Situation Normal, Everything Must Change Evolution Impacts - - PowerPoint PPT Presentation
Situation Normal, Everything Must Change Evolution Impacts - - PowerPoint PPT Presentation
Situation Normal, Everything Must Change Evolution Impacts Cycles Today Strategy Diffusion, a common concept ... Evolve ? ... doesn't explain evolution ... However, there's a non Ubiquity time based process of evolution ... Utility
Evolution Impacts Cycles Today Strategy
Diffusion, a common concept ...
Evolve ?
... doesn't explain evolution ...
Certainty Ubiquity Custom Built Commodity Service Product Utility Genesis
However, there's a non time based process of evolution ...
Certainty Ubiquity User Supply Commoditisation
... which we call commoditisation
... which helps explain the whole story.
Commodity Genesis Evolution Evolution Product Custom
Map evolution against ...
Evolution Value Chain Value Chain
... value chain. We can use this to explain how industry changes ...
... creating a cycle of commoditisation driving higher order systems.
Utility Product
Hence Cloud ...
Chaotic
As things evolve, their characteristics change ...
Chaotic Linear
Six Sigma
... which is why one size fits all methods don't work.
Evolution Impacts Cycles Today Strategy
... this cycle also has standard impacts ...
+ Value
$$
+ Efficiency Creative Destruction
+ Value + Agility + Efficiency Componentisation
+ More + Value + Efficiency + Agility Jevons
∆ Activities ∆ Practices
... and it's not just activities (what we do) that evolve but also practices (how we do things) ...
Commodity Genesis Product Custom Best Novel Good Emerging
... through a similar process.
Best Product Best Utility
Often practices co-evolve with activities ...
Best Product Best Utility
+ Transition
... creating inertia to change ...
Inertia
... or a least one of the forms of inertia ...
+ Past Success
Inertia
... which also occurs in vendors ...
War / Disruption Build / Growth Peace / Margin
... leading to three economic eras ...
Carlotta Perez
... which appear in every age ...
Technology Diffusion Time
War / Disruption Synergy Maturity Peace / Margin Eruption Frenzy Build / Growth
... e.g. ....
Technology Diffusion Time
Organisations
... each state of war is associated with new
- rganisational forms ...
Best Product Best Utility
Organisations
... those organisations being based on the new practices ...
Disruption Growth
Emerging
Inertia New
... hence we have a common cycle of change ...
Mechanical Components American System Inertia Disruption Growth
Emerging
... for every age ...
Means of mass communication Web 2.0 Inertia Disruption Growth
Emerging
... ditto ...
Inertia Next Cloud Disruption Growth
Emerging
... ditto ...
The next Age ?
... ditto ...
2004
Inertia Next Next Manufacturing Disruption Growth
Emerging
... ditto ...
Disruption Growth
Emerging
Inertia New
Data
... also we see increases in unmodelled data ...
∆ Activities ∆ Practices
Unmodelled Modelled Algorithms
... which evolves ...
Today ...
So what is happening today?
Inertia Next Cloud Disruption Growth
Emerging Data
... what we would expect ...
Next 'Traditional' Web 2.0
... and also new forms of
- rganisation ...
Traditional Next Gen Open source Weapon Cost reduction Scaling Distributed Scale-up Resilience Design For Fail N+1 Failure Chaos Engine Disaster Rec. Infrastructure Learning Commodity Enterprise Ecosystem Analysts Focus Disruptive Profit Departmental Cell Structure
... with different characteristics ...
Commoditise Leverage Innovate
Of importance ... Ecosystem ...
Open Technology
(open source, open data, open hardware, open standards, open APIs,
- pen process)
... and use of open as a competitive weapon ...
Open Technology
- 1. Drive adoption
- 2. Drive innovation (as in feature completeness)
- 3. Drive innovation (genesis higher order systems)
- 4. Drive efficiency
- 5. Undermine competitors barrier to entry
- 6. Enable formation of an ecosystem (ILC)
7 . Protect an existing value chain
... numerous strategies in the wild ...
Open Technology
- 9. Prevent competitors differentiating around a core
revenue stream (Tower & Moat)
- 10. Retention and recruitment of talent
- 11. On ramp to another product or service (open core)
- 12. Overcome an obstacle (insertion strategy)
- 13. Encourage formation of a competitive market
(interoperable play)
- 14. Avoid transition costs (standards play)
Open Source & the Next Age
... this will also matter in the next age...
Certainty Ubiquity Custom Built Commodity Service Product Utility Genesis
... critical is understand evolution ...
Evolution Value Chain Barrier Threat
... understand the landscape ...
Competing in an Open World
Please complete our survey - bit.ly/opensurvey