Venkatraman five webs
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Winning in ‘Network Society’ Professor N. Venkat Venkatraman Boston University @NVenkatraman Ericsson Executive Program August 2011
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An overview presentation focused on the evolution of the web and the opportunities and challenges posed to companies and management.
Transcript of Venkatraman five webs
Winning in ‘Network Society’
Professor N. Venkat VenkatramanBoston University@NVenkatraman
Ericsson Executive ProgramAugust 2011
1.Future State: The ‘Network Society’
2.Building Blocks: Evolution of the Web
3.Key to Winning: Strategy as Navigation
Why do successful companies fail?
Core Competency
Competency Trap
“The difficulty lies not so much in developing new ideas as in escaping from old ones.”
Recent business model innovations.....
They challenge ‘industry definitions’
Industry versus Network
• Supply of products and services
• Competitors have ‘similar’ production methods
• Competitors are well-defined
• Linear, vertical supply-chain
• Competitors are NOT partners
• Demands of customer segments
• Competitors satisfy customer demands in different ways
• Competitors straddle different ‘industries’
• Complex, interconnected demand-chain
• Competitors often ARE partners
Bill Gates Testimony
Consulting
Applications
Tools
OS
Networking
Peripherals
Computers
Processors
Computer Industry (1980s)
Bill Gates Testimony
Consulting
Applications
Tools
OS
Networking
Peripherals
Computers
Processors
Computer ‘Industry’ (2002)
Consulting
Applications
Tools
OS
Networking
Peripherals
Computers
Processors
Microsoft’s PC Ecosystem
Portfolioof
Products
Portfolioof
Business
Portfolioof
Capabilities
Portfolioof
Relationships
What products & servicesdo we offer?
How do we assemble the requiredcapabilities to meet customer demands?
‘Inside-out’ ‘Outside-in’
Business
Consumer
Business Consumer
B2B B2C
C2CC2B
M2M
1995
2011 20151995
Compute Connect Cloud
Metcalfe’s Law Bandwidth LawMoore’s Law
MobileWeb
SocialWeb
MediaWeb
RealtimeWeb
MachineWeb
1. Mobile Web
5 billion mobile subscriptionstoday
!5 billion smartphones by 2016
MOBILE WEB EVOLUTION
2005 2010 2015
Role of Apple Role of ‘Apps’
+
July 2008
July 2011FifteenX
Role of Google Role of Android
+
Post-PC or PC+ World in 2012
>500 million annual units 400+ million annual units
The Mobile Web....
So, How are companies experimenting with mobile web?
So, What’s Your Strategy for shaping “Mobile Web”?
2. Social Web
DO YOU KNOW FACEBOOK?
+69%
-9%
http://blog.hiddenharmonies.org/wp-content/uploads/2011/01/facebook_december_2010.png
~ 700 Million
70% Outside USA
50% log on everyday
>35% log on using mobile devices& twice as active
Total time spent > Google
X750
Web
FB
B2C B2C
C2B
C2C
Adapted from Janice Diner
The Social Web....
X ?? ?
So, What’s Your Social Web Innovation?
3. Media Web
By 2015.................We will reach 3 trillion internet video minutes per month...........
One million internet video minute every second!
3 billion views every dayAverage person 15 minutes per day48 hours of video uploaded every minute70% outside USA94% of Adverting Age’s 100 advertisers run campaigns on
Live Movies
Shows
48.5 Million Views in 30 days!
FIRST ONE BILLION VIEWS ..
Facebook and the Media Web
The Media Web....
So, What’s Your Media Web Innovation?
4. Real time Web
“Do you tweet?”
200 million tweets a day350 billion tweets delivered every day
12.967,560
9,834,541
3,317,961
12,183,804
Tweeting and Retweeting about the Japanese natural disaster
Realtime Web
50 + Million Subscribers
Google takes on Groupon
WEAVING THESE WEBS TOGETHER...
Command Centers
To Become the “Largest Participatory Brand in the World”
Websites are integrating Facebook, YouTube and Twitter
12
3
Moment of TruthZeroFirst
The Realtime Web....
So, What’s Your Realtime Web Innovation?
5. Machine Web(Devices)
Automobile as a computer on wheelsconnected to the network
GM OnStar:Remote Door Unlock & Remote Start
GM OnStar:Remote Vehicle Slowdown
MyFord Touch
‘Automotive Ecosystems’
MobileWeb
SocialWeb
MobileWeb
MediaWeb
RealtimeWeb
You & Your CustomersMachine
Web
NETWORK SOCIETY
ProductsServices
Processes
Compute Connect Cloud
Metcalfe’s Law Bandwidth LawMoore’s Law
+ +
“Building Blocks”Your Distinction
TodayYour Distinction
Tomorrow
Mobile Web
Social Web
Media Web
Real time Web
Machine (device) Web
Low - Medium - High Low - Medium - High
Transformation
YOUR Challenge ........
!"#$%&'()
!*+,#"-()
./"01&/()
.#*%2#3()
•Networks deliver distinct value to specific customer segments through a portfolio of capabilities linked through relationships
3
• What’s your role in emerging network society?
• Orchestrator?
• Specialized Node?
31
• Where’s your vantage point in the emerging business networks?
• Customer-facing?
• Supporting?
32
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
Orchestration
Specialist Node
Support CustomerFacing
“The difficulty lies not so much in developing new ideas as in escaping from old ones.”
