1) VisionMobile is a research firm that studies developer trends and provides data and reports to help clients understand developers. 2) They track developer attitudes, experiences, and megatrends through surveys of over 20,000 developers. This data is available through interactive reports and charts. 3) Andreas Constantinou is the founder and director of VisionMobile and discusses how internet companies like Apple, Tencent, and Automatic have built business models around attracting developers to create ecosystems and drive growth.

1. Copyright VisionMobile 2015
Updated: 25 October 2015
The Business Model Mechanics of Internet Disruptors
Andreas Constantinou | Founder & Director | VisionMobile
Digital Winners 2015

2. Copyright VisionMobile 2015
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We help the world understand developers. We help developers understand the world.

3. Copyright VisionMobile 2015
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Developer Experience Tracking
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Developer Megatrends H1 2015 © 2015 VisionMobile1
DEVELOPER MEGATRENDS H1 2015
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May 2015
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4. Copyright VisionMobile 2015
Knowledge. Passion. Innovation.
Andreas Constantinou
@andreascon
© 2015 VisionMobile. This work is licensed under a
Creative Commons Attribution-NonCommercial-NoDerivatives 4.0
International License.
Director & Founder, VisionMobile
Adjunct professor, Lund University

5. Copyright VisionMobile 2015
1 2
The business model mechanics of Internet disruptors
5
Ecosystem
business models
Asymmetric
business models

6. Copyright VisionMobile 2015
Ecosystem business models

7. Copyright VisionMobile 2015
Developers are conquering… the wrist
Apple Watch
4,000+ apps
Android Wear
4,000+ apps
Pebble
1,400+ apps
(excl. watch faces)
Source: Apple, Pebble, Android Wear Center, VisionMobile estimates (Q2 2015)7

8. Copyright VisionMobile 2015
Developers are conquering… the home
There are a lot of things that we’re not going to be able to
build. We want to work with developers who bring other
great ideas in the mix. […] The iPhone was great - it had 5
apps on it when it shipped. Now it has a million apps on it.
The opportunity in the home is going to be pretty close.Tony Fadell
ex-Apple, CEO Nest
https://www.youtube.com/watch?v=377oDvnrk5M&t=20m40s (edited for clarity)
a small selection of Smart Home platforms and APIs
8

9. Copyright VisionMobile 2015
Developers are conquering… the car
Aftermarket solutions for any car,
250+ OBD apps in Google Play,
growing support from big players
API available by invite only
40 new vehicle models in 2015
API publicly available (Nov 2014)
Apps can be published on Google Play (Mar 2015)
First models in 2015
9

10. Copyright VisionMobile 2015
Developers are conquering… the sky
There are a lot of industrial use cases that DJI can’t build
the software for, but developers can come and create
software for industrial companies. Developers are already
using our SDK to build apps to help control drones for
agriculture, construction, and mining.Michael Perry
DJI
http://techcrunch.com/2015/05/06/dji-drone-platform/
“Android for drones”
http://dronekit.io/
Raised $75M to build an industrial UAV
developer platform (May 2015)
http://dev.dji.com/
An operating system for
commercial drones
http://www.airware.com/developers
10

11. Copyright VisionMobile 2015
Modern competitive battles are won by attracting developers
Salesforce
1.4M registered devs in 2013
took #1 spot from Oracle in CRM
Apple iOS | Google Android
took #1 spot from Nokia and
Blackberry in (smart)phones
Under Armour
fashion brand uses
developers to engage
communities of athletes
Microsoft Windows
dominant OS in the 90s and 00s
because of superior developer strategy
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12. Copyright VisionMobile 2015
Developer-driven business models in 3 steps
12
Identify complements to your product in another market
Use developers to boost demand for these complements
Bundle complements with you core business
1
2
3

13. Copyright VisionMobile 2015
Apple ecosystem recipe
13

14. Copyright VisionMobile 2015
The mechanics of Apple iOS ecosystem
ecosystem around iOS platform is designed to drive hardware sales
iOS platform
developers
sw publishers
content retailers
content owners
internet players
brands
verticals
operators
subsidies
users and data plans
content, apps
and services
contributes App Store
to offer $$$ and
user engagement
premium
product experience
premium $$$
telcos reduce friction
for the iPhone business
accessory
manufacturers
complements,
revenue share
access to market
14
contribution
how value is captured

15. Copyright VisionMobile 2015
Apple iOS ecosystem
core business – consumer electronics
step how Apple implements it
identify complements in
another market
content and mobile apps
boost demand for
complements
create developer ecosystem and app store
bundle with core business iOS apps only available on iDevices
15

16. Copyright VisionMobile 2015
16
Tencent ecosystem recipe

17. Copyright VisionMobile 2015
The mechanics of WeChat ecosystem
convert user engagement into an e-commerce business
17
mobile operators
$$$
SMS
free
messaging
and calls
engagement
kills legacy SMS
business
user reach$$$
commoditization
how value is captured
e-commerce platform
virtualgoods
games
physicalgoods
transportation
payments
flights
marketing
music

18. Copyright VisionMobile 2015
Example: WeChat messaging app
core business - ecommerce
18
step how WeChat implements it
identify complements in
another market
free comms services
boost demand for
complements
free messaging, 3rd party service ecosystem
bundle with core business
messaging is bundled with Tencent payment
and ecommerce services

19. Copyright VisionMobile 2015
19
Automatic ecosystem recipe

20. Copyright VisionMobile 2015https://jawbone.com/marketplace20
Automatic: an OBD plug as an enabler for distribution
platform for insurance and car services
Raised $24M in Q2 2015 from USAA and CDK Global
http://www.reuters.com/article/2015/06/25/ca-automatic-labs-idUSnBw255375a+100+BSW20150625

21. Copyright VisionMobile 2015
Automatic: From a standalone product to an innovation ecosystem
connecting drivers to the rest of their life – 320 recipes on IFTTT
21
social
service
trip logging
location
smart home
wearables
works with
any car
through
OBD-II plug
offers selection
of own services
for smart car
experience

22. Copyright VisionMobile 2015
Example: Automatic + IFTTT
core business – automotive services
22
step how Automatic implements it
identify complements in
another market
Integrate the Automatic app with IFTTT
boost demand for
complements
Use the IFTTT innovator community to come
up with 100s of recipes
bundle with core business
Requires the Automatic OBD plug to work.
Automotive services are bundled with the
plug.

23. Copyright VisionMobile 2015
Diverse companies use developers to extend their business
23
value
creation
value
capture
value
delivery
developers
as extenders
to new use cases,
and partners into
new alliances
developers
as distribution
reaching new users &
new markets
developers
as customers
Source: VisionMobile

24. Copyright VisionMobile 2015
AsymmetricBusinessModels:surpriseyourcompetition

25. Copyright VisionMobile 2015
Asymmetric Business Models are based on the economics of complements
25
increases demand
for Google products
mobile networks handsets
net neutrality Android
on-line advertising
(90+ % of profits)
Closed “Open”
A product consumed
with the main product
A product where a business
generates profits
commoditise
commoditise
Adjacent products in mobile
Google core business
Adjacent product
Core product

26. Copyright VisionMobile 2015
Asymmetric biz models create & capture value across industries
softwarehandsets e-commerce advertising
Messenger
WhatsApp
26
telecoms
Google
Play
ad sales
Google Fiber
Google Fi
Android
handsets
Google
Wallet
ad sales
devices
App Store
iDevices

27. Copyright VisionMobile 2015
Asymmetric biz models create & capture value across industries
value capturevalue creation
softwarehandsets e-commerce telecoms
profit transfer
27
insurance
Amazon
app store
e-commerce
Kindle
Fire
employee
benefits plan
free life
insurance
as long as you
‘re a subscriber
free HR
software

28. Copyright VisionMobile 2015
Google is asymmetrically colonising industry after industry
28
ads
Search, AdWords
enterprise software
Google Apps
mobile
Android
PC
Chromebook
TV
Chromecast, YouTube
home appliances
Nest
travel
Google Maps, Google Flights
wearables
Android Wear
automotive
Android Auto

29. Copyright VisionMobile 2015
ABMs render industry boundaries meaningless
comms
media
e-commerce
advertising
software
handsets

30. Copyright VisionMobile 2015
Knowledge. Passion. Innovation.
Andreas Constantinou
Director & Founder
andreas@visionmobile.com
@andreascon
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