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Becoming platforms: Harnessing the power of communities, beyond crowd-sourcing and openness

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

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Becoming platforms: Harnessing the power of communities, beyond crowd-sourcing and openness

  1. Becoming Platforms Harnessing the power of communities, beyond crowd- sourcing and openness. Percorsi Erratici, Simone Cicero - 17/3/2014 Forlì meedabyte.com workshops & consulting @meedabyte
  2. me
  3. Crowdsourcing?
  4. Web 2.0 = Web as Platform CC Credits http://www.flickr.com/photos/50698336@N00/4074747593
  5. Bidirectional Interactive Personal
  6. "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."
  7. CC Credits http://www.flickr.com/photos/68751915@N05/6848823919
  8. κῦδος
  9. “Software is eating the world” Marc Andreessen
  10. Componentization * breaking down into cost competitive and interchangeable pieces.
  11. Illustration: Simon Wardley – blog.gardeviance.org Increasing competition in demand and supply
  12. "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
  13. Illustration: Simon Wardley – blog.gardeviance.org
  14. complexity CC Credits http://www.flickr.com/photos/usfsregion5/9423252987
  15. Pioneers Poorly understood markets, gaps to define, constantly undergoing changing dynamics, small numbers. Want to create the future. Startups
  16. Settlers Increasing demand, growing market opportunities, mature products, growing revenues. Platforms
  17. 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
  18. The ILC Cycle Illustration: Simon Wardley – blog.gardeviance.org Innovate Leverage Commoditize (repeat)
  19. Facebook Doesn’t Want To Be Cool, It Wants To Be Electricity CC Credits http://www.flickr.com/photos/24095119@N06/2324609725/
  20. Illustration: Simon Wardley – blog.gardeviance.org Startups Platforms Ecosystems
  21. interfacesCC Credits http://www.flickr.com/photos/39747297@N05/5229733647
  22. • above the interface*: higher value systems (use case innovation) • under the interface*: process maturity, elastic provisioning, measuring (competition) ValueChaininnovations
  23. Microduino (microsize) Flutter (long range) Smartduino (modularity)
  24. Access + Componentization + Collaboration = highest disruption rate ever
  25. competition = coevolution
  26. Fortune 500 companies life expectancy in 2013 is 15 years. Was 70 in 1930.
  27. Long tail = Diversification Diversification = Niches Niches = Economies of Scope
  28. “Economies of scope refers to lowering the average cost for a firm in producing two or more products”
  29. “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
  30. “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”
  31. "Once you finish assembling it, you’re emotionally attached to that. You’ve basically gone through the process to build your own phone” Moto X head product manager - Lior Ron
  32. 1 BILLION
  33. Airbnb.com 29/04/2014 2008
  34. 2010
  35. 2012
  36. Products
  37. tools Facilitated Contexts/Channels
  38. Manufacturing
  39. ARA
  40. https://www.youtube.com/watch?v=iLnM6j5-fXg#t=248
  41. openness as a resilience strategy
  42. The LEGOfication of everything
  43. The LEGOfication of human?
  44. “…all of these amazing digital technologies are coming together to create a world of mounting performance pressure.”
  45. #occupygezipark
  46. 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. “
  47. Paul Polman, Unilever CEO “companies are waking up and realising that they can be inside the tent, shaping solutions, future-proofing their businesses”
  48. New ways to business
  49. multi–sided & multi stakeholder business
  50. It’s a (co) Design challenge contexts motivations vaue creation
  51. Community (relations) Centric User (gap) Centric Platforms target P2P Communities: value creation comes from relations, transactions and exchanges
  52. “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
  53. Platforms
  54. The right approach: methodologically focus on identifying value exchanges and motivations Design Thinking & Platform Design
  55. Understand the basic roles in the Platform Consumers Producers Stakeholders (platform) ValueChain
  56. Explore the core value creation relation Consumers Producers Stakeholders (platform) ValueChain
  57. Consider that additional roles may appear Facilitators Curators Information Brokers Enabling actors ValueChain
  58. peers
  59. Peer Relations live through channels
  60. 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.
  61. The Platform Design Toolkit …In the making
  62. 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
  63. Rel. in June 2013 as an iteration of the Business Model Canvas Key community Feedbacks: - doesn’t show logical value flows - BM Canvas structure not good for non linear business - doesn’t model platform lifecycle - doesn’t help to hack growth
  64. Now working on a “Platform Design Toolkit” (more than a single canvas)
  65. The Platform Motivations Matrix (v 0.1)
  66. The Platform Design Canvas (v 0.2)
  67. Mostly Social / Community dynamics (shared value) Mostly p2p dynamics (exhanged value)
  68. What’s the intrinsic motivation to participate? (problem solved for peer segments)
  69. What are the key stakeholders contributing to the platform operation and mission?
  70. What peer segments are present in the ecosystem? They could be producers, consumers or prosumers playing both the roles
  71. What are the recurring transactions between the peer segments composing the ecosystem?
  72. Through which channels do the peer segments get in contact and execute transactions?
  73. How is the value exchanged and in what forms?
  74. What are the key components of the platform? (resources, formats, infrastructures)
  75. What services are available for the community to support value creation?
  76. How is the value extracted and in what forms?
  77. 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
  78. 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
  79. thanks! Simone Cicero meedabyte