The document discusses a new approach to strategic innovation and ecosystem design centered around complex adaptive systems. It proposes designing health ecosystems for conditions like obesity and diabetes that integrate multiple stakeholders, from pharmaceutical companies to providers to technology firms. The goal is to create a self-organizing system of perpetual innovation capable of generating open-ended growth, where economic rewards go to those able to perform well as a unified whole at the system level. Management of such ecosystems requires a new logic based on the emergent and self-organizing properties of the internet, rather than centralized control.

1. Collaborative Design
Raising Cohesion from a Mob of Direction-less Parts
Talk Given at Cambridge University
a new grammar of strategy®

2. A New Model for Consumer-Directed Health
Ecosystems are the new basis of competition.
The companies that know how to position and manage brands
as platforms for self-organization can make
Google-like growth almost template driven.
Apple vs. Google vs. Facebook vs. Amazon
The Lines Continue to Blur
TECHNOLOGY!Updated December 25, 2012, 6:58 p.m. ET
2013 PREVIEW
www.bluespoonconsulting.com

3. Unique Methodology
- Blue Spoon Consulting
- Strategic innovation based on systems concepts (market-based solutions)
- Applying emerging fields of complex adaptive systems, ecosystem design
- On top of front-line experience in pharma marketing industry (IPG, OMC, IMS Health)
- Launched first patient compliance program in pharmaceutical marketing (Risperdal/JNJ)
- Managed positioning for regulatory approval of Lipitor
- Ecosystem-Centered Business Models
- Singer, John. "Framing Brand Management for Marketing Ecosystems." Journal of
Business Strategy. 27.5 (2006): 50-57.
- Singer, John. "Systems Marketing for the Information Age." MIT Sloan Management
Review. 48.1 (2006): 96-97.
-Singer, John. "Systems Marketing: A New Operating Model for Pharmaceutical
Marketing." Journal of Consumer Behaviour. 4.6 (2005): 480-495.
-Parise, Salvatore, Patricia Guinan, and Bruce Weinberg. "The Secrets of Marketing in a
Web 2.0 World." Wall Street Journal 15 Dec. 2008: B2.
-Singer, J.G. (2009). Ecosystem-centered business strategy. Proceedings of the 3rd IEEE
International Conference on Digital Ecosystems and Technologies (pp. 686-691). Istanbul:
IEEE. 0.1109/DEST.2009.5276680
www.bluespoonconsulting.com

4. Fragmentation Getting Worse, Not Better
TECHNOLOGY
BEGETS TECHNOLOGY
Future of
?
BEGETS TECHNOLOGY
BEGETS TECHNOLOGY New Era Complexity and
Information Glut
Old Era
BOUNDARIES DISSOLVING

5. A Marketing Challenge, Not a Technical One
A Strategy for Health Care Reform -- Toward
a Value-Based System
Michael E. Porter, Ph.D.N Engl J Med 2009; 361:109-112 “Despite many waves of debate and piecemeal reforms,
the U.S. health care system remains largely the same as it
was decades ago. We have seen no convincing approach
to changing the unsustainable trajectory of the system,
much less to offsetting the rising costs of an aging
population and new medical advances…
…The big question is whether we can move beyond a
reactive and piecemeal approach to a true national health
care strategy centered on value. This undertaking is
complex, but the only real solution is to align everyone in
the system around a common goal: doing what's right for
patients.”

6. Universal Themes in Western, Emerging Markets
Big Drug Makers Struggle to Grow in Emerging Markets
HEALTH INDUSTRY!August 19, 2012, 9:53 p.m. ET
By JONATHAN D. ROCKOFF
Big drug makers have been reassuring investors: Don't worry
about top-selling medicines going off patent. Growth in
developing markets, like China and India, will help replace the
revenue lost.
Turns out there is a different message emerging within these
companies: Not so fast.
Slowing economic growth, intense local competition and
governments' efforts to control health-care costs and bolster
homegrown firms have damped the prospects for the top drug
makers in so-called emerging markets…

7. Global Industry Need: A New Concept of Value
“Philippines Seeks Second Round
of 50 Percent Drug Price Cuts”
“China plans 40% price cuts
on key drugs”
“Obama seeks $135B
drug price cuts over 10 years”
“Shock French price cuts
for effective drugs”
“Japan’s drug pricing
reform will trigger industry
reorganization”
“Brazil pushes Merck,
Pfizer to cut drug costs”
“Greek drug prices cut by
an average 21.5 percent”
“Germany cuts drug industry’s
pricing power”
“New Indian drug price cuts
of 10% to 70%”

8. Ecosystem Design and Management:
Strategy That Raises Cohesion from Direction-less Parts

9. Opportunity Space from Market Integration
Conventional View of Market Strategy System-Level View
Platform Product Market Solution Shared
Marketspace
Partner Market Market
Provider Platform
Partner
Partner Market
“Isolation” “Ecosystem”

10. ‘Autocatalytic Sets’ (Rough Mixes)
Disclosure: Blue Spoon Consulting does not currently have a financial relationship
with any company mentioned. Brands are used for illustrative purposes only.

11. New Value Propositions (and Sustainable Growth Models)
Part Re-positioned in New System
Part for Consumer-Directed Health
VS.
a new grammar of strategy®

12. Concept Development: Four System Visions
The
Higher Systemic S2 S4
Logic S1 S3
The The
Conceptual Conceptual
Past Future
The
Lower Systemic
Logic

13. A Self-Organizing System of Health (Obesity/Diabetes):
Raising Cohesion from a Mob of Directionless Parts
Pfizer
perpetual innovation aligned within
Kaiser ecosystem boundaries
Verizon
Microsoft
World Health Organization Design Management Team:
Shared Vision, Planning,
Collaborative and Implementation Strategy
International Council for Science
Commerce Network
< 25 users
Steady Exchange of Information
A Closed Circuit of
Self-Making and Self-Control
Capable of Generating
Open-Ended Growth.
Joint Data Network
< 500 users
Information Ecosystem Design
Timeliness: & Coordination
Months
Weeks
Days
Information &
Sensor Network
> 1000 users Ecosystem Management
& Marketspace Awareness
Keystone Players
Niche Players (E.g., Amazon.com, McKesson, Yahoo, Health Delivery Systems, Application Developer Community)
Institutional Components That Set System-Level Rules of Play: Government, Public Health, Science Mediators

14. Regionalized Market Approach:
Design and Deploy Multiple Health Ecosystems for Diabetes
Customized for Regions, Integrated Delivery Networks, Centers of Excellence, Accounts
Age-adjusted Percentage of U.S. Adults Who Had Diagnosed Diabetes
2007
Source: CDC’s Division of Diabetes Translation.
National Diabetes Surveillance System (available at: http://www.cdc.gov/diabetes/statistics)

15. A Globally Superior Standard
Economic Rewards Go to Those Able to Play
the System as a Unified Whole
System-Level Performance Measures
- Health outcomes (population level)
- Resource utilization (direct and indirect)
- Economic performance (state and country)
- Market dynamics (ecosystem components)
- Emergence (innovation and ideas)

16. A New Way of Steering: The Logic of the Internet
There is No Central “I” to
Appeal to: No Beginning,
No Center, No End…
-Strategy and Management
at a System Level. The future of
social system design is in devising
reliable processes to birth
self-organizing structures.
-Sustainable Growth Models. Keep
adding players to the system -- the
more they are connected, the more
valuable the ecosystem becomes.
-Don!t Aim for Optimization.
Aim for good enough. Social systems
are in a constant state of flux and
reinvention.