This presentation describes the simplification process of an ecosystem and has relevance to manufacturing firms with complicated supply chains where the product provided is installed into an end user's operations.

1. 5th International Conference on Business Servitization, Granada 2016 || West, Kuenzli, Kujawski, Ouertani and Ganz
The simplification of ecosystems to
support management decision making
5th International Conference on Business Servitization,
Granada 2016
24 November 2016
Dr Shaun West, Dominik Kujawski, Michelle Kuenzli,
Dr Zied M. Ouertani, Dr Christopher Ganz
goo.gl/yPAq9u

2. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Introduction
This study uses three cases to help us understand ecosystems
To describe how the value exchanges supports decision making
The simplification process of
an ecosystem has relevance
to manufacturing firms with
complicated supply chains
where the product provided
is installed into an end user’s
operations
To describe value flow between key player in a digital ecosystems
Purpose of this presentation
Ecosystems of industrial manufacturers are complex – how can
they be simplified to support decision making?
Problem

3. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Background
Manufacturer’s supply chain as an ideal case
- Simple to understand
- Easy to make decisions
- Common in the literature
- Not the case with many large manufacturers
- IOT integration is not considered
The relationships were very simple however it is not reality
Supplier Manufactuer Installer End-user
Service

4. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Background
A real example of a manufacturer’s supply chain for both product and service activities
- Complex to understand
- Difficult to make decisions
- Present in more modern literature
- Typically the case with many large manufacturers
- IOT integration is considered
Core Company
Community
Customer
Supplier
Business Ecosystem
Extended Business
Core Business
Projects/ Systems
Channel 2
Products
Unions
Sub-
Supplier B
Supplier B
Competitors
Regulators
Customer-
Partner C
Customer-
Partner B
Customer-
Partner A
Customer D
Customer C
Customer A
Customer B
Services
Channel 3
Consultant
Sub-Supplier C
Sub-Supplier A
Channel 1
Supplier A
Services
Monetary
Information
Goods
How can a manager understand this spaghetti of interactions

5. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Background
Why is the understanding of ecosystems so important?
- Focusing on the customer to define the problem
- Understanding value exchanges between actors
- Value creation/capture by each actor
- Making decisions that provide multiple outcomes
Core Company
Community
Customer
Supplier
Business Ecosystem
Extended Business
Core Business
Projects/ Systems
Channel 2
Products
Unions
Sub-
Supplier B
Supplier B
Competitors
Regulators
Customer-
Partner C
Customer-
Partner B
Customer-
Partner A
Customer D
Customer C
Customer A
Customer B
Services
Channel 3
Consultant
Sub-Supplier C
Sub-Supplier A
Channel 1
Supplier A
Services
Monetary
Information
Goods
Understanding ecosystems is about finding the actors and their relationships

6. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Methodology
Service design thinking tools provided the basis for the analysis
- Identification of three disruptive IOT-based entrants
- Publicly available information as an input
- Analysis using based on
- ecosystems, value exchange between actors,
personas, empathy maps, customer journey
mapping, situation analysis, customer value
proposition and iterations
- Cross case analysis
Understanding ecosystems is about finding the actors and their relationships
goo.gl/DqbPLP

7. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Overview of cases
Three cases were used to compare traditional and “new” ecosystems
Uber will be used in the analysis as an example
Uber (B2C and B2B)
Disruptive entrant
Largest taxi firm, without any taxis
Feedback/collaboration between ecosystem actors
Airbnb (B2C and B2B)
Disruptive entrant
Largest hotel firm, without any hotels
Feedback/collaboration between ecosystem actors
Amazon (B2C and B2B)
Disruptive entrant
Largest book store, now selling many other goods
Feedback/collaboration between ecosystem actors

8. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Results and analysis
Ecosystem mapping to identify the actors in the ecosystem
Uber controls and manages the system – it is dominant in this ecosystem
Actor Outcomes
Uber To integrate the system
Customer To travel safely from A to B with known costs
and time
Driver1 To have a regular income with known hours
Driver2 To be transport fee-paying customers
City To maintain taxi licence income
To have an integrated transport system
Insurance firm To insure drivers with known risk
Bank To lend money with known risks
To lease cars to drivers
Car dealer To sell and service cars
Customer
Uber
Driver2Insurance
firm
City
Car dealer
Banks
Driver1
Firm
Customers
Suppliers
Community
Uber is the focus in the ecosystem

9. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Results and analysis
Empathy maps to understand the behaviours of the key actors
Empathy maps provided insights in to what was important for the key actors
Example here is the customer
- Must create for a key actors
- Empathy mapped need for each situation
- Extended to personas to provide detailed insights
- Pains/gains help to understand customer needs
- It is then possible to quantify some pains/gains
It is cheaper
but is it safe?
I have no money –
can I use the card?
Clear communication
Easy to use
I do not like when
unexpected it is late
Has a car but
still uses taxi
Price is
important
”I will take the bus” but if
raining takes a taxi
When I have to
pay in cash

10. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Results and analysis
Situation analysis is import as it describes the contextual issues for the individual actor
Example here is the customer
- Confirm the context and the job-to-be-done
– do not assume either…
- This requires broad understanding of situation and
the customer jobs
- The empathy maps underpins the intangible aspects
- Different situations require different solutions
(note: how many end customers should need to be
analysed)
Jobs are not just about function – context is important to understand and focus on the outcome
I have time and
the sun is shining:
I will walk
It is raining
and I am late:
I call Uber
It is raining but I
am on time:
I take the bus
We are a group:
I will call Uber it
will be cheaper
I have time:
I will walk
Job-to-be-done: I need to go from the
office to my home

11. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Traditional journey: only partial fulfilment of outcomes
Results and analysis
Door-to-door customer journey showing outcomes for each step
Example here is the customer
- Journey must match the situation
- Journey starts before and ends after the taxi ride
- Outcomes at each point measured
Each customer journey is a slice through the ecosystem
Decide on a taxi
- How long to wait?
- What is the cost?
Book a taxi
- Driver safety
- Driver rating
- Collection point
- When does the
taxi arrive?
Taxi arrives at
pick up point
- Where is it?
- Has it arrived?
Travel in taxi to
destination
- Can I tell others?
- When do I arrive?
Arrive
- Am I at the right
place?
- Is the fee as
expected?
Pay for taxi
- Payment
- Record of taxi
- Feedback
management
It is raining
and I am late:
I call Uber
We are a group:
I will call Uber it
will be cheaper

12. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Results and analysis
CVP problem statement captures the customers problem and describes the solution
Lessons
- Focus on customer’s problem
(situation and job-to-be-done)
- More than one solution per problem
- Actors are both customers and suppliers
(some have both roles)
- Lean tool SIPOC may provide additional analysis
In essence the CVP says ”what’s in it for me?” and then shows how it is delivered
Problem description
- context specific
Solution descriptions

13. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Findings
Cross case analysis and the relevance for industrial leaders
Issue Uber Airbnb Amazon For industry leaders
Ecosystem Acts as the system integrator
and manages information
flows
Acts as the system integrator
and manages information
flows
Acts as the system integrator
and manages information
flows
Identify all actors and map
exchanges
Empathy
maps/personas
Understands the actors and
their outcomes
Understands the actors and
their outcomes
Use data to provide
additional offers
Critical to understanding the
problem and building solutions
Situation analysis Different solutions for
different situations
Different solutions for
different situations
Limited to value of time
(eg, rapid delivery)
Different situations require
different solutions
Customer
journeys
End-to-end customer
journey, relationship
maintained
End to end and support
value in the location,
relationship maintained
From buy to delivery,
relationship maintained
Consider wider definition of
customer journey
Customer value
proposition
Understand the CVP for all
actors
Understand the CVP for all
actors
Understand the CVP for all
actors
Must understand value
creation for all actors
When building IOT solutions industrial players must consider the customers context

14. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Findings
The analysis identified a number of differences compared with traditional supply chains
Ecosystems
- The new entrants understood the ecosystem, the
actors and the value exchanges
Actors
- At each step consider ”what’s in it for me”
Value creation and capture
- Often bypasses the traditional ecosystems actors
Service design
- Put the customer in the centre and the re-
engineering the process to maximize the value
Digitization and information
- This supported the decision making process and the
customer value creation
To make better decisions the business must understand the ecosystem and control information flows
Core Company
Community
Customer
Supplier
Business Ecosystem
Extended Business
Core Business
Projects/ Systems
Channel 2
Products
Unions
Sub-
Supplier B
Supplier B
Competitors
Regulators
Customer-
Partner C
Customer-
Partner B
Customer-
Partner A
Customer D
Customer C
Customer A
Customer B
Services
Channel 3
Consultant
Sub-Supplier C
Sub-Supplier A
Channel 1
Supplier A
Services
Monetary
Information
Goods

15. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Findings
A five step model with iterations was build from the service design toolbox
The analysis takes time however it builds a detailed understanding of the problem and solutions
Ecosystem
visualization
- Analysis to
identify key actors
Empathy maps /
Personas
- Describe
relationships
between the
actors
Situational
analysis
- Understand
value in the
ecosystem
Customer
journey
- Understand
value at each
stage of the
journey
Customer Value
Proposition
- Describe value
and its delivery
1
(per business model?)
1 per actor
(per situation?)
For each identified
customer
For every situation
For every situation
For every transaction

16. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Conclusions
The business must understand the ecosystem actors and the value exchange
The IOT elements are already
available today and
companies were using them
to deliver services – a new
mind set is needed to benefit
from the opportunities it
offers
The traditional value chain is no longer valid
Value flow between actors in the ecosystem need to be determined
Situational analysis is important for value creation in the ecosystem
Customer journey supports understanding customer value

17. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Recommendations
Further research and application of the process should be undertaken
More research is needed in
this area if industrial firms
are to take advantage of
their ecosystems in way like
Uber have done
How to use visuals (or other tools) to improve understanding
Ways to model ecosystems (natural systems?)
The use of the lean tool ’SIPOC’ should be investigated
The lessons need to be translated to managers can use them

18. 5th International Conference on Business Servitization, Granada 2016 | West, Kuenzli, Kujawski, Ouertani and Ganz
Thanks for your time!
Slides on www.slideshare.net/ShaunWest