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The Ecosystem Advantage

The Ecosystem Advantage. Developing a Blueprint for next generation collaboration & Innovation. Marco ten Vaanholt Vice President SAP Community Network. SAP Communities of Innovation : 2 Million people connected at http://scn.sap.com. Need screen shot of CN home page.

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The Ecosystem Advantage

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  1. The Ecosystem Advantage Developing a Blueprint for next generation collaboration & Innovation Marco ten Vaanholt Vice President SAP Community Network

  2. SAP Communities of Innovation : 2 Million people connected at http://scn.sap.com Need screen shot of CN home page Marco ten Vaanholt

  3. SAP…… almost 60% of the GDP of the world runs through our business systems Marco ten Vaanholt

  4. Some History …… Marco ten Vaanholt

  5. Years It Took to Reach a Market Audience of 50 Million Radio 38 years Marco ten Vaanholt

  6. Years It Took to Reach a Market Audience of 50 Million TV 13 years Marco ten Vaanholt

  7. Years It Took to Reach a Market Audience of 50 Million Internet 4 years Marco ten Vaanholt

  8. Years It Took to Reach a Market Audience of 50 Million iPod 3 years Marco ten Vaanholt

  9. Years It Took to Reach a Market Audience of 50 Million Facebook 2 years Marco ten Vaanholt

  10. By 2013, … > …a supercomputer will be builtthat exceeds the computationalcapabilities of the human brain Marco ten Vaanholt

  11. Predictions Are, That By 2049, … > …a $1,000 computer will exceed the computational capabilities of the entire human species Marco ten Vaanholt

  12. Not everything is changing • First published book describing double-entry book-keeping by Luca Pacioli, 1494Still valid! Marco ten Vaanholt

  13. innovation Marco ten Vaanholt

  14. Customers Want Continuous Innovation ……At Different Paces • All people, all devices, all “things” • Extreme ease of consumption • (Very) short innovation cycles (6 weeks) • Industry / LoB innovations • Instant value • Medium innovation cycles (6 months) • Standardized best practices • Enhancements without disruption • Long innovation cycles (6 years) Marco ten Vaanholt

  15. Changing Business Landscape Consumer Collaboration Business Acceleration Technology & Speed of Change Public Hybrid Hosted Private Marco ten Vaanholt

  16. Some more history …… Marco ten Vaanholt

  17. 1980-2005 Traditional Alliances Approach Typically an extension of….. Sales Marketing Development Marco ten Vaanholt

  18. Traditional Alliances Approach Often focused on.... not # of partners value not 1:1 engagement holistic • not promise • delivery not activity results Marco ten Vaanholt

  19. Time for a New Perspective From Alliances….. …. to Ecosystem …. to fuel Product, Platform and Business innovation Marco ten Vaanholt

  20. Time for a New Perspective • New ecosystem approach • Many companies participating in an extended value chain • Ecosystem of customers, partners, suppliers, influencers, and others • Organic and interconnected • Dynamic system orbusiness network • Old ecosystem approach • A few companies dominate the landscape • One-to-many connections managed as distinct relationships • Mechanical and linear Marco ten Vaanholt

  21. Peers Community Partners Individuals Customers • Dynamic YourCompany What Is an Ecosystem? Collaborative Community of communities Emerging business models • Contextual • Orchestrating Non-linear Six Degrees Preferential linking Blogs System Inclusive Environment Capability building Creation nets Trust Sharing Shared control and contribution • Continuous Meritocracy Business networks Structural gaps Marco ten Vaanholt

  22. Another look …. Marco ten Vaanholt

  23. Community powered engagement Core Design Principles for Next Generation Ecosystem Company Core strategy Integrated value chain Ecosystem group as “line of business” Common Infrastructure Customer-centricity Skills Marco ten Vaanholt

  24. Partners Factory Ecosystem Independent+ Influencer Communication Field Customer Community Networks Marco ten Vaanholt

  25. And then Communities came along….. Marco ten Vaanholt

  26. Co-Innovation: Community Network Models Community Of Interest Team Club (private and per invitation only) Example: C-Level ExecutivesCustomer/Partner Collaborations Example: IT organizations, Systems Integrators Example: Process Owners, LoB Managers, Individual Developers Solution Today: Collaboration Workspace, Enterprise Service Community Solution Today: SDN, BPX Solution Today: Constellation Ad hoc Networks Exchange Markets Networks Example: Situational burst of activity to find a specific solution Example: ISV Partners and CustomersDeveloper and Customers Example: Connected Ecosystems Solution Today: Blogs & Wikis Solution Today: EcoHub, CodeX Solution Today: None Marco ten Vaanholt

  27. Creating the Borderless Enterprise SAP Communities Marco ten Vaanholt

  28. Wiki Premium Content Advanced Search SAP Thought Leaders Content Library Physical Events Customer & Partner Contributors Community TV (video) Featured Content Networking Events Getting Started Public Discussion Forums Contextually Related Topics Blogs Whitepapers & Articles Downloads Top Contributors Modeling Tools Education / Awareness Topics Best Practices Business Maps eLearning Marco ten Vaanholt

  29. SAP EcoHub Community-Driven Online Solution Marketplace Accelerated Discovery Power of Insight Trusted Engagement Marco ten Vaanholt

  30. SAP Communities of InnovationSAP Innovation & Technology Pavilion Marco ten Vaanholt

  31. “SAP is living the Web 2.0 ‘philosophy’.” Paul Greenberg, in: Its 2008. SAP FINALLY Gets It. They Really, Really Do..., May 06, 2008 Customer Experience Customer Empowerment CRM BLOGS & Video Clips CRM DISCUSSION FORUMS & WIKI CustomerEngagement CRM @ BPX CRM NEWS & FEATURED CONTENT 109,701 + Contributions – 6 forums New:Sales, Marketing, Serviceactive 12/7/08 Wiki – 2 contest 49,069 video clips views CRM 2007 - 22 New Videos: CRM 7.0 – 5 Supporting Product Launch! # Blogs doubled since May! 35,374 Homepage Hits Collaboration Feedback Help & Support Co-Innovation Communication Marco ten Vaanholt

  32. INNOVATION DO Tools Programs and incentives THINK Core beliefs BELIEVE Marco ten Vaanholt

  33. INNOVATION DO THINK BELIEVE “ESME is a case study in the power of community, the dynamics that can emerge, the value of active cooperation between ‘suits’ and ‘geeks’ and the results that are possible. Put another way, how else might the germ of an idea emerge to become a functional application in less than three months without the benefit of community? ” Dennis HowlettSAP MentorBlogger and consultant on social media projects Enterprise Social MessagingExperiment (ESME) http://blog.esme.us/ Marco ten Vaanholt

  34. INNOVATION DO THINK BELIEVE The Business Process Expert (BPX) Community eBook • Process First describes the evolution of the Business Process Expert , a role that adds value by increasing effective communication across technical and business boundaries • Written through collaborative contributions from the Community members during a 5 month period Marco ten Vaanholt

  35. Develop joint solutions

  36. Exchange ideas, code samples, etc. uc_icon6."3x2 SELECTION-SCREEN END OF LINE. SELECTION-SCREEN SKIP 1. SELECTION-SCREEN BEGIN OF LINE. SELECTION-SCREEN PUSHBUTTON (4) icon7 USER-COMMAND uc_icon7."1x3 SELECTION-SCREEN PUSHBUTTON (4) icon8 USER-COMMAND uc_icon8."2x3 SELECTION-SCREEN PUSHBUTTON (4) icon9 USER-COMMAND uc_icon9."3x3 SELECTION-SCREEN END OF LINE. SELECTION-SCREEN SKIP 1. SELECTION-SCREEN BEGIN OF LINE. SELECTION-SCREEN PUSHBUTTON (12) restart USER-COMMAND uc_restart. SELECTION-SCREEN END OF LINE. SELECTION-SCREEN END OF BLOCK b1.

  37. Collaborate with the best minds globally

  38. The continuum: Adoption  Co-Innovation  Value Creation • Adoption Co-innovation Value Creation Passive Participation Participants come on line for downloads, articles, eLearning Active Participation Participants begin engaging in blogs, forums, wikis, projects FullyEngaged Realizing value for themselves and their companies by putting innovations into practice Marco ten Vaanholt

  39. 90% 9% 1% Connect Collaborate Co-innovate Evolution of community participation As members’ length of time in the community grows, they progress from merely connecting, to collaboration, to true co-innovation. Conversely, as engagement deepens, the numbers participating at such levels declines. This core of deeply engaged members drives the passion in your business community. – focus efforts on the few! % of Members Time in Community Marco ten Vaanholt

  40. Inspiring Innovation through Ecosystems Marco ten Vaanholt

  41. Looking through possible windows into the future ( these are my personal predictions of the business models of the future and not necessarily the future of SAP ) Marco ten Vaanholt

  42. Insight Models -> possible revenue models Marco ten Vaanholt

  43. New Provider Models -> possible revenue models Marco ten Vaanholt

  44. New IP Models -> new license models new ancillary services models Marco ten Vaanholt

  45. Delivering Breakthrough Results with …… a Unique SAP Ecosystem Approach Accelerate Innovation Industry-Focused Excellence 1 SAP Ecosystem Community-Powered Results 2 Enhance Return on Investment SAP Solutions & Services Orchestrated Co-innovation 3 Marco ten Vaanholt

  46. It’s Working…. Ecosystem Momentum Industry-Focused Excellence Community-Powered Results • 12+ Industry Value Networks • 100+ Customers/Partners in IVNS • 16 BPX Industry Forums • < 17 min Avg. response time on SDN forums • 6,000 post per day on SDN • 1.8 MM SCN members • 600,000+ BPX members • 52% of new ES bundles with Community participation • 40+ Community Definition groups with 300+ customers/partners • 117 Standards organizations • 2,000+ Solutions on NetWeaver via the communities Orchestrated Co-innovation Marco ten Vaanholt

  47. Don’t Take Our Word for It… “SAP has discovered something unique: they don’t have to give the code away yet they enjoy the benefits of ‘Open Source-like community …The Ecosystem has become an organic part of how SAP conducts business and there is not turning back.”  “Enterprise Bloggers, Openness, and a Thriving Ecosystem” –Zoli’s Blog, October 21, 2007 “SAP is significantly ahead of other vendors in establishing an innovative ecosystem” – Gartner, Oct. 2007 “SAP Ecosystem becomes a booming economy."  – Albert Pang, Sep. 2007 “SAP is an innovator in the development of customer-focused ecosystems” – IDC, July 2007 “SAP enjoys an early lead over its software industry rivals because it has formulated a sound platform ecosystem strategy, carefully planned in top-down fashion…” - Forrester, October 10, 2007 "SAP’s ecosystem proves a commitment to customer value.” “The Ecosystem Advantage"-Josh Greenbaum, July 2007 Marco ten Vaanholt

  48. Rethink Success… Rethink Alliances Rethink Collaboration Rethink Innovation Rethink Time ...Think Customer Focused Ecosystem Marco ten Vaanholt

  49. In Summary Rethink Innovation through Communities • Strategic Partnerships: Connect the dots • Communities core to business • Embrace new models of co-innovation • Orchestrate don’t manage Marco ten Vaanholt

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