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Changing Approaches to Strategy --- Community Functionality

GBN Australia

Stuart Henshall

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A strategic conversation around inventing new marketspace

• Technology is creating a new virtual continent. No longer limited by physical space potentially an unlimited number new business models may reside here.

• New networks are emerging. As learning accelerates whole systems are changing.

• New strategies and approaches to markets for organisations are required

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Will approaches to market change?

• C2C / P2P• Real-time• Privacy / Permission• Value Optimization• Operational Efficiency

Customers

Product

Operational

Community

Market

Connectivity

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Many to OneC2B

Many to ManyC2C

One to Many B2C

End to EndB2B

Supply DrivenOld World

Customer - Led New World

2000 2010?

Napster consumers are learning faster than the industry

Are new players from a customer-led world likely to reinvent your market?

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“Functionalities” the DNA for tomorrow’s strategist!

• Functionalities are the DNA which enable the business to interact with its customers

• Just as the different genomes contribute to success or failure of an animal species so it is with these business models – only life and death is faster!

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Functionalities around the online auction market

Categor-ization

Feedback

BrowsingReporting

RealtimeAuctions

Forums

Search

Regis-tration

Pass-words

SafeHarbor

Person-alization

PrivacyPolicy

Appraisals

AuctionNews

Linksall

Auctions

Counters

RatesCompar-

isons

AnywhereMail

Contact

E-Post-cards

www.auctionwatch.com

www.ebay.com

• Ebay pioneers the market.

• Massive number of new entrants

• Auctionwatch links auctions

• Simplifies search and find function

PaymentSystems

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Functionalities for emerging marketspace

• Deconstruct any internet business into its component functionalities and show how the “genes” combine to create the business and thus its value.

• Competitors with more of the right genes will ultimately destroy businesses with inferior DNA. Possible clues for the investor and manager.

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New strategy questions? - asked about community

• What is your community network proposition for value creation? What holds it together?

• Which new start-up or functionality do you admire the most? Why?

• What is the unique combinatorial that makes you different? What is unique about this market?

• How do you facilitate learning and knowledge creation?• How do you build alliances and further partnerships? Why

would others prefer to join rather than compete?• Where is the personal time invested, that enables the

community to expand its connectivity?