Innovation Ecosystems Clare Fairfield. Key Terms Innovation Venture Capital Invention ≠ Innovation.
Stanford ecosystems and innovation
-
Upload
shaun-west -
Category
Business
-
view
167 -
download
0
Transcript of Stanford ecosystems and innovation
Ecosystems, manufacturing firms and innovation
DesignX presentation, May 2016
Dr Shaun West
Dr Shaun West
OpeningWe will be discussing ecosystems today
What can we learn and how can we innovate from ecosystem?
Ecosystem)visualisation)to)identify)value)flows)
Michelle'Künzli and'Dr'Shaun'West,
Ecosystem)innovation)in)product2focused)small)and)medium)sized)firms
Dr#Shaun#West#and#Dr#Silvio#Di#Nardo
Dr Shaun West
OpeningWho am I? Quick CV
1990 1995 2000 2005 2010 2015
Ecosystem visualisation to identify value flows
Michelle Künzli and Dr Shaun West,
Dr Shaun West
IntroductionThe problem and the purpose of this presentation
…to describe an approach that links both the product and the service development
In the IoTSP the relationship and value exchange between actors can be difficult to identify and understand…to describe the process used to discover the interrelationships
between actors in the ecosystem
Purpose of this paper
… to describe the process of ecosystem discovery for manufacturing firms to understand the ‘spaghetti’ of transactions…
Problem
Dr Shaun West
IntroductionIntroducing the IOT and ecosystems
Internet of Things-‐ The IoT enables more complex services-‐ Willingness to share data is critical for the IoT
Ecosystem-‐ There are many interdependencies in an ecosystem-‐ Some interests contrast each other
The IoT requires more collaboration and co-‐creation, breaking linear supply chains
Value is not inherent in the product or service – it is measured with what people are willing to give in return
Dr Shaun West
MethodologyFour steps were used to understand the ecosystem and value exchanges
The objective was to create a simple process that could be used within the firm
Dr Shaun West
Analysis of the ecosystem mappingIdentification of the roles in the ecosystem
Process-‐ The different actors were identified and placed on the ecosystem
-‐ Several iterations were needed
Lessons-‐ The process takes time -‐ Input from different sources is critical
Identification of the roles was not a simple process and required iterations
Core Company
Community
Custo
mer
Supp
lier
Business Ecosystem
Extended Business
Core Business
Projects/ Systems
Channel 2
Products
Unions
Sub-Supplier B
Supplier B
CompetitorsRegulators
Customer-Partner C
Customer-Partner B
Customer-Partner A
Customer D
Customer C
Customer A
Customer B
Services
Channel 3
Consultant
Sub-Supplier C
Sub-Supplier A
Channel 1
Supplier A
Dr Shaun West
Analysis of the empathy map for each actor in the ecosystemThis process identifies the motivation for each actor in the ecosystem
Process-‐ Helps understand ’irrational’ behaviour-‐ Takes a long time for each actor-‐ 2-‐3 iterations are required
Lessons-‐ Provided rich discussions within ABB-‐ Valuable new insights gained-‐ Tangibles and intangibles identified-‐ Emotional issues often had a rational basis
New insights into each actor were identified using the empathy map
My job is the most important
and I can show it by hitting the
firms key metrics
Likes an easy job Does not like it
when the
unexpected happens
Says: wants the cheapest
Does: always buys from the OEM
Pains• Fuel consumption• On time arrival• Equipment maintenance
Gains• More automated work• Focus on other tasks • Peace of mind
Dr Shaun West
Analysis of the ecosystem mappingIdentification of the relationships within the ecosystem
Process-‐ Value exchanges were segmented into four layers-‐ Each layer was given a different colour
Lessons-‐ The ecosystem now resembles spaghetti-‐ Layering provides more details-‐ The conventional value chain is no longer valid-‐ A time ’layer’ should be investigated
How can the spaghetti be made useful for business decisions?
Core Company
Community
Custo
mer
Supp
lier
Business Ecosystem
Extended Business
Core Business
Projects/ Systems
Channel 2
Products
Unions
Sub-Supplier B
Supplier B
CompetitorsRegulators
Customer-Partner C
Customer-Partner B
Customer-Partner A
Customer D
Customer C
Customer A
Customer B
Services
Channel 3
Consultant
Sub-Supplier C
Sub-Supplier A
Channel 1
Supplier A
ServicesMonetaryInformation
Goods
Dr Shaun West
Analysis of the ecosystem maps with visual layersApplying layers gives different views of the exchanges within the ecosystem
Core Company
Community
Custo
mer
Supp
lier
Business Ecosystem
Extended Business
Core Business
Projects/ Systems
Channel 2
Products
Unions
Sub-Supplier B
Supplier B
CompetitorsRegulators
Customer-Partner C
Customer-Partner B
Customer-Partner A
Customer D
Customer C
Customer A
Customer B
Services
Channel 3
Consultant
Sub-Supplier C
Sub-Supplier A
Channel 1
Supplier A
Goods
Core Company
Community
Custo
mer
Supp
lier
Business Ecosystem
Extended Business
Core Business
Projects/ Systems
Channel 2
Products
Unions
Sub-Supplier B
Supplier B
CompetitorsRegulators
Customer-Partner C
Customer-Partner B
Customer-Partner A
Customer D
Customer C
Customer A
Customer B
Services
Channel 3
Consultant
Sub-Supplier C
Sub-Supplier A
Channel 1
Supplier A
Monetary
The supplier/customer relationships between actors are now much clearer
Dr Shaun West
Analysis of the ecosystem maps with visual layers Applying layers gives different views of the exchanges within the ecosystem
The supplier/customer relationships between actors are now much clearer
Core Company
Community
Custo
mer
Supp
lier
Business Ecosystem
Extended Business
Core Business
Projects/ Systems
Channel 2
Products
Unions
Sub-Supplier B
Supplier B
CompetitorsRegulators
Customer-Partner C
Customer-Partner B
Customer-Partner A
Customer D
Customer C
Customer A
Customer B
Services
Channel 3
Consultant
Sub-Supplier C
Sub-Supplier A
Channel 1
Supplier A
Information
Core Company
Community
Custo
mer
Supp
lier
Business Ecosystem
Extended Business
Core Business
Projects/ Systems
Channel 2
Products
Unions
Sub-Supplier B
Supplier B
CompetitorsRegulators
Customer-Partner C
Customer-Partner B
Customer-Partner A
Customer D
Customer C
Customer A
Customer B
Services
Channel 3
Consultant
Sub-Supplier C
Sub-Supplier A
Channel 1
Supplier A
Services
Dr Shaun West
Analysis of value propositions within the ecosystemThe focus was on the customer side of the value proposition
Process-‐ ’Job-‐to-‐be-‐done’ for each actor was identified-‐ Pains and gains were taken from the empathy maps-‐ The data was tabulated
Lessons-‐ The IoTSP drives towards intangible aspects-‐ IoTSP solutions often created new risks-‐ It was simpler to identify customer value propositions that supported customer outcomes
The focus was on the customer side as this is the ’problem’ definition
Dr Shaun West
Analysis of value propositions within the ecosystemPartial example of customer job, pains and gains
Role Customer Job Pains Gains
Channel A Offer equipment from different suppliers (can be part of initial sale); own the equipment; sometimes selling it in own name; storing it at focal company; offer general services
Stock of unsuccessful equipment; too much storage cost; changes in regulations or integrity
Easy implementation in further developed equipment; equipment needs many spare parts
Channel B Offer end-‐product/ plant with products from different suppliers; do the different parts function together?
Reliability; products from different suppliers need to be able to be combined; time and budget; parts do not function together
Collaboration between suppliers to co-‐create; easy installation
Channel C Uses products and further develops them; offers equipment
Products change Better performance but same dimensions
This provided a detailed understanding of what was important for each actor
Dr Shaun West
Analysis of co-‐creation and co-‐deliveryDifferent levels of involvement collaboration are possible
-‐ Co-‐creation and co-‐delivery was important-‐ Not all actors have all the answers-‐ Not all the actors have all the tools
-‐ The amount of OEM involvement can change-‐ Over time -‐ With particular situations
The OEM should not assume that they have all the solutions
Do It Yourself
Do It For MeDo It With Me
Dr Shaun West
Analysis of single-‐sided relationships Why is it important to identify and understand single-‐sided relationships?
-‐ ’Give-‐and-‐take‘ supports a balanced relationship-‐ Imbalances can lead to mistrust-‐ There are many forms of value exchange-‐ Exchanges may be separated by time
Sustainability of relationships becomes a risk in single-‐sided relationships
Core Company
Community
Custo
mer
Supp
lier
Business Ecosystem
Extended Business
Core Business
Suppliers
Customer
Services
Services IoTSPServicesGoods
MonetaryInformation IoTSPInformation IoTSP
Dr Shaun West
Analysis of data over timeInformation is not just data and over time brings knowledge and wisdom
-‐ Data alone is not valuable-‐ Information allows for management action-‐ How to move from date to wisdom when data is fragmented-‐ Lost of data may mean lost future opportunities-‐ Long-‐term cooperation is required between the actors
Do not lose your data; it may have value in the future
Dr Shaun West
ConclusionsThere are a large number of stakeholders with significantly different value propositions
The customer value proposition plays a central role
Customer as a key partner and their role may change over time
Co-‐creation and co-‐delivery are critical within the IoTSP
The identification of the ecosystem, the actors and what they value is not a trivial task to undertake
Single-‐sided value exchange may not be sustainable
Dr Shaun West
RecommendationsFurther research and application of the process should be undertaken
A process to describe the ecosystems simply should be developed
Use of the customer as a key partner needs further research
The timing implications of value exchange should be investigated
The process is being operationalised by ABB so that they are able to better use the ecosystem to support their customers
Important to identify and managing single-‐sided value exchange
Ecosystem innovation in product-‐focused small and medium sized firms
Dr Shaun West and Dr Silvio Di Nardo
Dr Shaun West
IntroductionThe problem and the purpose of this presentation
To describe how the visual design thinking tools supported the firms development of new product-‐service system based solutions
The results described are based on a prototype process tested in workshops that links together different design thinking tools
To describe a process Service Design tools, of product-‐ and service-‐discovery that has been used in workshops with two Swiss firms
Purpose of this paper
The firms in this study were suck with new product development thinking with limited understanding of the value of services
Problem
Dr Shaun West
IntroductionTraditional approaches to this problem were time consuming and product focused
Fuzzy front end of innovation and Lead User-‐ Captured some tacit and informal aspects-‐ Complex and time consuming for the firms
The firms were getting sucked into the commodity trap
Engineering design-‐ Supported product development-‐ More value when needs were well know-‐ Focused on the tangible aspects-‐ Difficult to integrate the intangible service aspects
exam
ple from
images.goo
gle
Dr Shaun West
IntroductionDesign Thinking approach provides more insight to customer problems
Design Thinking…-‐ is tolerant to failure-‐ embraces risk taking -‐ sharing/supportive learning environment-‐ can help simplify and humanize situations-‐ helps people to deal with ambiguity
But the firms found Design Thinking disjointed
The approach focuses on the user’s experiences, particularly the emotional ones
example from images.google
Dr Shaun West
IntroductionIdentification of the users, customers and stakeholders through ecosystem analysis
-‐ In industrial firms the supply chain is is complex-‐ Identifying the user is very difficult-‐ Design Thinking focuses on the ’user’-‐ Ecosystem mapping helps to find the ’user’-‐ Important to understand the interactions between actors
-‐ A solution demands the customer to be identified
The users can then be ’empathy mapped’
In the complex ecosystems ecosystem mapping can help identify the ’user’
example from images.google
Dr Shaun West
IntroductionIdentification of the users needs through persona analysis and empathy mapping
-‐ Persona analysis and empathy mapping provide ’user’ emotional input
-‐ In workshop provides a visual tool to capture input-‐ Helps everyone to understand the user’s experianceand share the problem
-‐ Gap analysis in empathy mapping provides deeper understanding of the ’user’
The results can be transferred to Osterwalder’scustomer value proposition
Empathy mapping can be effective in a workshop environment to help share a common understanding
example from images.google
Dr Shaun West
IntroductionJob-‐to-‐be-‐done creates understanding into the customers processes
-‐ The ’job’ is considered the fundamental unit -‐ Helps to target the solution to the ’job’-‐ Integrates understanding of customer processes-‐ Import to understand the customer situation-‐ Focuses on the outcome the outcomes
The results can be transferred to Osterwalder’scustomer value proposition
The firms needed to focus on the customer’s jobs not the product
examples from images.google
Dr Shaun West
IntroductionDevelopment of the customer value proposition in a visual form
Customer side (or problem definition)-‐ Defined the empathy maps and job-‐to-‐be-‐done-‐ This captures the tangibles and intangiblesSupplier side (solution formulation)-‐ Brainstorm to find possible solutions-‐ Defines the supplier solution-‐ captured the solution in the more holistic way
Gaps between the two sides of the value proposition are easily identified visually
Using this theory a prototype process was developed
example from images.google
Dr Shaun West
MethodologyA five step approach was used in the workshops
The objective was to create a simple process that could be used within the firm
Customer identification via ecosystem
analysis
Empathy mapping for
(2) key customers
Customer’s job-‐to-‐be-‐
done
Customer value
proposition -‐customer side
Customer value
proposition -‐supplier side
Dr Shaun West
Results and discussionCustomer identification via ecosystem analysis took longer than expected
From the ecosystem maps key ’users’ or customers were identified for further analysis
Findings-‐ The groups were able to sketch their ecosystems-‐ The groups identified key non-‐customer actors-‐ The multiplicity of customer touchpoints identified-‐ Direct vs indirect channels were visualised
Improvements-‐ More time should be given for this activity-‐ improved facilitation needed initially
“… we found clarity with the ecosystem, this is the first time we have seen it drawn out”
Dr Shaun West
Results and discussionEmpathy mapping for the two key customers identify intangibles
The pains and gains could be transferred to the customer side of the value proposition
Findings-‐ Customers considered customers as plural-‐ Creating the empathy maps was initially problematic-‐ Mixed groups ensured active sharing-‐ Pains/gains were quickly identified -‐ Helped the groups to move beyond the price-‐ Learnt more about the intangibles
Improvements-‐ One map for every key actor is required
“… empathy mapping helped us learn that we can really help our customers with the intangible aspects”
Dr Shaun West
Results and discussionCustomer’s job-‐to-‐be-‐done was harder than expected
The customer jobs/tasks could be transferred to the customer side of the value proposition
Findings -‐ Initially complex with many discussions-‐ Limited understanding the customer’s jobs -‐ Jobs core and supporting jobs identified-‐ Customer understanding was improved
Improvements-‐ Visuals for the cradle-‐to-‐grave equipment life-‐cycle-‐ Visuals for customer touchpoints
“… we had never looked at our customer’s job-‐to-‐be-‐done or processes”
Dr Shaun West
Results and discussionCustomer value proposition – customer and supplier sides
Working on the customer side in isolation fostered a customer centric approach
Findings-‐ Groups focused on the customer’s problem-‐ Initial draft completed very efficiently -‐ Discussions of the current situation and their improved customer understanding took place
Improvements-‐ Segmentation for different actors is needed
“… we always focus on the tangible aspects of the goods and services we provide”
Dr Shaun West
Results and discussionCustomer value proposition – customer and supplier sides
New solutions were identified and compared with the customer side
Findings -‐ Some groups returned to their standard offers -‐ Matching of pains/pain relievers and gains/gain makers took place automatically
-‐ Open gaps were closed once they were pointed out
Improvements-‐ Important to have the customer side close by-‐ A visual to support where value is create is required-‐ A focus on customer willingness to pay is needed
“…we have marketable concepts after only one day”
Dr Shaun West
Results and discussionSummary of findings from the workshops
The tools supported creativity and problem solving to create ideas for new product-‐service systems
Findings -‐ Focused on the customer 80% of the time-‐ Removed silo-‐thinking-‐ Shared the customer problems (tangible/intangible)-‐ Groups moved beyond making products ’better’-‐ Realised that they were providing ‘peace of mind’-‐ Allowed sharing of understandings and assumptions
Improvements-‐ External input from customers should be included-‐ Increased facilitation needed-‐ Support identifycation of value
“… the workshop was very practical and we have tools that we can use in the future”
Dr Shaun West
Results and discussionFollow up with the firms has provided initial evidence of impact
New product-‐service systems are being developed by the firm
New services and products-‐ Customer process support (supporting job-‐to-‐be-‐done) via an app has been developed
-‐ Design of a product-‐service system for one of its commoditized product (white-‐space innovation)
Sharing knowhow-‐ Ecosystem mapping assisted the sharing of market know-‐how and customer centric thinking
-‐ Mixed groups working-‐ improved communications -‐ provided a common language -‐ increased understanding of customers' jobs
“… the workshop was very practical and we have tools that we can use in the future”
Dr Shaun West
ConclusionsThe approach was approached however there are improvements to be made
The practical approach was appreciated by the participants
Connecting the Service Design tools together to create a process was exceedingly helpful
Customer journey mapping and cradle-‐to-‐grave life-‐cycles would have improved the discussions
The use of interactive visuals broke down barriers within the firm, creating structured discussions with a common understanding and language allowing a move away from new product development
More use of examples/use cases are needed
Dr Shaun West
RecommendationsMore workshops should be held with changes to confirm potential improvements
Include customer journey mapping and the equipment cradle-‐to-‐grave life-‐cycle to provide more input
Identify where customer value accrues (eg, top-‐line, bottom-‐line or compliance/risk)
Include an assessment of the customer willingness to pay to support the integration of pricing
It is recommended that more workshops are held using the ‘standard format’ with a wider range of firms so that a wider range of feedback can be obtained
Invite people external to the firm to the workshop
Dr Shaun West