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Digital Ecosystem Management
The new way to grow
Contents
How to grow in a digital world
Big challenges for growth
Big opportunity – a new industrial revolution
Unpreceden...
How to grow in a digital world
Growth is critical for all organizations. It makes it easier to
fund new investments, attra...
In addition to global economic stagnation,
companies are hampered by significant challenges:
Big challenges for growth
Cap...
“I skate to where the puck is going
to be, not to where it has been.”
Steve Jobs
The puck is heading to the industrial int...
Unprecedented disruption 06
Sensors, robotics, artificial intelligence, nanotechnology, 3D printing,
renewable energy, bio...
YOUR CUSTOMERS
& MARKETS
OTHER PEOPLE’S
CUSTOMERS & MARKETS
END USERS
YOUR PRODUCTS,
SERVICES & DATA
OTHER PEOPLE’S
PRODUC...
Digital Ecosystem Managers – the growth stars
The world’s top 170 Digital Ecosystem
Managers are now worth over $4 trillio...
Leading companies across multiple sectors are now racing to incorporate
Digital Ecosystem Management (DEM) into their mode...
Did you know:
Modern software allows
you to launch new services
at low cost.
Implementing DEM (stage one)
Overlay a light-...
Did you know:
You can reduce your overall
cost structure by sharing
your platform.
YOUR CUSTOMERS
& MARKETS
YOUR PRODUCTS,...
Did you know:
You can generate new
revenue streams by
attracting tenants to your
platform, or from being a
tenant on someo...
Did you know:
As a DEM platform owner,
you can leverage data in
the ecosystem to generate
unique insights and gain a
compe...
We are implementing DEM platforms for clients in many sectors
around the world. Here are some examples:
Our current DEM pr...
Our DEM solution gives you a new way to grow by:
•	 Generate new revenues from new services
•	 Dramatically lowering overa...
Five ways to get started
Executive education to gain
a thorough understanding
of how and why digital
platforms are disrupt...
17Digital Ecosystem Management
For more information please go to
www.bearingpoint.com/dem
or contact:
Angus Ward
Partner, ...
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Digital Ecosystem Management (DEM) | BearingPoint

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We're in a low growth world. How do you break free from this norm and grow not just a little, but a great deal? A few growth stars have shown the way - creating, managing and monetizing vibrant ecosystems of customers, producers and innovators. We call this Digital Ecosystem Management (DEM) and we can help you make the most of it

Published in: Business

Digital Ecosystem Management (DEM) | BearingPoint

  1. 1. Digital Ecosystem Management The new way to grow
  2. 2. Contents How to grow in a digital world Big challenges for growth Big opportunity – a new industrial revolution Unprecedented disruption The winning business model Digital Ecosystem Managers – the growth stars Digital Ecosystem Management - for you Implementing DEM Our current DEM projects The benefits of our DEM solution Five ways to get started Find out more 03 04 05 06 07 08 09 10 14 15 16 17
  3. 3. How to grow in a digital world Growth is critical for all organizations. It makes it easier to fund new investments, attract talent and acquire assets. Economic stagnation and digital disruption underpins the need for a sound new growth strategy. Traditionally, you’d grow organically or via M&A, or a combination of the two. But these can be slow, ineffective and value destroying. Now, innovative forward thinking enterprises have a third way to grow – not just moderately but exponentially. We call it Digital Ecosystem Management (DEM). Digital Ecosystem Management M & A Organic Growth 03
  4. 4. In addition to global economic stagnation, companies are hampered by significant challenges: Big challenges for growth Capital markets demanding short term profits Culture of the organization suits the past rather than the future Increasingly demanding and disloyal customers IT spaghetti hampers effective market innovation 04
  5. 5. “I skate to where the puck is going to be, not to where it has been.” Steve Jobs The puck is heading to the industrial internet of everything, where people + data + processes + things are all increasingly connected in real time, creating and encouraging new disruptions and new opportunities in all sectors. This is set to have a much greater impact than the consumer internet of today. There are trillions of dollars of value at stake. This is a big opportunity if you approach it in the right way. “We stand on the brink of a technological revolution that will fundamentally alter the way we live, work and relate to one another – a fusion of technologies that is blurring the lines between the physical, digital and biological spheres.” The World Economic Forum, Davos, 2016 $8 trillion of new IoT-enabled business and consumer services (Revenues, Global) Big opportunity – a new industrial revolution US$ TRILLION 2015 02 04 06 08 10 2016 2017 2018 2019 2020 2021 2023 2024 20252022 05 Sources: BearingPoint
  6. 6. Unprecedented disruption 06 Sensors, robotics, artificial intelligence, nanotechnology, 3D printing, renewable energy, biotech + maturing social, mobile, analytics and cloud technologies = an endless amount of data that will unleash an extraordinary wave of industrial innovation. Self-driving trucks raise productivity 3D-printed body parts Increased energy output New retail/commerce concepts Intelligent appliances All-knowing cities The $8 trillion opportunity by sector Sources: BearingPoint Manufacturing Cities Navigation & Logistics Retail Personal Wellness Workplaces Vehicles Home
  7. 7. YOUR CUSTOMERS & MARKETS OTHER PEOPLE’S CUSTOMERS & MARKETS END USERS YOUR PRODUCTS, SERVICES & DATA OTHER PEOPLE’S PRODUCTS, SERVICES & DATA INNOVATIONS FROM DEVELOPERS DIGITAL PLATFORM $ $ $ $ $ $ DATA DATA Some businesses know how best to grow in the digital economy – not just steadily but exponentially. From Apple to Alibaba, Amazon to Airbnb - today’s growth stars have the same winning business model: they create digital platforms that manage and monetize vibrant ecosystems of consumers, producers and innovators. They leverage the resources and creativity of other people to stimulate innovative solutions for markets, and in so doing they increase demand for their own core products and services. They grow exponentially when they: 1. create open, plug and play infrastructure; 2. proactively curate their ecosystem; 3. obsessively collect data to optimize their operations. Did you know: 50% of the world’s top 30 brands and 70% of the $1bn+ unicorn start-ups now manage digital ecosystems, with powerful self-reinforcing network effects. The winning business model 50% 70% 07
  8. 8. Digital Ecosystem Managers – the growth stars The world’s top 170 Digital Ecosystem Managers are now worth over $4 trillion. They are predominantly US and Chinese companies. Only 4% are European-based*. Apple The most valuable company in the world not because it makes the best devices but because it has created a platform that incentivizes millions of developers to create millions of apps which drive demand for Apple’s core business – consumer electronics. Airbnb Airbnb became the biggest hotelier in the world in 2015 by rooms served, with only 2,500 employees and without owning any hotels. Uber Uber took just seven years to be operational in 67 countries and have a valuation higher than General Motors. Alibaba Alibaba’s was the world’s biggest ever IPO in 2015 – its prospectus mentioned ‘ecosystem’ 160 times. 75% of Chinese e-commerce transactions go through it. With unique knowledge of the market, Alibaba now offers its own services to the market. Amazon Amazon grew to record levels by making its infrastructure available to third parties, including competitors. *Source: The Center for Global Enterprise, January 2016 08
  9. 9. Leading companies across multiple sectors are now racing to incorporate Digital Ecosystem Management (DEM) into their model. It’s not about trying to become the next Apple or Uber – simply about creating rapid new growth by adopting and adapting DEM for you. At BearingPoint we offer a complete solution: consulting services, our award- winning DEM software Infonova R6, systems integration and managed services. Our solution easily integrates with legacy systems and processes, so you, your partners and other third parties can start using it straightaway. Digital Ecosystem Management - for you YOUR CUSTOMERS & MARKETS OTHER PEOPLE’S CUSTOMERS & MARKETS END USERS YOUR PRODUCTS, SERVICES & DATA OTHER PEOPLE’S PRODUCTS, SERVICES & DATA INNOVATIONS FROM DEVELOPERS DEM PLATFORM TENANTS SHARED TOOLS FOR MONETIZATION YOUR OPERATIONS $ $ $ DATADATA $ $ $ 09
  10. 10. Did you know: Modern software allows you to launch new services at low cost. Implementing DEM (stage one) Overlay a light-touch DEM platform to your existing IT to enable you to launch advanced new services: 10 YOUR CUSTOMERS & MARKETS YOUR PRODUCTS, SERVICES & DATA $ DATADATA $ DEM PLATFORM SHARED TOOLS FOR MONETIZATION YOUR OPERATIONS YOUR LEGACY IT
  11. 11. Did you know: You can reduce your overall cost structure by sharing your platform. YOUR CUSTOMERS & MARKETS YOUR PRODUCTS, SERVICES & DATA OTHER PEOPLE’S PRODUCTS, SERVICES & DATA $ DATADATA $ $ INNOVATIONS FROM DEVELOPERS DEM PLATFORM SHARED TOOLS FOR MONETIZATION YOUR OPERATIONS Implementing DEM (stage two) Enable other people to use your platform to create services for your customers (as Apple does with its App Store): 11 YOUR LEGACY IT
  12. 12. Did you know: You can generate new revenue streams by attracting tenants to your platform, or from being a tenant on someone else’s platform. INNOVATIONS FROM DEVELOPERS YOUR CUSTOMERS & MARKETS OTHER PEOPLE’S CUSTOMERS & MARKETS YOUR PRODUCTS, SERVICES & DATA OTHER PEOPLE’S PRODUCTS, SERVICES & DATA DEM PLATFORM TENANTS SHARED TOOLS FOR MONETIZATION YOUR OPERATIONS SOLUTIONS MARKETPLACE $ $ DATADATA $ $ Implementing DEM (stage three) Enable other people to run their business on your platform (as Amazon does): 12 YOUR LEGACY IT
  13. 13. Did you know: As a DEM platform owner, you can leverage data in the ecosystem to generate unique insights and gain a competitive edge. YOUR CUSTOMERS & MARKETS OTHER PEOPLE’S CUSTOMERS & MARKETS END USERS YOUR PRODUCTS, SERVICES & DATA OTHER PEOPLE’S PRODUCTS, SERVICES & DATA INNOVATIONS FROM DEVELOPERS DEM PLATFORM TENANTS SHARED TOOLS FOR MONETIZATION YOUR OPERATIONS SOLUTIONS MARKETPLACE $ $ $ $ $ $ DATADATA Implementing DEM (stage four) Manage and curate your ecosystem – capture and analyze data and optimize value for all participants: 13
  14. 14. We are implementing DEM platforms for clients in many sectors around the world. Here are some examples: Our current DEM projects Global Cloud Platform Hockey stick growth, bigger deals, major wins Satellite TV 3m customers supported by 18 staff for disruptive market entry Smart City Monetization of cross- sector IoT data Digital Media New commerce services Smart Grid Service Hub Dramatic expansion of service portfolio Goverment IT Significant cost savings for multiple departments B2B Servcies Consortium Common interface for 22 Operating Units Digital Home Platform Disruptive proposition; fast to market Business App Store Fully automated in 40 countries Telco Quad Play First to market – 75% cheaper, 50% cheaper – 2x revenue uplift 14
  15. 15. Our DEM solution gives you a new way to grow by: • Generate new revenues from new services • Dramatically lowering overall cost structure • Monetizing the innovations of many more third parties • Becoming more relevant to customers Benefits of our approach 15
  16. 16. Five ways to get started Executive education to gain a thorough understanding of how and why digital platforms are disrupting and dominating the business world today and changing the rules of strategy, and to explore new business models and growth strategies. Ninja IT to show how new classes of software, like BearingPoint’s Infonova R6, can be quickly deployed to enable commercial success, while leveraging legacy investments. Business modelling to build compelling and robust business cases demonstrating how to incorporate DEM into existing business models. Quick wins to solve short- term problems as well as longer term growth. Lean start-up to introduce DEM via a rapid test and iterate approach as a catalyst for wider digital transformation. 1 2 3 4 5 DEM is a new discipline that changes the rules of growth strategy. To fully transform and be fit for the future, companies must rethink their role in the world and the way they create and capture value. We recommend five ways to get started: 16
  17. 17. 17Digital Ecosystem Management For more information please go to www.bearingpoint.com/dem or contact: Angus Ward Partner, DEM Solutions angus.ward@bearingpoint.com Albert Einstein “We can’t solve our problems by using the same kind of thinking that created them.” Find out more Digital Ecosystem Management M & A Organic Growth

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