We interviewed Staffan Movin, Managing Director at Marketing Technology Center, MTC*. Staffan is one of our speakers at our November conference this year and he will talk about “Business models and IoT strategies in different ecosystems”
Staffan is right now in the midst of creating a book on the topic of managing the digital transformation and the role of IoT in different ecosystems.
Staffan gave us some of his experience looking at collaborations.
“The digitization is creating a bunch of new markets, solutions, and requisites for collaboration! As an organization, you are increasingly playing the role of partner, competitor, customer, and supplier at the same time. This requires new types of alliances and partnerships to be created, where you have to think about what position you have and when to play what role.”
“An overall trend is that the way we as an industry look at digitization has changed from being a way to cut costs to understand that it might be used to create other possibilities. There is an overall increase in acceptance for creating change and new solutions in directories all over.”
According to Staffan, the problem when approaching the strategies for collaboration in ecosystem structures lies in the already existing structures in the organizations.
“The organizations are very well aware of their network intellectually and discussion-wise but the control structure internally only supports customer type-relationships.”
“The organizations are usually locked up in economic control systems and legislation which prevent changes to be carried through. Especially the product side of most organizations have an awareness that the structures are poorly equipped to support a new form of business.”
“Primarily, you need to focus on understanding which structures to challenge. The solution must originate from intrapreneurs and innovators in the organizations with the mandate to challenge these structures. At this point in time, it’s all about the individual nerve, ability, and willingness.”
Another area that has become a tough nut to crack is how to share sensitive data and to arrive at a business model that is beneficial for all parties in a collaboration.
“A common pitfall is that the organizations believe too much in their own data. You don’t want to share it or lose control over it, but at the same time, you have a hard time actually estimating the value of it. A lot of times, the real value of the data doesn’t show until it’s used in a collaboration with another party. By being scared of others profiting on your data, you’ll limit yourself to the traditional ways of doing business.”
“You’ll have to look at several business models and try to understand how different participants think to be able to tweak and use the solutions yourself. It’s all about understanding how the ecosystem works and who’s part of it. You also have to realize that you’ll never be able to dominate and control the entire system and that you rather have to try to change your requisites to fit the business you want to make.”
Lastly, Staffan describes the upside of defining your own ecosystem.
“As an organization, you have to define your own ecosystem. A lot of the “younger” companies have an advantage that they have assessed from the very start and gotten to know the part of the ecosystem where they have their business unit. By doing this, they will know just how a product can play out in the network.”
* MTC’s mission is, among other things, to encourage research and development projects in the field of marketing, organization and business management. Staffan is also the project leader for the R&D projects at MTC addressing topics like business models, internet of things (IoT) and digital transformation.