http://digitalenterprise.org/models/models.html
Denise is discribing that right now. I update very soon.
http://www.stlpartners.com/manifesto.php
Ecosystem economics describe how the core product (e.g., iDevices or Google ads) becomes more and more valuable, as the numbers of partners, notably developers, grow. The ecosystem network effect between developers and users drives the explosive growth of the core product. Lock-in creates natural “walled gardens,” as users develop habits around apps, while developers are locked-in by high switching costs created by their investments into the core product. On the other hand, Developers must be viewed as partners and reselhers, not as a source of direct profit, that will push the core product, to new users, new usage models and new market niches.
Service Provider APIs are key technology enablers to get developers as partners in the ecosystem and APIs business models need to be aligned with developers business models. APIs openness promotes lower barriers to entry and the acquisition of a large range of complementary products (e.g. apps, hardware accessories). However, core products are closed (integrated) around core businesses to deliver unique value, elevate barriers to entry and achieve sustained profitability.
http://www.visionmobile.com/product/telco-innovation-toolbox-report/
According to VisionMobile research, Asymmetric business models are based on providing Products to different Markets in a way that promote the migration of profits from one market to another, breaking barriers between Industry barriers to get competitive advantage. The decision to compete in multiple markets should be driven by customer experience improvement, rather than about the efficiency of the company operations, by leveraging systems integration across industries. Customer traction in one market also boosts the demand in the other market. For example, smartphones get more attractive depending on how many apps and services are available on them. These markets are called Complementary Markets. The mechanics of Asymmetric business models is based on promoting very high demand on complementary markets (e.g. by making products radically cheaper or more accessible for customers) and bundling Service Provider Core product with this new demand. The source of such demand should be difficult to replicate and to be bought by competitors. Then, Service Bundles should be created in a way that promotes the transfer of profits to Service Provider core business. Low (or zero) marginal cost of many modern technology products enables asymmetric business models to be self-sustained.
Examples on how these models are applied by leading digital service providers are:
- Apple competes in both consumer electronics and digital content markets, making consumer electronics more attractive.
- Google that compete in both online advertising and mobile markets, leverages the integration of user data mining on Android with its advertising network to make Google PC ads more attractive for advertisers.
- Amazon that compete in both e-commerce and tablet markets, takes advantage of its ability to present its services to tablet users to make online shopping easier and more spontaneous.
New generation of Messaging Service providers like WeChat, Viber, Line and others are also using asymmetric business models, by providing for free SMS competitor messaging services that is monetised with e-commerce services to sell digital goods, physical goods and services.
http://www.visionmobile.com/product/asymmetric-business-models/ http://www.visionmobile.com/product/telco-innovation-toolbox-report/
adapted from the DoW
Over the last decade over the top services (OTT), such as instant messaging (IM) and Voice over IP (VoIP), have revolutionized the well-established services and business models of telecommunication providers. However, applied communication standards and protocols are mainly used to create closed ecosystems, resulting in a highly fragmented market of mostly isolated communication platforms that restrict free, open and interoperable communication flows. Currently, telecommunication architectures are based either on the Telco federation or on a global “Private Walled garden” Market models:
- Telco Federated distribution model: universal interoperability and a highly regulated market constrain service delivery agility to geographically limited markets. However, this model ensures consumers well defined expectations in terms of reachability among users (independently of its service provider domain), trust in service providers and service quality.
- “Private Walled Garden” distribution model: used by popular players like Google, Skype and WhatsApp (aka Over The Top - OTT) that have much more agility to deliver cost-effective (mostly free) innovative services to borderless markets. However, OTT players are creating silos of users where only intra-domain interoperability is ensured (for example, a WhatsApp user can only send a message to another WhatsApp user, a Skype user can only call to another Skype user or use Skype’s breakout service to the PSTN). In this model, service developers and third-party service providers are forced to use proprietary APIs and incur difficulties if they attempt to sell and distribute services to different domains and are limited to the user base of the service provider. In general, services are developed within a specific service domain, constraining service reachability between different service domains. Trust in service providers is more and more questionable and becomes a concern; the service delivery is unregulated and has to rely on best-effort Internet connectivity in all cases.
The reTHINK Market Model leverage the best from these two models to create a trusted worldwide cooperative service delivery model where different service provider ecosystems are dynamically created to better meet consumer needs. The Model is conceived based on the need for open, standardized and trustful digital communications between devices, services, sensors and humans that incorporates managed quality of service (QoS) for reliable and efficient service delivery. In this model, service providers are able to deliver services to any domain with minimum costs. On the other hand, consumers have access to more services that are able to fullfill in a better way, consumers' needs including their security and privacy concerns. Services selected by consumers can still be used to communicate with consumers and/or things that are in other domains. Thus, there is no need to have an account in each different domain to ensure universal communication between any human, thing or service, as happen today with OTT "walled garden" models. At the end, this means a more competitive, sustainable and balanced market that create more value to consumers preventing the Market dominance by a few players as occurs nowadays, notably with some OTT players based in the US.
Figure D1.1 ## - reTHINK Reference Market Model
reTHINK Reference Market Model is based on ecosystems of service providers that cooperate to deliver services to a specific worldwide end-user (consumer) domain. Ecosystems can target very specialised and small End-user domains (e.g. freelancer lawers specialised in digital copyright) or massive and large end-users domain (e.g. teenagers). Ecosystems should be led by a Service Provider that can perform the Business Broker role (see below) but Service Providers should be free to offer their products to any available Ecosystem with or without exclusive relatioships depending on the Business Models used by the Ecosystem.
According to reTHINK Reference Market Model, the creation and management of ecosystems should be very dynamic with few, and as much as possible, automated administrative processes needed. As depicted in figure D1.1 ##, the following Business Relationships are defined:
Interdomain C2C Relatioships: where consumers from different domains can establish trustful adhoc relationships (e.g. H2H or M2M communications), with guaranteed levels of QoS if needed, avoiding the need to establish federations between service providers or ecosystems.
Intra-ecosystem B2B Relatioships (Partnerships): Service Providers establish Business partnerships in a certain Ecosystem ... to be completed
Inter-ecosystem B2B Relatioships: Business from different ecosystems can establish trustful inter ecosystem B2B relationships (e.g. H2H or M2M communications), with guaranteed levels of QoS if needed, avoiding the need to establish federations between ecosystems. Such relatioships should promote global sustainability where complementary ecosystems driven by different Business Roles can cooperate in some Business Use Cases.
Different Business Models and Payment models can be used to economically sustain ecosystems. A few possible Business Models are elaborated and analised in ? .
Analyse the value chain?
Value chain analysis example
it would be nice to use the Business Model Canvas tool http://www.businessmodelgeneration.com/canvas/bmc
A Business Broker facilitates and promotes the best match between Service Consumers and Service Providers, orchestrating service delivery flows among them. In addition it also mediates business transactions between involved stakeholders. The Business Broker should ensure it has access to a large consumer base in order to atract service providers. The main Business Flows are (see picture below):
- Service Providers publishes their offers towards the Business Broker
- Consumer searches for services or is notified by business broker about services that match consumer needs
- service delivery is managed by Business Broker but the main service delivery flow can be a direct flow between Service Provider and service consumer
- payments for service delivery are mediated by the Business Broker
Note: it should also be possible to have service / App providers having access to niche markets to trigger the service deliver through the collaborative service delivery ecosystem. FFS
A Brokerage Business Model example:
The sustainability of reTHINK envisioned Market Model, as described in ?, will be based on different Business Models described in ? which are used by different ecosystems that are driven by different Market offers. The Network Driven Ecosystem and the Service or App driven Ecosystem are described below, as examples such different ecosystems. These examples, show how they coexist and successfuly offer products in a more balaced market, creating more value to consumers and preventing the Market dominance by a few players.
Network Driven ecosystems are led by Network Service Providers that invests in its product portfolio with Product Offers that highly depends on the control of the networking infrastructure notably Network QoS.
Some examples of product offers for large Market Segments are:
- A Bundle of services for residential customers including Humman to Human contextual communication (ruled by regulators), Broadband Internet Access, Content delivery to TV and other devices (e.g. tablets), SmartHome Automation (M2M/IoT), Connected Car and some additional Services including Cloud Data services (eg data storage for personal content);
- A Bundle of services for SME customers including Human to Human Contextual Business Communication (ruled by regulators), Broadband Internet Access, Data VPN, Cloud based Productivity Assisting Applications (Office like Apps), Digital Marketing etc;
- A Bundle of services for Smart Cities including Human to Human Contextual SmartCity Communication (ruled by regulators) (including Contextual Citizen Care a la Customer Care services), eGovernance Apps, Smart City Automation (M2M/IoT), etc
Some examples of specialised smaller market niches that may be led by smaller Service Providers from the Ecossystem with deep knowledge about the market niche:
- Seniors with specials needs with service delivery focused on Assisting Living that may be led by some eHealth Service Provider
- Super fan Football Club (or any other type Sport) with Service Delivery focused on exclusive sport content delivery that may be led by the Sport Club. The same concept may be applied to Super Fan Artist Club.
- Professional Training experts with Service Delivery focused on exclusive training experts and content that may be led by some specialised eLearning Service Provider.
Other examples that may be used in other ecossistems types:
- Artist (Music) individual segment market ...
- Technology (Hacker) segment Market ..
- Startup Enterpreneur Enterprse ...
The Value Chain of Network Driven ecosystems are comprised by (probably we should introduce and define general Value Chain elsewhere and then we should only describe specific relationships among players for each ecossystem example):
- Network Infrastructure e.g. network routers, radio systems, microwave nodes. Network Infrastructure is provided by Vendors to Network Service Providers that will operate / manage the infrastructure to provide connectivity services
- end-user devices e.g. smartphones, tablets, SmartHome systems with Sensors, Atuators and Gateways. NSP can purchase end-user devices from manufacters to be directly commercialised by NSP to its customers as part of some service bundle offer.
- network side platforms e.g. web and application servers. NSP can host these platforms in their own Data Centers with some commercial deal with platform vendors
- Connectivity e.g. Internet Access, VPN. Connectivity is provided by the NSP as the core business.
- Core H2H and M2M Communication services e.g. Contextual Enriched Multimedia Communication services between Humans (including audio, vídeo, data transfer, presence, etc) and Building Automation systems (including energy eficciency management and security). Core H2H and M2M communication services are subject to legal policies set by the Regulator e.g. lawful communication interception, data privacy, etc. NSP can provide Core Communication services with Apps previously provisioned in end-user devices that are offered in the same service bundle. It should also be possible to have some of these services provided by NSP partners notably if services are targeting some market niche or are not subject to regulation.
- Identity e.g. user data management including communication address, end-user context, user content like personal photos and videos. The NSP can provide higly secured and trustful Identity management services in bundle services notably in previously provisioned end-user devices featuring secure elements (eg eSIM) that are offered in the same service bundle. Such Identity management services can also be subject to legal policies set by the Regulator e.g. identity privacy.
- Content e.g. movies, music, eBooks. The NSP can license Content from Content Providers partners with or without exclusive deals to be delivered to consumers in some service bundle (including eg IPTV). It should also be possible that the content is delivered by NSP partners notably if content is targeting some market niche.
- Value Added Services (should we rename it to Communication Assisting Services?) and Applications. Services and Applications that are built and delivered by partners on top of NSP assets notably Core H2H and M2M Communication services. Such services can be included in NSP service bundles or in ASP service bundles that includes NSP services targeting niche markets.
- Regulation e.g. communication interception and privacy. Regulation is considered a value assuming related policies are designed to protect consumers e.g. from terrorists or stakeholders that abuse on the usage of personal data. In this sense it should be considered a partner and regulation policies should be designed and enforced by the NSP in a closed relationship.
include picture with value chain
Give examples of Interdomain B2B relatioships eg with Communication driven ..
Application Driven ecosystems are led by Service Providers that offers a specific Core Product difficult to replicate by the competition that invests in its portfolio with complementary product offers designed to attract consumers to its Core service.
Some examples for large market segments are:
- Health status monitor product based on a highly accurate algorithm to infer health context from raw data captured by sensors. Complementary products would be: end-user devices featuring needed sensors including for SmartHome and Connected Cars, H2H contextual communication and broadband internet access.
- Personal Music Recommendation and Player product that accurately selects and plays the most appropriate music, according to user preferences and context (mood). Complementary products would be: end-user devices featuring HiFI players and needed sensors to infer end-user mood, H2H contextual communication with immersive musical experiences and broadband internet access.
- Life-experience Personal Assistance product that accurately recommends and assists the user enjoy life according to its profile and context mixing digital experiences with real world experiences.
Some examples of specialised smaller market niches that may be led by smaller Service Providers from the Ecossystem with deep knowledge about the market niche:
- end-users with a certain type of desease that must be continually monitored with special wearable devices that may be led by some eHealth Provider specialised on the desease.
- Music Streaming providers for public places that accurately selects and plays the most appropriate music, according to users located in the place.
- Executive coaches