7 SME space Startup space Education 9 11 SME funding 8 Social Devt Science IP Passing Model, 3 Pre- 10 Student IP Passing Model, independence incubating s demonstrators 15 5 demonstrators 14 4 Research Service Systems, New Econ/Biz models 10 Experience- Digital Lower Polymer TRLs Knowledge led (software) Innovation innovation Innovation 18 Transfer & 19Trade Toolspubs Academic Bootstrap Projects pubs 13 12 11 primary knowledge flows, 8 secondary flows
  • Impact • created 12 new high tech start‐up businesses, • directly generated 70 new jobs, • trained over 450 small business in a range of digital technologies over the last 4 years • International publications, patents, tools etc.15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • New Economic and BusinessModels in the Digital EconomyOutcomes, Boundaries and Contexts Irene C L Ng Professor of Marketing & Service Systems, WMG Director, International Institute of Product & Service Innovation irene.ng@warwick.ac.uk @ireneclng http://uk.linkedin.com/in/ireneclng bit.ly/vcssblog www.warwick.ac.uk/go/sswmg www.ireneng.com
  • Value was exchange (what I got for what I gave)15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • But it wasn’t exchange that made us happy. It was experiencing what we bought that gave us the outcomes we wanted We buy because of the service of the object, even if it was an emotional ‘service’ i.e. things are service avatars* Mike Kuniavsky, 201015 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Ownership was the only way to get the ‘service’ of an object • Previously, the only route to service/outcomes was through ownership e.g. music CDs • But outcomes/benefits come only in the context of use and experience • If firms found a way to serve contexts, individuals may not need to own • Case study: Music15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • VALUE & WORTH • BUT… we needed to BUY before experiencing – so industry focus is still on buy (WORTH) even while design focus is on experience (VALUE) • Worth and Value is separated in time/space15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Something is happening……• Exchange used to be in further in advance• With digitisation and connectivity, exchange can now be closer to contexts of use e.g. Music• i.e. worth is getting closer to value creation• For offerings that could be digitised, collapse of buy (potential) and use (kinetic) into the same time/space• VALUE has become more relevant again in determining WORTH• With some new business models, VALUE is increasingly determining WORTH (due to collapse of buy and experience time/space
  • With digital connectivity, markets arenow possible to be formed in context• Digitisation results in “digital backwash” of the offering• Serving contexts increases worth!• New business and economic models emerge• So how should we think about value now in terms of how it might be related to worth and markets?
  • Value+ and Service-dominant logic* • value is the goodness we create out of the experience with something or someone in context, and that experience/interaction is the enactment of our social and cultural values ++ Ng and Smith (2012) *Vargo and Lusch (2004, 2008)15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Value is co-created for outcomes/benefits/value-in-use Peace of mind Entertainment Love CO-CREATED Realise VALUE that cd beRESOURCES higher than proposed Enhance RESOURCES????
  • VALUE IN This camera is CONTEXTavailable so it is a resource in context This camera is not Value created is Contextual. Resources are therefore also Contextual. Things become more valuable in context because they enable resources for value creation 15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Two functionally the SAME cameras but not the same value for the user in context. Because one camera is less competent in context, one is a lesser service avatar (or is just simply not around!) COMPETENCY OF OFFERING IN CONTEXT IS KEY TO NEW MARKETS15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Serving Contexts (the kinetic)• Current market platforms - tablets and mobiles• More platforms for context-based markets now need to be created e.g. Internet-of-Things at home, in buildings• markets are now in the same space as creatives, sociologists, interactive designers - looking at contexts and lived lives• For non-digital things, linking supply chains to home market platforms essential for new business models
  • Once upon a time, our contexts were rather homogenous • Where/when we ate meal • Where/when we listened to music • Where/when we exercised • *Technology liberates us from constraints of – time, when things can be done – place, where things can be done – actor, who can do what – constellation, with whom it can be done *Reframing Business, Normann, 200115 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Why is this important • Future digital connectivity for innovation and new markets; • Understanding how current things should evolve for connectivity (e.g. biopharmaceauticals) to serve us better – new business models, new econ models, exchange & new ways to serve • Innovating offerings/service that is scalable and replicable in creating value in context15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • VALUE IN This camera is CONTEXTavailable so it is a resource in context This camera is not Value created is Contextual. Resources are therefore also Contextual. Things become more valuable in context because they enable resources for value creation 15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Why context is important Two functionally the SAME cameras but not the same value for the user in context. Because one camera is less competent in context, one is a lesser service avatar (or is just simply not around!) COMPETENCY OF OFFERING IN CONTEXT IS KEY TO NEW MARKETS15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • But to bring your digitised offering(content) into context, you need a medium/platform (widget), connectivity, and a social space E.g. of ‘service’ in context digitally through your mobile • Dictionary • Calculator • Calendar • Torchlight • Camera
  • The New Battleground Content Social CONTEXT Widget Connecti vity
  • Who is digitising to serve use context next? Tea? ;)• Digitisation enables traditional offerings to become a resource in context, reducing time between acquiring a resource and using a resource - expanding demand Digitised offering in context In context Digitisation+Data is the new oil, Context is the new oil-field 15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Mobile phone as the medium to propose digitised offerings in context • Why is the mobile phone one of the most popular device for digitised offerings today? • because it is often present in MANY lived experiences (contexts) • It may not be the only widget in the future serving multiple contexts, but it is now15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Once upon a time, our contexts were rather homogenous • Where/when we ate meals • Where/when we listened to music • Where/when we exercised • *Technology liberates us from constraints of – time, when things can be done – place, where things can be done – actor, who can do what – constellation, with whom it can be done *Reframing Business, Normann, 200115 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Markets are forming at whereservice creates most wealth – incontext Digitisation allows new offerings to be resources available, accessible on demand, in context The better you are able to serve context, the bigger your market
  • Competitive Dynamics • Serving Contexts changes the nature of competition • Land grab creates disruption, enabled by new technologies. How?15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • ContextEnjoying musicon spotify andseeing otherfriends choicesof music whilein a gym
  • BUSINESS MODEL VS ECONOMIC MODELECONOMIC MODEL BUSINESS MODEL- Where exchanges comefrom, what exchanges arethere, creating worth from personvalue creation Value ENJOYING Value capture Money fr access e.g. Creation MUSIC spotify Money fr ownership (e.g. CD) Money fr eyeballs (eg. Value Google) prop MUSIC15/01/2013 EMI, Sony BMG WMG 38
  • E.G. MUSIC - CONTENT person Money fr access e.g. Value ENJOYING Value capture last.fm Creation MUSIC Money fr ownership e.g. iTunes Money fr medium Value (e.g. CD) prop MUSIC EMI, Sony BMG15/01/2013 WMG 39
  • E.G. MUSIC - WIDGET person Value ENJOYING Value capture Creation MUSIC Money fr ownership Value prop WIDGET Apple, MP3 player, Computer15/01/2013 WMG 40
  • E.G. MUSIC - CONNECTIVITY person Value ENJOYING Value capture Creation MUSIC Money fr access Value prop WIFI, 3G O2, Vodafone, Three, Orange15/01/2013 WMG 41
  • E.G. MUSIC - SOCIAL person Value ENJOYING Value capture Creation MUSIC Money fr eyeballs (ads) Value Sharing prop platform Myspace, facebook, google+, twitter, spotify15/01/2013 WMG 42
  • E.G. MUSIC - GYM person Value ENJOYING Value capture Creation MUSIC & SPORT Money fr access Value Sport & prop fitness environment GYMS15/01/2013 WMG 43
  • Industries propose value in context SKY, VIRGIN Value ValueFACEBOOK, MYSPACE (CONNECTIVITY) prop prop(SOCIAL) capture capture Value Value Value Value Value capture Creatio Creatio n n person person Creation person Value Value prop person person Value Value GYMS Creatio Creatio n n capture capture Value Value APPLE, Value Value CREATIVE SONY, EMI prop prop (WIDGET) (CONTENT) 15/01/2013 WMG 44
  • Value Constellation of Music in Context Value Value SKY, VIRGINFACEBOOK, MYSPACE (CONNECTIVITY) prop prop(SOCIAL) capture capture Value Value Value Value Value capture Creatio Creatio n n person person Creation person Many persons enjoying Person enjoying music Value Value prop musiccontext in in context person person Value Value GYMS Creatio Creatio n n capture capture Value Value APPLE, Value Value CREATIVE SONY, EMI prop prop (WIDGET) (CONTENT) 15/01/2013 WMG 45
  • Value Constellation of Music in Context Value Value SKY, VIRGINFACEBOOK, MYSPACE (CONNECTIVITY) prop prop(SOCIAL) capture capture Value Value Value capture PIE Many persons enjoying Person enjoying music Value prop musiccontext in in context person GYMS capture capture Value Value APPLE, Value Value CREATIVE SONY, EMI prop prop (WIDGET) (CONTENT) 15/01/2013 WMG 46
  • Value Constellation of Music in Context SKY, VIRGIN FACEBOOK, MYSPACE Value Value (CONNECTIVITY) prop prop Value capture (SOCIAL) capture Value Value capture PIE Personpersons enjoying Many enjoying music in Value prop music in context context person GYMS Value capture Value capture APPLE, Value Value CREATIVE SONY, EMI prop prop (WIDGET) (CONTENT)• The Value constellation map shows you which industry has a stake in which OTHER industry to expand their market penetration, driving disruption, convergence, land grab 15/01/2013 WMG 47
  • Value Constellation of Music in Context Value Value SKY, VIRGINFACEBOOK, MYSPACE (CONNECTIVITY) prop prop(SOCIAL) capture capture Value Value Value capture PIE I want to play Many persons enjoying Person enjoying music there because Value prop musiccontext more content in in context person that I control will drive my GYMS connectivity business capture capture Value Value APPLE, Value Value CREATIVE SONY, EMI prop prop (WIDGET) (CONTENT) 15/01/2013 WMG 48
  • Value Constellation of Music in Context Value Value SKY, VIRGINFACEBOOK, MYSPACE (CONNECTIVITY) prop prop(SOCIAL) capture capture Value Value Value capture PIE Many persons enjoying play Person enjoying musicto Value prop I want musiccontext there because in in context person widget that I control will secure GYMS my connectivity business capture capture Value Value APPLE, Value Value CREATIVE SONY, EMI prop prop (WIDGET) (CONTENT) 15/01/2013 WMG 49
  • Value Constellation of Music inFACEBOOK, MYSPACE Context(SOCIAL) Value Value SKY, VIRGIN prop prop (CONNECTIVITY) capture capture Value Value Value capture PIE Many persons enjoying Person enjoying music Value prop musiccontext in in context person I just want to make sure these guys can’t do it GYMS without me capture capture Value Value APPLE, Value Value CREATIVE SONY, EMI prop prop (WIDGET) (CONTENT) 15/01/2013 WMG 50
  • Connectivity & Digitisation • TV was in a room • Music was on speakers and stereo players • Digitisation & Connectivity is changing contexts of use • Changing contexts of use is bringing different industries into a context e.g. Tesco has a stake in your car – will they pay insurance? • Disruption & Convergence comes from understanding value constellation of the context15/01/2013 WMG 51
  • Changing Value Constellations• With more digital connectivity, there are more connected contexts• more constellations with different players will emerge, converging stuff, creating new ways to capture value, generating new business models, creating disruptions• Move from vertical business models to systemic (horizontal & vertical)
  • For more information: Read the book! * Value: Creating New Markets in the Digital Economy - out January 2013 www.valueandmarkets.com * Tentative cover15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Making Value Creation inContext Digitally visible Hub-of-all-Things (H.A.T) – a designed experiment for new business models powered by IoT
  • New (market) platform to serve context powered by IoT • The Internet of Things (IoT) refers to uniquely identifiable objects (things) and virtual addressability that would create an Internet-like structure for remote locating, sensing, operating and/or actuating of such ‘things’. There is a sense that equipping all objects in the world with the ability to be animated and connected could transform lived lives. • The home and the building as new platforms to serve contexts in the future15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.
  • Hub-of-All-Things – tentative platform architecture for multi-sided markets ‘Thing 2’ landlord Building mgr Network 3D ‘Thing Store’Printing/Scanning Type1 M Thing 1s Standard Data formats Private Info ‘App in-Store’ The H.A.T. and defined Hub Type1 protocols App App App M External platforms Actuating M Legacy TG ‘App out-Store’ Type 1 Thing Interface Public Info App App Data for developers Hub Thing 2s Legacy Applications Developed Private Info ‘Thing POD’ using open- Legacy source API Hub Thing Platform for Open-source Design Key Use of Virtual Devices = IoT Enabler = IoT Enabled = IoT Enhancer TG= Trustgate
  • New Economic Models in theDigital Economy (NEMODE) Professor Roger Maull
  • Thank you15 January, 2013 Copyright Irene Ng, 2012. All rights reserved.