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
Text of Becoming platforms: Harnessing the power of communities, beyond crowd-sourcing and openness
Becoming Platforms Harnessing the power of communities, beyond crowd- sourcing and openness. Percorsi Erratici, Simone Cicero - 17/3/2014 Forl meedabyte.com workshops & consulting @meedabyte
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
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
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 Doesnt 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
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, youre emotionally attached to that. Youve basically gone through the process to build your own phone Moto X head product manager - Lior Ron
Airbnb.com 29/04/2014 2008
tools Facilitated Contexts/Channels
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.
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
multisided & multi stakeholder business
Its 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
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) ValueChain
Explore the core value creation relation Consumers Producers Stakeholders (platform) ValueChain
Consider that additional roles may appear Facilitators Curators Information Brokers Enabling actors ValueChain
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: - doesnt show logical value flows - BM Canvas structure not good for non linear business - doesnt model platform lifecycle - doesnt 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)
Whats 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