Business models

Empowering Women: Crafting a Mentorship Platform’s Future Business Model

Business models, Business strategy /

By the Numbers: Highlighting the Problem of Gender Disparity in the Workplace for Women In the European Union, the gender pay gap stands at a striking 12.7%, highlighting the undervaluing of sectors dominated by female workers. In fact, 60% of manager-level positions are held by men, leaving women to fill the remaining 40%? This imbalance at the managerial rung is a critical barrier to women’s progression to senior roles​​. Moreover, women’s professional networks are often less robust than their male counterparts. For instance, in the Netherlands, women are reported to be 35% less likely than men to possess a strong and diverse network. This disadvantage is not localized but global, with women worldwide being up to 38% less likely to have a stable network—a factor crucial for career development and opportunities. One of the most effective tools at our disposal to level the playing field is mentorship. Extensive research, incluing the Women in the Workplace 2023 Report, proves that effective mentoring can catalyze change, equipping women with the confidence, skills, and networks needed to navigate and succeed in a challenging corporate environment. Power of Mentoring: A Pathway to Equity and Success for Women in the Professional Sphere Mentoring has emerged as a powerful tool for addressing inequality and bridging the gender gap in the workplace. Mentoring is vital for women’s advancement and empowerment in the professional world, with best-case outcomes leading to increased retention and promotions for underrepresented groups. In fact, women with mentors were promoted five times more than their non-mentored peers. Additionally, the retention rate of women post-mentoring increased by 15 to 38 percent. Mentoring provides women with both psychological support and practical skills, fostering invaluable networks that enhance their longevity and success in the workplace. One of the fundamental ways mentoring empowers women is by increasing their confidence and self-esteem. It can provide support, guidance, and constructive feedback that help women recognize their worth and take on new challenges with confidence. Mentoring also helps women develop hard and soft skills, such as project management and leadership abilities, leading to women’s personal as well as professional growth and breaking through barriers. Additionally, mentoring facilitates the creation of supportive networks, introducing women to key contacts and opportunities for networking within their industries, ultimately enhancing their visibility and paving the way for career advancement. However, despite their effectiveness, the true impact of mentoring remains largely overlooked by organizations. Shockingly, 63% of women in the global workplace have never experienced formal mentorship. Organizations must recognize the significance of mentoring in promoting gender equality and empowering women, which ultimately can also lead to business growth. Advancing mentoring for women through the #itoo platform #itoo is an innovative online mentoring platform designed to foster connections, support, and guidance among women. It empowers women to effortlessly connect with mentors for tailored support and opportunities, nurturing both personal and professional growth. The platform’s primary objective is to empower women through mentoring, elevating their visibility and significance in the workplace. Here’s how it works: Women can sign up as either mentors or mentees. Mentors specify the skills or qualities they can offer, while mentees identify the areas in which they seek guidance and improvement. Utilizing an algorithm, #itoo matches mentees with mentors who possess relevant experiences, expertise, and aspirations, facilitating transformative learning and professional development journeys. Through analytics capabilities, #itoo ensures personalized mentoring connections. #itoo stands out as a unique algorithm-powered platform, delivering optimal and personalized experiences for women, thereby transforming businesses with enhanced data-driven interactive employee support. By fostering genuine connections and facilitating knowledge exchange, #itoo cultivates a thriving community of empowered women who inspire each other to achieve their fullest potential. Ultimately, it also benefits organizations in numerous ways. It offers businesses a valuable tool to enhance operations and foster success, facilitates the attraction and retention of highly skilled female workforce, boosts representation, and delivers various other advantages. The Value Department is currently guiding #itoo through its realization, having already assisted in analyzing its current business models and charting its future direction to identify new opportunities. If you’re ready to unlock the potential and empower the futures of women together, stay tuned to our LinkedIn and website for updates on #itoo! Are you also in need of exploring your future business models and making a positive impact on the world? Reach out, your next opportunity is one call away. Image made using Dall.E

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Future-proofing governance for start-ups, scale-ups and SMEs in transition: leveraging the diamond model

Business models, Business strategy, Change management, Governance /

Source: NEMACC, Erasmus University, and Utrecht University of Applied Sciences Governance, what is it, and why is it important for corporations, start-ups, and scale-ups? Governance is the structure of rules, practices, and processes used to direct and manage a company. For larger organizations, the focus is usually on corporate governance, which is more compliance focused. For start-ups and scale-ups, the key focus is on performance and value creation. There are various models, and the Diamond model is one of the most interesting and easy to use. The Diamond model is a dynamic and integrated approach designed to enhance the governance of small and medium-sized enterprises (SMEs). The goal is to steer organizations towards long-term success by focusing on performance and value creation. Significant research about the diamond model of SMEs governance was conducted by NEMACC, in collaboration with a team from Erasmus University led by Prof. Dr. Auke de Bos RA, and the Financial-Economic Advice Lectorate Innovation at Utrecht University of Applied Sciences. This study focused on exploring the aspects of good management and supervision within SMEs, with a particular emphasis on the role of the accountant. The model comprises four key governance processes: steering, controlling, justifying, and organizing feedback. These are further broken down into eight practical components to provide a structured yet flexible framework. This dual nature allows companies, start-ups and scale-ups to adopt formal or informal governance mechanisms based on their maturity, industry, and regulatory context. Steer Steering involves setting the strategy and operational plans. A well-articulated strategy is critical as it provides direction to all stakeholders involved (top-management, employees, shareholders, and customers) and helps translate long-term goals into short-term actions. Maintaining strategic agility is vital in the face of changing conditions. Therefore, sustained attention to strategy and its implementation is essential for business survival in a rapidly changing environment. Control Controlling is about being ‘in control’ and includes setting an organizational structure that matches the company’s scale and goals and ensuring that the information delivered to stakeholders is timely, relevant, and accurate. This foundation enables effective management and accountability. Justify Justifying focuses on accountability to internal and external stakeholders, aiming to increase their engagement which, in turn, can improve company performance. Organize feedback Organizing feedback is about embracing advisory and challenging roles. In SMEs, where formal oversight may be less pronounced, the need for critical advice and feedback is increasingly important. External advisors can play a crucial role in helping SMEs navigate complex and turbulent environments. Implementing the Diamond model means applying these principles in a practical, evidence-based manner. It offers companies a clear guide for discussing and instilling good governance, with the flexibility to adapt to their unique situations and contexts. This model has multiple benefits: it promotes clear communication, allows for strategic adaptability, and encourages stakeholder engagement—all of which are cornerstones of sustainable SME success. Enhancing Strategic Governance: The Scorecard Tool At The Value Department, we build on the Diamond Model by using a tool that enhances our strategic approach—the Diamond Model Scorecard. We use the scorecard to assess companies in transition, providing a comprehensive evaluation of their governance drivers based on the Diamond Model. This tool enables us to assess the current status of each driver using a simple yet effective traffic light system: red, amber, or green. The final column of our scorecard provides strategic recommendations based on the evaluation. Beyond identifying strengths and weaknesses, we offer actionable insights to enhance the organization’s governance structure. This valuable feature ensures that our clients not only understand their current standing but also receive guidance on the next steps toward strategic excellence. Incorporating the Diamond Model Scorecard into our work allows us to provide all relevant stakeholders with a holistic view of their governance landscape and empower them to make informed decisions for future success. It is a valuable tool to initiate conversations and inquire about the progress with employees on those topics, providing an effective means to gather feedback. Furthermore, the Diamond Model also helps to adjust the governance structure during strong growth and evolution, ensuring that the insights gleaned from the Scorecard facilitate strategic decision-making for sustained success and adaptability. As a final point for consideration, we ponder: Where does culture find its place? While this aspect is partly integrated into the organizational structure (control) and internal stakeholders (justify), it warrants explicit attention as a distinct subject in the evaluation of the Diamond Model and corresponding Scorecard. Stay tuned for more updates on how this easy-to-use tool shapes the way we approach strategic transitions.

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The Power of Digital Platforms for Sustainable Growth

Business models, Business strategy, Platforms /

In a world where digital transformation is no longer an option but a necessity, businesses are increasingly turning towards digital platforms to foster sustainable growth. The unprecedented challenges posed by the COVID-19 pandemic have further accelerated the adoption of digital platforms as they have emerged as a lifeline for businesses to stay afloat in a sea of uncertainties. However, the potential of digital platforms extends far beyond just ensuring business continuity. They play a crucial role in driving sustainable growth by enabling businesses to operate more efficiently, innovate more rapidly, and create positive social and environmental impacts. Efficiency and Innovation   Digital platforms facilitate efficiency by automating repetitive tasks, optimizing supply chains, and enhancing data analytics. For example, a cloud-based supply chain platform can enable a business to optimize its inventory levels, reduce waste, and minimize transportation costs, all of which contribute to a more efficient operation. Moreover, digital platforms foster innovation by providing a space for collaboration, knowledge sharing, and the development of new solutions. Digital platforms enable innovators and developers worldwide to collaborate on use cases, driving innovation and creating shared value. Positive Social and Environmental Impacts   Digital platforms facilitate the creation of sustainable and circular business models by optimizing supply chains, promoting the sharing, reusing, and recycling of products and materials, enabling the development of sustainable products and services, enhancing transparency and traceability, and fostering collaboration among stakeholders. Leveraging digital technologies helps in reducing waste, minimizing transportation costs, ensuring ethical production, and creating value for all stakeholders, thereby contributing to a more sustainable future. Challenges and Considerations   While the potential of digital platforms to contribute to sustainable growth is immense, there are several challenges and considerations that need to be addressed. First and foremost, there is a need for a robust digital infrastructure to ensure that digital platforms are accessible to all. Secondly, there is a need for proper regulation and governance to ensure that digital platforms operate ethically and responsibly. Finally, there is a need for businesses to adopt a holistic approach towards sustainability, considering not only the economic but also the social and environmental aspects of their operations. Way forward: revolutionizing the Circular Economy enabled by technology   Digital platforms have revolutionized our approach to business, making it possible for companies to tap into new markets, cut expenses, foster innovation, and gain a competitive edge. Nonetheless, for the advantages of digital transformation to be distributed fairly and sustainably, it is imperative that businesses and governments collaborate to establish a conducive environment that promotes innovation, digital infrastructure, and sustainable practices.  Blockchain is a technology that can cater for this. Revolutionizing Sustainability: How Blockchain is Fueling the Circular Economy   At “TheNTWK summit 2023 (a collective knowledge and expertise ecosystem event of 350+ digital business innovators from 21 countries). “The Value Department presented an interactive workshop designed to delve deep into the potential of blockchain technology as a tool for driving sustainable development and promoting the circular economy. Our colleague Bob Gravestijn crafted the attached booklet for everyone who’s interested to be better equipped to understand the transformative potential of blockchain technology in fostering a more sustainable and circular economy. By reading the booklet you’ll also gain insights into how businesses, governments, and other stakeholders can collaborate to leverage this technology to drive sustainable development. View our booklet here! Reach out to explore the power of blockchain technology and platforms in revolutionizing sustainability and promoting a circular economy. Together, let’s collaborate to drive sustainable development and create a better future for all.

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“Waste + Information = Resource” How digital technologies like blockchain fuel the circular economy

Blockchain, Business models, Circular economy, Sustainability, Technology /

In a world increasingly conscious of its environmental footprint, the potential of digital technologies in driving the circular economy is a topic of great interest at The Value Department. This topic was the focus of a presentation delivered by Fleur Boos and Bob Gravestijn at #TheNTWKSummit23. Let’s first give some meaning to the buzzwords! View our presentation here! What is the circular economy and what do we mean by a sustainable approach? A circular economy is centered on the idea of resources being kept as long as possible within the economic system. Materials that have undergone an entire lifecycle, from production to end-stage, are returned to the economic system as an input.   A sustainable approach that focuses on minimizing waste and maximizing resource efficiency through a closed-loop ecosystem How can blockchain help the circular economy? Digital technologies can play a significant role in promoting this circular economy. For instance, Blockchain enables a central, immutable ledger of transactions, bringing higher levels of transparency across the supply chain, ensuring traceability, ethical sourcing, and more effective material flows. The technology is composed of several layers, including the application layer, aggregation layer, asset layer, and consensus layer, each playing a crucial role in its functionality. Combining those: Waste + information = Resource.  And this is not only theory or future dreaming, several organizations are already leveraging blockchain to support the circular economy. For instance, Lockheed Martin enhances supply chain management and aerospace manufacturing processes using blockchain technology. Similarly, Tex-Tracer with Fujitsu technology utilizes blockchain technology to enhance the traceability and transparency of textile supply chains, promoting sustainability and ethical practices in the textile industry. In addition, IBM Food Trust leverages blockchain for transparency and traceability in the food supply chain to improve food safety and reduce waste.   Other examples include Plastic Bank, which incentivizes plastic waste collection using digital tokens and blockchain technology for recycling and job creation, and Circulor, which uses blockchain technology to track materials and products’ lifecycles, improving social and environmental standards. Or Gainforest.app employs blockchain technology to monitor, report, and verify reforestation and conservation efforts for sustainable land management. And many more examples are out there – contact us to get introductions! What are the potential barriers to integrating blockchain in the circular economy? While promising, Blockchain technology comes with its own set of challenges. Blockchain’s impact on power consumption is a critical aspect to consider. The energy consumption varies depending on the consensus algorithm used, such as proof of work, proof of activity, proof of elapsed time, proof of capability, proof of burn, proof of authority, proof of stake, and proof of history. Understanding these algorithms and their energy footprints can help in optimizing the use of blockchain for sustainability. Other challenges include scalability, interoperability, integration with legacy systems, and protection of sensitive and confidential data.   Working toward how we can overcome these challenges is crucial to maximizing the potential of blockchain in the circular economy.   If you’re interested in learning more, send us a message and we’ll be happy to share the full presentation filled with more examples – we believe you’ll find it insightful! In the meantime check out a preview by clicking the button below. Don’t hesitate to reach out to us via message if you’d like to learn more about this interesting topic. View our presentation here!

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A Guide to Building a Robust Product Proposition and Strategy: The Recipe to Your Own Secret Sauce

Business models, Business strategy, Platforms, Propositions, Value proposition /

It’s difficult to remain relevant in today’s fast-paced business environment. It’s even more difficult to remain competitive. To do so, having a robust product proposition and strategy is essential. To quote Roger Martin’s Playing to Win: strategy is about choices. And the choices we make can enable us to win. Building a robust strategy entail being able to make the right choices (for you, your client, and the broader ecosystem) at the right times. “A robust product strategy involves having a vigorous and strong plan that starts with a clear vision and can withstand the ever-changing business environment effectively.” But a robust strategy is also one that is also able to adjust or tweak certain aspects if the situation calls for change. How can you achieve this? We’ll fill you in on some basics that are a must for your product strategy. Stop talking and start listening… Understanding your customers. It is important to understand your customers’ needs, preferences, and pain points. By understanding your customer, you are better able to develop the necessary features and benefits within your product. You have to get out there and start talking to people. Start by defining your research goals and identify what objectives you want to reach. The next step is pinpointing the best methods to reach them; surveys, focus groups, data analysis, and so on. Where necessary, leverage your network to get additional reach. After you have collected insights, use this information to create fictional representations of your target customer’s demographics, behaviors, preferences, and challenges: persona’s. These will be used to inform your product strategy. But beware: assumptions are the mother of all screw-ups! Avoid making assumptions about your customer’s needs, behavior, or challenges, as this can be very costly. Making assumptions can put you at a competitive disadvantage because if you’re wrong, it doesn’t only make you look bad, you’re also back at square one. A good and easy-to-use method for this is 5x why, to drill down on the root cause of a problem. Keep asking your customer ‘why’ until you can narrow down the key focus area. In short, you have to really talk to your (end) customer first (and ask them: “why?” a million times) to really understand them.  Keep your friends close and your enemies closer… Understanding your competition. The next step is gaining a firm understanding of your competition, relevant trends in the industry, and customer behavior.  By gathering knowledge of the competitive landscape’s strengths and weaknesses, you can identify opportunities where your offering can fill the gaps in the market. A few tips and best practices for conducting a competitive analysis and developing a competitive strategy: Identify your direct and indirect competitors Use an ecosystem map (for example from Ecosystemizer) to capture the roles each competitor plays in the market and identify your position (more on this in future blogs!) Analyze your competitor’s offering (pricing, strengths, features, quality, value proposition, etc.) vis-à-vis your offering Uncover how your competitors reach their customers (and who their customers are) From here on out you have a more solid foundation for building your well-informed competitive strategy. Knowing your customers and the competitive landscape better allows you to find your ‘why’.   Have a North Star… Understand your why. Now, at first glance, finding your North Star might seem easy, but to be entirely honest, it is not a simple task. However, although finding that North Star might seem daunting, it is crucial to take the time to reflect on who you are and what you represent. This is the first foundational block to building a product strategy.   Don’t be afraid to think about your personal link to the product or company’s North Star; what makes you excited? What will get you out of bed in the morning? How can you link these aspects to building a unique proposition? At the end of the day, you, as an individual, need to stand behind your product and strategy. A few things that are important in this process include: Identifying your product’s strengths Identifying critical challenges that you may face in the future Identifying where to play (compete) And identifying how to play Having a compelling story to bring along your key stakeholders What do you need to bridge the gap between starting and winning Identify your secret sauce… Define your unique value proposition. So, by now you should know your customer, know what your competition is doing, and know why you do what you do. The last crucial element is creating a unique value proposition to differentiate from competitors in the market. Just like grandma’s secret recipes that are just so good, but you do not know how she does it, your organization needs its secret sauce. A secret sauce that is so good that your customers keep coming back to you and it is hard to be copied by your (direct) competition. Is it the way you leverage technology? Is it how you present your brand to leverage customer loyalty? Or is it because you gained a first-mover advantage, or your product is unique? Zeroing down on your secret sauce is crucial. The next step is linking your secret sauce to the pain points you have previously identified. Consider how your company can make life easier for your customer, and how you can truly delight (not just satisfy – delight!) them with your offering. A key aspect of this step is validating your unique value proposition. Does your offering delight your customers? What is it missing? What else does it need to make it a unique offering that resonates with your target customer? Iteration is crucial: approach your target, ask for feedback, revise, and repeat! Once you can align your unique offering and your client’s needs, go out and get them!  Go out and do it. The final step in building a robust product strategy is to get out there and start doing! At The Value Department, we strongly believe in “learn by doing”. Start talking to your (end) customers, start interviewing people, start doing research, and start asking questions. Why? Because the

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Unleash the power of WIN methodology to create value for your business!

Business models, Business strategy, Platforms, Technology /

Are you struggling to create value for your business? Are your outdated strategies falling flat? Then let us introduce you to the WIN methodology.  As seasoned experts in the field, we can tell you firsthand that the WIN methodology is a game-changer. By creating momentum and impact, applying ecosystem thinking, and enabling technology, you can take your business to new heights. But don’t just take our word for it. The benefits of the WIN methodology are clear. By analysing your ecosystem and identifying where value is created and how it flows, you can develop a strategy that improves the pains and gains for your business. And by contributing to a triple bottom line, you can ensure that your economic, social, and environmental goals are all met.  WIN stands for “Whatever Is Needed” and is centered around creating momentum and impact, applying ecosystem thinking, and enabling technology. It’s a dynamic approach that ensures your business is always on the cutting edge and delivering maximum value The WIN methodology cares for people, planet, and profit. It encourages businesses to manage economic, social, and environmental value added. This means you can make more money, while also making a positive impact on the world around you. It’s a win-win situation!  And technology is the final piece of the puzzle. By enabling solutions driven by technology, you can digitise processes, develop new products and services, and build new ventures and platforms. Our experience with big data, blockchain, APIs, robotics, and AI means we can apply the right technology to achieve the desired impact.  In short, The WIN methodology is a powerful tool for any business looking to create value and improve their impact. So if you’re ready to break free from the old ways and start creating real value for your business, it’s time to embrace the WIN methodology. Whatever is needed to succeed – we’ve got you covered. #WINmethodology #createvalue #businessgrowth #ecosystemthinking #sustainability #socialimpact #profit #digitaltransformation #innovation #technology #businessconsulting #letushelp

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How to lay the foundation for resilient digital platforms and innovative ecosystems with great governance

Business models, Governance, Platforms /

Globally, we are witnessing the rise of platform-based business models that capture and use data to create value for all participants. From Airbnb, Uber and Lyft to WeChat in China and Amazon Web Services, platforms are reshaping industries by creating new relationships between companies, consumers or suppliers. However, many platforms fail because they do not consider the legal framework that governs them. In particular, a successful platform requires clear rules about how key stakeholders interact with each other — rules that must be put in place at the outset of any digital transformation effort. Leaders who want to create a platform that creates value for all participants. If you’re a leader who wants to create a platform that creates value for all participants, there are some things you should know about the dynamics of platforms and ecosystems. It’s true that platforms can be powerful instruments for creating value. But they don’t just happen; they require deliberate effort and management by the company at the center of them. Platforms are not passive systems that work themselves out; rather, they require active leadership to shape how they develop over time. And while this might seem like common sense on its face, many executives still think of their companies as “platforms” simply because they offer products or services through third parties (and sometimes even own those third parties). Organizations in industries facing digital disruption. Organizations in industries facing digital disruption will be challenged to re-imagine their business models and approach to innovation. These organizations need to be able to scale up and down quickly, adapt quickly to changing circumstances, and change their business model. A good starting point for managing the complexity of such an ecosystem is the design of a good governance framework. Platforms that operate through partner networks. Platforms that operate through partner networks are the most common type of platform. They’re characterized by a marketplace or network of partners providing goods, services or resources to consumers (or between other partners). Examples include: Airbnb (rental accommodations) Uber and Lyft (transportation) OpenTable (restaurant reservations) These platforms are complex because they require multiple parties—the platform, service providers and customers all need to interact with each other in order for the business model to work. Successful management is dependent upon establishing clear responsibilities for all parties involved in order to ensure transactions occur seamlessly. Companies looking to develop ecosystems of value-added services. As you consider how to lay the foundation for resilient digital platforms and innovative ecosystems with great governance, here are some questions to ask yourself: Are we creating value for all participants? Do we operate through partner networks? Are we looking to develop ecosystems of value-added services? Put the right rules in place to orchestrate a platform that creates value for all participants — and helps manage risk. The initial step in governance is to build the right rules. Governance is about how you make decisions, not what decisions you make. It’s about how you manage risk and uncertainty, not about eliminating them altogether. It’s also about ensuring that you have the right systems in place to orchestrate a platform that creates value for all participants — and helps manage risk. But what does “the right rules” mean? What are they? How do they work? We’ll explore these questions next week at BSCA’s Big impact – a recurring event with discussions on topics on everybody’s lips.  Conclusion The governance of platforms is a critical component of success. It’s easy to see how the lack of clear rules can lead to confusion and conflict, but it’s also important not to make things too rigid. Creating a platform where everyone is working together toward a common goal requires flexibility and good communication. In short, if you want your digital platform to be successful, then it needs great governance! Start something new. Grow your business or brand. A better way to do business. Work with us. We can show you the way. We’ll be your digital companion. Be part of tomorrow. #platform #ecosystem #governance #businessmodel #digitaltransformation #innovation #platformcooperation #platformcoopetition #collaboration #community

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Platform business models: facts and myths

Business models, Business strategy /

Let’s start with some easy facts: According to the European Commission, “1 million EU businesses are already selling goods and services via online platforms, and more than 50% of small and medium enterprises selling through online marketplaces sell cross-border”. This number is only expected to increase, disrupting more sectors each year. Out of Interbrand’s top 20 Best Global Brands in 2022, 13 function as platform businesses. A platform business is a matchmaker, facilitating a means of connection, often between demand-side and supply-side parties. Compare this to 10 years ago in 2012, when only 7 out of this list were platform businesses. For now, we’ll tell you a bit more about several myths surrounding platform business models, as not all these myths are true. Let’s bust some common myths:   #1: Platform business models are not just startups Platform business models are really nothing new. Take a look at eBay and Amazon, to name just two examples. Both are over 25 years old. Even before the founding of these companies, we had traditional marketplaces and shopping malls. These places similarly facilitate a connection between multiple parties. We have, however, begun to think differently about platform business models, and how we can leverage such a business model through technological industry disruption.     #2: Platform business models are not only small This myth could not be further from the truth. Some platforms are indeed small, but take a look at Airbnb, Facebook, Etsy and Paypal. These are only a handful of multi-million-dollar businesses that operate under a platform business model. Platform business models truly come in all shapes and sizes.   #3: Platform business models are not only digital businesses A platform business model isn’t synonymous to a digital business. Most of the time when people refer to platform business models, they refer to a digital business. However, bringing back previously mentioned examples, a traditional Saturday morning marketplace in your local village, or a shopping mall, are both places where buyers and sellers can come together and connect. Most platforms are digital but being digital is not a prerequisite to being a platform business.   #4: Platform business models do not only facilitate an interaction between two parties A platform business model can enable interactions between two or more sides. Think of Facebook, for example. Facebook offers its services to billions of users who interact with each other ‘for free’ (yes, it’s true: “if you’re not paying for the product, then you are the product” as quoted by Tristan Harris – but that’s another story). Facebook makes money by allowing third parties to advertise. This simple scenario illustrates that there can be more than two sides involved on a platform.   #5: Platform business models are not only American Booking.com and Adyen are Dutch. Alibaba and TikTok are Chinese. BlaBlaCar is French. Deliveroo is British. Fiverr is Israeli. And the list goes on and on!   One last undeniable truth… A (digital) platform strategy is extremely complex, and success doesn’t come easy. Not only do these platforms need to have a firm understanding of their industry, but they also need to consider the dynamic interactions of a multi-layered business ecosystem. A platform needs to continuously deliver added value to all parties involved (shareholders, consumers, producers and partners). If you don’t add value and stand out, you’ll get disintermediated. Want to know more about navigating a complex digital platform strategy? Get in touch!    

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Why is ecosystem thinking important for your present and future business models?

Business models, Ecosystems /

Today, at the end of the digital revolution, IBM is at a similar juncture as it was four decades ago (when almost missing out on the minicomputer personal computer revolution). However, the approach IBM currently takes is 180 degrees different. Instead of secretly developing a new product, it is building a collaborative network to develop quantum computing. IBM indicates that the technology is simply too complex for a single firm to develop alone.  And so, it goes for many challenges we face today, whether it is the energy transition, digitalization, or a growing necessity to address climate change, a single firm has a hard time, if not a mission impossible, to solve the complex and required transitions we are about to face. That’s where ecosystem thinking comes into play. Ecosystem thinking is the belief that value creation is a collaborative result that involves multiple stakeholders within an ecosystem. A business ecosystem consists of multiple stakeholders – centered around the value proposition for your client or your client’s client – where the value created together is more than the value created alone. Compared to traditional thinking, ecosystem thinking is a shift from “me” to “we”; from internal value chain focus to external ecosystem value growth from focus mainly on operational efficiencies and ‘economies of scale’ to creating user snowball effects (so-called ‘network effects’) from development alone to teaming up with partners and co-creating from competitors to complementors from suppliers to partners Each client proposition (product/market combination) has its own business ecosystem and that leads to the fact that the centre of gravity of a business ecosystem plays an important role in addressing your customer needs and creating a stronger competitive advantage. To determine the strategic direction of your company, it is very important to consider what the role of your organization in this business ecosystem could be. Are you a leader or a follower, an innovator or an imitator, an orchestrator, or a participant? Sound easy? Well, the challenge is to find the sweet spot in your ecosystems. Trying to lead or to orchestrate doesn’t always make sense… Your added value needs to be unmissable. You need to find your spot where nobody is going to be better than you, where you can’t be made redundant, and your business still adds value, and the ecosystem creates value. 

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