creating, capturing and sharing value from the iot · creating, capturing and sharing value from...
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Creating, Capturing and
Sharing Value from the IoT
Innovation Village Conference Semicon 2014, Grenoble, Oct. 8th
Sylvie Blanco Professor of Management
Technology and Innovation
how to
overcome the
IoT deficiencies
?
the IoT landscape: setting the scene (1/3)
macro-level: recombining full economies
new world
old world
value creation
value capture
value sharing
time
profit
KODAK
QUELLE
NOKIA
AMAZON
PIXAR
NETFLIX
SKYPE
the IoT landscape: setting the scene (2/3)
innovators’ level
How can an « IoT shoe » become
an innovation success ?
S. Walsh, Director Engineering Education.
NCSU (North Carolina State University)
new world
old world
value creation
value capture
value sharing
time
profit
the IoT landscape: setting the scene (3/3)
firm-level : understanding IoT deficiencies
business
value of data
supply chains
recombinations
co-business
models
dynamics
Q1. business value of data (1/3)
new practices of value creation
installed base of connected objects : 212 billions by 2020, markets&markets report 2013
pilot projects
everywhere cities, parking,
transport, health,
buildings, etc.
death by
3D-XLS-market
segmentation
Q1. business value of data (2/3)
Value creation as continuous recombinations
Inspired by Y. MOGOLLON, Master Thesis, 2014
Influencing mass markets
Maximizing value creation
from an isolated product to a
series of evolving products
and services (synergies)
from a single mass market to
multi-purpose personalized
customer experience (higher
value).
Q1. business value of data (3/3)
Learnings : IoT and value drivers
value
proposition
target
market
Multi-
purpose
Single
purpose
Service
content
Product
content
VALUE CREATION 4 value drivers from
real-time data
streams
o Real-time sensing
o Real-time coordination with
other data streams
o Real-time experimentation
o Mass visibility
APC
survey
2013,
F. PIGNI,
GEM
Q2. supply chain recombination (1/3)
new practices of value delivery
Overcome the
dominant logic to build
and nurture IoT value
networks
Diffusing innovation
through new
platforms connecting
physical and virtual
worlds
IoT value constellation
Q2. supply chain recombination (1/2)
Recombining value delivery, enhance customer experience
Overcome the
dominant logic at
school
Become a platform
for serious
innovation games
co-design
GEM Serious Innovation Games Smart Management Innovation Learning Experience
for the diffusion of IoT skills
Q2. supply chain recombination Learnings about IoT value networks
diffusion levers
network effects (infrastructures, compatibility
and complementary goods)
barriers to imitation
change the rules of the
business game (innovative
leadership)
develop diffusion
capabilities
ambidexterity and
collaboration Development and
production Core processes and enabling
processes
Sales and aftersales
channel; brand, customer
experience Leading innovation exploit
and explore, collaborate inside/outside
map working relations
with partners (incl. new)
IoT VALUE NETWORK
Q3. sharing value from the IoT -
VALUE NETWORK LEVEL
Revenues Pricing and additional incomes
Costs and upfront
investments savings and public funding
Benefits Economic and other value
SHARING VALUE
VALUE CREATION VALUE CAPTURE
Actor from
the value
network Revenues
Costs and upfront
investments
Benefits
Actor from
the value
network Revenues
Costs and upfront
investments
Benefits
Actor from
the value
network Revenues
Costs and upfront
investments
Benefits
Actor from
the value
network Revenues
Costs and upfront
investments
Benefits
Actor from
the value
network Revenues
Costs and upfront
investments
Benefits
Actor from
the value
network Revenues
Costs and upfront
investments
Benefits
Actor from
the value
network Revenues
Costs and upfront
investments
Benefits
Q3. sharing value from the IoT -
business model dynamics as a way to
overcome IoT deficiencies
Big picture thinking (for the whole ecosystem – incl. co-creators
and value network partners). Always question the pillars of past
successes.
Clear understanding of existing and emerging models (history matters for understanding the industry ; recombine existing patterns by asking: « What if Nespresso, Dell, etc. conduct our
business ? inspired from J. Maier, oct 2nd 2014, Univ. of StGallen
Careful reflection if the organization is capable of
change (create digital officers? Enhance intrapreneurs?
acquisition of new skills)
Creative management practices (a unique management
model like Google and others.
Recombining:
how ready is your
organization?