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Trust Enabled™ Ecosystems
SAP Global Ecosystem Marketing
September 2, 2008
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Rethink Success !
© SAP 2008 / Global Ecosystem and Partner Group Page 2
Rethink boundaries
Rethink innovation
Rethink time
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Rethink Criteria for Success!
Rethink control
Rethink exclusivity
Rethink expediency
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Think Value!
Think trust
Think collaboration
Think agility
Think Customer Focused Ecosystem.
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Trust stimulates innovation
Trust raises overall innovative capacity Trust facilitates innovative actions Trust is of fundamental importance for the
diffusion of a new technological style Trust substantially reduces transaction,
control, monitoring and enforcement costs Innovative networks with a high level of
trust tend to reinforce innovative capacity and trust Volken, T. (2002) “Elements of Trust: The Cultural Dimension of Internet Diffusion
Revisited”, University of Zurich, Electronic Journal of SociologySee “The Facts on Trust” at http://trustenablement.com/opt/The_Facts_on_Trust.pdf
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Trust requirements vary
Time
ValueHigh
Moderate
None
Communicative
Coordinated
Agility
-
Expedient
Efficient
Effective
Sustainably Innovative
Trust Gap
Trust E
quity
StrategicTactical
Blazer Barn
“Trust Enabled Supply Networks: Uncovering the trust-building secrets of highly collaborative supply chains”, Alex Todd
Collaborative
Co-opetitive
SpecificityNone
Moderate
High
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Change mindset
Trust Leadership Trust-based Optimistic Offensive Active Stakeholder-oriented Bonus: Golden Rule compliant
Risk Management Control-based Pessimistic Defensive Passive Organization-oriented Loss: Isolated self-interest
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A
BWhat role does trust play in marketing?
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Trust DefinitionsMirriam-Webster: intransitive verb
1 a : to place confidence : DEPEND <trust in God> <trust to luck> b : to be confident : HOPE2 : to sell or deliver on credit
Wikipedia:
"In sociology, trust is the willing acceptance of one person's power to affect another.“
transitive verb1 a : to commit or place in one's care or keeping : ENTRUST b : to permit to stay or go or to do something without fear or misgiving
2 a : to rely on the truthfulness or accuracy of : BELIEVE <trust a rumor> b : to place confidence in : rely on <a friend you can trust> c : to hope or expect confidently <trusts that the problem will be resolved soon>
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Trust Reputation
Trust “when agents
expect a particular agent to do something.”
Reputation “when agents
believe a particular agent to be something.”
Cabral, L.M.B. (2005) “The Economics of Trust and Ruputation: A Primer”, New York University and CEPR
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Trust is Always Contextual
“A” trusts (or relies on) “B”
for (a specific) “C”
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My Definition of Trust
Trust is a person's willingness to accept (and/or increase) their vulnerability by
relying on implicit or explicit information.
Trust = Acceptable Uncertainty
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Conditions for TrustTrust Enablement® Framework
Motive ForcesFactors influencing the actions of the beneficiary (trusted party).
ProficienciesAptitude, knowledge, behaviour and disciplines employed to consistently deliver expected value (people, processes & technology).
Risk TransferenceMechanisms and processes that transfer risk away from the relying party.
Develop Trust Protect TrustExperiential Sources of TrustPersonal experiences of the relying party or those of objective witnesses.
Interpretive Sources of TrustSubjective assertions of the source of the information, the relying party, or third parties.
EmpowermentRelying party’s ability to choose.
Certainty Acceptability
Trust = Acceptable Uncertainty
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Trust Enablement® Mappingof John Hagel’s “Building Dynamic Trust”
for Orchestrators of Process Networks
Experiential Motivation Forces (Will)
Authoritative Proficiencies (Skill)
Empowerment Risk Transference
Develop Trust Protect Trust
Hagel III, J., Brown, J.S. (2005) “The Only Sustainable Edge: Why business strategy depends on productive friction and dynamic specialization”, Harvard Business School Press
Willingness Incentives (rewards/penalties)
Forward-looking Outcome-specific Long-term
Shared meaning Senior executive evaluation Reputation system
Notification system
Loose coupling Performance bonds Assurance mechanisms Safety nets
Exception handling
Joint capability
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A Trust Enablement® ViewHow eBay Enables Trust
Trust Empowerment Identify reliable providers of
feedback
Interpretive Sources ID Verify from Equifax Product Opinions & Grading Product Appraisals Privacy Policy TRUSTe seal
Proficiencies Industry practices
(SSL, etc.)
Risk Transference User Agreement Fraud Protection Insurance PayPal Buyer Protection
Experiential Sources Feedback Forum Tradenable escrow Product authentication
Motive Forces Policies (comprehensive) SafeHarbor investigations Disallowed products SquareTrade dispute
resolution VeRO notice of IP
infringement
Protect TrustDevelop Trust
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Trust Enablement® BasedEcosystem Governance Meta-Policies
Experiential The ecosystem shall define, implement and
document the experiential sources of trust that providers of stakeholder resources can rely on to establish the higher levels of trust they require to provide such resources.
Motive Forces The ecosystem shall define, satisfy and document
the levels of “acceptable uncertainty” (in other words trust threshold) required by providers of stakeholder resources.
The ecosystem shall define, implement and document applicable motivation (decision-influencing) mechanisms that establish and enforce the methods for acquiring stakeholder resources.
Authoritative The ecosystem shall define, implement and
document the authoritative sources of trust that providers of stakeholder resources can rely on to establish initial trust prior to providing such resources.
Proficiencies The ecosystem shall define, implement and
document its ability to solicit, acquire, steward and productively apply stakeholder resources.
Empowerment The ecosystem shall provide stakeholders with access
to resources and information they need to determine the validity of their contributions to the business and means to express their preferences.
The ecosystem shall periodically review and adjust its Trust Enablement™ policies, standards and procedures in order to optimize them for changing
business conditions.
Risk Transference The ecosystem shall define, implement and
document mechanisms and/or instruments that transfer risk away from providers of resources.
Develop Trust Protect Trust
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Discovery Identity Value of goods/services Vendor reliability Rules of engagement Credit worthiness Authorization to commit
Fulfillment Customer services Shipper reliability Transfer of responsibility Quality control Applicable standards Tariffs & customs
Negotiation & Order Product fit Negotiation criteria Cultural issues Quality assurance Viability of seller Applicable exchange rate Order placement and
verification
Settlement & Compliance Governing laws Agreement Payment method Non-compliance protection Disputes Recourse Transaction reversal
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How can SAP’s and its business partners’ sales forces use the Ecosystem to help Customers
attain their trust objectives?
Motive ForcesFactors influencing the actions of the beneficiary (trusted party).
ProficienciesAptitude, knowledge, behaviour and disciplines employed to consistently deliver expected value (people, processes & technology).
Risk TransferenceMechanisms and processes that transfer risk away from the relying party.
Develop Trust Protect TrustExperiential Sources of TrustPersonal experiences of the relying party or those of objective witnesses.
Interpretive Sources of TrustSubjective assertions of the source of the information, the relying party, or third parties.
EmpowermentRelying party’s ability to choose.
