The document discusses the concept of a 'network society' and how it impacts business strategies in the digital era. It emphasizes the importance of adapting to new business model innovations and the shifting landscape driven by mobile, social, media, real-time, and machine webs. Successful companies must navigate these complexities to better meet customer demands and redefine their roles within emerging business networks.

1. Winning in
‘Network Society’
Professor N. Venkat Venkatraman
Boston University Ericsson Executive Program
@NVenkatraman August 2011

2. 1.Future State: The ‘Network Society’
2.Building Blocks: Evolution of the Web
3.Key to Winning: Strategy as Navigation

3. Why do successful
companies fail?

4. Core Competency

5. Competency Trap

6. “The difficulty lies not
so much in
developing new
ideas as in escaping
from old ones.”

7. Recent business model
innovations.....

8. They challenge
‘industry definitions’

9. Industry versus Network
• Supply of products and services • Demands of customer segments
• Competitors have ‘similar’ production • Competitors satisfy customer demands in
methods different ways
• Competitors are well-defined • Competitors straddle different ‘industries’
• Linear, vertical supply-chain • Complex, interconnected demand-chain
• Competitors are NOT partners • Competitors often ARE partners

10. Computer Industry (1980s)
Consulting
Applications
Tools
OS
Networking
Peripherals
Computers
Processors
Bill Gates Testimony

11. Computer ‘Industry’ (2002)
Consulting
Applications
Tools
OS
Networking
Peripherals
Computers
Processors
Bill Gates Testimony

12. Microsoft’s PC Ecosystem
Consulting
Applications
Tools
OS
Networking
Peripherals
Computers
Processors

13. Portfolio Portfolio Portfolio Portfolio
of of of of
Products Business Capabilities Relationships
What products & services How do we assemble the required
do we offer? capabilities to meet customer demands?
‘Inside-out’ ‘Outside-in’

14. Business Consumer
B2B B2C
Business
M2M
C2B C2C
Consumer

16. 1995

17. 1995 2011 2015

18. Compute Connect Cloud
Moore’s Law Metcalfe’s Law Bandwidth Law

19. Social
Web
Mobile Media
Web Web
Realtime Machine
Web Web

20. 1. Mobile Web

21. 5 billion mobile subscriptions
today

22. 5 billion
!
smartphones
by 2016

23. MOBILE WEB EVOLUTION
2005 2010 2015

24. +
Role of Apple Role of ‘Apps’

25. July 2011
Fifteen
X
July 2008

26. +
Role of Google Role of Android

33. Post-PC or PC+ World in 2012
>
500 million annual units 400+ million annual units

34. The Mobile Web....

35. So, How are companies
experimenting with mobile web?

46. So, What’s Your Strategy for shaping
“Mobile Web”?

47. 2. Social Web

49. +69%
DO YOU KNOW
FACEBOOK?
-9%

50. Total time spent > Google 70% Outside USA
50% log on everyday
750
X
~ 700 Million
>35% log on using mobile devices
& twice as active
http://blog.hiddenharmonies.org/wp-content/uploads/2011/01/facebook_december_2010.png

52. B2C B2C
FB
C2C
C2B
Web

54. Adapted from Janice Diner

57. The Social Web....
? X ? ?

58. So, What’s Your Social Web Innovation?

59. 3. Media Web

60. By 2015.................
We will reach 3 trillion internet video
minutes per month...........
One million internet video minute
every second!

62. 3 billion views every day
Average person 15 minutes per day
48 hours of video uploaded every minute
70% outside USA
94% of Adverting Age’s 100 advertisers run
campaigns on

63. Live Movies
Shows

64. WS ..
N VIE
ILLIO
NE B
ST O
F IR
48.5 Million Views in 30 days!

67. Facebook and the Media Web

71. The Media Web....

72. So, What’s Your Media Web Innovation?

73. 4. Real time Web
“Do you tweet?”

74. 200 million tweets a day
350 billion tweets delivered every day

75. 12.967,560 3,317,961
9,834,541 12,183,804

77. Tweeting and Retweeting about
the Japanese natural disaster

78. Realtime Web
50 + Million Subscribers

81. Google takes on Groupon

82. WEAVING THESE WEBS
TOGETHER...

83. Command Centers

84. To Become the “Largest
Participatory Brand in the World”

87. Websites are integrating Facebook,YouTube and Twitter
1
2
3

88. Zero Moment of Truth
First

90. The Realtime Web....

91. So, What’s Your Realtime Web Innovation?

92. 5. Machine Web
(Devices)

96. Automobile as a computer on wheels
connected to the network

97. GM OnStar:
Remote Door Unlock & Remote Start

99. GM OnStar:
Remote Vehicle Slowdown

101. MyFord Touch

105. ‘Automotive Ecosystems’

107. Mobile Social Realtime
Web Web Web
You & Your Customers
Machine Media
Web Web

108. Products
Services
NETWORK SOCIETY
Processes

109. Compute +
Connect +
Cloud
Moore’s Law Metcalfe’s Law Bandwidth Law

110. Your Distinction Your Distinction
“Building Blocks”
Today Tomorrow
Mobile Web
Social Web
Media Web
Real time Web
Machine (device) Web
Low - Medium - High Low - Medium - High

111. Transformation

112. YOUR Challenge ........

113. !"#$%&'()
.#*%2#3() !*+,#"-()
./"01&/()

114. 3
• Networks deliver distinct value
to specific customer segments
through a portfolio of capabilities
linked through relationships

115. 1
3
• What’s your role in emerging
network society?
• Orchestrator?
• Specialized Node?

116. 2
3
• Where’s your vantage point in the
emerging business networks?
• Customer-facing?
• Supporting?

117. Early stages for business
models in the digital,
network era
Ericsson’s role as a trusted business
advisor in helping customers win in
the network society

118. Orchestration
Customer
Support
Facing
Specialist Node

119. “The difficulty lies not
so much in
developing new
ideas as in escaping
from old ones.”

120. Thanks!
Good Luck!!
email:
venkat@bu.edu
twitter
@NVenkatraman