The document discusses the concept of ecosystem economics and how technological revolutions have occurred in stages throughout history. It presents Carlotta Perez's theory of disruptive technology and adoption cycles. It proposes three versions of how technology platform companies could transform different industries. The document advocates for the "David and Goliath" model of digital enablers partnering with large companies, and presents Ariadne Capital as an investment platform to fund such endeavors across various target ecosystems like smart home, transportation, and financial services. It frames the smart home as an ecosystem and discusses standards and data ownership. Overall the document promotes the idea that innovation depends more on economics than technology alone.

1. @EnCountry @juliemariemeyer Channel ECTV julie@ariadnecapital.com
How Ecosystem Economics®
Predicts the Winners

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The Face of Every Entrepreneur
They just may not show it to you!

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Two Good Reasons
• They see the inevitable and advance the Future
• They are willing to live abnormal lives

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Capital Follows Ideas Always Has, Always Will

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Carlotta Perez’s Theory of Disruptive Technology and
Adoption
The Empire Strikes Back

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Economic growth since the end of the 18th Century
5 Distinct Stages, associated with 5 successive Technological Revolutions
Five Successive Technological Revolutions, 1770’s to 2000’s
Technological
Revolution
Popular Name for
the Period
Core Country or Countries Big-bang initiating the revolution Year
FIRST The Industrial Revolution Britain Arkwright’s mill opens in Cromford 1771
SECOND
Age of Steam
and Railways
Britain (spreading to
Continent and USA)
Test of the Rocket steam
engine for the Liverpool
- Manchester railway
1829
THIRD
Age of Steel, Electricity
and Heavy Engineering
US and Germany forging ahead
and overtaking Britain
The Carnegie Bessemer stell plant
opens in Pittsburgh, Pennsylvania
1875
FOURTH
Age of Oil, the
Automobile and Mass
Production
USA (with Germany at fist vying
for world leadership), later
spreading to Europe
First Model-T comes out of the
Ford plant in Detroit, Michigan
1908
FIFTH
Age of Information and
Telecommunications
USA (spreading to
Europeand Asia)
The Intel microprocessor is
announced in Santa Clara, CA
1971

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Lifecycle of technological revolution
Gestation
period
Big-bang
Paradigm
configuration
Introduction of successive new products,
industries and technology systems, plus
modernisation of existing ones
Constriction
of potential
Time
Around half a century
Degreeoftechnologymaturity
andmarketsaturation
Period one Period two Period three Period four
Early new products
and industries.
Explosive growth and
fast innovations
Full constellation
(new industries,
technology systems
and infrastructure)
Full expansion
of innovation and
market potential
Last new products
and industries.
Earlier ones
approaching
maturity and
market saturation

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PALO ALTO

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Ecosystem Economics ®
Three versions of the future
The technology platform companies take
over every industry
Music & Telecoms Advertising Books
First Version of the
Future

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Second Version of the
Future
Their baby brothers do more or less the
same
Personal Loans Taxis Travel
Ecosystem Economics ®
Three versions of the future

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Ecosystem Economics ®
Three versions of the future
DAVID GOLIATH
David and Goliath dance
David shows technology enables the existence of an ecosystem through data and
business model
Goliath brings customers, distribution, scale and reach

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Every Start-Up (Digital Enabler) Has a Customer Acquisition
Problem
Driver
(Consumer
Insights /
Behaviour)
Car
(Momentum
/ Monetisation)
(Smart) Highway

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APPLICATIONS
“Digital Enablers”
Digital Davids enabled
by
Goliaths + EC Global
Goliaths
INFRASTRUCTURE
High Regulation, Low Margin, Others using
your investments without contribution
PLATFORMS
(Google, Facebook, Apple, Amazon)
Make Investments
in assets (Costs)
Take advantage
of Revenue (Profits)
The Platforms are Making All the Money
Ecosystem Economics ®

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The David
& Goliath™
Model

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Our Framework: David & Goliath
Ecosystem Economics ®
DigitalEnabler
Strategic
Value
Financial Value
Network Effects
Vulnerability
Distribution
Ecosystem Economics™
shifting industry players
Consumer
Data sets become prevalent
Network
Orientation at heart of the
consumer insight
When partnering with,
1) Brings new digital
revenues
2) Brings lean operating
system
When acquired,
1) Can become
2) Can reinforce or gain
a position as industry
architect
Renting
Not Licensing
Operating system
to the industry

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Accor Acquisition of One Fine Stay for $245 Million

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Ecosystem Economics ® is the ROW Play for the Digital Age

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EntrepreneurCountry & Ariadne Capital Build Ecosystems
1. Smart Home
2. Travel, Leisure, Media, Entertainment
3. Transportation, Logistics, Urban Design & Mobility
4. Insurance, Fund Management, Financial Services
5. Energy, Oil & Power
6. Health, Lifestyle, Pharma, Personal Care Products
7. Professional Development, Publishing, HR, Learning, Education
8. Space, Satellite, Communications
9. Content, Commerce

19. Senior Advisors
Melanie Meyer
(Others can be disclosed)
Greger Hamilton
Helen Child
Kevin Telford
(Can be disclosed)
Nadeem Sheikh
Kevin TelfordContent & Commerce
Energy
Health & Lifestyle
Products
Financial Services
Education & HR
Immediate Investment
opportunities of Davids
Goliaths
Target Ecosystems: Network of Goliaths, Advisors and immediate
investment opportunities – (I)
1
2
3
4
5

20. Clive Jacobs
Ian Findlay
Jimmy Nguyen
Travis Baxter
Ilona Simpson
David Scowsill
Candace Johnson
Carolina Costa
Maria Schiavo
Sohail Quadri
Jamie Finn
Richard Denny
Smart Home
Space & Communications
Media & Entertainment
Travel , Transportation, Logistics
& Mobility
6
7
8
9
Target Ecosystems: Network of Goliaths, Advisors and immediate
investment opportunities – (II)
Senior Advisors
Immediate Investment
opportunities of Davids
Goliaths

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Ariadne Capital Ltd
(An Investment Platform)
The Ariadne Capital and EntrepreneurCountry Global Model
Ariadne
Capital
(fund + corporate
finance)
Investment
Platform
Entrepreneur
Country Global
Operating
Platform
AppsInvest in Digital Enablers
New design for innovation & wealth
creation in the App Economy
Guide / advise non-tech
traditional large enterprisesPlatforms

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Digital Enablers Transform the Operating Models of Goliaths

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Digital Enablers Transform the Operating
Models of Goliaths
• Quill Enables Retailers to:
– Turn content into a Variable Cost
– Make Content an Asset
– Develop a Digital P&L
– Understand their Unit Economics
– Shift from Selling Product to Building Value for Users
– Increase their rankings significantly in Search

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Engaging “Natural Allies” with incentives
Ecosystem Economics ®
You
Natural
Ally 1
Natural
Ally 2
Natural
Ally 3
You
Natural
Ally 1
Natural
Ally 2
Natural
Ally 3
You
100%

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The winners are those companies who organise the
economics of the ecosystem

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How Do Ecosystems Expand?
Tesla gives a good example of how to create standards
Elon Musk blog:
Yesterday, there was a wall of Tesla patents in the lobby of our Palo Alto headquarters. That is no
longer the case. They have been removed, in the spirit of the open source movement, for the
advancement of electric vehicle technology….
We believe that Tesla, other companies making electric cars, and the world would all benefit from a
common, rapidly-evolving technology platform.
Technology leadership is not defined by patents, which history has repeatedly shown to be small
protection indeed against a determined competitor, but rather by the ability of a company to attract
and motivate the world’s most talented engineers.
We believe that applying the open source philosophy to our patents will strengthen rather than
diminish Tesla’s position in this regard.

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The Smart Home is an Ecosystem
The smart home, for better or worse, is an ecosystem.
And so far, most companies are trying to make it a
platform.

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Smart Home Ecosystem

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The SmartHome as Ecosystem
• Smart Home as Ecosystem
– Goliaths That Sell into the Home Today include
• Utilities Firms, Retailers, White Goods Providers,
Entertainment Firms, Property Companies,
– How Do They Collaborate?
– What are the Standards?
– Who Organises the Economics?
– Who Do Individuals Trust to Share Their Data With?

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The SmartHome Ecosystem powered by EntrepreneurCountry
will facilitate the Market, Adoption and Network Effects

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Creative Destruction
defines the problem …
… Ecosystem Economics™
provides the solution.

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Innovation is about Economics not Technology
Otherwise we’d all be flying the Concorde but we’re packed into Jumbo Jets

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Shape your Industry by changing your business model
Step 1 Step 2 Step 3
Business model/Transaction
Micro
Industry > Ecosystem
Distribution > Platform
With Network Effects
Goliath/
David
Partnership
Macro
Building Net
New Revenue
Everything is Network-based, not linear • Everything is Multi-stakeholder
Company’s ability to shape
industry dynamics
Company valuation
increases
Company market
power increases

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Individuals should own their own data
“We believe that consumers are going to take ownership of information about
themselves and demand value in exchange for it. As a result, negotiating with
consumers for information will become costly and complex. That process has
already begun to unfold, but it could take several years to play out across broad
segments of customers and products.” – John Hagel
https://hbr.org/1997/01/the-coming-battle-for-customer-information A version of
this article appeared in the January–February 1997 issue of Harvard Business
Review. John Hagel III is Founder and Chairman of the Deloitte Center for the
Edge, a research centre based in Silicon Valley.

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Imagine a world where you couldn’t get:
Now imagine a world where everything you do is part of your aggregated
personal transactional ability.
a credit card on the housing
ladder
Where you had no assets

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EntrepreneurCountry Citizenship
register.entrepreneurcountryglobal.com

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How Does a Goliath Get to the Future?
• Understand Future Demand
• Get close / into the minds of those who live in the Future
• Work – out /Build Muscle, Capacity, Fitness
• Survival of the Fittest
• Proactively prescribe Economics to Ecosystems
• The winners are those who create the economics of the ecosystems
in which they operate

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EntrepreneurCountry Global’s Value Proposition to Goliaths
• Provide Ecosystems in which
• Their employees can become citizens / active agents
• They can discover Insights from entrepreneurs & Digital Enablers, and
capitalise on an early opportunity to be a smart highway for these digital
cars
• They can build digital revenue streams in an iterative, safe manner
• Their Natural Allies are present seeking partnerships, knowledge share
and market leadership

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Don't go to Palo Alto

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Go to
www.entrepreneurcountry.com