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Becoming platforms: Harnessing the power of communities, beyond crowd-sourcing and openness. This lecture was given on request to the Chamber of Commerce of Forlì-Cesena. The original topic was "crowdsourcing" but it's now pretty obvious that there's no such thing as crowdsourcing anymore. Indeed crowdsourcing is still an old-fashioned way of looking at peers and producers (exploitation): the switch that all businesses and organizations must undertake now is that towards 100% collaborative organization, which relates with peers and users in a co-creative way, becoming an "enabler". For those interested you should look into this post http://bit.ly/PostCapitalismAndPlatforms
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Becoming Platforms Harnessing the power of communities, beyond crowd-sourcing and openness. Percorsi Erratici, Simone Cicero - 17/3/2014 Forlì
meedabyte.com workshops & consulting
@meedabyte
me
Crowdsourcing?
Web 2.0 = Web as Platform
CC Credits http://www.flickr.com/photos/50698336@N00/4074747593
Bidirectional Interactive Personal
"the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call. This can take the form of peer-production (when the job is performed collaboratively), but is also often undertaken by sole individuals."
CC Credits http://www.flickr.com/photos/68751915@N05/6848823919
κῦδος
“Software is eating
the world”
Marc Andreessen
Componentization
* breaking down into cost competitive and interchangeable pieces.
Illustration: Simon Wardley – blog.gardeviance.org
Increasing competition in demand and supply
"It takes all the running you can do, to keep in the same place.“
For an evolutionary system, continuing development is needed just in order to maintain its fitness relative to the systems it is co-evolving with.
Red Queen Effect
Illustration: Simon Wardley – blog.gardeviance.org
complexity
CC Credits http://www.flickr.com/photos/usfsregion5/9423252987
Pioneers
Poorly understood markets, gaps to define, constantly undergoing changing dynamics, small numbers. Want to create the future.
Startups
Settlers
Increasing demand, growing market opportunities, mature products, growing revenues.
Platforms
Town Planners
Standardized demands, growing competition. Essential cost of doing Business. Self disruptions while optimize for operations.
Ecosystems & Industrialization
CC Credits http://www.flickr.com/photos/gregloby/2961935325
The ILC Cycle
Illustration: Simon Wardley – blog.gardeviance.org
Innovate Leverage
Commoditize (repeat)
Facebook Doesn’t Want To Be Cool, It Wants To Be Electricity
CC Credits http://www.flickr.com/photos/24095119@N06/2324609725/
Illustration: Simon Wardley – blog.gardeviance.org
Startups Platforms
Ecosystems
interfaces CC Credits http://www.flickr.com/photos/39747297@N05/5229733647
• above the interface*: higher value systems (use case innovation) • under the interface*: process maturity, elastic provisioning, measuring (competition)
Valu
e Ch
ain
inno
vatio
ns
Microduino (microsize)
Flutter (long range)
Smartduino (modularity)
Access + Componentization +
Collaboration = highest disruption
rate ever
competition = coevolution
Fortune 500 companies life expectancy in 2013 is 15 years.
Was 70 in 1930.
Long tail = Diversification Diversification = Niches
Niches = Economies of Scope
“Economies of scope refers to lowering the average cost for a firm in producing two or more products”
“Toolkits for user innovation allow producers to
abandon attempts to understand user needs in favor of transferring it to users along
with an appropriate toolkit". Eric Von Hippel
“Unleash your creativity by customizing select products to create exactly what you want with eBay Exact. Simply select a product, choose a design, and add your own personal flair to create a unique item for yourself or someone special”
"Once you finish assembling it, you’re emotionally attached to that. You’ve basically gone through the process to build your own phone”
Moto X head product manager - Lior Ron
1 BILLION
Airbnb.com
29/04/2014
2008
2010
2012
Products
tools
Facilitated Contexts/Channels
Manufacturing
ARA
https://www.youtube.com/watch?v=iLnM6j5-fXg#t=248
openness as a resilience strategy
The LEGOfication of everything
The LEGOfication
of human?
“…all of these amazing digital technologies are coming together to create a world of mounting performance pressure.”
#occupygezipark
David De Ugarte, Las Indias
“In a time when technologies have drastically reduced the efficient scale of production, capital, instead of adapting itself to this reality, has fled towards the opacity of securitization and large-scale short selling. “
Paul Polman, Unilever CEO
“companies are waking up and realising that they can be inside the tent, shaping solutions, future-proofing their businesses”
New ways to business
multi–sided & multi
stakeholder business
It’s a (co) Design challenge
contexts motivations
vaue creation
Community (relations)
Centric
User (gap)
Centric
Platforms target P2P Communities: value creation comes from relations, transactions and exchanges
“Our job is to pick the best path to support that community. I can give you many examples where our gut told us one thing and the community pulled us in another, better direction.” Nathan Seidle, Founder of Sparkfun
Platforms
The right approach: methodologically focus on
identifying value exchanges and motivations
Design Thinking &
Platform Design
Understand the basic roles in the Platform
Consumers Producers Stakeholders (platform)
Val
ue
Ch
ain
Explore the core value creation relation
Consumers Producers Stakeholders (platform)
Val
ue
Ch
ain
Consider that additional roles may appear
Facilitators Curators Information Brokers Enabling actors
Val
ue
Ch
ain
peers
Peer Relations live through channels
Channels must be implemented to facilitate emerging value
exchanges.
In platforms, currencies such as trust and reputation may be
required to facilitate transactions and should be clearly valued.
The Platform Design Toolkit
…In the making
To be used:
• Design with platforms in mind • Identify value creation contexts
• Identify peer segments and actors • Identify opportunities (emerging transact.)
• Create new channels • Identify community support services
• Identify exchange currencies
Rel. in June 2013 as an iteration of the Business Model Canvas Key community Feedbacks: - doesn’t show logical value flows - BM Canvas structure not good for non linear business - doesn’t model platform lifecycle - doesn’t help to hack growth
Now working on a “Platform Design Toolkit”
(more than a single canvas)
The Platform Motivations Matrix (v 0.1)
The Platform Design Canvas (v 0.2)
Mostly Social /
Community dynamics (shared value)
Mostly p2p dynamics (exhanged value)
What’s the intrinsic motivation to participate? (problem solved for peer segments)
What are the key stakeholders contributing to the platform operation and mission?
What peer segments are present in the ecosystem? They could be producers, consumers or prosumers playing both the roles
What are the recurring transactions between the peer segments composing the ecosystem?
Through which channels do the peer segments get in contact and execute transactions?
How is the value exchanged and in what forms?
What are the key components of the platform? (resources, formats, infrastructures)
What services are available for the community to support value creation?
How is the value extracted and in what forms?
iOS
App store
Developers
Indie studios
Dev houses
App purchase
App review
App recommen.
App store
IDE
App checking
Promotions
Apple
AD network
Payment GW
New Use Cases
Cash flows for
devs
Brand visibility
Ad interaction
Users
Tech Firms
SMBs
WWDC
30% fee on transactions
IDE access fee
Apps purchase / Money Reviews / Cred
Wordpress
Developers
Bloggers
Agencies
Wp.org
Wordpress SW
Wordcamp
Runnnig Wp.org
Wordpress
New Use Cases
Brand visibility
Starting a blog
WP.com upgrades / Money Reviews / Cred
Tech Firms
Premium Theme
purchhase
wp.com
Purchases on
Third party shops
Upgrading a blog
Wp.com
Third Party
marketplaces
Personalized L&F Third party
stores/ecosystem
Browser
providers
Developers
WP backends
LAMP Stack
WP.com Theme upgrades / Money Free Code
Fees for services
thanks! Simone Cicero
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