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Architecting multi sided business 2

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My presentation to the IASA UK conference, April 2013.

Publicada em: Negócios, Tecnologia
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Architecting multi sided business 2

  1. 1. Richard Veryard IASA UK Conference April 2013 Architecting the Multi-Sided Business 2
  2. 2. Agenda  A modern business typically needs to operate in multiple markets simultaneously, and satisfy the overlapping needs of different stakeholders.  The emerging architectural response to this challenge is to configure the enterprise as a platform of services, rather than a traditional value chain.  But this kind of transformation involves profound architectural challenges, which business architects need to be able to master.
  3. 3. Compare and Contrast Platform Strategies We cannot understand what makes these companies different by analyzing the things they have in common.
  4. 4. Compare and Contrast  Activity architecture  Marketing  R&D  Partnerships  Information architecture  Customers  Products & Services  Partners  Platform Strategy  Business Service  Management Structure?  Culture? Similarities Differences Which architectural viewpoint helps understand strategy?
  5. 5. Governance  Responsibility View  Cybernetic View Original cartoon by Manu Cornet
  6. 6. Who does this guy think he is?
  7. 7. Organizing Principles builds management reporting lines around job functions -- such as product management, development, softw are testing. where multi-disciplinary teams work on specific feature sets together. Functional Organization Product Organization This is what Steve Sinofsky preaches and practices. Manu Cornet’s cartoon of Microsoft is thought to be a coded reference to Sinofsky. Sinofsky left Microsoft in November 2012.
  8. 8. MOTIVATION VIEW What the business wants CAPABILITY VIEW What the business does CYBERNETIC VIEW How the business thinks ACTIVITY VIEW How the business does KNOWLEDGE VIEW What business knows RESPONSIBILITY VIEW Who Whom Six Views of Business including business service and platform configuration
  9. 9. Cybernetic View
  10. 10. Where is Michael Porter now? Value Chain Shared Value
  11. 11. Platform Types  Same-Side Platform  Multi-Sided Platform  Market-Making  Audience-Making  Demand Coordination
  12. 12. Other Platform Examples  Nike+ Accelerator  Department Stores (e.g. J C Penny)  Media (e.g. Disney)  Telecoms
  13. 13. Market Platform (Retail Example) Traditional Platform Consumer Retailer Farmer Manufacturer Caterer Consumer Retailer Farmer Manufacturer Caterer Asymmetric Design  Economics of Scale, Scope  Economics of Alignment, Governance Indirect relationships
  14. 14. Audience-Making Platform (Media) A Media information aggregator builds a relationship with end users and connects them to various retailers and Contents / Services Providers. Source: Maat International
  15. 15. Key Platform Measures how easily others can plug into the platform to share and transact how well the platform attracts participants, both producers and consumers Connection Gravity Flow how well the platform fosters the exchange and co-creation of value Source: Mark Bonchek and Sangeet Paul Choudary HBR
  16. 16. Key Platform Capabilities Making it easy for others to plug into the platform and enables interactions between participants. For example, Apple provides developers with the OS and underlying code libraries; YouTube provides hosting infrastructure to creators; Wikipedia provides writers with the tools to collaborate on an article; and JC Penney provides stores to its boutique partners. Attracting critical mass of participants. Platform builders must pay attention to the design of incentives, reputation systems, and pricing models. They must also leverage social media to harness the network effect for rapid growth. For example, developers and users (Apple, Android). Buyers and sellers (Amazon, eBay). The Toolbox The Magnet The Matchmaker Fostering the flow of value by making connections between producers and consumers. Capturing and leveraging rich data to facilitate connections between producers and consumers. For example, Google matches the supply and demand of online content, while marketplaces like eBay match buyers to relevant products Source: Mark Bonchek and Sangeet Paul Choudary HBR
  17. 17. Platform Ambiguity Platform Boundary Evolution  influence of discrete decisions of entry into a particular business  incremental adaptations in relation to suppliers of complementary components. Interface Ambiguity  ‘uncertainty in the market over what constitutes the key interface’ (Funk, 2002) Questions  What are the core components around which platforms in this industry arise?  How to characterize differences between platforms in this industry? Source: Pieter Ballon 2009
  18. 18. ComplementorComplementor General Pattern  Where are the products and services located?  How is the platform designed and managed?  How does the platform support indirect relationships?  Where is the added value located? Questions Consumer Platform Business Complementor ConsumerConsumer
  19. 19. Platform Strategies  Start Small  (e.g. Diners Club)  Marquee Strategy  (e.g. American Express)  Emergent  (e.g. Linked-In, Facebook)
  20. 20. Differentiating Users Celebrities and Others Cheap Expensive
  21. 21. Four Types of Customer Behaviour Comparison • Choosing between different solutions to the same demand Destination • There is only one place for the customer to go. Cost Convenience • Choosing between similar standardized offerings Custom • Supplier adapting the offering to the customer’s requirement SupplyInfrastructure Capability Requirement MicrosoftArchitectureJournal AsymmetricDesign
  22. 22. Strategic choices  The move from destination to product involves reducing the exposure to integration risks by externalizing the exogenous risks.  The move from product to cost involves reducing the exposure to the technology and engineering risks by standardizing the business model.  The move from cost to custom involves increasing the exposure to integration risks again, but only the endogenous ones.  Only the move from custom to destination faces the business with the exo-interoperability risks.
  23. 23. Boisot I-space
  24. 24. Decoupling different levels of abstraction  Standardizing the platform level capabilities.  For example, a standard approach to customization.  Differentiating the business level capabilities.  For example, offering a wide range of third party products and technologies.
  25. 25. Case Example: Business Service Company  Broad range of corporate customers  Each corporate customer had its own customized solution  Solution architects working with customers, focused on customization and innovation  Common platform of shared services  Internal  Third-party  Customer-facing  Solution architects focused on value-adding innovation  Customization process faster, more consistent, and more reliable. Before After
  26. 26. New Challenges for Business Architects Ecosystem  Mapping the ecosystem of organisations, customers and contexts within which business must to decide how to act. Indirect value  Defining the indirect value for our customers beyond the immediate value arising from their involvement with our services. Economies of governance  Establishing economies of governance in the way business and other resources can be brought together and combined in individual interventions. Horizontal accountability  Considering how to strengthen horizontal accountability in ways which hold accountable the individuals who are dealing directly with customers. Agility  Developing the agility of systems and processes to cope with variation in the scale and scope of individuals’ needs, and in response to continued change in economics conditions and/or customer demand
  27. 27. Conclusion  A modern business typically needs to operate in multiple markets simultaneously, and satisfy the overlapping needs of different stakeholders.  The emerging architectural response to this challenge is to configure the enterprise as a platform of services, rather than a traditional value chain.  But this kind of transformation involves profound architectural challenges, which business architects need to be able to master.
  28. 28. MOTIVATION VIEW What the business wants CAPABILITY VIEW What the business does CYBERNETIC VIEW How the business thinks ACTIVITY VIEW How the business does KNOWLEDGE VIEW What business knows RESPONSIBILITY VIEW What the business is Six Views of Business
  29. 29. Books
  30. 30. Notes Enterprise Architecture Forum, 19 September 2013 RVsoapbox. BlogSpot.com twitter.com/ richardveryard Future Events Other Material and Links Acknowledgements Philip Boxer AsymmetricDesign.com

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