TheNTWK (The Network) is Europe’s leading community for platform and ecosystem professionals with a shared mission to innovate and succeed together.
We enable companies to develop a culture of learning and collaboration, empowering them to align their teams, embrace sustainable business models, and leverage platforms and
In times of constant business disruption standing still is not an option.
We help you understand, define and execute the innovation strategies you need to reinvent your business, realize new business opportunities, and excel with the power of networkbased business models.
TheNTWK is dedicated to helping transform businesses through a unique blend of peerto-peer learning, expert insights, online and in-person events, advisory services, training and hands-on workshops. We offer the tools you need for success in the digital economy, including:
ecosystems to create more value for their customers and partners.
We empower individuals to develop their digital business skills and knowledge while connecting and exchanging ideas with a community of like-minded professionals.
We bring together diverse thinkers, doers, and policymakers in order
to amplify our impact and shape the future of the digital economy.
At TheNTWK, we believe in the power of networks and collaboration to find solutions to our biggest challenges. We do this through knowledge, interaction, and fun.
Join TheNTWK and help shape the future of digital business.
Contact us via contact@the-ntwk.com
#TheNTWKSummit24
MORE THAN A CONFERENCE. A CATALYST FOR CHANGE.
This year #TheNTWKSummit24 brought the community together with industry leaders, visionaries, and innovators for an intense two days of insights, interactions and inspiration in beautiful Barcelona.
The Summit’s theme, From Competition to Collaboration in the Digital Era, captures the essence of how digital business models are shifting to new ways of creating and delivering value for customers, partners and complementors.
Barcelona’s vibrant atmosphere provided the perfect backdrop for openness and inquiry with a Think Tank feel. Participants delved into the latest advances in digital business, exchanging insights and exploring innovative concepts that are reshaping industries worldwide. They met and made valuable connections, learned from each other and, most importantly, arranged to continue the conversations.
In #TheNTWSummit24 Report, our speakers, community and core team have collaborated to gather the essential insights from all the sessions. Our goal is to highlight the key trends and innovations in digital business that will shape the future of digital platforms and ecosystem strategy This report provides the valuable insights you need to drive growth and achieve success in the ever-changing digital landscape.
TheNTWK Summit 2024 opened with a warm welcome by CEO Marina Planas for everyone joining the event from all corners of the globe to explore, innovate, and shape the future of our industries together. In her opening keynote, she emphasized the importance of networks in an era marked by rapid digital transformation.
As we approach a period of unmatched digital transformation, the power of networks has never been more pivotal. In today’s interconnected economy, networks are not just about technology; Networks, described as the fabric connecting capabilities and accelerating growth, are foundational to fostering innovation and achieving sustainable success in today’s interconnected economy.
Satya Nadella of Microsoft provides an insightful view. He emphasizes that innovation is not just about creating new technologies or services but involves a deeper understanding and integration with users’ needs, essentially turning empathy into action. This viewpoint aligns closely with the idea that successful innovation requires a mix of education, innovation, and intense technology use to drive economic growth
For instance, digital business models have shown incredible potential to scale businesses rapidly. Take for example, the way that manufacturing plants innovate to become more efficient. (Everyone in automotive knows the saying, if we save a cent, it’s a cent!) But becoming more efficient requires simulation and testing as we see in Industry 4.0.
It also requires shifting cost centers to revenue centers. NH Hotels managed to achieve just that. They were able to shift their purchasing department from a cost center to a benefit center with Coperama, a marketplace for hospitality sourcing.
At TheNTWK we believe that companies can best innovate through digital business models. Platforms and ecosystems enable more growth, more efficiency, and more value creation. How your company can adopt a platform or ecosystem approach is your first strategy question. The strategy of the 3Bs can help to the answer:
1. Build it: with the resources of your own company.
2. Buy it: scouting a startup.
3. Become part of one, sell through a platform, or be part of an ecosystem that already exists.
Going into 2024, several business topics were growing in importance for CEOs and business leaders. Industry 4.0 technologies like digital twins and industrial automation are crucial for enhancing operational efficiency. Conversely, some areas such as generative AI and certain sustainability practices might see a shift in focus. Yet, the importance of data centers and digital infrastructure is growing, underlining the need for businesses to adapt to these changes swiftly.
Meanwhile, marketplaces continue to redefine traditional business interactions, and the need to reskill workforces to handle new technologies is more pressing than ever.
These issues of innovating for growth and efficiency really match what CEOs are talking about and need to prioritize. So if you know something is on the agenda of your CEO, C-levels and Executives be ready to execute!
Many of the most successful companies we see today follow the platform business model. For example:
• Amazon: the world’s largest online retailer began without owning any inventory (although it does own some now)
• Airbnb: the world’s largest accommodation provider owns no hotels
• Youtube: the world’s largest video-sharing website owns no videos
• Spotify: the world’s largest music streamer owns no music
A platform business model creates value by facilitating transactions and interactions between two or more groups, usually consumers and producers, harnessing network effects to grow and scale without the need to own the assets of exchange.
European consumers have been fast to embrace the platform economy and become active users of platform services offered by foreign platforms such as Meta, Google, Airbnb, and Uber. Of the top 100 global platform companies, Europe’s share is only 2%,
compared to America’s 80% (e.g. Apple, Microsoft, Alphabet, Amazon, Meta, etc.) or Asia’s 16% (e.g. Tencent, Alibaba, Bytedance, Ping An, Shein, etc.), so European companies have been slow in creating and scaling digital platforms. Why? Marina highlights the 3 key reasons:
• Europe is a fragmented market, each country has its own language, culture, taxes
• Regulation, in the case of the platform economy has been a blocker
• Funding, in average a European startup gets only 30% of the funds in comparison US
Several EU regulations pose significant challenges to the development of digital platforms. Here are the key ones:
1. Digital Services Act (DSA)
2. Digital Markets Act (DMA)
3. General Data Protection Regulation (GDPR)
4. Platform Work Directive
These regulations collectively require platforms to develop and operate in accordance with EU fundamental rights, enhance user protections, ensure fair competition, and improve transparency. However, these requirements also add significant compliance burdens and may increase operating costs for digital platforms operating in the EU. So in this case maybe EU Regulation has acted as a blocker to innovation.
On the other hand, the European Union has introduced several new regulations to promote circular economy solutions as part of its broader Green Deal and Circular Economy Action Plan initiatives. Here are some of the latest regulations:
1. Ecodesign for Sustainable Products Regulation (ESPR)
2. Right to Repair Directive
3. Green Claims Directive
4. Packaging and Packaging Waste Directive
5. Industrial Emissions Directive
The overarching objective is to decouple economic growth from raw material consumption and negative environmental impact, to enable innovative solutions, and to ensure Europe’s long-term sustainability and competitiveness.
Over the past decade, Europe’s startup scene has developed significantly: there are now many more incubators as well as investors. However, Europe needs to further accelerate its investment in startups and graduate many more unicorns
In Europe, we have created slightly more startups than the US in the last ten years, but why does the US have double the number of unicorns (startup companies with a value of over $1 billion)? It may be because a European startup gets on average 70% less investment than in America: US$3.7 million versus US$12 million
So this is an urgent call to action to European governments, VCs, and corporations to invest in startups and scaleups so we can increase the number of successful platform-based businesses, grow Europe’s share of the digital economy, and ensure our future prosperity by supporting tomorrow’s giants today.
CEO Marina Planas concluded with a call to action for attendees, urging them to actively engage in shaping the future through collaboration and innovation, and make full use of TheNTWK Summit 2024 as a blueprint for future industry collaborations that blend competition with cooperation to drive collective progress.
For companies looking to navigate the complexities of the digital economy, Marina recommends embracing ecosystem models, investing in technology reskilling, and staying adaptive to regulatory changes. The ongoing dialogue initiated at TheNTWK Summit is set to continue, fostering a community committed to innovation and sustainable growth.
The platforms and the growing significance of business ecosystems have been with us for almost two decades. They have become integral to the global economy. But what about the future? What are factors we should consider when thinking about how platforms and business ecosystems will evolve through the rest of the decade?
In his opening remarks, Peter C. Evans, co-chair of the TheNTWK Summit, introduced lenses for examining the future of platforms and ecosystems. He focused on four: megatrends, shocks, constraints, and enablers.
Megatrends are major, transformative processes or patterns of societal change that are widespread, longterm, and have significant global impact. He highlighted two megatrends that are shaping the platform economy: advanced manufacturing and the circular economy.
Advanced manufacturing involves technologies like industrial robots, collaborative robots (cobots), 3D printing, and factory data analytics, which are revolutionizing production processes. The immense potential has catalyzed significant investment, projected for over 20% annual growth through the late 2020s. Evans pointed to the fact that because they are complex systems often involving multiple companies working together to deploy, platforms are an attractive, if not essential business model to deploy these technologies.
The circular economy has emerged as a powerful megatrend reshaping how businesses and societies approach production and consumption. This transformative model represents a fundamental shift away from the traditional linear “take-make-waste” approach toward a more sustainable, regenerative system. This megatrend has gained widespread traction over the past decade as governments, companies, and consumers alike recognize its potential to tackle pressing global challenges like climate change, biodiversity loss, waste, and pollution. Evans noted that this trend is giving rise to “circular platforms.” He indicated that there are now 70 circular marketplaces operating in Europe today, with more likely to come.
Shocks are unexpected events or disruptions that significantly impact organizations or industries. Evans emphasized the importance of considering potential shocks in business planning, despite their unpredictable nature. He highlighted two potential shocks: the bursting of the AI bubble and trade wars. Evans pointed out that the AI sector is experiencing significant investment and hype, with concerns about overblown optimism and unrealistic valuations. A crash would impact the platform economy. An escalation of the trade war between the United States and China is another possible shock, which could have far-reaching consequences for global economies and digital marketplaces due to increased costs, uncertainty, and supply chain disruptions.
Constraints are factors that can hinder a company’s operations, competitiveness, and growth prospects. Evans focused on two main constraints: the availability of critical materials and the end of cheap money. The limited supply of critical materials, particularly those needed for clean energy technologies, could potentially slow down the transition to a more sustainable economy. Evans explained that the end of the era of cheap money and rising interest rates is creating a more challenging environment for the development and growth of new platforms, particularly in Europe, by making it harder for startups to secure funding and scale their operations.
Enablers are factors that provide the means for platform growth and success. Evans highlighted two: diverse monetization strategies and human talent. Digital marketplaces can employ various monetization methods beyond traditional commission fees; including subscription plans, financial services, on-site advertising, cross-border expansion, complementary services, and compliance fees. Second, he emphasized the importance of human talent in building and operating platforms, focusing on the need for skilled professionals in areas such as platform architecture, user experience design, data analytics, and regulatory compliance.
Evans concluded on an optimistic note about the future of platforms in Europe, suggesting that the region has the potential to catch up with other markets and potentially become a leader in certain areas, such as circular economy platforms. He highlighted the importance of gatherings like the TheNTWK Summit in sharing knowledge and best practices to drive innovation and growth in the platform economy. In summary, megatrends, shocks, constraints and enablers will create opportunities and challenges for digital platforms. Considering platforms in this light encourages a holistic view of the future landscape, taking into account both internal factors within companies and external forces shaping the broader economic and technological landscape.
Business ecosystems have long been a part of the corporate landscape, but their importance has raised in today’s fast-paced and interconnected business world. The speed of innovation and complexity of global challenges mean that no single entity can keep up, succeed and create true impact alone.
Recent studies underscore the importance and benefits of ecosystems. For instance, PwC highlights that companies within ecosystems exhibit greater speed, flexibility, and innovation. The World Economic Forum emphasizes the critical role of partnerships in
achieving circular transformation, while E&Y study shows that ecosystems increase resilience. McKinsey projects that ecosystems could generate up to $80 trillion in revenues by 2030
Despite their growing importance, there is no commonly agreed definition for business ecosystems, leading to varied use of the term. The definitions of Ron Adner and Julian Kawohl show well the common characteristics that at TheNTWK we also use for business ecosystems: multiple independent parties, structured partnership and increased value for all stakeholders.
“A business ecosystem is a group of parties who together work for, benefit from and adapt with the ecosystem, creating more value together than alone. “
The benefits of successful ecosystems are numerous, including improved scale, speed, and innovation, enhanced sustainability impacts, and the ability to leverage strengths and share costs and risks. They also enable better data access, which is crucial in the AI era, and create strong flywheels in areas like learning and network effects.
However, achieving longterm success in ecosystems is challenging. A Boston Consulting Group study reveals that nearly half of business ecosystems fail during the scaling phase due to challenges such as inadequate problem-solving, poor governance, and ineffective execution. These issues, often present within a single company as well, are magnified when multiple independent parties collaborate.
To succeed, a shift in mindset and practices is essential. This includes companies needing to focus on growing the collective pie rather than the company’s individual share of the pie, adopt new leadership and control methods and prioritise long-term results.
Navigating the decisions and dynamics of ecosystems can be overwhelming. Not only are conscious choices needed, companies also need to be prepared to evolve and change the decisions. Clear set-up and rules, true dialogue with partners, and well-timed agreements on key challenge areas like decision-making, revenue sharing, data and intellectual property rights increase the likelihood of maintaining the best partners and achieving success.
A simple archetype structure can help to understand the company’s purpose with the ecosystem beyond the end consumer value proposition. This can ease prioritisation, decision making and leveraging learnings from others, while it is important to acknowledge that a single ecosystem can serve multiple purposes, and companies often participate in multiple ecosystems simultaneously. As archetypes, ecosystems can be categorised based on their goal as follows:
• Efficiency Ecosystems:
Aimed at optimising existing businesses, such as value chain and data ecosystems and marketplaces. Examples at the TheNTWKSummit24 include Portbase and Catena-X.
• Scaling Ecosystems:
• Disruption Ecosystems:
Involving entirely new products, services, and markets, often formed between different industries or competitors, such as the collaboration of Meta and Amazon on social selling.
Targeting new markets or segments to expand customer reach, as seen in go-to-market partnerships like the joint venture Avenade of Accenture and Microsoft.
• Innovation Ecosystems:
Focused on developing new products and services, with examples like Siemens Xcelerator and GSMA’s Open Gateway.
While the path to successful ecosystems is fraught with challenges, the potential benefits make them an essential strategy for modern businesses. By fostering collaboration, focusing on clear goals, adapting as necessary and embracing a long-term perspective, companies can navigate the complexities and unlock the full potential of business ecosystems.
If there is one thing that all NTWKers have in common, regardless of their specialty or background, it’s a passion for the future of digital business. We see the best of today - and the promise of tomorrow - powered by platforms and ecosystems that create enormous value through network effects, partnerships, and collaboration.
Emerging technologies act like levers - constantly reshaping the landscape of digital business models and changing what is possible to achieve in new and exciting ways. That kind of excitement invariably leads to hype.
The Gartner Technology Hype Cycle is a model that describes the five phases a new technology will go through on the bumpy road from introduction to mainstream adoption. Let’s highlight three technologies you’re going to hear more about at this Summit, all at very different places in the hype cycle: AI, the metaverse, and digital twins.
Generative AI reached peak hype last year as a once-in-a-generation breakout technology that was suddenly essential and everywhere. AI is projected to reach a market size of $1.3 trillion by 2030 and Bloomberg predicts that GenAI alone will consume 12% of total technology spend, up from 3% today. There’s no question that the potential value of AI is vast.
Most companies that use GenAI are still focused on the low-hanging fruit, namely, discrete, tangible tasks that use AI to reduce costs and improve efficiency. What really sets AI apart from other technology trends we’ve seen is that even simple use cases can deliver astonishing results:
• Boston Scientific leveraged opensource pre-trained AI models to automate the inspection of medical stents, spending $50k to save $5 million.
• McCormick used AI to enable junior scientists to perform on a similar level to colleagues with 20 years of experience.
• Zzapp Malaria uses visual machine learning to identify pockets of water where mosquitoes breed.
• The Zero Hunger Lab at Tilburg University uses AI and data science to detect early signs of child malnutrition.
What we can expect in 2024 are more examples of AI used as a vector of business transformation to recalibrate strategy and enable business reinvention for digital innovation at scale. A great example of this is NVIDIA, which unlocked a new business model by developing a compute and data platform for self-driving cars, offering carmakers AI-enabled autonomous vehicle tech as a service.
On March 13, 2024, the EU Parliament formally adopted the AI Act, the first of its kind in the world. The aim is to establish a comprehensive legal framework to foster trustworthy AI by ensuring that AI systems respect fundamental
rights, safety, and ethical principles. The AI Act classifies AI systems into four primary categories according to risk level. This classification system helps stakeholders understand the level of care and attention needed when creating and utilizing AI technologies, with a primary focus on the high-stakes categories, such as autonomous vehicles.
So how will this affect AI innovation? We don’t know the answer to that just yet. What we do know is that more prescriptive regulation tends to hamper innovation, while more flexible regulation can allow innovation to flourish within appropriate guardrails. The EU AI Act is envisioned as an important step towards safe and ethical outcomes that align AI development with European values and fundamental rights, for a positive social and economic impact.
The consumer metaverse reached peak hype in Q3 of 2021 but fell into the Trough of Disillusionment after heavy losses from early adopters like Meta. Despite struggling to find clear use cases beyond gaming and entertainment, the consumer metaverse is projected to reach a market size of $50 billion by 2030.
However, the industrial metaverse almost single-handedly pulls the metaverse out of the Trough of Disillusionment and onto the Slope of Enlightenment by enabling virtual simulations of real-life machinery, systems, and factories to accelerate innovation and solve real problems
like reducing energy consumption, boosting productivity, and reducing waste for enhanced sustainability. The industrial metaverse has the strongest use cases and monetization potential with a projected market size of $100 billion by 2030
If the industrial metaverse is the playing field, then digital twins are the players. Digital twins are virtual representations of physical objects, facilities, or processes, based on realtime data captured from sensors and Internet of Things devices. Valued at $11.5 billion in 2023, the digital twin market is expected to reach $137.7 billion by the year 2030. According to Gartner, digital twins reached peak hype in 2019 and have now attained the Plateau of Productivity with proven use cases and widespread business adoption.
AI, the metaverse, digital twins: three technologies you’ll hear more about over the next two days of TheNTWK Summit. By now you can appreciate that hype is never the whole story. The proof of a technology is its ability to generate value through real use cases, but it becomes a multiplier if it can generate value by accelerating innovation. Increasingly, that will require collaboration and openness. Emerging technologies transform the opportunity space, while collaboration and openness maximize the opportunities.
Johanna Fuchs-Boenisch Chief Executive Officer
Susteco Solutions GmbH
In an ecosystem, creating win-win situations is crucial. When partners work together with trust and a collaborative mindset, the whole becomes greater than the sum of its parts.
Bettina
Rotermund
SVP | Head of Strategy Siemens Xcelerator
This is the era of collaboration and openness. You need to be open and you need to overcome your ego.
Vikram Shyam
Futurist NASA
We don’t have enough people to keep track of everything, to regulate everything, to make sure things fit together. Collaboration mechanisms are important to make sure that what we create is beneficial to the larger ecosystem.
Carles
Camprubí
Chief Circularity Officer La Farga
YourCopperSolutions
In La Farga, we believe deeply in collaboration, especially for tackling complex challenges like climate change and energy transition. Collaboration is the only way to address these efficiently and effectively.
Ron Adner
Professor of Business Admin. Tuck School | Dartmouth
If your partner is not letting you in on their strategic discussions, then you are not a real partner. You are a third-party asset being managed.
Our economic environment is changing. In many areas we have reached the efficiencies and value that specialization can bring and the economic value is being created at the intersections of disciplines. The speed of innovation and the complexity of global challenges are also making it increasingly difficult for companies to succeed alone. Therefore ecosystems have proven to be a solution for efficiency, scalability, innovation, and sustainability.
At TheNTWK Summit 2024, the goal was to provide inspiration, insights, and tangible examples from thought leaders and business practitioners across various industries to boost ecosystem success. The sessions explored essential ecosystem topics such as mindset, culture, partnerships, governance, data and scaling and featured diverse types of ecosystems.
A significant focus at TheNTWKSummit 2024 was on innovation ecosystems, which are vital for identifying new opportunities, gaining diverse perspectives, driving innovation and maintaining competitiveness. It became clear how effective integration of internal and external innovation ecosystems fosters resilience and adaptability. Research by professor Mª Julia Prats showed how companies employ their unique mix of innovation strategies and introduced the concept of corporate venturing squads (CVS’s), where multiple corporations team up to innovate with startups. In all collaborations with startups, we learned the importance of dedicating resources and priority to bridging the corporate and startup cultures and ways of working for success.
The summit also showcased various industries leveraging ecosystems. The telco industry can truly be proud of GSMA’s Open Gateway which has enabled collaboration and now involves around 65% of the mobile connections worldwide, enabling the “new API era” with Network as a Platform. The maritime industry showed how to enable data sharing and operational efficiencies across 5,000 companies. The fashion industry needs an ecosystem approach to transform the entire value chain away from the take-make-waste economy and enable profitable circular businesses. The health industry highlighted the collaboration impact on illness prevention, and in the mobility industry we learned how cars have various digital experiences through ecosystem collaboration.
In the Future of Platforms track, Sangeet Paul Choudary highlighted how ecosystem collaboration thrives in an environment with high complementarity and low substitutability, and advised partners to avoid getting commoditized by understanding their control points and having a strategy to retain their value. Also, while data is crucial, B2B platform research by professor Geoff Parker revealed the lack of data sharing by platform operators, showing the lack of ecosystem view that still often prevails in platforms.
This report section includes articles and takeaways from selected sessions dedicated to ecosystems. We recommend also reading the other sections for further ecosystem-related insights.
1Ecosystems Require a Broad Lens: As economic value is being increasingly created through ecosystems that are often at the intersection of traditional disciplines, a broader understanding and integration across different fields in business and in policymaking is necessary for effectiveness and avoidance of unintended consequences.
4Foster Ecosystem Mindset and Build Collaborative Cultures: Mindset and culture have always been and continue to be one of the main challenges in realizing ecosystem success across all ecosystem types. Building collaborative cultures requires a paradigm shift with systemic thinking, transparency, growth mindset and human connection from the leadership.
7High-quality and Timely Data Bring Results: Use high-quality, real-time data for informed and sustainable decision-making.
Written by Milja van ’t Noordende
2Leadership Support is Crucial: F Top leadership support is crucial for traditional companies looking to embrace ecosystems. This can be achieved by starting small and showing early successes.
5An Independent Orchestrator Can Enable Success: An orchestrator can enable trust between ecosystem partners, especially with sensitive data, compliance, competitor collaboration or a large partner base. A non-profit approach can further enhance success in publicprivate ecosystems.
8Technology Can Shape Ecosystems: Technology can enable scale, optimize operations, improve transparency and support in building trust among stakeholders. It’s crucial to align the use of technology with commercial viability
3
Ecosystem Partner Dynamics Change with Maturity: Innovation ecosystem partners have significant influence and power in emerging ecosystems. As the ecosystem matures, the power moves to the orchestrator
6Competitor Collaboration Requires a Clear Framework: Collaboration between multiple competitors succeeds when there is a common goal and a clear framework that enables the required focus and compliance with competition laws.
9Long-term Commitment and Investments Are Vital: Interoperability in the health industry requires a long-term commitment, mechanisms for fasttrack adoption, increased investment in systems, dedicated resources and political support.
Over the last few years, the notion of ecosystems has gained significant traction. However, the journey to building a successful business ecosystem is complex and multifaceted, requiring a fundamental shift in leadership mindset and organizational culture. By embracing collaboration, fostering psychological safety, and continuously challenging personal and corporate norms, leaders can create environments where ecosystems can thrive.
Leadership is the cornerstone of any successful ecosystem. Our discussion emphasized that the traditional
corporate mindset, which prioritizes competition and market share, often stifles innovation and collaboration. To transcend these limitations, leaders must undergo a profound personal transformation. They need to shift from an ego-driven approach to one that embraces collaboration and eco-systemic thinking
A crucial aspect of this transformation is self-awareness and vulnerability. Leaders must be transparent about their struggles, including mental health issues, which are prevalent yet seldom discussed in corporate settings. By doing so, they create an environment where employees feel psychologically safe to express their own challenges and take risks
without fear. This culture of openness is essential for fostering innovation and resilience within the organization.
Cultivating a collaborative culture requires intentional effort and strategic action. One of the key insights is the importance of quick wins. These small but impactful victories help build momentum and demonstrate the value of collaboration to the entire organization. For instance, identifying a common problem and solving it through cross-functional teamwork can set a precedent for future collaborative efforts.
Moreover, “systemic thinking” is critical. Leaders must view their organizations as part of a larger interconnected network. This perspective enables them to identify opportunities for collaboration beyond their industry, bringing diverse perspectives and innovations into their ecosystem.
One of the pervasive barriers to innovation within organizations is the fear of failure. This fear often stems from a deeply ingrained corporate culture that penalizes mistakes and discourages risk-taking. To counteract this, leaders must foster an environment where experimentation is encouraged, and failures are seen as learning opportunities. This shift in mindset is crucial for unlocking the creative potential of employees and driving continuous improvement.
Furthermore, addressing the fear of failure requires a supportive infrastructure. Leaders should invest in resources that enable safe experimentation, such as dedicated innovation labs or pilot programs. These initiatives provide a sandbox environment where new ideas can be tested and refined without the pressure of immediate commercial success.
To cultivate a thriving business ecosystem, leaders can implement several actionable strategies descripted in the figure below.
The success of business ecosystems lies in the human connections and cultural shifts we foster. As leaders, our challenge is to cultivate an environment where collaboration, innovation, and ecosystem thinking are in the DNA of our organizations. This is the true foundation of a thriving business ecosystem.
To stay relevant for your customers in the future, you need to start changing today. Preparing for future market conditions, customer expectations, and technologies while managing your business in the here and now has a lovely name, “ambidexterity,” but is hard to achieve.
You as decision-makers are embedded in a company where you rarely decide solely for yourself. This environment is often reluctant to change – and you are lucky if it is only reluctance that you experience when driving a transformation.
But change is possible even for traditional companies with a long and successful history!
At Siemens, we look back on 175 years of change and transformation and this is why the company is not only still relevant for its customers today but leading in Digital Transformation and exceptional technology.
From our latest transformational journey in building our open digital business platform, Siemens Xcelerator, here are some things that helped us to get the whole company in motion towards one big goal. This is not only applicable to the platform economy but beyond this, for any transformational target you want to achieve.
1. Have a compelling vision that pulls people in.
Create a vivid picture of why the future is better than the status quo and how everyone can contribute to this future.
2. Have a good reason why you intend to build a platform – whether make or join!
We live in an era of platform mania, so carefully analyze your options.
3. You need top management as fans of this idea for the long haul.
C-Suite backing is a must as you will encounter more resistance and roadblocks than you can imagine wherever big decisions need to be made. Also, a shift of CEO in the middle of this transformation can be critical.
4. Swallow your ego - get help from experts.
If you have not built a platform before, reach out to experts The platform economy is not very complicated but hugely complex and you should take step 1 before step 3. Platform design and mechanics require deep expertise, so find someone whose home turf it is.
5. Get your people involved.
Building a platform can sound daunting so explaining the reason why and how people can contribute is essential! You will need to explain a LOT! Create innovation challenges where people can send in their ideas. You will be astonished at how helpful this is for getting people involved AND building on their good ideas.
6. Focus & Agility.
I mean REAL FOCUS. You will have to say “NO!” more than you say “YES!” and you will have to pivot a thousand times to get it right. Thomas Edison went through this process himself to invent the light bulb after a thousand failed attempts. He succeeded in the end and so can you!
7. You need to be resilient as hell and patient like an angel.
Transformation is a long-haul flight! Make sure you celebrate the small successes and the quick wins, but also be open about your challenges. Sometimes it’s the unexpected allies that will move the needle for you!
A key lesson learned along the journey: do not build a platform for your own company’s benefit – it will ultimately fail. Build a platform for the ecosystem, putting your customers first and foremost. This requires a paradigm shift in the way you think and act.
Start from the customer experience and work backward. This sounds easy enough but is the hardest thing if you haven’t been doing it since your company was born. This requires you look at the full stack: systems, tools, processes, people, and attitude. And for sure the latter ones will be your biggest challenge!
Generate the poster children you need for success early on. Joining forces with your ecosystem of sellers and partners will show what is possible when strengths are united. Co-creation and co-innovation with your ecosystem will be the beating heart of your platform. Be open to the insights and ideas coming out of your ecosystems as building a platform together is way easier than building it alone. Ultimately, you want to build something meaningful with your customers and partners that creates value across the whole ecosystem.
Imagine a business environment where collaboration trumps competition, shared goals drive innovation, and sustainability is key. This is the essence of business ecosystems, redefining how companies create value. The session explored ecosystem dynamics and their potential to propel businesses toward greater success.
• How platforms are evolving and impacting industry boundaries.
• The new market logic of ecosystems and the power of a collaborative mindset.
• Strategies for sustainability within ecosystems, with examples from Bosch and Susteco.
• How to integrate ecosystem thinking into large organizations and drive innovation.
To grasp insights from TheNTWK Summit, consider the panelists’ backgrounds. Julian Kawohl, Ecosystemizer co-founder and Strategic Management professor, specializes in ecosystem strategies. Thomas Kirste, Bosch Management
Consulting Director, has 17 years of experience in business model innovation. Johanna Fuchs Boenisch, Susteco CEO, brings over 20 years of experience in private equity and real estate, focusing on sustainable building data. Their combined expertise offers a comprehensive view of leveraging ecosystems for business success.
In today’s rapidly changing business landscape, platforms are essential for building and growing ecosystems. They drive the shift from traditional industries to interconnected domains, fostering collaboration among diverse stakeholders.
Platforms act as the foundation for ecosystems, similar to a dance floor where participants interact and innovate. Their success depends on generating value for all participants, which requires a shift from competition to collaboration. By expanding the market, platforms unlock new opportunities and provide greater value to customers.
Additionally, platforms integrate complementary assets, leveraging the ecosystem’s collective intelligence. This interconnectedness promotes rapid innovation and effective solutions for complex needs. The future of platforms lies in their ability to support ecosystems, providing the necessary infrastructure for collaboration and growth. Businesses must embrace this ecosystem mindset to unlock their full potential and achieve sustained success.
Business ecosystems represent a significant shift in how companies operate and compete. Traditional industry boundaries are dissolving, giving way to interconnected networks that co-create value through collaboration and innovation. These ecosystems thrive on a collaborative mindset, where companies work together to achieve shared goals rather than competing in isolation. By pooling resources and expertise, participants can tackle complex challenges and seize new opportunities.
A key aspect of business ecosystems is their focus on customer needs; instead of concentrating solely on products or services, companies prioritize fulfilling core customer requirements, enhancing satisfaction and loyalty. The collaborative nature of ecosystems fosters innovation, as bringing together diverse perspectives allows for the rapid development of new products, services, and business models. Ecosystems also offer strategic flexibility, enabling companies to adapt dynamically to changing market conditions and emerging opportunities.
Bosch, a leader in industrial innovation, exemplifies these principles through its startup, Susteco, showing sustainability as both an environmental and strategic advantage.
Susteco digitizes building data to reduce carbon emissions and energy use in real estate. Real-time data optimizes energy usage, improves efficiency, and reduces environmental footprints, promoting sustainability through informed decisions. Bosch’s ecosystem of solution providers collaborates to help real estate owners achieve sustainability goals, offering tools for energy optimization, carbon footprint reporting, and regulatory compliance, integrating various expertise for comprehensive solutions.
ecosystems in achieving long-term benefits.
• Embrace the shift from traditional industry boundaries to interconnected ecosystems with a domain-based view as new paradigm.
• Focus on mutual benefits and shared goals rather than competition.
• Prioritize fulfilling core customer needs through integrated value propositions.
• Incorporate circularity and sustainability principles to reduce environmental impact.
• Use high-quality, real-time data for informed and sustainable decision-making.
Moreover, ecosystems blur traditional industry lines, creating new domains where old boundaries no longer apply. For example, the shift from automotive production to mobility includes not just car manufacturing but also services like ride-sharing and electric vehicle charging.
In summary, business ecosystems emphasize collaboration, customercentricity, and innovation. By adopting an ecosystem mindset, companies can leverage collective resources to drive sustainable growth and create greater value for all stakeholders. This approach enhances competitiveness and paves the way for resilient and adaptable business models in an ever-evolving market landscape.
Written by Julian Kawohl & Lucy
Bosch designs products for durability, repairability, and recyclability, focusing on value creation throughout the product life cycle, while Susteco supports sustainable building management from construction to decommissioning. Trust and transparency are vital in Bosch’s approach, ensuring partners align with sustainability goals and fostering open communication and shared objectives, enhancing ecosystem effectiveness. Bosch’s adaptive and innovative approach leverages collective expertise to stay ahead of regulations and market demands, ensuring robust sustainability strategies.
In conclusion, Bosch’s ecosystembased model effectively addresses environmental challenges while creating value. By focusing on data-driven decisions, collaborative networks, and lifecycle thinking, Bosch sets a sustainability benchmark, showcasing the importance of
In the early days of the telecommunications industry, Mobile Network Operators fiercely competed against each other to gain market share, attract customers, and dominate the rapidly growing mobile landscape. The race to offer the latest technology, best coverage, and most attractive pricing led to intense rivalry among operators that didn´t necessarily benefit the end customer.
However, over the past couple of years, there has been a noticeable shift in the industry dynamics, with Mobile Operators moving from competition to strategic collaboration. This transition has been driven by GSMA after the announcement in MWC23, trying to drive revenue for their members transforming and delivering on API technology into the digital space.
APIs are not new for the Telco industry, but now we have mature 4G and new 5G networks with ‘APIs’ in their DNA, teams of API developers dedicated to Network as a Platform, public collaboration on standards definitions with developers, and full executive buy-in to unlock the capabilities and information of the network via secure and safe APIs.
This shift towards collaboration has manifested in several key ways:
1. First, industry bodies like GSMA or CAMARA have enabled API standardisation and accessibility. They are developer friendly, built to one standardised spec, which delivers consistency, simplicity, and accessibility to the developers, and should lead to more network operators implementing these APIs. CAMARA Network APIs are designed the way developer customers want them, and help developers scale more efficiently. The idea is to simplify telco complexity making APIs easy to consume for developers, aggregator partners and customers with limited telco expertise. Vodafone is working to
promote the adoption of CAMARA-spec APIs through the Open Gateway API Product Workstream. GSMA Open Gateway is a way to make these APIs more accessible. Open Gateway supports to gain exposure, showcase value, and monetise network capabilities through the APIs and exists to accelerate industry collaboration across Local Market Champion countries to deploy standardised CAMARA-spec APIs.
2. Next, is Mobile Operators collaboration, making it universal. Around 65% of the mobile connections worldwide are involved in GSMA Open Gateway. Vodafone is committed to working with other mobile operators and industry bodies (GSMA, CAMARA) on common network APIs to provide universal access to operator networks for developers across Europe.
3. And last, the developer community. It is very important to establish a single global interface and digital channel to collaborate with the global developer community, meet their needs and drive innovation. This engagement will drive the future of digital connectivity establishing and API-first portfolio of products that supports industry initiatives and encourages growth in 5G and Network innovation.
The transition from competition to collaboration marks a significant evolution in the Mobile Telecommunications industry. While competition once drove the expansion and innovation of mobile services, the challenges of modern markets have necessitated a more cooperative approach. By embracing collaboration, Mobile Operators can:
• radically simplify the integration of new services
• enhance time to market
• allows for faster onboarding and more consistent experiences for the end customers.
Operators have begun to build a unified ecosystem and unlock the full potential of 5G networks. This has culminated in the birth of a new API era.
Public-private ecosystems often face numerous challenges, but the success of Portbase demonstrates a functioning model that supports all ports in the Netherlands. Through a digital platform, Portbase bridges the gap between public and private interests, fostering collaboration and innovation. Here, we delve into the insights shared by Ard-Pieter de Man, professor at Vrije Universiteit Amsterdam, and Erik Fortgens, ecosystem strategy lead at Portbase, to understand the factors driving their success.
Portbase is a port community system established in 2002 to digitize port operations and reduce reliance on paper-based processes. It is a joint venture between the ports of Rotterdam and Amsterdam, designed to streamline data exchange and compliance for thousands of partners.
Portbase’s mission is to build the smartest port communities, unlocking the potential of data to create a seamless, sustainable, and secure flow of goods.
Initially, the objective of Portbase was to create a paperless port environment. The government and private sector recognized the inefficiencies and excessive paperwork involved in port operations. Thus, they collaborated to build a digital infrastructure enabling seamless data exchange and compliance with local authorities.
Portbase offers a portfolio of nearly 40 core services that support the operations of around 5,000 companies, facilitating over 100 million transactions. These services enable efficient data exchange and compliance, ensuring operational
excellence for Dutch ports. The services support, among others, a smooth flow of logistics, enhanced security, and a reduction of congestion in the port. The platform’s success is attributed to its ability to foster trust among stakeholders and operate on a non-profit basis, focusing solely on enhancing community benefits. Importantly, Portbase is not the data owner; its customers are in control of who they share the data with, ensuring that they maintain sovereignty over their sensitive information.
Portbase’s digital infrastructure comprises multiple layers, each playing a critical role in facilitating data exchange and service provision.
This foundational layer enables secure and efficient data sharing within the community. It includes essential components such as databases, identity management, access management, and other technological elements. The financing for this layer comes from Portbase’s two shareholders, the ports of Rotterdam and Amsterdam. This financing model ensures the sustainability and expansion of the platform.
Built upon the digital infrastructure, this layer consists of services developed by Portbase to digitally support critical port processes. It ensures a unified method of collaboration between various parties in the supply chain. These services are financed through public-private collaborations, such as teams funded by the harbor master to develop specific services, enhancing efficiency for both public and private entities.
The ecosystem layer extends the capabilities of Portbase by leveraging community data for broader maritime logistics applications. Various parties can offer services utilizing the data made available by Community Solutions, provided they have the appropriate permissions. This ensures that the data can be shared with other parties for different applications, promoting innovation and efficiency within the maritime and logistics sectors.
Effective governance and collaboration mechanisms are crucial to Portbase’s success. The platform operates through various publicprivate collaboration forms, ensuring that all stakeholders have a voice in decision-making processes
Portbase’s governance structure includes various ways of interacting with the ecosystem. For example, customer panels collaborate with
agile teams inside Portbase to discuss new solutions. A strategic board of ecosystem partners collaborates with the Portbase executives to oversee service development and strategic planning. These structures ensure that services align with community needs and that the platform remains responsive to industry changes.
Portbase exemplifies a successful public-private digital ecosystem, supporting the major ports in the Netherlands through collaborative innovation and efficient data management. The insights shared by Ard-Pieter de Man and Erik Fortgens highlight the importance of trust, effective governance, and strategic prioritization in overcoming the challenges of public-private partnerships. By maintaining a non-profit stance and focusing on community benefits, Portbase continues to set a benchmark for public-private digital ecosystems in the maritime and logistics sectors.
In a world where health is a top concern for everyone, the blend of expertise, innovation, and digitalization offers hope. This was the essence of the engaging conversation witnessed at the summit’s health roundtable. The panel featured esteemed experts:
• Antonella De Ceano, the digital transformation officer at Barcelona Health Hub, highlighted the crucial role of innovation hubs in fostering connections within the healthcare system.
• Jordi Serrano, a seasoned family doctor turned digital health entrepreneur, reflected on the evolution of digital health trends over the years.
• Miguel Lancha, the innovation director at AstraZeneca Spain, shed light on the intersection of pharmaceutical expertise and digital innovation.
• Cristina Spa, moderator of the panel, health expert, and C+ Community co-founder, laid the groundwork for the panel by outlining the major challenges facing health: ageing population, chronic diseases, healthcare workforce shortages, and interoperability of digital health systems.
By 2050, the global population of people aged 60 or more will double to 2.1 billion. How can collaborative digital solutions help keep this population healthier?
Miguel shared an example of AstraZeneca working with Microsoft to create models that predict when patients with chronic conditions like COPD or asthma might need emergency care. Using data, they aim to alert patients before their conditions worsen, preventing unnecessary ER visits.
Jordi discussed prevention efforts. His company, Universal Doctor, developed a global tool called ICOP for screening older adults’ health in over 194 countries. They also collaborated on an app, which prescribes customized exercises to prevent frailty.
Antonella highlighted their role in connecting insurance companies, wearable manufacturers, and digital health startups. They focus on prevention and early intervention, using AI for early diagnosis and predictive tools.
Overall, the panelists emphasized that the key to addressing ageing population challenges lies in collaboration and innovative digital solutions
Related to the ageing population, Cristina highlighted “The importance of prevention in managing chronic diseases, which cause 71% of deaths worldwide.“
Miguel from AstraZeneca shared their partnership with Cordio, a startup using vocal biomarkers to predict heart failure exacerbations. Patients read a sentence daily, and the app can detect crises up to 18 days in advance, improving survival rates.
Jordi mentioned his work with Uhda Health, focusing on primary and secondary prevention for rare diseases. He emphasized the need for digital health solutions to be validated and tested as thoroughly as medications so they can be prescribed by healthcare professionals because they have shown a clinical benefit.
Antonella from Barcelona Health Hub discussed digital companions for chronic disease management. These platforms help patients track symptoms and medication adherence, improving health outcomes by integrating with healthcare providers.
The panel agreed that prescribing digital health solutions alongside traditional treatments is vital. Jordi added that governments need to adopt a value-based care approach, paying for outcomes rather than processes, to ensure the successful implementation of these innovations. Without such changes, many promising technologies risk not being utilized effectively.
One major challenge is the global shortage of healthcare professionals. By 2030, there will be an estimated shortage of 18 million healthcare workers.
To address this, telemedicine can help optimize resources and empower healthcare professionals Digital tools, such as those from Llamalitica, can facilitate doctorpatient interactions by reducing the
time doctors spend on paperwork, allowing them to focus more on patient care. This approach can improve valuebased care and education for the population.
Digital health should also help educate the public on managing common health issues to reduce the strain on healthcare systems. Proper triage systems can prevent unnecessary doctor visits, ensuring resources are used effectively. It’s crucial that digital solutions truly add value.
For example, partnering with startups like Tucuvi, which uses AI to monitor patients, can free up nurses’ time and improve patient care. The AI, named Lola, has been successful in engaging patients, reducing the workload on nurses, and enhancing care quality. Technology should mitigate problems and add value, not just exist for its own sake.
To address interoperability challenges in healthcare, institutional support and a unified approach are crucial.
Despite advancements in interoperability technologies, legacy systems and regulatory complexities hinder progress. For instance, while African countries without legacy systems advanced, developed regions face more intricate challenges.
Interoperability requires a long-term commitment, and the integration of innovative solutions into existing systems is not straightforward. The aim is to secure EU funds to demonstrate the value of a healthcare model that integrates AI for analyzing electrocardiograms, involving payers and decision-makers to ensure commitment and deployment.
Ultimately, without mechanisms for fast-track adoption, increased investment in systems, and political support, even the most advanced technologies will fail to make a significant impact. A long-term perspective and dedicated resources are vital for transforming healthcare through interoperability.
Ron Adner joined us for an insightful discussion on innovation ecosystem roles and strategies drawing on his book, Winning the Right Game, looking beyond just ecosystem orchestrators and focusing also on the strategies for other ecosystem partners and positions.
The journey to set up, scale and sustain innovation ecosystems is complex. For success, it is important to understand the different roles needed and especially the dynamics and interplay between the key roles of leaders and enabling followers over time.
creation of the ecosystem’s value proposition and play a crucial role that changes over time.
Business ecosystems require multiple roles to succeed. Typically at minimum those roles include an orchestrator and partners, also often called leaders and followers An orchestrator leads the ecosystem, setting the direction and aligning various actors. Partners enable the
Large successful companies who are used to leading their industries often assume that they will be ecosystem leaders by default. This is a mistake that leads to blind spots and traps. Ecosystem leadership requires a considerable amount of time, effort, investment, and flexibility. The role should not be taken lightly. If a company cannot create a strong case for leadership in the specific ecosystem, and if it cannot bring itself to consider followership, it may be better off avoiding the ecosystem entirely rather than squandering time and money on a destined-to-fail effort.
A common misconception is that the leader always holds the most power. However, until the ecosystem is firmly established, followers often have a significant influence and
power. Their willingness to align and collaborate is vital for the ecosystem’s ability to develop and scale the value proposition. As the ecosystem matures, the power dynamics shift, concentrating control to the leader.
Successful ecosystem leadership is not about dominance but instead about convincing others of your continuous leadership capability. It also requires realism regarding your capabilities and resources as well as willingness to accept uncertainties.
The mindset shift required to let go of control and typical business practices is often the largest challenge for leadership success in the early stages. It is important to not delay and derail collaboration by prioritizing detailed contracting too early. Long term success and trust is better realized when actual data is used in agreements.
Conversely, a smart follower strategy involves understanding the ecosystem’s potential and, early on, securing a favorable position. Being a smart follower means actively participating in the ecosystem’s formation and strategic conversations and leveraging that early influence to shape the future roles and benefits. That way the followers avoid becoming mere thirdparty service providers and secure their long term position.
Metrics in an ecosystem context are nuanced. Initially, the focus should be less on traditional metrics like revenue and customer satisfaction, and more on the alignment and progress of partnerships. As the maturity and the actual value being created and shared grows, the importance of customerfocused metrics takes the focus.
In summary, navigating an innovation ecosystem requires a thorough understanding of the roles of orchestrator and partners. Both roles are integral to the ecosystem’s success, and the strategies for each must be thoughtfully developed and dynamically adjusted over time. By focusing on early influence, strategic alignment, and adaptive metrics, companies can effectively participate in and benefit from the evolving business ecosystems.
Technology has always served as a vital enabler and backbone of our society. From the invention of the telephone to the rise of television and the advent of the internet, technology has continuously evolved and expanded at an exponential rate. More recently, the popularization of artificial intelligence (AI) has captivated everyone now that it has been widely adopted. Looking ahead, we can expect even more technological advancements, including next-level process automation, enhanced visualization, next-gen computing, and significant improvements in trust architectures. Let’s dive into some key takeaways from this session.
Technology plays a crucial role in shaping ecosystems by optimizing operations, improving transparency, and fostering trust among stakeholders. Advanced technologies enable them to scale their operations and adapt to changing market demands rapidly. Investing in cutting-edge technology has allowed these organizations to stay ahead of competitors and continuously innovate. Working together in an ecosystem can enable these organizations to adopt collaborative tech strategies Engaging within an ecosystem involves diverse strategies tailored to roles and objectives. These include establishing
a presence for collaboration, forming strategic partnerships with the different stakeholders involved, and embracing open innovation to integrate external ideas. Collaborative projects within ecosystems foster joint development, tackling shared challenges, and sharing industry connections.
Based on the discussions and case studies led by Fleur and Frances, we distilled the following key insights.
Role of Technology: The key learning is that while technology serves as a catalyst for innovation, its adoption must align with commercial viability for sustainable success. For instance, blockchain, despite its potential to enhance certain elements of an organization, can introduce complexity and costs that are not universally necessary. Therefore, prioritizing technologies that not only innovate but also meet market demands is essential to achieving impactful outcomes.
First to Market: Build, Buy, or Partner? Being the first mover in a market can provide a significant advantage, as seen in scenarios where early entrants dominate due to their intellectual property concentration or timing advantage. However, the strategy of collaborative development emerges as particularly effective. Consortia and partnerships that share risks and rewards can overcome challenges that individual competitors face when independently building and selling products. When deciding whether to buy, build, or partner, begin with a comprehensive assessment of existing options. Multiple providers may already enhance current capabilities, or the absence thereof may highlight specific areas requiring expertise.
Selection of Tech Partner: The selection of a technology partner is critical, as demonstrated by experiences shared by Frances with hackathons and collaborative projects. While hackathons align well with disruptive technologies, they often prove costly and time-consuming for participants, particularly consultants, who may not fully leverage their expertise. Effective collaboration hinges on choosing partners whose strengths and goals complement the project’s needs, optimizing development efficiency, and fostering successful outcomes..
As technology continues to evolve and shape our ecosystems, the imperative remains clear: innovate responsibly by aligning technological advancements with commercial viability. Embracing collaborative strategies, whether through partnerships or open innovation, will be crucial for organizations striving to lead in rapidly changing markets. And lastly, by carefully selecting tech partners and fostering a culture of adaptive innovation, businesses can not only stay competitive but also drive meaningful change within their ecosystems.
In a world defined by connectivity, interdependency, and uncertaintyecosystemic models have emerged as the best path to economic resilience. In this session Dyan Finkhousen, Marco Annunziata and Vikram Shyam explored why recent economic and technological changes require an ecosystemic approach and how to implement the new models for greater value.
The global economic environment has seen significant transformations since the first wave of digital innovation from 1996 to 2005, which ushered in a productivity boom. However, despite continued digitalization, productivity growth has dramatically decreased across advanced economies, leading to missed opportunities for wealth creation. The primary culprit behind this slowdown is the intense focus on
specialization and deep expertise in all areas from science to business to education and lack of the big picture.
We have now entered an era where general-purpose technologies are resurfacing, and economic value is increasingly being generated at the intersections of traditional disciplines rather than within isolated silos This shift necessitates a broader understanding and integration across different fields in business and also in policy making for effectiveness and avoidance of unintended consequences.
To address this, a new model embracing an ecosystemic approach
is essential. This model challenges the traditional boundaries of firms, sectors, and societies, enabling the creation of more value on a global scale.
capability development, fostering a diverse, resilient, and self-sustaining industrial base and society.
There are two main areas where ecosystems need to find a balance: Innovation & Resources and Individual & Ecosystem-wide Impact.
Effective ecosystem orchestration requires a fresh perspective, incorporating:
• Operational protocols: Establishing guidelines to enhance innovation, operations, and collaboration.
• Networks of high-value resources: Creating innovation marketplaces, talent marketplaces, and intelligence platforms.
• Interoperable digital spaces: Accelerating precision connections, communications, access, and outcomes that can be upgraded and updated as new capabilities emerge and converge.
When these protocols, networks, and digital spaces are orchestrated together, they accelerate strategic
Balancing innovation and resources takes us back to the productivity challenge. In nature, ecosystems minimize resource usage through well-defined functions and behaviors. That enables the focus on information, structure, and interconnectivity. In business we are in an era where we have to do more with less and we do not have the resources needed, be it money, time or people. Therefore business ecosystems can learn from this nature approach and need to focus on finding the right collaboration mechanisms that result in maximizing innovation and resource efficiency.
How do you orchestrate a harmonious balance between the selfoptimization of any given entity and the optimization of the ecosystem? How do you maintain the right tension and the right balance between any one actor? Here, businesses can also draw on ecological principles. The mechanisms include integrating
development with growth, using life-friendly chemistry, being locally attuned, incorporating feedback cycles, and by providing transparency and security.
It is also important to shift from goalbased to principle-based ecosystems to achieve ecosystem wellness and resilience. Defining and transparently sharing the concept of wellness within the network fosters trust and reduces the need for bureaucratic structures. Ecosystemic wellness requires new governance systems for information, interaction, integration, incentives, and intellectual property.
In conclusion, the ecosystemic approach offers a pathway to navigate the complexities of the modern global economic environment. By fostering interdisciplinary integration and collaboration, it enables the full realization of innovation’s potential and drives sustainable value creation.
Michael Olenick Senior Research Fellow INSEAD / Virtustrat
Our hope is that virtual strategists will make their human counterparts better at their job, enabling companies to create inclusive value propositions that offer sustainable paths to profitability and more.
Erich Joachimsthaler Founder & CEO Vivaldi Partners Inc
At the highest level, AI enables entire networks, or “interaction fields,” that combine pipeline and platform models, leading to business reinvention.
Pedro Muñoz Román Head Open Innovation BBVA
If you want to innovate, you have to be outside the corporation (…). You have to be in touch with the ecosystem.
Mª Julia Prats Academic Director of the Entrepreneurship and Innovation Center IESE Business School
Corporate Venturing Squads represent a transformative approach to innovation, enabling established firms to use the agility and creativity of start-ups.
TheNTWK Summit 2024 explored business innovation through diverse lenses such as AI, open innovation, data ecosystems, digital twins and corporate venturing, which generate new possibilities for collaboration, value creation, new business models, and sustainability. These insights and their implications were discussed and debated through 8 sessions over 2 days.
Business innovation today is driven by a rapidly evolving opportunity space, the imperative to uncover new markets and revenue streams, and the need to formulate effective strategies in response to competitive and regulatory pressures. Embracing an ecosystem approach is pivotal for enhancing innovation by combining internal capabilities with external ideas and methodologies. Demonstrating the value and impact of innovation initiatives is a critical step in gaining organizational support. This not only secures necessary C-level backing but also strengthens and aligns a culture of innovation at all levels.
Connected manufacturing is enabling industrial innovation at scale. The emergent industrial metaverse offers solutions to numerous challenges, including validating designs and processes, narrowing the gap between virtual and physical test conditions, and increasing the speed and efficiency of prototyping. Digital twins make it possible to run realistic simulations using real-time sensor data and compare results while changing parameters. Advanced data analytics and machine learning add powerful insights about the system being modeled that can improve efficiency across the entire lifecycle.
AI’s transformative power is being harnessed to optimize operations, uncover new opportunities, and support sustainable business models, making it a cornerstone of contemporary innovation. Several sessions emphasized the importance of responsible and ethical AI to ensure fairness, transparency, and unbiased decision-making. This approach to AI innovation promotes trust and successful business outcomes while ensuring that AI tools align with fundamental rights and regulatory standards.
Throughout the Summit, themes of digital transformation, data sharing, ecosystem partnerships, collaboration, and AIpowered business reinvention were emphasized as crucial elements contributing to a culture of innovation.
1Embrace Ecosystem Diversity: Successful innovation requires a blend of internal insights and external knowledge. Learn from the broader ecosystem, engage with diverse external stakeholders, and integrate external innovation to enhance the company’s offerings.
4Innovating with Data Ecosystems:
Data is the backbone of modern business innovation, enabling new models and efficiencies. Data ecosystems are at the forefront, facilitating secure and efficient data sharing among organizations, leading to increased transactions and innovation. Demonstrating tangible benefits of data sharing to participants is the key to building thriving ecosystems.
2
Demonstrate Value and Impact:
Building a compelling narrative around innovative activities is essential for demonstrating their value to top management. Clear key performance indicators (KPIs) and impact metrics are crucial for gaining support and ensuring that innovative efforts are recognized and valued within the organization.
5
Industrial Innovation:
The industrial metaverse is now being realized through the application of reality capture and digital twin technologies that make realistic simulations possible in virtual environments. For manufacturers this presents significant potential to streamline processes, reduce the wastefulness of physical prototyping, and enable collaborative design and engineering projects.
3
Rise of Corporate Venturing Squads: Corporate Venturing Squads (CVS) are multi-partner strategic alliances formed by a group of corporations joining forces to innovate with one or more start-ups. CVS are an open and collaborative approach to innovation that not only enhances the quality of innovation but also strengthens relationships between partners.
6
AI Reinvention: Companies are leveraging AI’s analytical powers to optimize operations, reduce costs, and better manage resources, identify new business opportunities, accelerate the development of clean technologies, and foster a more sustainable future. AI-aided strategy supports informed decision-making, spurring innovation at speed and enhancing productivity. Responsible AI implementation is crucial for achieving long-term success.
by Anna Noakes Schulze
Pedro Muños shared his experiences and learnings of innovating within a large corporation in his keynote. He began by emphasizing the iterative nature of innovation, describing it as a continuous process that evolves over time. He detailed a structured approach that BBVA follows which includes several critical stages:
He stated the importance of engaging with various external stakeholders, including startups, incubators, accelerators, investors, and academia, to gain diverse perspectives and identify new opportunities.
Muñoz highlighted the need to balance external insights with a deep understanding of internal capabilities and challenges. He advocated mapping the company’s internal knowledge and fostering a culture of co-creation, where new ideas are collaboratively developed and refined.
Once an idea is generated, it must be rigorously analyzed. This involves market research, benchmarking, and identifying the right partners. Muñoz emphasized the important of thorough analysis before moving forward.
Successful innovation often requires changes to internal processes. Muñoz noted that new processes must be created to integrate innovative projects into the organization. “Transform the internal process of your corporation, create new processes to make it possible,” he advised.
After transforming internal processes, the next step is to test and validate the new ideas through PoCs and pilot projects. This stage is critical for gathering learning and iterating on the initial concepts. Muñoz stressed the importance of being prepared to close projects that do not meet expectations and to integrate those that succeed.
Pedro Muñoz shared several key insights that have shaped BBVA’s open innovation strategy:
Muñoz underscored the value of learning from the broader ecosystem and integrating external innovation to enhance the company’s offerings. Engaging with diverse external stakeholders allows BBVA
to stay ahead of industry trends and incorporate the best solutions available.
He highlighted the necessity of continually refining and evolving the innovative process based on feedback and results. This iterative approach ensures that the innovation strategy remains dynamic and responsive to changing market conditions and new information.
Successful innovation requires a blend of internal insights and external knowledge, in other words, applying the Open Innovation paradigm. By combining these two sources of information, BBVA can create wellrounded and effective innovative projects that leverage both internal strengths and external opportunities.
Muñoz discussed common challenges in innovation, such as the increased operational expenditure (OPEX) due
to incorporating subscription models and the need to adapt core processes. Addressing these challenges involves aligning organizational structures and processes to support new business models and technologies.
Building a compelling narrative around innovative activities is essential for demonstrating their value to top management. Clear key performance indicators (KPIs) and impact metrics are crucial for gaining support and ensuring that innovative efforts are recognized and valued within the organization.
Pedro Muñoz’s keynote provided a comprehensive overview of BBVA’s approach to open innovation. His insights highlighted the critical role of ecosystem engagement, iterative learning, and internal process transformation in driving successful innovation. By sharing BBVA’s experiences and strategies, Muñoz offered valuable lessons for other organizations seeking to reinvent themselves through open innovation.
In today’s rapidly evolving business landscape, corporate venturing has emerged as a vital mechanism for fostering innovation. Professor Mª Julia Prats of IESE Business School and the Academic Director of the Entrepreneurship and Innovation Center (EIC), has researched the dynamics of corporate venturing squads (CVS), presenting useful insights on how corporations can effectively collaborate with startups to drive innovation and maintain competitiveness.
Corporate Venturing is distinct from corporate venture capital, encompassing a broader range of collaborative mechanisms between established firms and startups. These mechanisms include scouting missions, hackathons, challenge prizes, sharing resources, strategic partnerships,
venture building, venture clients, acquisitions, corporate incubators, and accelerators. Each mechanism serves different purposes and timeframes, from short-term scouting initiatives to long-term strategic partnerships and acquisitions.
Over the past decade, there has been a significant increase in the adoption of corporate venturing practices. According to Professor Prat’s research, 70% of large firms have boosted their investments in innovation units, with 60% of these units established within the last five years. This rise highlights the growing recognition of the importance of external innovation sources in maintaining a competitive edge.
The study revealed differing adoption rates of corporate venturing practices across different regions. For instance, 40% of large corporations in Latin America engage in corporate venturing practices, compared to over 90% in the United States or 95% in Japan. This disparity underscores the need for tailored strategies considering regional innovation ecosystems and market dynamics.
The study examined how companies design and implement their Corporate Venturing strategies, focusing on the variety and combination of mechanisms they use. Professor Prats highlighted that each company employs a unique mix of these mechanisms, tailored to their specific organizational objectives. Those could be managed internally within each company’s dedicated department. Examples include:
• BMW: The company employs a diverse set of mechanisms, including scouting, hackathons, strategic partnerships, and venture capital. One particularly important mechanism is Venture Clienting, which integrates innovation from external startups into the company’s existing operations.
• Iberdrola: The company operates a successful Corporate Venture Capital unit, which has served as the foundation for its extensive scouting and piloting activities. Each year, it evaluates over 300 startups and conducts more than 25 pilots to test new technologies in real-world settings.
• Telefónica: Through its Wayra, Telefónica Ventures, and Amerigo initiatives, Telefónica has supported over 400 startups, and engaged with around half of them, facilitating their growth with mentoring, resources, and strategic investments.
Corporate Venturing Squads (CVS) are multi-partner strategic alliances formed by a group of corporations joining forces to innovate with one or more startups. There are different types of CVS depending on frequency and activity.
These collaborative squads, or CVS, involve multiple corporations working together with startups.
• Construction Startup Competition: Initiated by CEMEX Ventures, this platform scouts for startups
transforming the construction industry, providing them with resources, mentorship, and access to potential investors. CVS Type: Scouting Platform.
• MobilityXLab: A Swedish hub focusing on partnering with startups to accelerate innovation in the sector, with significant success since its inception in 2017. CVS Type: Partnership – Scouting Platform & Acceleration & PoCs.
The success of CVS hinges on overcoming several challenges:
• Opportunism: Ensuring aligned interests and commitment among all partners.
• Incompatibility: Addressing legal and strategic differences that might deter collaboration.
• Asymmetrical Power Distribution: Balancing power dynamics between large and small firms to foster equitable partnerships.
1. Establish Clear Governance Mechanisms
Effective CVS management requires clear governance structures. Innovation leaders should define explicit criteria for member selection, communication, and decisionmaking processes. This clarity helps mitigate potential conflicts and ensures efficient operations.
2. Align Strategic Goals and Time Horizons
Corporations must align their innovation needs with appropriate CVS mechanisms. For instance, companies seeking immediate solutions might favor acquisitions or venture clients, while those aiming for long-term innovation might invest in venture building or accelerators.
3. Foster a Collaborative Culture
Building a successful CVS involves fostering a collaborative culture that encourages knowledge-sharing and collective problem-solving. This approach not only enhances the quality of innovation but also strengthens relationships between partners.
4. Monitor and Evaluate Performance
Continuous monitoring and evaluation are crucial for CVS’s success. Corporations should regularly assess the performance of their ventures, making necessary adjustments to optimize outcomes and address emerging challenges.
CVS represents a transformative approach to innovation, enabling established firms to use the agility and creativity of startups. Corporations can maximize the benefits of these partnerships by adopting clear governance structures, aligning strategic goals, fostering collaboration, taking advantage of regional insights, and monitoring performance. Professor Julia Prats’ research provides a comprehensive framework for understanding and implementing effective CVS strategies.
Data is the backbone of modern business innovation, enabling new models and efficiencies. Data ecosystems are at the forefront, facilitating secure and efficient data sharing among organizations. Silvia Castellvi and Diego Mallada shed light on how data ecosystems like Catena-X are transforming industries by enabling data sharing while maintaining data sovereignty and trust.
Data ecosystems create trusted environments where information can be shared efficiently. This sharing is crucial for developing technologies such as artificial intelligence and predictive maintenance. However, sensitive and proprietary data has made companies reluctant to share, posing a significant challenge.
Silvia Castellvi emphasized the necessity of creating trusted ecosystems for secure data sharing. Instead of centralized platforms, these ecosystems are interoperable frameworks, based on common governance principles, standards and practices, known as data spaces. These spaces ensure data sovereignty, allowing participants to self-determine how their data is used by others while facilitating interoperability.
ISDA plays a crucial role in establishing the governance and the technical standards required for trusted data sharing. This European-
based association, with global reach, develops the architecture for data spaces, ensuring that data is self-determined and compliant with regulations. The association’s members, comprising over 860 contributors from various industries, work collaboratively to develop these standards.
facilitates data exchange within the automotive industry. This ecosystem supports data-driven applications like AI model training and supply chain optimization. By enabling secure data sharing, Catena-X enhances efficiency and innovation across the automotive supply chain.
In response to the challenges of digitalization, IndesIA was established as a non-profit association in 2021. Its primary purpose is to assist Spanish industrial companies in their digitalization journey through the use of data and the application of artificial intelligence. IndesIA aims to create a national data & AI ecosystem powered by industrial data spaces. Gestamp a leading Spanish multinational automotive supplier company and founding member of IndesIA, exemplifies the benefits of data ecosystems. With operations in 24 countries and 13 R&D centers globally, Gestamp leverages data sharing for innovation. Diego Mallada highlighted how the automotive industry, amidst rapid changes and competitive pressures, benefits from data-driven solutions like quality traceability and sustainability tracking.
Catena-X, a prominent data ecosystem built on top of the IDS-RAM,
While initiatives like Catena-X focus on the automotive industry, the principles of data ecosystems apply across sectors. For instance, the healthcare sector benefits from data spaces for sensitive data handling, as seen in cancer treatment imaging projects.
Blockchain technology and Web3 concepts support the decentralization and trust required in data ecosystems. These technologies enhance data ecosystems’ functionality and security. However, the current technical maturity of these technologies varies, posing implementation challenges.
For data ecosystems to thrive, they must demonstrate tangible benefits to participants. Use cases and success stories play a critical role in building trust and encouraging participation. As more organizations experience the advantages of data sharing, the ecosystems will grow, leading to increased transactions and innovation.
Manufacturers today face numerous challenges, including the need to validate manufacturing processes, address the disparity between virtual and real test management, and the disjointed nature of different disciplines and departments. Creating a physical prototype to validate the design and manufacturing plan is time-consuming and wasteful. Additionally, 90% of manufacturing problems are discovered during production startups due to discrepancies between the design and its implementation on the shop floor. Lastly, ineffective communication between departments leads to inefficiencies and delays.
Hexagon, the global leader in digital reality solutions, serves nine business ecosystems and about 30 industries around the world. Hexagon technology captures information about physical reality, makes it digitally immersive, and helps customers put it to work in the real world.
Hexagon’s approach to digital twins aims to increase the interplay between different platforms, bringing the physical and the digital layers closer together. Visualization is an important part of this, as it provides the experiential aspect of the digital twin. It allows designers to see their designs in the context of a real factory floor, which can help to validate the manufacturing process before it takes place in reality.
The digital twin concept in manufacturing involves different stages and levels of confidence. It starts with the ‘as designed’ digital twin from CAD, then adds AI and other technologies to simulate different manufacturing processes, and finally uses functional simulation using CAD tools to validate and refine the design. This process increases the level of confidence in the manufacturing process and brings a digital twin closer to the reality of the shop floor.
Simulation capabilities can model physical production spaces, enabling the practice of virtual manufacturing scenarios. This helps manufacturers avoid common issues during production startups, allowing for smoother processes and better yields. Digital twins thus minimize the need for physical prototypes and reduce waste, benefiting manufacturers and the environment.
Implementing large-scale digital twins fosters better, more efficient manufacturing processes. With virtual validation, industrial metaverse technologies not only provide holistic solutions for manufacturing processes but also foster a sense of collaboration, paving the way for manufacturers to increase speed and agility and work together towards common goals.
By identifying potential issues at an earlier stage of the manufacturing process, Hexagon’s technology offers clear benefits to the industry, potentially improving how products are brought to life and promising efficiency and sustainability improvements.
Hexagon’s partnerships with NVIDIA, Microsoft, and Sony Semiconductor Solutions have enabled the development of industrial metaverse applications. Hexagon’s efforts have resulted in recognition in the Gartner Group’s Emerging Tech Impact Radar Report (December 2023) as a Sample Vendor for AR Cloud and Spatial Mapping services. Hexagon also has affiliations with prominent global organizations such as the Metaverse Standards Forum, the Metaverse Working Group and the Open USD Alliance. Here, Hexagon is fully dedicated to fostering interoperability within the industry.
The key to unlocking manufacturing potential is to make data easier to gather, share and analyze within an ecosystem that can also drive real-world action. Until now, that kind of physical-digital ecosystem required mixing and matching many different technology partners. Hexagon offers a more integrated approach through open platforms. These facilitate collaboration, foster new ways of thinking, drive positive transformation and increase the value of customers’ data over time.
Hexagon’s solution for manufacturers, Nexus, is an open digital reality platform that brings different technologies, networks, stakeholders, and departments together to communicate, collaborate, and bring all data together. Nexus enables fluid engineering collaboration by breaking down organizational silos – from design and engineering to production and quality. What sets Hexagon’s approach apart is its focus on the metaverse as a platform — not just as individual tools — tying together multiple departments and systems to create holistic workflows. This platform approach, rather than a single-point solution, is essential for a successful digital twin implementation.
The industrial metaverse, via application of digital twin technologies, presents significant opportunities for manufacturers. It has the potential to streamline processes, eliminate waste and facilitate collaboration. As this new landscape emerges, manufacturers ready to embrace these changes will realize transformative benefits.
How do you exploit the full potential of platforms and ecosystems? It starts with rethinking your entire business.
the Computer Era to the AI Era
The computer era was defined by its ability to execute routine, procedural tasks flawlessly and cost-effectively. This era saw the rise of major platforms and ecosystems like Amazon, Uber, Airbnb, and social media giants such as Facebook and Instagram.
Amazon Marketplace, for example, connects over 6 million sellers with 310 million active consumers globally, processing around 20 orders per second and generating over $575 billion in net revenue sales worldwide.
However, the computer era struggled with non-routine tasks requiring expert knowledge. This is where AI
excels. According to MIT professor David Autor, AI isn’t reliable with facts and numbers or rule-following, but it’s remarkably effective at acquiring tacit knowledge. AI learns by example, gaining mastery without explicit instructions and acquiring capabilities it wasn’t specifically programmed for.
AI enhances platforms and ecosystems, making them more intelligent and capable of achieving network effects, growing value exponentially. In my book, “The Interaction Field,” I discussed the exponential nature of network effects.
At Vivaldi, we developed the AI Pyramid Model to explore AI’s role in business, both in generating value for consumers and capturing value for companies and brands.
At the base of the model, AI applications organize and process information to deliver productivity improvements of 20% to 45%, depending on the industry, task, and technology application. Many basic AI applications operate at this level, augmenting content and knowledge.
For example, using ChatGPT to summarize an article or improve it without changing its meaning, or using large language models (LLMs) to explain topics in-depth or automate repetitive tasks. These applications leverage AI to process large volumes of data quickly and efficiently.
The next level involves automating or augmenting transactions between a company and its customers. This includes modifying or streamlining buying and selling processes, engaging in e-commerce, or facilitating monetary transfers through banking apps.
L’Oréal’s Beauty Genius is a prime example. It revolutionizes skincare by offering personalized recommendations through an advanced AI-enhanced chatbot. Beauty Genius evaluates users’ skin conditions and provides tailored advice, seamlessly integrating AI to enhance user experience without replacing it. This synergy ensures users
benefit from AI while maintaining control.
At the highest level, AI enables entire networks, or “interaction fields,” that combine pipeline and platform models, leading to business reinvention. Tesla illustrates this potential. Despite reporting poor Q1 2024 results with a 9% decline in worldwide sales and revenue and a 55% drop in net income, Tesla’s stock price surged 34% from its 52-week low.
The key reason? Tesla announced its vision to reinvent itself as an autonomous robotic company, offering a SaaS-like product and service—a monthly subscription to AI-powered software for any vehicle globally. This vision is a significant shift from being an electric car company to an autonomous technology company, with potential far greater than the car market alone.
Platforms and ecosystems can achieve exponential value through network effects in the new AI era However, this requires a commitment to becoming interaction fields and embracing company-wide business reinvention.
As we move further into the digital age, the transformative potential of artificial intelligence (AI) is becoming increasingly apparent. At TheNTWK Summit 2024, industry leaders gathered to explore how AI can drive significant business improvements across various sectors. Our panel discussion, “Unveiling the Power of AI for Business Impact,” focused on three key areas: cost reduction, sustainability, and innovation. Here are the key insights and takeaways from the session.
Francisco Zaplana Sánchez from CONVOTIS shared a compelling success story on how AI is revolutionizing cost management in healthcare. By implementing AIbased decision support systems, hospitals can optimize bed utilization, reduce unnecessary admissions, and significantly cut costs. This example underscores the importance of data-driven decision-making in achieving operational efficiency. As businesses seek to streamline operations, AI offers a powerful tool for identifying and eliminating inefficiencies
Key Insight: AI can drastically reduce costs by optimizing resource allocation and supporting informed decisionmaking processes.
Key Condition for Success: Clear and accurate data is essential. The quality of AI insights directly depends on the data’s accuracy and comprehensiveness.
Key Skills Needed: Data analysis and interpretation skills are crucial for leveraging AI to its full potential. Business leaders must understand how to utilize data effectively to drive decision-making.
Dagmar Eisenbach from Salesforce highlighted how AI is being used to promote sustainability and responsible business practices. AI technologies are enabling manufacturers to track emissions comprehensively, ensuring compliance with sustainability measures. Additionally, AI-driven solutions in energy management are enhancing global workforce connectivity and supporting sustainable operations. These initiatives demonstrate AI’s critical role in helping businesses meet their sustainability goals and reduce their environmental footprint.
Key Insight: AI is essential for advancing corporate sustainability goals, offering solutions for emission tracking and energy management that support sustainable and responsible operations.
Key Condition for Success: Cross-disciplinary collaboration between AI experts and sustainability professionals fosters innovative solutions.
Key Skills Needed: Change management skills are essential for leading organizational shifts toward integrating AI-driven sustainability initiatives.
Arturo Lizon Nordström, PhD, from Kimitec, discussed the innovative applications of AI in agriculture. AI is transforming farming practices by creating more sustainable and resilient agricultural systems. It helps develop crop varieties resistant to extreme weather
Written by Dagmar Eisenbach
conditions and diseases, optimizes resource use, and reduces the environmental impact of farming. This shift towards AI-driven servitization in agriculture showcases the technology’s potential to revolutionize traditional industries and address global challenges such as food security and climate change.
Key Insight: AI in agriculture is driving innovation, enhancing sustainability, and ensuring resilience against environmental challenges.
Key Condition for Success: Collaboration between AI experts and agricultural professionals is essential. Crossdisciplinary partnerships ensure AI solutions are practical and applicable in real-world farming scenarios.
Key Skills Needed: Expertise in both AI and agricultural science is critical. Professionals must bridge the gap between technology and traditional farming practices to drive impactful innovation.
Throughout the discussion, a common theme emerged: the need for responsible AI implementation. Success factors and skills necessary for effective AI integration include a strong ethical framework, ongoing training, and a commitment to sustainability. Businesses must balance the immediate benefits of AI with long-term ethical considerations to ensure that AI-driven initiatives are sustainable and beneficial for all stakeholders.
Key Insight: Responsible AI implementation is crucial for achieving long-term success and sustainability. Businesses must prioritize ethical considerations and invest in the necessary skills and training.
Key Condition for Success: Establishing a robust ethical framework for AI deployment is critical. This framework should guide all AI initiatives to ensure they align with ethical standards and societal values.
Key Skills Needed: Ethical reasoning and compliance knowledge are essential. Leaders must be able to navigate the ethical implications of AI and ensure their teams adhere to best practices.
This panel discussion highlighted how AI, when integrated responsibly, can drive significant improvements in cost reduction, sustainability, and innovation. By leveraging AI’s transformative power, businesses can achieve operational excellence and sustainable growth. As we move forward, it is essential for business leaders to consider both the potential rewards and ethical implications of AI technologies. By doing so, we can harness the full potential of AI to create a better, more sustainable future for all.
We joined TheNTWK Summit on remote to offer a half-hour workshop related to AI Aided Strategy. We briefly covered the field of artificial intelligence and the importance of combining interactivity, traditional tools and frameworks, and GenAI. Next, we enabled workshop attendees to log in and try our system.
We began with some background on Virtustrat and how it differs from other
generative AI tools that generate what we call a “Wall of Text.”
This is explained in more detail in our article in Harvard Business Review, Can GenAI Do Strategy?
While we believe text-only large language models can be helpful – and we use them ourselves for programming and proofing – they’re sometimes not the most optimal solutions. Shortcuts in the form of graphs and charts came along even though people have always retained the option of writing out plans in longhand, although they choose not to do so.
We also emphasized that while these versions of business tools powered by generative AI are new, they build on computer-aided business tools that have existed for quite some time. For example, the first version of one of our tools has a description – and even a partial working version – in the Wayback Machine of the Internet Archive dated February 2003! We don’t even know how many iterations of the system we’ve made since then (many) except that each is designed to streamline the strategy creation process.
Our theory has always been that people spend too much time on the mechanics of strategy creation at the expense of the human-aided part of the system. That is, a substantial amount of brainpower goes to creating charts, graphs, and other materials that a computer could and should fill in. Furthermore, starting with blank templates is also unhelpful leaving people unsure of what is expected as they move forward with a system.
Think about the best way to teach a child to ride a bicycle. You may tell the child to get on only to see them fall off, hurt themselves, and become frustrated. This is analogous to giving a blank template and asking people to fill it out.
A second way would be the use of training wheels. However, they may get used to them and take quite a long time until they’re riding on their own. This is like the use of consultants. However, the best way is to give them a running start and enable them to balance on their own. This is how Virtustrat works: we hope to give people a running start on the strategy creation process.
While demonstrating Virtustrat at TheNTWK Summit, we spent most of our time on our AI-aided segment, persona, and customer journey tool That enables businesses to get a head start on creating customer journeys, a primary tool for understanding customers.
Virtustrat has additional tools for creating and discussing a value chain, externalities, problem-solving, finance and accounting metrics, stakeholder evaluation, etc. All of them are tuned to output relevant information tied specifically to what a user is looking for rather than a rambling lengthy tome of text.
The attendee feedback for this short, introductory workshop was fantastic. We had a super-engaged audience asking insightful questions. Since then, we’ve had two strong follow-ups with organizations interested in using our tools.
Overall, we couldn’t be happier with our session and the participants at TheNTWK Summit. The workshop was a win-win for everybody, and we hope to be back in person next year to share a deeper dive into AI-aided business strategy with the latest iteration of Virtustrat.
As leaders navigating an increasingly complex world, we are presented with unprecedented challenges – climate change,resource scarcity, and an aging population. Artificial intelligence (AI) emerges as a transformative tool, brimming with potential to address these pressing issues. From developing sustainable solutions to revolutionizing healthcare and education, AI presents a powerful force for good.
AI while safeguarding existing value chains, we can ensure a smooth transition towards a future enriched by AI.
The development and deployment of AI necessitates careful consideration of ethical implications. We must strive to ensure fairness, transparency, and unbiased decision-making in AI algorithms. Through responsible implementation, we can foster trust and confidence in AI, paving the way for its ethical and sustainable integration into society.
Our well-being and very survival are intricately linked to the health of our planet. AI can become a valuable ally in environmental protection. By leveraging its analytical prowess, we can optimize resource management, accelerate the development of clean technologies, and foster a more sustainable future.
The future beckons with a rapidly evolving landscape driven by AI. New job opportunities will emerge, demanding novel skill sets. To ensure all members of our workforce can thrive in this dynamic environment, we must prioritize equitable access to quality education. By empowering individuals with the necessary technical and critical thinking skills, we can foster a future where AI complements and amplifies human ingenuity.
AI stands at the forefront of a technological revolution, accompanied by a wave of groundbreaking advancements. Brain-computer interfaces hold the potential to revolutionize human-computer interaction, while digital twins offer unparalleled capabilities for simulating and testing real-world scenarios. Digital humans present exciting possibilities for applications in customer service, education, and entertainment.
While AI promises immense benefits, it is essential to acknowledge its disruptive potential. Entire industries will undergo significant transformations. As leaders, we must embrace a proactive approach, strategically preparing our organizations for these shifts. By harnessing the power of
Written by Martha Boeckenfeld
The potential of AI to create a better world hinges on our collective responsibility. By working together, fostering open dialogue, and prioritizing ethical considerations, we can harness the immense power of AI to address global challenges and create a brighter future for all.
As we stand at the precipice of a new era, let us embrace AI not with fear, but with a sense of possibility and purpose. By harnessing its transformative potential responsibly, we can collectively shape a future where AI empowers us to solve some of humanity’s most pressing challenges and build a world that benefits all.
During TheNTWK Summit in Barcelona, BE LIGHT was at the center of demonstrations, showcasing the BE LIGHT method. The message from the live demonstrations and many speakers was clear; it is time for a mindset shift to revolutionize employee well-being and create resilient, future-ready teams in an era dominated by AI.
The live demonstrations captivated attendees, not only explaining how audiovisual neurotechnology works but also allowing participants to experience firsthand its positive effects. They were guided through special light and sound frequencies that relaxed and invigorated their minds.
Dagmar Eisenbach, Director at Salesforce said, “The BE LIGHT method worked for me immediately and is the next level of mental health and mindfulness.”
BE LIGHT aims to empower everyone to access their subconscious to manage stress and improve mental fitness. Many speakers emphasized the need for a mindset shift, noting that AI will force us to change our attitudes. The only constant is change, and it became clear that we need to learn new skills to stay in the driver’s seat. Companies need to develop new strategies to support their workforce in this transformation process. Soft skills are becoming the new hard skills, and successful managers need to lead this process to secure their competitive advantage. Many companies recognized this and were asking for tailored BE LIGHT programs for their teams.
boosts cognitive performance, enhancing mental clarity, creativity, and well-being.
Studies show that Audio-Visual Stimulation (AVS) significantly improves cognitive performance by reducing negative emotions such as anxiety and depression. Remarkably, a brief AVS session of about five minutes can yield substantial mood improvements, often comparable to or even surpassing longer sessions of traditional meditation practices. BE LIGHT’s unique blend of scientific research and practical application sets it apart from traditional wellness programs, offering a truly transformative experience.
In today’s fast-paced workplace, BE LIGHT is transforming employee well-being and performance with its innovative blend of neuroscience and technology. Brainwave coherence, where brainwave patterns are balanced and synchronized, is essential for achieving mental clarity and emotional stability. BE LIGHT leverages this principle using brainwave entrainment through specific wavelengths of light and sound frequencies. This biohacking and mindfulness technology effectively reduces stress and
Participants agreed that mental health and mindfulness are not a “nice to have” but a “must” for every company to build successful, satisfied, and resilient teams. Many attendees reported feeling an immediate sense of calm and increased alertness following the sessions. The easy and efficient BE LIGHT approach meets the needs of our fast-paced world, where no one has time for self-care.
Marina Planas, CEO and Co-Founder of TheNTWK, said, “BE LIGHT has introduced us to a whole new feel-good experience and helped us to quickly relax and recharge our energy during the event.”
Oliver Smykacz, CEO and Co-Founder of BE LIGHT, emphasized this in his closing remarks: “Our goal is to revolutionize how companies think about mental health and mindfulness. By integrating the BE LIGHT program, we can create healthier, happier, and more productive teams, helping them adapt to the new demands of an AIdriven world.”
The success of BE LIGHT’s presentations has already sparked interest among top executives. Several CEOs, along with the organizing team of TheNTWKSummit, have expressed their intent to incorporate BE LIGHT’s wellbeing program into their companies. This move signifies a broader shift towards embracing innovative solutions that prioritize employee health, acknowledging that a happy workforce is a productive one
Peter C. Evans Co-chair TheNTWK Summit
The rise of circular platforms and circular logistics is creating new ways for companies to leverage platform business models.
Sara Diez (CEO) Director The Post Fiber
From many different angles, customer concerns about environmental topics together with regulations are really pushing companies into changing into a more circular business.
Stephan Fester SAP Global Circular Manufacturing Lead SAP SE
Investors are putting a lot of pressure on companies to become green because they don’t want to invest into dirty industries anymore... [Also] employees want to go to a company which is more sustainable.
TheNTWK Summit 2024 explored the circular economy and how it intersects with the platform economy and sustainability across industries. This was done through eight sessions over two days. The Circularity by Design session emphasized the importance of ecosystem approaches, collaboration, and digital infrastructure in enabling circular business models. A session on Technology and Partnerships Enabling Circularity showcased how traditional industries can collaborate in developing circular business models. Another session featuring SAP and Schneider Electric focused on Circular Manufacturing, the paradigm shift taking place from the traditional linear “take-make-waste” model to one that maximizes the value of materials. The panel explored drivers for circular manufacturing, including regulations and material scarcity, and emphasized the need to transform business models and leverage data and technology.
The Summit also delved into reverse logistics, introducing the concept of circular logistics to manage product lifecycles, and discussing challenges and opportunities in managing returns and trade-ins. Another panel examined the energy transition and how platforms are contributing to addressing key issues such as decarbonization, digitalization and the potential for platforms to enable second-life opportunities for things like EV batteries. The role of circular startups as transition enablers was examined, exploring the differences between linear and circular business models and the challenges faced by these innovators. Finally, a session on circular platforms investigated how these digital ecosystems can facilitate reverse logistics, data sharing, and circular economy transitions beyond simple matchmaking with insights from UNECE’s work in this area.
Throughout the Summit, themes of collaboration, technological innovation, new business models, and supportive ecosystems were emphasized as crucial elements in enabling the transition to a more circular economy.
1
Ecosystem Collaboration: Successful circular business models rely heavily on partnerships and collaborations across the value chain.
4Business Model Transformation:
Transitioning to circular practices often requires fundamental changes to business models. This includes shifting from one-time sales to subscriptionbased models and rethinking product design for longevity and recyclability.
2
Technology as a Circular Enabler:
New technologies are reducing friction, improving supply chain transparency, and incentivizing new business models like product-as-aservice and take-back programs that boost circularity.
5Startup Innovation:
Circular economy startups are playing a crucial role in driving innovation and new solutions. However, they face unique challenges such as market acceptance and funding, highlighting the need for supportive ecosystems and policies.
3Reverse Logistics:
The concept of “Circular Logistics” is gaining traction, emphasizing the need for efficient systems to manage product returns, refurbishment, and recycling. This is seen as a key area for unlocking new revenue streams in a circular economy.
6Energy Transition Complexities:
The shift towards renewable energy and decentralized systems is introducing new challenges, such as managing zero or negative energy prices.
The right setting for circular textiles
The share of global GHG emission of the Apparel and Textile industry may be debatable - somewhere in the 2-10% range according to various sources, but the detrimental impact it has on the environment is undoubtedly consensus. According to the European Environment Agency, while textile production doubled over 20 years to reach 109 million tonnes in 2020, more than half of used clothes ended up in landfills, and only 1% were recycled
Increasing pressure from key stakeholders - regulators, consumers,
investors, and value chain partners - is creating the much-needed setup for innovations and new business models to tackle fast fashion, overproduction (and overconsumption), and textile waste. Ones that are built on the new 3Rs economic models of ReduceReduce-Recycle.
In this panel discussion session, Sara Diez Jauregui from The PostFiber and Sito Luis Salas from NNormal shared their insights on opportunities and challenges that come with these new business models as they reflected on the journey of these two ventures. The PostFiber works to recycle postconsumption textile waste into new fiber, yawns, and garments, while
NNormal, a 2-year-old venture born out of the global footwear leader Camper aims to address overproduction/consumption issues in the footwear segment by producing 2-3x more durable shoes than other brands.
One of the key challenges to circular businesses like The PostFiber is the ability to obtain mass adoption from both consumer and business customers, particularly given the perceived lack of image and cost implications of reused and recycled goods.
Textile recycling, for instance, can often be more expensive than producing new clothing from virgin materials due to the still inadequate infrastructure for the complex textile recycling processes, and less mature recycling technologies. Textile waste needs to be collected, then sorted, dismantled, shredded, etc. before being passed onto the recycling facilities to produce new fibers, yarns, and garments. In other words, not everything collected will be recycled, and sorting is typically the most important part given textile waste comes in various materials, fabric, and fiber blends.
Collaboration, trust, and traceability are thus crucial to the success of these 3Rs business ventures and the broader transition away from the traditional takemake-waste economy.
The ecosystem of The PostFiber includes key supply chain stakeholders, which contribute complementary capabilities and share a commitment to the sustainability of the fashion industry, including:
• Caritas, an NGO responsible for the collection of 45% of textile waste in Spain.
• Moda Re, is also
responsible for collecting, and sorting, textile waste.
• Margaza, a mechanical recycler in charge of recycling sorted feedstocks into new fibers,
• Textil Santanderina, a mill transforming fiber into yarns, and
• Halotex, a garment manufacturer.
In the case of the footwear industry, recycling is currently not perceived as the most optimal option, given that there are typically more than 20 materials going into the making of a shoe. Not mentioning glue and other chemicals that make end-oflife disassembling almost impossible. NNormal has thus taken a different approach - starting from the beginning of the production cycle - designing shoes that outlast other brands out there. Like The PostFiber, NNormal has also put emphasis on the role of the ecosystem and collaboration of supply chain partners to the success of its venture. NNormal is currently partnering with Vibram and a network of 3,000 cobblers around the globe to encourage the repair of used shoes.
Platforms have undoubtedly contributed to supercharging sales by encouraging overconsumption This has in turn led to reverse logistic issues of return - estimated to be around 40% for the fashion industry, which has additional detrimental
implications on CO2 emissions from transportation.
However, digital infrastructure can also be leveraged to achieve more sustainability and circularity as the panelists highlighted with some examples in the Textile industry:
• Marketplaces for preconsumption textile waste and/or other sustainable materials,
• Platforms focused on providing 3D design, whereby such a move away from physical to digital design would enable significant emission reduction in both sample production and transportation.
• Platforms that enable data management across the supply chain, which has been traditionally in silos, in a seamless, more secure and scalable manner. There is an increasing demand for such supply chain sustainability and transparency from both regulators (non-financial disclosure, LCA, etc) and consumers.
New technologies such as AI are being increasingly explored to enhance operational efficiency, drive growth, and support sustainability in several sectors, including Textile. The PostFiber, for instance, is already using AI to help classify waste by patterns for more efficient sorting. NNormal is also exploring the technology for quality control at the end of the production line, and product and size recommendations for online customers.
The session, led by Sandra Vidal, Country Sustainability Manager of ABB in Spain and ABB Motion Sustainability Lead, Southern Europe; Carles Camprubí, Chief Circularity Officer of La Farga and Narcís Giralt, News Products and Circularity Head of Celsa, showcased their collaborative efforts to tackle waste management and enhance sustainability across industries.
Sandra highlighted the “ambitious goals of ABB in terms of sustainability which include helping customers to reduce their footprint through the company’s technological solutions.”
Carles noted that, “La Farga is a 215 year-old copper foundry that has been pioneering sustainable business models since the mid80s.” He proudly holds the role of Chief Circularity Officer, driving the company’s strategy towards circularity in supply chains and business models.
Narcís, representing Celsa, shared their longstanding commitment to circularity: “For over 60 years, Celsa has utilized technology that recycles scrap to produce steel, embedding circularity in our processes long before it became a trend.”
A groundbreaking collaboration originated from a casual discussion during a coffee break at the first Energy Efficiency Movement Symposium hosted by ABB in 2023. This encounter sparked a realization among the three companies of their aligned sustainability goals. They saw an opportunity to amplify their impact by integrating their technologies and expertise rather than pursuing independent efforts.
Carles elaborated on the ethos of their partnership: “We aim to create not just a profitable business but one that delivers dual benefits – economic and sustainable – to our customers.” This statement encapsulates the core advantage of their collaborative project.
The project centers on the innovative use of high-efficiency motors that consume less energy and, in turn, reduce CO2 emissions. The old motors are collected and handed over to La Farga and Celsa, where they are dismantled and the materials recycled.
sustainability reports, demonstrating tangible reductions in CO2, energy, and water usage.
The collaboration also emphasizes transparency and trust, crucial elements in today’s sustainabilitydriven market. By controlling the recycling process themselves, they assure customers of the traceability and integrity of the recycled materials.
One of the unique aspects of this project is the economic benefit it offers to customers. By taking back old motors, the companies can offer new ones at a lower cost due to the inherent value of the recycled materials. Additionally, they provide a sustainability certificate that customers can include in their
#TheNTWKSummit24 serves as a platform not only for sharing such innovative practices but also for inspiring other companies to consider similar collaborative models that blend economic viability with environmental responsibility. The project presented by ABB, La Farga and Celsa exemplifies how traditional industries can adapt and thrive by embracing circular economy principles, showcasing a path forward that others might follow to achieve sustainability and business success in tandem.
In the session Stephan Fester from SAP and Camila Soares from Schneider Electric shared their vision for the future of manufacturing — one that is not only sustainable but also profitable. The discussion centered on the concept of Circular Manufacturing, a paradigm shift from the traditional linear “take-makewaste” model to one that maximizes the value of materials. The discussion brought insights into the drivers, challenges, and opportunities that companies face in their journey towards circularity. Here are some key takeaways from the conversation:
Regulatory Compliance: The speakers highlighted the growing regulatory landscape that is pushing companies to adopt circular practices.
The battery digital passport initiative, for example, requires a recycling rate of over 90% for battery materials, demonstrating how legislation can drive industry change.
Financial Imperatives: The financial implications of carbon emissions were underscored, with potential liabilities and missed opportunities reaching into the millions for companies that fail to reduce their carbon footprint. This presents a clear financial incentive to transition to more sustainable practices.
Investor and Consumer Pressure: Investors are increasingly shying away from “dirty” industries, and consumers are demanding greener products. This dual pressure is compelling companies to rethink their manufacturing processes.
Scarcity of Materials: The scarcity of materials is a growing challenge for many industries, as the demand for raw materials exceeds the supply and leads to higher costs and environmental impacts. Circularity can help mitigate this problem by reducing the reliance on finite resources and creating value from waste streams and by-products.
: Many products face the problem of limited availability of spare parts. For instance, some machinery parts are no longer produced by the original manufacturers, making it difficult to repair or maintain the equipment. This results in unnecessary waste and consumer dissatisfaction. Spare part harvesting, which involves recovering usable components from discarded products, can help address this issue by providing a source of low-cost and readily available parts.
Rethinking the Business-as-Usual: At the heart of the discussion was the idea that business models must evolve to accommodate the principles of the circular economy. The transition from one-off sales to subscriptionbased models was highlighted as a means to retain control over materials and promote the use of refurbished parts. This approach not only extends the life of products but also aligns with the circular economy’s goal of keeping materials in use for as long as possible.
Harnessing the Power of Data and Technology: Data emerged as the backbone of successful Circular Manufacturing. Accurate tracking of material flows and carbon emissions is not only essential for compliance but also for identifying opportunities for innovation. The session also spotlighted the transformative role of technologies such as AI and digital product passports, which enable better tracking of product histories, streamline refurbishment processes, and ensure regulatory compliance.
Automation; Key to Profitability: Automation is essential to make Circular Manufacturing financially viable. Manual refurbishment processes are often cost-ineffective, but by embracing automation, companies can achieve the efficiency and cost savings necessary to make the transition to circular practices a profitable endeavor.
Collaboration; The Foundation of a Circular Ecosystem:
The speakers emphasized the importance of engaging with suppliers, incentivizing stakeholders, and sharing best practices. Building a supportive ecosystem is crucial for the success of Circular Manufacturing initiatives, as it allows for the sharing of resources and knowledge, accelerating the pace of change.
SAP’s Strategic Steps:
SAP has shown its dedication to Circular Manufacturing by creating a practice that helps customers implement this process. SAP has a long history of helping companies optimize the linear process, and now it aims to close the loop with its existing capabilities and solutions. The company is also developing software solutions that use carbon emissions as a currency, allowing for integrated planning and management of both carbon and financial budgets. SAP’s approach recognises the need for an integrated solution that optimises end-to-end processes while supporting customised software solutions for the complex circular production process in one platform.
Schneider Electric’s Journey:
Schneider Electric’s continuous advancements in eco-design and focus on product-level circularity, as seen in their green premium products, underscore a strong commitment to integrating circularity principles and minimize environmental impact through sustainable product design. Furthermore, the company is driving digital transformation for sustainability and efficiency across industries through world-leading energy
technologies, real-time automation, software, services, and sustainability advisory services, which demonstrates its forward-thinking approach to sustainability and circularity.
1. Start with Pilot Projects: Companies should begin their circular journey with small-scale projects, focusing on high-value materials or those subject to stringent regulations.
2. Invest in Data Infrastructure: Accurate data tracking is essential for measuring and improving circularity. Companies must use and extend their systems that can monitor material flows and carbon emissions.
3. Embrace Technology and Automation: Integrating AI and digital product passports, and investing in automation, can make the transition to Circular Manufacturing more viable and profitable.
In conclusion, the session provided for companies looking to navigate the transition to Circular Manufacturing. By focusing on financial opportunities, innovative business models, and technological solutions, organizations can not only reduce their environmental impact but also unlock new avenues for growth and profitability. The journey to a circular economy may be a complex one, but with the right strategies and partnerships, it is a path that leads to a more sustainable and prosperous future for all.
In the traditional approach businesses strategize to move customers from one product to the next that places the customer at the core of this process. However, with the increasing focus on sustainability and the circular economy, there is a need for businesses to shift their perspective. Instead of merely transitioning customers to new products, businesses should consider how to transfer products from one customer to the next. This approach, termed Circular Logistics, complements sales strategies with a robust system for managing the product lifecycle. Circular Logistics encompasses the movement of products through a forward logistics process to the first owner, a reverse logistics process when the product is no longer desired, and back to forward logistics for subsequent customers.
consumer shift towards e-commerce. E-commerce return rates have climbed to over 17.7%, compared to 8.8% in retail stores. By adopting a circular logistics strategy, businesses can drive down unwanted returns of the linear economy and take advantage of the benefits available in the circular economy.
Businesses are increasingly committing to circularity, yet there remains a gap in understanding how to effectively implement these strategies. A panel discussion with industry leaders provided insights, advice and practical use cases for companies.
The recent market research by Allied Market Research reported that the circular logistics market was valued at $630.9 billion in 2022 and is estimated to reach $947.7 billion by 2032. This growth is driven by factors such as government regulations like the right to repair laws, stricter environmental standards, and the rising consumer preference for purchasing used products for sustainability.
Bulger elaborated on the Circular Logistics model, explaining how it is crucial for modern supply chains to reduce unwanted returns, which are surging due to the
GoTRG is a software that manages the entire returns process including receiving, grading, repairing and restocking the product until the resale. Robert Johnson from goTRG shared how data is crucial in driving down unwanted returns. Through data both the customer and retailer can understand the reasons and the process of returns that enables early actions to change behavior and optimize the entire process.
Buyback programmes enable retailers to offer their customers the ability to turn in their old products as a form of a payment for another product. Ben Whitaker from RMX Recommerce shared his experience in implementing buyback programmes. He highlighted the need to establish buy in at all levels of the organisation. As the needs and problems differ, this requires different kinds of conversations and incentives in different parts of the organisation. For example senior leadership may want to show that the company is adopting circular business practices, while for the store managers this brings an immediate improvement to their P&L.
NeX eCommerce has set up a global alliance to support companies to find logistics partners and provide them with the required visibility into the data and performance to enable green logistics and customer choice from the start. He sees how lack of knowledge and education is a barrier. Furthermore, lack of a common grading system and cultural differences cause challenges globally.
The session at TheNTWK Summit 2024 showcased the critical importance of reverse logistics in the modern supply chain. With expert insights from a diverse panel, the discussion underscored how reverse logistics can drive sales, unlock new revenue streams, manage costs, prevent returns, and promote a circular economy.
Justus Klüver-Schlotfeldt highlighted the need for education and standardized grading system. He discussed how typically smaller companies wanting to enter new markets utilize large marketplaces like Amazon and their easy and integrated logistics services. However reverse logistics is typically out of the service scope, causing a problem for these businesses. Therefore
Energy Transition is a wide concept that includes several simultaneous trends affecting the way we produce and consume energy, usually referred to as the 4 Ds:
We can take the Kyoto Protocol, 1997, as the beginning of this trend. In it, the main economies decided to take action to limit the emission of Greenhouse gasses, CO2 among them. The impact in the energy sector was clear: regulations helping the penetration of renewable energy, such as wind first and solar later.
The arrival of windmills to Spain around the year 2000 deeply changed the structure of the energy sector, but not immediately. We can see wind farms
as modular facilities, with turbines starting at 0.330 MW, compared with the typical 400 MW module of a Combined Cycle. Moreover, they do not need a big body of water for cooling, as thermal technologies do. Availability of areas with good wind resources is more spread. The results: now in Spain we have more than six hundred wind farms, ranging from less than a MW to 60 MW. Compare those figures with the around forty thermal units, starting at 285 MW. The story is going to be the same with solar, but the numbers are still building up. The profitability of smaller production plants added to the lower LCOE built a less capital intensive sector, attracting new players beyond the big utilities.
The lower costs and smaller sizes
we have been discussing allow the entrance of really small players into the sector: almost anybody can be part of it. Also, regulation is evolving to adapt for new agents, such as prosumers and energy communities. The passive consumer becomes an active producer, typically using solar panels on roofs and selling energy surplus to the network. Or neighbors organizing themselves to pool money into a small solar farm in common terrain and sharing production. This has the advantage of generating energy closer to the consumption area, with less network losses and improved network stability. Startups such as Climatize help this trend focusing on midsize projects, supporting them to raise capital, but also connecting them with the people, so that acting as small investors can participate in the transition.
The digital revolution started almost two decades ago, if we take as triggers the commercialization of smartphones and the birth of Web 2.0. This revolution affected all the economic sectors, and energy is not an exception. Digital is a key enabler of Democratization for two main reasons:
1. First, the increasing number of agents increases the complexity of the network, and coordination among them requires not only capturing much more information, but its analysis and sending the correct signals to each of them. This is impossible without advanced digital systems.
2. And second, the penetration of digital technologies in homes and industries as IoT shows, allows for a much greater control of energy consumptions. So even pure consumers, without generation
capabilities to be prosumers, can participate in the management of the system (demand response). For example, Wallbox controls the biggest loads of the private homes, starting with the electrical vehicle. They allow distribution and transmission grid operators to control these loads with their product in order to help the electrical system work together.
grid because too much renewable output.
If the signal for new investments is an energy price of zero, you may never recover that investment. It is necessary to change the scheme and probably look to other sectors such as telecommunications, in which the cost of transferring a byte is almost zero and we are paying for the infrastructure.
All these trends are in good shape, with lots of things to come. Most of them positive, but also challenges for the energy sector.
One comes from the fact that the marginal cost of producing renewable energy is zero or almost zero. As most of the markets across Europe and the US are marginal price markets and renewables are contributing more to the energy mix, we are seeing zero prices or, in some markets, even negative prices whenever there is a congestion in the
Finally, when talking about Energy Transition and Decarbonization we tend to focus in the electricity sector, forgetting other energy vectors, such as gas. Being true that most of the gas consumed today is from fossil origin, Spain has a great potential for producing biogas: up to 50% of current demand may be covered by biogas production (source). Biogas is produced wherever organic material is being decomposed: dumpsters, farms, sewage treatment. Usually, that biogas is composed od 6070% of methane. And, why is burning biomethane good for the environment? It may seem counter intuitive, but the gases produced in the decomposition of organic matter are 80 times worse for the greenhouse effect than CO2 (source). The capture and use of those gases allows for energy independence, as they are produced locally but also reduces the impact on the environment. The challenge is to scale economically a business based on a low value distributed resource such as waste.
In the face of escalating environmental concerns and resource depletion, the transition from a linear economy to a circular economy is increasingly viewed as essential. Circular startups play a central role in this transformative shift. These startups are innovative by nature, leveraging new technologies and business models to create circular solutions.
Alisa Mick, the founder of circular economy consultancy MiXi, hosted a panel discussion exploring the role of circular business models together with Mercedes García Rivas, the Co-Founder and COO of fashion sharing community Ecodicta, and Jori Karvonen, a founder of Switchooo & Alquilarlo and a circular startups mentor at Startupbootcamp.
Building a circular platform fundamentally differs from constructing a linear one. In a linear model, the focus is on the straightforward progression of production, use, and disposal. Conversely, a circular platform requires a holistic approach that integrates the entire lifecycle of products.
Key differences include different revenue business models than linear platforms such as product-asa-service, leasing, or subscription services, where ownership remains with the producer and products are returned and reused.
Alisa Mick &
consumers to shift from a linear to a circular mindset can be difficult. There is often resistance to change and a lack of awareness about the benefits of circular models. Regulatory hurdles are another challenge. Existing regulations are often tailored to linear models, making it challenging for circular startups to navigate the legal landscape. There may be a lack of supportive policies and incentives for circular practices.
Mercedes stated that building a circular platform is much more complex than a linear model, where the main objective is to simply sell. Every aspect of design and all operations must take into account; products are constantly going in and out, requiring them to be cleaned, repaired, and maintained quickly. This approach is not only to maximize rotation and profit but also to keep items out of landfills for as long as possible.
Finally, circular startups often struggle to secure funding, as investors may be wary of the novel and potentially risky business models. Access to capital is crucial for scaling their operations.
Jori stated that circular startups often aim to break away from the traditional linear business model, which requires transforming entire supply chains and consumer behaviors. The transition from a linear to a circular model can be resource-intensive, particularly depending on the business model, and especially challenging for hardware businesses due to the significant upfront investments in products and R&D required.
Mercedes highlighted that at ECODICTA, they often upcycle and transform items to reintroduce them into the rental system or sell them. Circular models operate on different metrics, investing in products longterm and focusing on the number of uses, as well as the resilience and quality of materials. According to Mercedes, maximizing profits from each individual product and efficiently rotating items is essential.
Despite the promising potential of circular startups, they face several significant challenges, such as market acceptance. Convincing
Jori also pointed out that circular startups operating on a rental model encounter the added difficulty of dealing with customers who unlawfully take possession of their products, further complicating the establishment of such businesses.
To overcome these challenges and thrive, circular startups require a variety of resources, however, the key aspect is building collaborative ecosystems, which can facilitate resource sharing, knowledge exchange, and business collaborations.
In the discussion hosted by UN-ECE Transformative Innovation Network (ETIN) from the United Nations Economic Commission for Europe (UNECE), panelists delved into the evolving functions and importance of circular platforms in driving sustainability transformations, also highlighting the intricate roles that platforms can play in addressing grand societal challenges.
The panel emphasized the critical role of platforms in creating synergies and enabling systemic change. Alex Glennie, Head of Policy Engagement and Learning at Nesta, United Kingdom, pointed out that platforms have the potential to level the playing field and create spaces for meaningful dialogue among stakeholders. “Platforms can bridge gaps and foster communication,” she noted. Immanuela Badde, Associate Economic Affairs Officer at UNECE, stressed the need to translate regulations and technological advancements into actionable steps that stakeholders can understand and implement. “We have the technology and new products, but we’re just not as circular as we’re supposed to be. There’s a lack of communication and understanding among different stakeholders,” she remarked.
The discussion also addressed the necessity of creating synergies and scaling up initiatives to achieve a broader impact. Mikael Román, Project Coordinator of ETIN at UNECE, highlighted that platforms are particularly
suited for scaling up and integrating the demand side into production and innovation. “Platforms can help create essential links between different industries,” he said. Panelists acknowledged the significant role of policy and regulation in the success of circular platforms. Immanuela explained, “Governments need to create an enabling environment that supports innovation and collaboration. Incentive structures are necessary to encourage the right dynamics.”
Panelists underscored the importance of changing mindsets and behaviors to foster a circular economy. Immanuela noted that while technological solutions exist, there is a critical need to address behavioral aspects. “We need to create the right dynamics and mindset shifts to increase circularity,” she said, highlighting the role of platforms in educating and creating awareness among stakeholders, which is crucial for the successful adoption of circular practices.
In summary, the discussion shed light on the multifaceted functions of circular platforms and their vital role in driving sustainable transformations. Platforms act as value creators, system changers, and enablers of collaboration. By addressing behavioral and cognitive barriers, creating synergies, and fostering policy support, circular platforms can significantly contribute to achieving sustainability goals. As Immanuela aptly put it, “A platform is an enabler, an accelerator, but we, the stakeholders, are the ones who will get the work done.”
The UN-ECE Transformative Innovation Network (ETIN) is a UNECEcoordinated strategic platform and meeting place for peer learning and a joint exploration of policies and practices for transformative innovation.
Marshall Van Alstyne
Questrom Chair Professor
Boston University
These large language models represent a new operating system. It’s a new platform interface.
Miriam van Straelen
Partner
Roland Berger
If you think you can do it alone, you are not thinking big enough.
Arda Arslan Vice President Bosch Mobility Aftermarket Türkiye
& Middle East
The transformation of cars into digital platforms marks a significant shift in the automotive industry.
Geoff Parker
Professor
Dartmouth College
B2B platforms typically evolve from standalone products to collaborative tools and eventually to multi-sided marketplaces and ecosystems.
TheNTWK Summit 2024 delved into the platform economy, examined through the lenses of AI, ecosystems, marketplaces, partnerships and business strategy in ten sessions over two days. A recurring theme was generative AI as a force of disruption as well as opportunity. AI could fundamentally tip the balance of platform powers and alter network effects while raising questions of future platform governance. Recent regulations such as the AI Act, Digital Markets Act and Digital Services Act are certain to influence platform innovation and practice, a topic of spirited debate to be continued next year.
Platforms are a key enabler of the circular economy, as seen in the Circularity and Sustainability sessions. EU regulations have a pivotal role to play in driving sustainability innovations that could open new circular markets and business models. Platforms have been rightly called out for supercharging an unsustainable take-make-waste model of resource consumption. Paradoxically, the emergence of circular platforms coincides with the explosive growth of Chinese marketplaces offering a flood of fast fashion and other low-priced goods destined for landfills in Europe and elsewhere.
Is collaboration really necessary? We learned that not even an industrial powerhouse like Siemens can do everything alone. Partnering with other companies and startups is essential for building and scaling platforms, but not all partnerships are equal. In order to get the value of collaboration, partners must be aware of pitfalls to avoid. Successful platform builders emphasized that consulting with experts is also crucial for understanding platform dynamics. Other top recommendations include making full use of training opportunities, communities like TheNTWK, and educational resources that support innovating through platform thinking.
1AI Disruption in Platforms: Rapid advancements in generative AI are driving business transformation across all functional departments and fundamentally disrupting the entire platform economy. Generative AI may lead to a consolidation of power at the center of platforms and shift the dynamics of network effects. The EU’s AI Act establishes a comprehensive legal framework to foster trustworthy AI development that generates positive social and economic impact.
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Key Marketplace Trends: Marketplace 2.0 leverages multiple revenue channels to create a fully monetized marketplace. The explosive growth of Chinese marketplaces is disintermediating incumbent online retailers while attracting regulatory concerns. The B2B marketplace sector is expanding rapidly, driven by the significant spending power of businesses compared with consumers.
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Data is the New Gold: Data ownership and rights are central issues for platform builders and users alike, raising questions of transparency, fair practices, and how value should be distributed Platform operators typically retain ownership of data without sharing, which may be at odds with EU digital platform regulations like the DSA and DMA. Marketplaces are leveraging user data to offer hyper personalized recommendations, influence purchasing behavior, and uncover new sources of revenue.
5The Connected Car: Cars are transforming from simple transportation devices into sophisticated digital platforms This transformation necessitates an ecosystem of partners, with industry competitors collaborating to develop common platforms and share investment costs. Connectivity, IoT, data, AI, and cybersecurity, paving the way for autonomous vehicles and shaping the future of mobility.
7Partnering for Platform Success: Companies need to embrace a partnership culture with other companies and startups. Partners are selected and segmented to complement solutions and expand reach. Effectively connecting internal and external innovation ecosystems enables new opportunities to arise while avoiding redundant efforts
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B2B Platform Challenges: B2B platforms struggle to emulate the success of B2C due to the added complexity, multiple stakeholders, and extensive integrations required B2B platforms typically address both market and coordination failures. A common problem is an overemphasis on ROI, which encourages near-term thinking over strategic investment in a platform journey.
6Collaboration versus Competition: Complementarity and substitutability often rise together, complicating traditional views of competition and collaboration. While most speakers agreed that collaboration and openness are essential for their innovation initiatives, the “collaboration fallacy” argues that partners must be aware of control points and guard against commoditization
9Platform Knowledge
8The Platform-Ecosystem Shift: Requires a shift from a singleproduct focus to an enabler mindset. Internal operations must be restructured to support modular units, decentralized control, and teams empowered to innovate independently. This ensures the agility needed to experiment and test while responding quickly to changing market demands.
Lags: Platforms are now commonplace infrastructure for digital business models but essential knowledge still lags. Research into European companies’ platform initiatives shows many fail to understand and implement the dual-sided market dynamics that characterize true platforms. Successful platform builders learn from experts and stay aligned by extending training to their teams
One of the most significant transformations sweeping across the platform world is the advent and rapid adoption of ChatGPT, which garnered a hundred million monthly active users within just two months. This swift and widespread embrace of generative AI technologies has prompted platform companies including Google, Microsoft, and Facebook, to explore how they could leverage this novel platform technology to get users into their ecosystem and build up competitive advantages.
An example to show the potential benefits of adopting generative AI is the boost of Microsoft’s Edge browser, which propelled its daily average user base to 100 million after it announced GPT features integration. This product
statistic had even not been disclosed to the public before due to its inferior market position against the dominant market share of Google’s Chrome. Meanwhile, Meta and Google, have launched their open-source large language models, Llama and Gemma, respectively, to broaden their reach and ensure they remain competitive.
The rapid advancements in generative AI are driving transformations across all functional departments, from product design to customer services, fundamentally disrupting the entire platform economy. Interestingly, it has been found that generative AI is helping previously underperforming workers by providing them with techniques that were previously only known by the most productive workers. This change, brought about by LLM, is motivating platforms to reconsider their reward systems. Additionally, there are other emerging shifts in recommendation systems and product development.
What does this transformation mean to future platform governance?
While more evidence is springing up to showcase the remarkable potential of generative AI in enhancing the platform economy, government officials and academic institutions are emphasizing the significance of addressing increasing misinformation and other governance issues during this transitional period. Regarding these emerging regulatory challenges, Professor Van Alstyne drew the three critical components for effective platform governance from his best-seller book Platform Revolution and expanded on these components to guide the practice of regulating next-generation platforms:
1. Rules of Participation: Who should participate in platform use and governance? This involves the discussion of AI’s role in content creation and curation, human intervention in AI-generated content, and the potential for AI participation in governance decisions.
2. Value Creation and Division: How should the value generated within the ecosystem be distributed? Key considerations include attributing value creation between human and AI inputs, developing fair compensation models for AI-assisted work, and determining ownership of AI-generated content.
3. Conflict Resolution: What new conflicts may arise within the ecosystem, and how should they be resolved? Emerging disputes include intellectual property rights for AI-generated content, liability for AI-involved misinformation, and user data rights in AI training and application.
These challenges are particularly evident in the ongoing legal battles between AI companies and content creators. AI companies like Suno and OpenAI are facing lawsuits from media companies and guilds, highlighting the complex issues surrounding copyright infringement, unjust enrichment, and unfair competition in the AI era.
1. Increased Platform Power: Generative AI may lead to a consolidation of power at the center of platforms since it doesn’t need as many individuals to create content or some of those network effects.
2. Shifting Network Effects: The nature of network effects may change, with AI potentially reducing human network effects while increasing machine network effects.
3. Evolution of Social Platforms: Platforms with strong social characteristics may be more resilient to AI disruption. Platforms with social characteristics are safer than those platforms without social characteristics.
4. New Data Rights: The introduction of “in situ data rights” could empower users and lead to fairer value distribution.
5. AI as Human Subjects: Large Language Models (LLMs) may be used as human test subjects for research and fact-checking, potentially advancing science and combating misinformation.
Generative AI will continue to reshape the platform economy landscape in profound ways. The challenges ahead are significant, but so are the opportunities for innovation and growth. As Van Alstyne noted, future mechanism design should focus on fairness and transparency as we move forward into this exciting new chapter of the platform economy.
B2C platforms like Uber and AirBnb have achieved notable success and extensive research coverage. Now the focus is shifting to B2B platforms, which are distinct in both their nature and industry-specific challenges. Despite their potential, B2B platforms struggle to achieve the success seen by their B2C counterparts. Geoff Parker, alongside CapGemini and MIT, conducted research on 200 B2B platforms to uncover what drives their success and how they can improve.
B2B platforms typically involve physical systems in their products and services, immediately distinguishing them from most B2C platforms. Using a network effect view, the research categorizes B2B platforms based on the value created in three categories: standalone products or services; same-side network effects; and crossside network effects.
collaboration features are added, they begin to create network effect value. This evolution can lead to facilitating market access and enabling monetization by opening up to third parties. Some large industrial systems like SAP include all of these categories.
This typical B2B platform development journey starts with standalone value to attract users, followed by decisions on whether to emphasize collaboration and/or a marketplace. Acknowledging this progression can help to form an investment or product roadmap for B2B platforms, helping companies prioritize early investments and make strategic decisions about future development.
B2C platforms typically address market failures such as lack of transparency, market safety, or liquidity. B2B platforms, however, face additional challenges, such as technology integration issues resulting in expensive and difficultto-maintain 1-to-1 connections. Therefore, B2B platforms often solve coordination failures on top of market failures by focusing on common tech infrastructure layers that integrate fragmented markets.
Initially, standalone products like a Bosch washing machine or Excel spreadsheet provide value alone. However, when data sharing and
The research shows various areas to pay attention to for success, with a few highlighted below.
The research highlights various organizational setups for B2B platforms. Incumbent industrial companies often create their own platforms, while spinoffs and startups also play significant roles. Spinoffs, in particular, help avoid technology constraints and channel conflicts present in existing systems, reducing friction with the main business. In all cases it is important to establish clear governance to effectively navigate interactions with the different organizations and technology stacks.
Data ownership is another crucial area. The research showed that most platform operators retain the ownership of data without sharing the details. This lack of visibility, especially in light of regulations like the Digital Services Act and Digital Markets Act in the EU, needs to be addressed to ensure transparency and fair practices.
Monetization strategies for B2B platforms differ from those of B2C platforms.
While B2C platforms use transaction cuts, advertising, or subscriptions, B2B platforms often reinforce subscription models through retention and higher service levels and tend to avoid transaction-based pricing For instance, Metalshub pivoted from a transaction cut model to a subscription due to the large size of transactions leading to disintermediation. Also, platforms like HubSpot demonstrate that adding value through integrations can increase retention and upsell opportunities.
B2B platforms often require significant integration efforts. Even startups have had to partner with large integration specialists to enable them to serve large corporations.
A common failure mode for B2B platforms is an overemphasis on ROI or discounted cash flow. This approach
assumes accurate knowledge of costs and benefits, which is often unrealistic. Instead, B2B platform investments should be viewed as a series of options rather than a set of tangible cash flows. Involving CFOs early in the discussions, being transparent about the solutions, challenges, and assumptions, and breaking development into small, incremental stages can help demonstrate success and facilitate learning.
Geoff introduced a view into digital transformation for B2B platforms that involves three stages: point solution, platform technology, and ecosystem or marketplace. Each stage has its stakeholders, metrics, and focus areas, guiding B2B companies through the complexities of platform development.
In conclusion, B2B platforms face some unique challenges not shared with B2C platforms. By understanding these differences and strategically addressing integration, governance and financial engagement, B2B companies can build and scale successful digital platforms. Geoff Parker’s insights provide a roadmap for B2B companies to leverage digital platforms for growth and innovation in their industries.
When Marina Planas asked me to deliver the closing keynote to TheNTWK Summit 2024, I was hesitant because I didn’t really agree with the theme of the summit - From Competition to Collaboration. Eventually, we agreed that this disagreement would prove a fitting end to two days of discussion on the theme of collaboration.
The collaboration fallacy suggests that we are moving from a world of competition to a world of collaboration. This inherently believes that the nature of competition has somehow changed to such an extent that what would have traditionally been vectors of competitive attack now create opportunities for collaboration. Instead, I believe that traditional competition and collaboration haven’t really changed, they’ve been supplemented with a new set of dynamics: control and commoditization Is Google competing with handset manufacturers or is it collaborating with them? Is Amazon competing with its merchants or collaborating with them in providing them marketplace and logistics solutions? Are restaurants partnering with food delivery companies?
Perhaps the most telling example here is that of Tesla, which until 2023 was competing both with car manufacturers and with charging infrastructure providers. In 2023, the US electric vehicle industry saw a significant shift from the CCS standard to the NACS standard. The CCS standard was provided by the government and supported by Chargin, an industry body, with charging companies and car manufacturers building their cars towards its specifications.
Tesla, meanwhile, had defied this open, industry standard, and was building its own closed standard - NACS. By 2023, it was clear that the industry was losing and Tesla was winning, and the entire industry moved to using the NACS standard. Tesla had successfully commoditized coordination between vehicles and charging stations through its NACS standard and now owned key capabilities to exert control over an ecosystem which was gradually moving to its standard.
In today’s digital economy, complementarity (the ability to work with others to create more value) and substitutability (the potential to be replaced by others) often increase simultaneously, leading to a complex landscape where traditional notions of competition and collaboration no longer apply.
With the rise of APIs and open standards, most of us believe that digital technologies lead to greater complementarity and hence create potential for collaboration. Ironically, the same APIs and open standards which enable easier collaboration through standardized interfaces also make capabilities more substitutable - an alternate capability is just one API call away - and hence make it easier for competitors to replace each other.
The collaboration fallacy assumes that the world is moving from competition
to collaboration. Competition thrives in a world of high substitutability and low complementarity. So as complementarity increases, we should logically move from competition to collaboration. However, because digital technologies also increase substitutability, companies often fail to gain value from collaboration, and end up losing.
Companies that succeed in environments of high complementarity and high substitutability do two things really well. First, they establish control points. Companies that win typically own key control points, allowing them to set rules and conditions for others. Second, they use these control points to commoditize “partners.” Successful companies commoditize surrounding players to retain value for themselves.
Google’s Android is a great example of a company that started out “collaborating” with handset manufacturers, established key control points around an open operating system (for instance, by closing access to high value Google services), and has ever since used these control points to commoditize those same handset manufacturers. In the financial services industry, banks are concerned about Plaid doing something similar. And in healthcare, most healthcare institutions view Amazon and Google warily as they come in with diagnostic AI capabilities. Dominos Pizza increasingly realizes that its biggest competitor isn’t Pizza Hut, it’s DoorDash.
If you feel that the world around you is suddenly brimming with opportunities for collaboration, don’t jump right in. Create a view of the ecosystem within which these collaborations arise, ask yourself what possible control points exist in these ecosystems and which ones are owned by you versus by your partners, and then carve out a clear strategy not just for competition and collaboration but most importantly for ensuring that you retain value in a landscape where players are fast getting commoditized. Competition hasn’t changed and neither has collaboration. What’s changed is the many seemingly benign sources of collaboration which actually lead to commoditization down the line.
Tom McFadyen, CEO & Author of McFadyen Digital, and Juozas Kaziukènas, founder of Marketplace Pulse, discussed key marketplace trends impacting digital businesses, including the rise of social marketplaces, the rapid growth of Chinese marketplaces, B2B marketplaces, and, of course, the role of AI.
Disintermediation, the removal of intermediaries in the supply chain, is transforming global commerce. By cutting out middlemen, companies can reduce costs, streamline operations, and improve direct communication with customers. This trend is significantly impacting various industries, notably in the retail and
manufacturing sectors.
Juozas highlights a significant trend where Chinese manufacturers bypass traditional European and U.S. intermediaries to sell directly to consumers via platforms like Shein, Temu, and AliExpress, challenging traditional retail channels. That’s why these Chinese marketplaces have emerged as dominant players by offering lower fees and direct access to consumers, bypassing Western e-commerce giants like Amazon and eBay, thereby pressuring Western retailers to compete on price and efficiency. Check more detailed information here — https://www. marketplacepulse.com/articles/ made-sold-and-marketed-by-china
As Chinese marketplaces expand,
Western regulators are increasingly scrutinizing these platforms Concerns include data privacy, counterfeit goods, fair competition, and waste generated by fast fashion. The European Union (EU) and the United States have implemented various measures to address these issues.
In the EU, the General Data Protection Regulation (GDPR) enforces strict data privacy standards, impacting how Chinese companies handle consumer data. Additionally, the EU’s Digital Services Act (DSA) aims to increase transparency and accountability for online platforms, addressing issues like counterfeit products and illegal content. Specific countries like Poland, Germany, and France are taking steps to close these loopholes, aiming to protect local businesses and maintain fair competition
In the U.S., the Office of the United States Trade Representative (USTR) regularly places Chinese marketplaces on its “Notorious Markets” list, highlighting concerns over intellectual property violations. The U.S. is also considering legislation to enforce stricter controls on foreign e-commerce platforms to protect domestic businesses and consumers.
TikTok has rapidly emerged as a significant player in social commerce, blending entertainment with online shopping. The platform’s algorithmdriven content discovery and shortform video format create an engaging shopping experience, particularly appealing to younger audiences.
TikTok’s integration of e-commerce features, such as shoppable videos and live-stream shopping events, allows brands to connect directly with consumers. Influencers on TikTok play a crucial role in driving sales, leveraging their follower base to promote products.
AI-powered algorithms enable personalized shopping experiences by analyzing vast amounts of data to recommend products tailored to individual preferences and purchasing behavior. This personalization increases customer satisfaction and loyalty.
Tom adds that AI also plays a crucial role in marketing by powering targeted advertising on social media and other digital platforms. These ads, tailored to individual users based on their online behavior and preferences, significantly enhance the visibility and attractiveness of products. Moreover, AI can enhance customer service through chatbots and virtual assistants, providing instant support and improving the user experience. Despite these advances, AI is still limited by the quality of the data it relies on and necessitates ongoing oversight and improvement.
The B2B marketplace sector is expanding rapidly, driven by the significant spending power of businesses compared to consumers. Industries from pharmaceuticals to hospitality are seeing niche marketplaces that cater to their specific needs.
The decision-making process in B2B marketplaces is complex, involving multiple stakeholders and having longer sales cycles compared to B2C transactions. Factors such as product quality, supplier reliability, and costeffectiveness are crucial in influencing purchasing decisions.
The surge in online marketplaces has revolutionized ecommerce, offering vast growth opportunities for businesses globally through various multi-vendor commerce models. However, many marketplaces have faltered or underperformed due to inadequate monetization strategies. This challenge, though significant, presents an opportunity for unprecedented and sustained profits. Effective monetization involves recognizing the available opportunities and implementing strategies that enhance value for both sellers and customers while boosting the bottom line. This evolution from “Marketplace 1.0” to “Marketplace 2.0” signifies a shift from basic commissionbased models to sophisticated, multi-channel revenue streams
Marketplace 1.0 primarily relied on stock expansion and commission fees, with pioneers like Amazon, Alibaba, and eBay leading the way. These early models focused on expanding categories and deepening inventory,
generating most of their revenue from commission fees, transaction fees, or seller listing fees. While this approach proved profitable, it became evident that additional monetization opportunities were needed for long-term success.
Marketplace 2.0 introduces advanced models such as vertical marketplaces (narrow focus but deep inventory), closed marketplaces (loyalty programs), circular platforms (recycling/upcycling), group purchasing, e-procurement, and hybrid dropship/marketplace models. These models share a common feature: the potential to monetize multiple sides of the marketplace.
Commissions & Subscriptions:
• Commissions: The most common monetization method, where a marketplace operator takes a percentage of each transaction or, less commonly, a flat fee per transaction. This model has evolved from early digital marketplaces to sophisticated structures used by giants like Amazon and Walmart.
• Seller Subscriptions: An alternative where sellers pay a recurring subscription fee to list on the marketplace, preventing revenue leakage from sellers taking transactions offline.
Embedded Financial Services:
• Buy Now Pay Later (BNPL): This rapidly growing model offers consumers flexible payment options, boosting marketplace growth by facilitating increased affordability and access for consumers while providing new revenue streams.
• B2B Financial Services: This model is basically BNPLfor B2B, with expanded payment options allowing larger purchases on terms, benefiting both buyers and sellers while adding profit for the marketplace.
• Retail Media: Retail media spending is growing rapidly, indicating a strong recognition of its value for brands and its effectiveness in creating immersive, content-rich advertising experiences that capture and retain consumer attention.
• On-Site Ads: Marketplaces can engage customers by capitalizing on real-time data to display relevant advertisements to consumers at the pinnacle of their purchase decision, increasing conversions and ROI for brands.
Cross-Border / Internationalization:
• Global Expansion: Cross-border ecommerce is projected to constitute 20% of all ecommerce sales by 2027, highlighting the importance of international strategies. Marketplaces can optimize logistics and navigate international trade laws to gain access to global markets.
• Localization: Adapting to local languages, currencies, and cultural preferences significantly enhances user experience and customer loyalty across regions. Leveraging technology and local market insights enables a seamless global shopping experience that meets the evolving needs of consumers worldwide.
Beyond their core transactional revenue, marketplaces possess various avenues to diversify their income and enhance the overall platform attractiveness:
• Fulfillment Services: Efficient logistics and premium shipping options turn delivery processes into a revenue source while meeting customer expectations for swift and reliable order fulfillment.
• Compliance-Based Mechanisms and Premium Services: Implementing seller penalties for noncompliance and offering value-added services like extended warranties, loyalty programs, and exclusive deals can generate additional income and strengthen user engagement.
Monetization is an ongoing process of innovation and adaptation. Marketplace operators must focus on financial modeling, technology assessment, and aligning organizational structures to ensure continuous growth. A well-defined revenue roadmap, grounded in insightful data and tested models, can pave the way for sustained success.
The transition from Marketplace 1.0 to 2.0 reflects a broader approach to monetization, leveraging various revenue channels to create a fully monetized marketplace. By implementing comprehensive strategies that add value for both sellers and buyers, marketplace operators can achieve unprecedented levels of sustained profit and growth.
In recent years, the automotive industry has experienced a paradigm shift. Vehicles are no longer just modes of transportation; they are evolving into sophisticated digital platforms. This transformation is driven by advancements in technology, changing consumer expectations, and the increasing importance of data in driving innovation and enhancing the user experience.
Traditionally, cars were mechanical marvels, relying heavily on physical components and manual controls. However, the integration of digital technology has transformed the automotive landscape. Modern
vehicles now feature advanced driver assistance systems (ADAS), connected services, and a plethora of sensors that gather real-time data. These innovations not only improve safety and efficiency but also pave the way for autonomous driving.
At the heart of this transformation is connectivity. Cars are becoming integral parts of the Internet of Things (IoT), connecting with other devices and systems to provide seamless experiences. This connectivity allows vehicles to communicate with traffic infrastructure, other cars, and even the driver’s smart home devices. For instance, a connected car can suggest
optimal routes based on real-time traffic data, provide infotainment options tailored to the driver’s preferences, and even prepare the home for the driver’s arrival by adjusting the thermostat or turning on lights.
As cars become digital platforms, data becomes a crucial asset. The vast amounts of data generated by connected vehicles can be used to enhance the driving experience, improve safety, and develop new services. Automakers and tech companies are leveraging this data to offer personalized services, predictive maintenance, and even new business models like car-sharing and subscription services.
For example, Tesla’s over-the-air updates enable the company to roll out new features and improvements without requiring a visit to a dealership. Similarly, data from vehicle sensors can predict maintenance needs, reducing downtime and costs for owners.
Artificial intelligence plays a significant role in transforming cars into digital platforms. AI algorithms analyze data from various sources to make driving safer and more efficient. In autonomous vehicles, AI is the backbone that processes sensor data to navigate and make real-time decisions. Moreover, AIpowered voice assistants and natural language processing enable drivers to interact with their vehicles more intuitively, creating a more userfriendly experience.
With increased connectivity comes the challenge of cybersecurity. As cars become more connected and reliant on software, they become vulnerable to cyberattacks. Ensuring the security of these digital platforms is paramount. Automakers are investing heavily in cybersecurity measures to protect both the vehicle’s systems and the
data it generates. This includes secure software development practices, regular updates, and robust encryption methods.
The car as a digital platform is not just about the vehicle itself but also about the ecosystem of partners that contribute to this transformation. Automakers are collaborating with technology companies, software developers, and service providers to create comprehensive digital experiences. These partnerships are essential for integrating various technologies and services, from cloud computing and AI to entertainment and navigation.
Currently there is a big trend of competitors coming together to develop common platforms In order to share the high initial investment costs and also shape the mobility future together. The mobility industry is shifting to business models that exemplify the TheNTWKSummit24’s overarching theme, From Competition to Collaboration.
The evolution of cars into digital platforms is just the beginning. The future of mobility will likely see an even greater integration of technology
and services. Autonomous vehicles, shared mobility solutions, and smart city infrastructure will redefine how we think about transportation. Furthermore, the development of 5G technology will enhance connectivity, enabling faster and more reliable communication between vehicles and their surroundings.
In this new era, cars will not only get us from point A to point B but will also serve as personalized, connected spaces that enhance our productivity, entertainment, and overall quality of life.
The transformation of cars into digital platforms marks a significant shift in the automotive industry. Connectivity, data, AI, and cybersecurity are at the core of this evolution, creating new opportunities and challenges. As cars become more integrated with digital technologies, they will offer unprecedented levels of convenience, safety, and personalization. This new era of mobility promises to revolutionize the way we interact with our vehicles and the world around us, making driving a more connected and enriching experience.
Traditional companies need to employ various strategies to succeed and scale digital solutions and business models. Miriam van Straelen, Monika Wiederhold and Tanja Dreilich have extensive experience across industries and shared their insights on scaling platforms in corporate context.
Successful and especially fast scaling is typically not done alone and understanding and leveraging the value that different partners bring to the table is critical. For corporations this starts with a strong corporate vision and clear strategy and objectives that everyone in the organization can contribute to. Describe clearly and precisely the problem to solve and engage in an ecosystem to view it from different angles and benefit from the experience and expertise of others. Do not first spend time on property rights, but instead on what to achieve and how to win. This can lower the entry barrier to collaboration and ensure that partnerships are productive and aligned with their goals.
Moving from a self-sufficient, isolated approach to one that embraces partnerships requires opening up the culture to partnerships. Success requires selecting the right partners and clearly segmenting them. This means distinguishing between large global players on a strategic level to more functional partners who complement your solutions to expand reach. It’s essential to know what you want, who can help you achieve it and what they need. This strategic alignment and openness pave the way for a dynamic and collaborative ecosystem that brings results.
Large companies often have internal incubators and pockets of innovation that do not communicate with each other, leading to missed opportunities, double efforts and redundant investments. The mitigant to this is maintaining a high-level overview of innovation activities across the corporation and employing different methods simultaneously from incubators to partnerships. Having a robust internal ecosystem that is aware of the internal innovations that connects effectively to external ecosystems and shares the findings and progress internally is crucial. This internal and external connectivity ensures that the company is well-positioned to leverage new opportunities.
Collaboration between large corporations and agile startups can be challenging due to differing speeds and working cultures. You need specific profiles within the company who can connect and guide these collaborations to harness the startup innovations while leveraging the
resources and scale of corporations. These individuals help bridge the gap by finding the right talent and setup for the collaboration and ensures that the partnership is beneficial for both sides, while moderation by external parties can also be beneficial.
For effective scaling and maximizing revenue potential, it is crucial to ensure that ready solutions are systematically integrated into commercial processes with attached targets. Balancing the need for focused innovation with the ability to scale across the organization is a challenge, but achieving this balance is key
Overall, building a successful platform ecosystem in a corporate context requires various considerations and strategies, from nurturing internal and external ecosystems and maintaining a high-level overview of innovation activities to connecting with existing corporate processes. By adopting these strategies, companies can create a dynamic and collaborative ecosystem that drives innovation and growth.
At #TheNTWKSummit24, I had the honor of moderating a panel on “The Hard Truths of Making Platform-Ecosystem Organizations.” As the CEO of Boundaryless, a pioneer in platform design and platform organization transformation, I was joined by two adopters of Boundaryless frameworks and distinguished panelists. Yolanda Martin Olivas, Global VP of Design for ClearScore, and Pradeep Ramachandra, a practitioner of platform thinking at Bosch Mobility Platforms Solutions. Our session aimed to explore the challenges and strategies necessary for transforming traditional businesses into platform-ecosystem organizations with a grain of salt and a pinch of reality.
Yolanda Martin Olivas, who sports over a decade of experience in transitioning organizations towards a platform model, shared her invaluable insights into the complexities of driving such transformations. She emphasized the inherent difficulty and significant investment required for such endeavors and the inherent long-term nature of those: platform organization transition is inherently about infrastructural enablement and seeking economies of scale on enabling layers so that diversity can flourish on top.
Drawing from her most recent experience at ClearScore and previous ones, Yolanda highlighted that building platforms is a demanding process requiring substantial resources and that, most of the time, this aspect is not factored in deeply enough by leadership teams. She argued that a mistake in evaluating the long-term and capital-intensive nature of platform transitions could be catastrophic, making meticulous groundwork essential for aligning all stakeholders: a successful transition to a platform-ecosystem organization necessitates profound cultural changes. A shift from a single-product-centric mindset to an enabler mindset involves technological advancements and a cultural shift toward collaboration and adaptability, along with patience.
Pradeep Ramachandra brought his experience from the mobility sector, sharing his journey of integrating platform thinking into a legacy organization. Resonating with Yolanda, he emphasized the critical role of leadership in driving the transformation, noting that legacy organizations often struggle with the inertia of established practices. As a partial solution to this, he also discussed the strategy of creating smaller, autonomous units (new platforms) within existing organizations to experiment, innovate, and grow. According to Pradeep, a clear vision and unwavering commitment from top leadership are essential to overcoming inertia and driving transformation throughout the organization.
Furthermore, Pradeep highlighted the need to shift from an inward perspective to a collaborative, ecosystem-based approach: viewing partners as integral to the organization and leveraging external capabilities is essential. This approach allows for faster adaptation and scaling of successful initiatives.
The session also featured insightful questions from the audience, addressing key aspects of the platform
Written by Simone Cicero
transformation journey. One question focused on getting the timing of external communication about the platform transformation right: Yolanda advised waiting until the roadmap is solid and initial enablers are in place to avoid disappointing stakeholders and customers. When asked about balancing the tension between longterm platform development and short-term stakeholder expectations, Pradeep suggested showing leading metrics and making stakeholders part of the problem-solving process to align their interests with the longterm transformation goals.
Questions about cultural change strategies were also prominent. Both panelists emphasized starting at the bottom, engaging teams with the potential of platform thinking, and fostering a sense of ownership and excitement.
The transformation to a platformecosystem organization is a complex and demanding journey, but it promises significant rewards. Organizations must reconfigure their structures to support platformecosystem operations, enabling multiple entrepreneurial units and promoting modularity within the organization. Decentralizing control
and empowering teams to innovate independently are key to adapting to fast-changing market demands.
Investing in education and cultural shifts is also critical, as well as a strong leadership commitment and a clear vision for transformation. Leaders must drive change and overcome organizational resistance by setting realistic expectations and communicating progress through leading metrics. Transparency with stakeholders about the transformation journey is essential to build trust and alignment.
The journey will involve significant challenges for organizations adopting this evolution, but the potential for creating adaptive, resilient, and innovative businesses is immense. Embracing these hard truths and committing to the long-term vision can position companies as leaders in the platform economy.
In closing, I encourage organizations to leverage the insights shared by Yolanda and Pradeep and to embark on this transformative journey with confidence and commitment. The future of platform-ecosystem organizations is bright, and with the right strategies and dedication, companies can successfully navigate the complexities of this evolution.
Consider Luca, the Chief Innovation Officer at a leading automotive firm in Italy. Faced with the challenge of extending customer engagement beyond vehicle sales, Luca embarked on an open innovation journey. He discovered a promising startup that had built a thriving platform to let car enthusiasts buy and sell car parts and accessories. Recognizing the startup’s potential, Luca’s company acquired it and applied a corporate mindset to it. It became a high-quality app with a warehouse full of branded accessories, killing the platform dynamics, which led to increased costs and ultimately, the initiative’s decline.
Now consider Katia, appointed as the Chief of Business
Development in another corporation, who was tasked with enhancing employee well-being through a newly acquired wellness service provider. The success of the initiative pushes Katia’s company to successfully expand its wellness platform business offerings to other firms. Now Katia manages a welfare platform that connects employees from dozens of companies with service providers spread all around the country. During an interview with Katia, we asked her if she considered the service providers customers or suppliers. She was surprised to realize that those who she always considered her suppliers (the service providers) are actually her customers as well – as in any platform.
These two stories reveal two key elements to keep in mind when talking about platforms:
• Mindset Over Technology: Successful platforms require a shift in mindset, not just technological implementation. Companies must understand that platforms involve abandoning linear value chains in favor of serving multiple customer groups simultaneously.
• Complexity (and Lack of Knowledge) of Platforms: Building and managing platforms is inherently complex. Companies must navigate the intricacies of network externalities, stakeholder engagement, and continuous value creation.
When we talk about Platform Thinking, we refer to the way that established firms can foster innovation via platform-based mechanisms. Our extensive research on platform strategies revealed that while many firms label their efforts as platform-based, only a fraction genuinely embody the dual-sided market dynamics crucial to true platforms. This gap highlights the need for a deeper understanding and more rigorous application of platform principles.
We also quite often face the challenges that emerge from those two stories: the difficulty of changing the mindset and the complexity of the platform world. Therefore, we introduced an innovative methodology, mixing GenAI and board games
The Platform Thinking cards serve dual purposes: they guide users through the platform design process with
strategic questions and provide educational resources through QR codes linking to explanatory materials.
The board game format demystifies platform thinking, making it accessible and engaging. Participants follow a phased approach from problem identification to platform design, leveraging cards to navigate different strategic objectives and challenges. We haven’t reinvented the wheel; some cards are based on our tools for platform design, others reference leading frameworks to support strategic design steps (e.g., the Business Model Canvas, the Lean Canvas, Personas, Value Proposition Canvas).
At the same time, letting managers engage with dozens of cards might seem difficult. Therefore, we train a special GPT – PlatformThinkingGPT – to give managers a new AI-team member. The PlatformThinkingGPT is trained on platforms and platform thinking, and can answer questions on the process and on platforms themselves, while trying to propose a shift from “GenAI works FOR me” to “GenAI helps US work”.
In a nutshell, our takeaways for companies wanting to approach platform thinking are:
1) Streamline the process: identify a clear problem and approach through the power of platforms building on the shoulders of giants
2) Make it tangible: cards are the boundary object that can support the process while facilitating the discussion in the team
3) Provide a GenAI co-thinker: who can support the team in diving into the peculiarities of the methodology and of the platforms
What’s next? We’ll embrace a transformation journey with companies that want to explore platform thinking, relying on the power of board games combined with GenAI and continuing our research in the world of platforms. Reach out to us if you want to know more!
In the vibrant city of Barcelona, we honored the remarkable achievements in the marketplace platform and ecosystem space. Presented by Alex Pesjak - VP Europe at McFadyen - and Marina Planas - CEO & Co-founder of TheNTWK, this ceremony was dedicated to recognizing European efforts in promoting circularity and innovation within the industry.
Marketplace50 is an exclusive list highlighting the top influencers driving online marketplaces and multi-vendor commerce innovation globally. In this preview, we focus on Europe, celebrating individuals who have made significant contributions across five categories: Hall of Fame, Market Makers, Thought Leaders, Marketplace Enablers, and Marketplace Operator Excellence.
The Hall of Fame category recognizes individuals whose lifetime contributions have set the industry standard. Inducted for life, this honor can only be awarded once.
• Winners: Robert Gentz and David Schneider, Cofounders of Zalando
Zalando, a leading European marketplace, stands out for its pioneering approach in the fashion and lifestyle sector. Founded in 2008, Zalando has expanded to over 20 markets, evolving from an e-commerce site to a comprehensive platform and ecosystem. Their commitment to sustainability and innovative strategies, including integrating social engagement and AI, has revolutionized the industry. With a turnover of €14.6 billion and 50 million active customers, Zalando’s impact is undeniable.
This category honors individuals leading market-setting organizations, driving investments, valuations, and future trends.
• Winners: Niklas Adalberth, Founder of Norrsken Foundation, and Jeroen Arts, Partner at Speedinvest
Niklas Adalberth’s Norrsken Foundation is a major force in fostering impactful startups. With hubs in Stockholm, Barcelona, and Africa, Norrsken supports entrepreneurs addressing societal and planetary challenges, recently securing €300 million in funding. Jeroen Arts, at Speedinvest, has propelled multiple unicorns within the circular and sustainability space. Speedinvest’s focus on marketplace and consumer ventures, along with educational initiatives like the Marketplace Conference, ensures the next generation of marketplace innovators are well-equipped for success.
This category celebrates media and analysts whose research, articles, and thought-leadership elevate the marketplace and multi-vendor commerce space.
• Winners: Daniel Trabucchi and Tommaso Buganza, Professors at Politecnico di Milano
Daniel Trabucchi and Tommaso Buganza are leading voices in platform thinking. Their work, recognized by Thinkers50, includes the influential book “Platform Thinking: Read the Past, Write the Future” and the podcast “Talking About Platforms.” Their research explores the intersection of AI and innovation, offering fresh insights into leveraging technology for platform development. Their contributions significantly advance the understanding and implementation of platform strategies.
This category honors individuals creating and implementing the software that powers multi-vendor commerce at scale.
• Winners: Stephan Fester, Co-Lead of SAP Circular Manufacturing Practice, and Jorrit Steinz, CEO & Founder of ChannelEngine.com
Stephan Fester’s leadership at SAP focuses on circular manufacturing, supporting global trends like deglobalization and carbon reduction. His work in the Global Battery Practice integrates sustainability throughout the battery value chain. Jorrit Steinz’s ChannelEngine.com connects stores, brands, and distributors to marketplaces worldwide, enhancing global retail strategies. His expertise spans B2C, B2B, and D2C e-commerce, making significant strides in international platform strategies.
This category celebrates individuals providing innovative marketplace experiences that benefit both customers and sellers.
• Winners: Thomas Plantenga, CEO of Vinted, and Rob Cassedy, CEO of Wallapop
Thomas Plantenga leads Vinted, a rapidly growing marketplace promoting circularity. With his extensive experience, Vinted has become a major player in sustainable fashion. Rob Cassedy’s leadership at Wallapop has fostered a unique marketplace for reused products, promoting a circular consumption model. Wallapop’s impact spans Spain, Italy, and Portugal, connecting 15 million users monthly and facilitating 100 million annual listings.
Join us for the full ceremony on July 24th. Register at themarketplace50.com.
Pilar Navarro Demand Management Expert, SAP
Define what your vision is. What do you want to achieve with everything you do? What impact do you want to make?
Alejandro Sánchez Data Officer Naturgy Renewables
The best way to surpass the traditional mindset is to show that AI is just a tool to make jobs more effective, not a replacement.
Arantxa Palacio Head of Startup Business, AWS
By connecting startups with the right resources, companies can significantly accelerate their growth. Focusing on a few key partnerships can help startups penetrate the market and grow more effectively.
Nathalie Lamborghini Founder FLYING RHINO STUDIO
Pivoting is hard to do, but it’s necessary when you realize something isn’t working. It’s about being brave enough to make that change.
In today’s competitive landscape, startups succeed by building strategic partnerships and meticulously planning their funding strategies before engaging with venture capitalists (VCs). For corporations, aligning venture-building initiatives with core business objectives maximizes resource efficiency. By fostering these collaborative relationships, both startups and corporations can achieve sustained growth and resilience in their respective markets.
1Build Strategic Partnerships and Diversify Funding Sources: Engage with the right partners at each growth stage. In the early stages, leverage grants, debt, and strategic partnerships to maintain control and avoid excessive dilution. As your project matures, consider seeking investment from venture capitalists (VCs) while also engaging with multiple funding sources to reduce reliance on any single option.
4Balance Growth and Profitability:
Design business models that accommodate both rapid growth and profitability. This balance ensures resilience in varying market conditions and aligns with the shift in investor focus towards profitability. Ensure your business can thrive in both growth and profitability modes to remain adaptable
2Focus on Capturing and Maximizing Value: Create a business model that captures the maximum value from your activities. Identify your target market and tailor your offerings to meet their needs. Decide on your core focus and specialize in that area to leverage your strengths. Define your long-term vision and goals to guide strategic decisions and drive sustainable growth.
5Integrate AI and Technology Meaningfully: Focus on integrating AI in meaningful and effective ways. Avoid following trends blindly, and ensure that technology implementations add real value and drive growth. Focus on implementations that support and enhance human roles rather than replace them. To address these concerns, you need to show how technology can be helpful instead of threatening.
1Align CVB Goals with Corporate Strategy: Ensure that the Corporate Venture Building (CVB) you create aligns closely with your core business strategy and long-term objectives. This alignment helps in leveraging existing resources, market insights, and industry expertise effectively.
2Thorough Ideation and Validation:
Start with a robust ideation phase that involves stakeholders both within and outside the organization. Gather diverse ideas and validate them rigorously through market research and proof-ofconcept (POC) testing. This ensures that the chosen venture idea has solid market potential before committing significant resources.
3Collaborate with Corporates and Industry Players: Explore forming partnerships with corporations and industry players to amplify your impact and expand your reach. Collaborate on initiatives that align with their goals. These partnerships can enhance your product offerings, increase market acceptance, and accelerate growth by leveraging the resources and networks of established companies.
6
Prioritize Traction and Metrics:
To build credibility and attract customers and investors, focus on demonstrating market traction and developing key metrics. Prioritize showing tangible results to validate your project’s effectiveness and long-term potential.
3Speed and Iterative Testing: Prioritize speed in developing a minimum viable product (MVP) or POC to test the market quickly and efficiently. This approach allows for early validation and reduces the risk of extensive investment in ideas that may not work out.
Flying Rhino Studio is an innovation partner that helps corporates build new businesses beyond their core operations ; BASF is the world’s largest chemical producer, known for creating chemistry for a sustainable future by combining economic success with environmental protection and social responsibility.
Flying Rhino Studio and BASF have each embarked on their own journey to create new businesses / ventures. Despite their sometimes different paths, both companies offer here valuable insights into the process of corporate venture building. We highlight here their parallel experiences, from ideation to scaling, and the practical steps and real-world
challenges they faced.
Corporate venture building (CVB) is a strategic approach where companies create and develop new businesses, often through a dedicated venture studio or innovation arm. Instead of merely investing in external startups, these corporations build startups from scratch, leveraging their own resources, market insights, and industry expertise, as well as sometimes external entrepreneurial teams (Corporate Venture Studios) that complement their own.
The goal of CVB is to foster innovation within the corporate structure while maintaining agility and entrepreneurial spirit. This approach
allows companies to explore new markets, technologies, and business models without disrupting their core operations. By effectively combining the resources and stability of a large corporation with the nimbleness of a startup, CVB can lead to significant breakthroughs and sustained growth.
One major insight from the experiences of Flying Rhino Studio and BASF is that there’s no single way to approach corporate venture building. The process needs to be flexible and adaptable to the specific goals and context of the partnership. As Nathalie Lamborghini from Flying Rhino Studio puts it, “We partner with corporates to help them build new businesses beyond their core.”
Flying Rhino Studio’s journey began with a brainstorming phase involving the corporate partner: they worked with an SMB in France, holding workshops with the board and key team members. This intense collaboration led to 32 different business ideas. After careful consideration, they picked one to move forward with. This method ensured that the chosen idea was solid and had potential in the market.
quick, not-yet-finished product to test with a few friendly customers. This approach helps us spend less on tech development in case it doesn’t work out.”
BASF took a similar approach, focusing on speed and iterative testing. They created mockups and prototypes, engaging in a design thinking process to refine their product based on feedback from potential users.
Establishing a legal entity was a crucial step for both startups. Flying Rhino Studio waited until they had a few users before creating the legal entity, ensuring they had a viable market. They also applied for a state grant, raising 3.1 million euros in non-dilutive funding to support their venture.
BASF´s approach for the example of the mobility platform “motum” also started with ideation, but their process involved a broader scope. They conducted interviews across their global organization and with external stakeholders, gathering as many ideas as possible. This comprehensive ideation phase helped them identify opportunities that aligned with their core business while also exploring new markets.
BASF, on the other hand, set up their legal entity early in the process, which allowed them to move forward with confidence. They secured funding internally, allocating resources based on a solid business case and projected return on investment.
Both startups faced challenges along the way, including the need to pivot based on market feedback. Flying Rhino Studio had to pivot several times, adjusting their business model and product offering to better meet market needs. Lamborghini explained, “Pivoting is hard to do, but it’s necessary when you realize something isn’t working. It’s about being brave enough to make that change.”
BASF also experienced early pivots, shifting their business model from a B2C to a B2B approach after initial market tests. This flexibility and willingness to adapt were key to their eventual success. Birk shared, “Adapting fast if you realize something doesn’t work is incredibly important.”
As both startups moved into the scaling phase, they focused on growth and expansion. Flying Rhino Studio is currently raising external funding from venture capitalists and corporate VCs, aiming to expand their market reach. BASF, nearly 2 years ahead in the process, and having already established a strong market presence, is now focused on scaling their operations and reaching new customers.
Both Flying Rhino Studio and BASF moved from ideation to creating a proof of concept to test their chosen ideas. For Flying Rhino Studio, this involved developing a Proof of Concept (POC) to test their solution quickly and efficiently. Lamborghini noted, “We prioritize speed and a
Scaling a startup is a pivotal phase that requires strategic planning, robust financial backing, and an adaptable approach. During a panel discussion, experts from various sectors shared their insights on funding for scaling, highlighting the challenges, strategies, and opportunities involved. Eugenia Dunaeva, Jordi Lainz, and Étienne AdouLouvet shared valuable lessons for startups aiming to navigate the complex journey from startup to scale-up.
Throughout a startup’s journey from early to late stages, challenges evolve, but the vision must remain constant. Founders must have a clear path for how they see the future. Early-stage companies focus on establishing market presence and securing initial funding. This phase often involves high-risk investments with the goal of proving the business model. Late-stage companies, on
the other hand, must balance rapid expansion with the demand for profitability. At this stage, designing agile business models that accommodate both growth and profitability is essential.
Crucial to this journey is having the right partners at each stage and viewing these relationships as long-term commitments. Jordi Lainz shared his journey with Wallbox, which grew from 30 employees to a public company listed on Wall Street with over 1,000 employees. Reflecting on their funding journey, Lainz highlighted the importance of having the right partners at different stages. “At the beginning, you must find long-term partners. VCs should come when the project is more mature,” he advised. Jordi also stressed the need for a balanced approach between capital and debt to avoid excessive dilution, allowing the company to maintain control and vision.
Étienne Adou-Louvet from Greenly, a company focused on measuring CO2 emissions and helping companies reduce their carbon footprint, discussed the balance between growth and profitability. “A business’s reason is to acquire customers, and then, if you treat them well, it leads to profitability,” he explained. “Profitability is freedom.” Étienne’s perspective highlights the need for startups to design business models capable of thriving in both growth and profitability modes, ensuring resilience in varying market conditions.
Different business models require varied funding approaches. Agencies typically need less funding due to their focus on margins, while hardware and software companies require significant investment to build their products. These companies are like real estate developments, needing substantial capital to create and grow. Valuations often focus on growth, but shifting to profitability can be challenging. Some companies struggle and even fail during this transition, underscoring the need for adaptable business models.
Jordi noted the shift in investor focus from hyper-growth to profitability, a trend accelerated by market conditions such as inflation and changing interest rates. “In 2022, investors started asking about our path to profitability,” he recalled. “We had to commit to becoming profitable in 2024, which required significant adjustments.” This adaptability is crucial for startups to survive and thrive amidst economic fluctuations.
Effective use of funding is critical for scaling successfully. Étienne highlighted the importance of clarity in how funding will be utilized. “When you take money from VCs, it’s a commitment,” he said. “You need to know exactly what you will do with this money.” He advised startups to leverage grants, debt, and strategic partnerships early on and to approach VCs when a clear and compelling plan is in place.
Selecting the right investors is a strategic decision that can significantly influence a startup’s trajectory. Eugenia Dunaeva, partner at DVC, a US-based fund investing in earlystage startups, pointed out that founders should consider why an investor is interested in their company. “Put yourself in the shoes of the other party,” she advised. “Some investors might want you to be part of their ecosystem, which can provide substantial benefits but also requires careful consideration of alignment with your vision.”
Engaging with multiple funding sources is crucial. Founders should always have several plans (A, B, C, D, etc.) and avoid relying on a single funding source. This approach reduces the risk of a single point of failure. Talking to various VCs and other potential investors ensures multiple potential scenarios for securing necessary funding. Unlike VCs, who hedge their risks across a portfolio of startups, founders put all their resources into one business, making diversification of funding sources essential.
Companies should focus on meaningful and effective AI applications rather than blindly following trends. This focus ensures that the integration of AI adds real value and drives growth. “Everyone is putting AI into everything. And then the really cool and effective and efficient ideas are getting lost in all of this noise,” said Eugenia.
Startups must navigate a complex landscape, balancing growth and profitability, selecting the right partners, and maintaining financial discipline. By learning from the experiences of industry leaders, startups can better prepare for the challenges and opportunities that come with scaling, ensuring a sustainable and successful growth trajectory.
In the dynamic world of entrepreneurship, guidance can make the difference between success and failure. That’s why TheNTWK, led by CEO and Co-Founder Marina Planas, presented the 2nd edition of the Startup and Scaleup Mastermind. This initiative supports selected startups and scaleups by addressing their challenges through expert advice.
The session featured a distinguished panel of experts:
• Pol Hortal from Zubi Labs: creates companies with social, environmental, and economic impacts, supporting startups from conception to success.
• Alejandro Sanchez from Naturgy: an expert in technology and market trends, helps companies navigate risks and explore opportunities with over ten years of experience.
• Arantxa Palacio from AWS: leads a team that empowers clients to harness cuttingedge technologies and disrupt industries.
• Pilar Navarro from SAP: plays a crucial role at SAP, driving innovation and supporting startups globally.
Each startup had five minutes to pitch, followed by ten minutes of expert guidance. This session offers valuable insights and connections to propel startups toward success.
Koggel
Despite rubber’s versatility, it poses significant sustainability challenges. Natural rubber is on the critical material list, and 70% of the world’s rubber is synthetic and oil-based, making recycling difficult. Circular Rubber Platform aims to address these challenges by centralizing knowledge and fostering collaboration. They connect stakeholders, from universities to rubber producers, to develop sustainable solutions such as using renewable raw materials and high-quality recycling technologies. Their platform facilitates networking, training, and project support, currently engaging 42 companies and 106 individual members, including notable names like Decathlon.
Climatize operates a marketplace connecting these projects with impact-focused investors. In the first year of operations, Climatize has facilitated $4.4 million in project funding, engaging over 900 investors.
Commutie offers a mobile application that automatically tracks and categorizes users’ travel modes while calculating their carbon footprints. Through AI-driven insights and timely notifications, Commutie encourages users to adopt eco-friendly transport habits. Operating on a B2B2C model, Commutie targets large corporations mandated to reduce carbon footprints by law and smart cities aiming to optimize citizen mobility. By leveraging technology and fostering behavioral change through gamification and challenges, Commutie aims to create a community of commuters committed to sustainable transportation, thus contributing to a greener future.
Founded by Alba Forns, Climatize emerged from a pivotal moment during the 2019 global climate strike in Barcelona. Alba and her co-founder witnessed a groundswell of support for climate action but recognized the need for practical solutions beyond protests. Specializing in facilitating financing for small to medium-scale sustainable projects under $5 million,
Europe. Oxie platform proposes scientifically evaluated projects to be co-financed by numerous companies at once in order to mitigate risks and costs of investments. This solution enables companies to be more attractive for investors, be compliant with new European regulations, be relevant for tenders requiring clear sustainable strategies as well as enables companies to be more attractive for new-hires. But above all, the ecosystem restoration projects can enhance companies’ resilience, and help them reduce the unpredictability of their dependency from natural resources like water and soil. The goal is to bridge scientific rigor with corporate engagement, Oxie aims to catalyze a paradigm shift towards regenerative business practices.
Oxie advocates for an integrated approach regarding the environmental corporate strategy. It focuses on acknowledging the interconnectedness of different factors like carbon absorption, biodiversity, and social impact of environmental changes. Oxie focuses on relieving barriers to finance nature-based solutions (NBS) projects that provide better resilience of companies across
Opground operates within the B2B AI sector with a primary focus on enhancing diversity impact. Recognizing that 85% of passive job seekers are not actively searching, Opground revolutionizes hiring processes, condensing what typically takes months into mere minutes. Their platform leverages AI to conduct unbiased candidate interviews. With over 1,000 companies and 13,000 candidates already onboard, Opground optimizes talent acquisition through Merita, a tool that transforms static candidate databases into dynamic resources, enabling swift, efficient hiring. By integrating with existing HR systems, Opground empowers businesses to hire 20x faster, setting new standards in recruitment efficiency and diversity inclusion.
Special thanks to...
ACCIÓ Catalonia Trade & Investment | Generalitat de Catalunya, Convotis, Harbour Space University, IDX TV, McFadyen Digital, MiXi, NeX eCommerce supply chain hub, SAP, UNECE & Wallbox.
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TheNTWK Summit 2024 Report was co-written by:
Alejandro Sánchez - Data Officer Naturgy Renewables
Alisa Mick - CEO & Founder MiXi
Anna Noakes Schulze - Head of Community Experience TheNTWK
Arda Arslan - Vice President Bosch Mobility Aftermarket Türkiye & Middle East
Bettina Rotermund - SVP | Head of Strategy Siemens Xcelerator Siemens AG
Bety Soca - Full Stack & Product Owner TheNTWK
Camila Soares - Circularity Offer Manager Schneider Electric
Cristina Spa - Co-founder C+ Community
Dagmar Eisenbach - Director Sales Enablement Salesforce
Daniel Trabucchi - Senior Assistant Professor of Platform Thinking Politecnico di Milano
Erich Joachimsthaler - Founder & CEO Vivaldi Partners Inc
Frédérique de Lange - Sustainable Business Booster The Value Department
Guillermo Yañez - Research Assistant IESE Business School
Immanuela Badde - Associate Economic Affairs Officer UNECE
Jori Karvonen - Founder Switchooo
Julian Kawohl - Professor of Strategic Management, Author & Founder Ecosystemizer
Katrin Maikova - Product Marketer TheNTWK
Luca Lupattelli - Digital Project Manager Hexagon Geosystems
Lucy Müller - Researcher Ecosystemizer
Marina Planas - CEO & Co-founder TheNTWK
Martha Boeckenfeld - CEO & Founder Marthaverse
Michael Olenick - Senior Research Fellow INSEAD / Virtustrat
Milja van’ t Noordende - Partner & Ecosystem Lead TheNTWK
Mª Julia Prats - Academic Dr. of the Entrepreneurship & Innovation Center IESE Business School
Nathalie Lamborghini Dumas - Founder FLYING RHINO STUDIO
Orlando Vergara - Founder Bluebarna ECOSYSTEMS
Peter C. Evans - Chief Strategy Officer McFadyen Digital
Phuong Pham - Analyst, Strategist & Researcher
Ron Adner - Professor of Business Administration Tuck School of Business at Dartmouth College
Rich Bulger - CEO & Author of “Going Circular” Bulger Consulting Group
Sandra Vidal - Southern Europe Sustainability Manager ABB
Sangeet Paul Choudary - Founder & CEO Platform Thinking Labs
Sashank Ganti - Sr. Product Manager Hexagon Manufacturing Intelligence
Simone Cicero - CEO Boundaryless
Tom McFadyen - CEO & Author McFadyen Digital
Tommaso Buganza - Full Professor of Leadership and Innovation Politecnico di Milano
Víctor Fernández - Manager of Network SW & APIs Vodafone Group
Xinyu Li - Student CUHK Business School
Fig. 1 - Source: “Innovation Journeys” by Marina Planas | © TheNTWK 2024
Fig. 2 - Source: “What CEOs are Talking About Going Into 2024” © IoT Analytics Research 2023 - https://www.linkedin.com/posts/mousamohamed-alraeesi-561b0b48_what-ceos-are-talking-about-going-into-2024-activity-7154517904602869760-u4gO/
Fig. 3 - Source: “Framework for Analyzing the Future of Platforms and Business Ecosystems” by Peter C. Evans | © McFadyen Digital 2023
Fig. 4 - Source: “Circular Economy Megatrend: Europe Has 70 Circular Marketplaces With More To Come” by Peter C. Evans | © McFadyen Digital 2023
Fig. 5 - Source: “Ecosystem Archetypes by Goal” by Milja van’ t Noordende | © TheNTWK 2024
Fig. 6 - Source: “Sample Ecosystem Decision Areas and Their Typical Options” © by Milja van’ t Noordende | © TheNTWK 2024
Fig. 7 - Source: “Metaverse Technology – An intersection of Trending Concepts and Technologies” © SAP 2023 - https://community.sap.com/t5/ application-development-blog-posts/metaverse-technology-an-intersection-of-trending-concepts-and-technologies/ba-p/13567173
Fig. 8 - Source: “EU AI Act / Risk-based Approach” © vibrancy.ai 2024 - https://www.vibrancy.ai/post/what-are-the-4-risk-levels-of-the-eu-ai-act
Fig. 9 - Source: “Practical Steps for Leaders” redacted by Orlando Vergara, adapted by Bety Soca | © TheNTWK 2024
Fig. 10 - Source: “Ecosystem Design: Siemens Xcelerator and How It Works” Unrestricted | Bettina Rotermund, Siemens Xcelerator | © Siemens 2024
Fig. 11 - Source: “Practical Advise” redacted by Julian Kawohl & Lucy Müller, adapted by Bety Soca | © TheNTWK 2024
Fig. 12 - Source: “GSMA Open Gateway” by Richard Copeland | © GSMA 2024
Fig. 13 - Source: “Neutral Port Logistics Platform for Public-private Collaboration with Optimal Data Sharing” by Erik Fortgens | © Portbase 2024
Fig. 14 - Source: “The World’s Population is Aging” © United Nations World Population Prospects 2022
Fig. 15 - Source: “Distribution of the Global Health Workforce Shortage By Who Region in 2013, 2020 and Projected Shortage in 2030” Boniol M, et al. BMJ Global Health 2022; 7:e009316. doi: 10.1136/bmjgh-2022-009316
Fig. 16 - Source: “Simplified Key Questions to Determine Your Role in an Ecosystem” by Ron Adner | Illustrated by Milja van ‘t Noordende | © TheNTWK 2024
Fig. 17 - Source: “The Changing Dynamics of Power and Focus” by Ron Adner | Illustrated by Milja van ‘t Noordende | © TheNTWK 2024
Fig. 18 - Source: “Three Ways to Grow: Build, Partner, or Buy” © inc.com Jan 4, 2017 - https://www.inc.com/jim-schleckser/three-ways-to-growbuild-partner-or-buy.html
Fig. 19 - Source: “Gartner Technology Hype Cycle” © Gartner 2023 - https://www.gartner.com/en/articles/what-s-new-in-the-2023-gartner-hypecycle-for-emerging-technologies
Fig. 20 - Source: “The Ecosystemic Approach Includes” redacted by Milja van ‘t Noordende, adapted by Bety Soca | © TheNTWK 2024
Fig. 21 - Source: “The Journey of Innovation” by Pedro Muñoz | © BBVA 2024
Fig. 22 - Source: “Ecosystem” by Pedro Muñoz | © BBVA 2024
Fig. 23 - Source: “Open Innovation: Building, Scaling and Consolidating Your Firm’s Corporate Venturing Unit” by Mª Julia Prats | © IESE Business School and Opinno 2018
Fig. 24 - Source: “Open Innovation: Corporate Venturing Squads: Teaming up with Other Corporations to Better Innovate with Start-Ups” by Mª Julia Prats | © IESE Business School 2023
Fig. 25 - Source: “Gestamp Organization” by Diego Mallada | © Gestamp 2024
Fig. 26 - Source: © Hexagon 2024
Fig. 27 - Source: © Hexagon 2024
Fig. 28 - Source: © Hexagon 2024
Fig. 29 - Source: “The Vivaldi AI Model” by Erich Joachimsthaler, Ph.D. | © Vivaldi 2024
Fig. 30 - Source: “Platforms Need Brand Transformation” by Erich Joachimsthaler, Ph.D. | © Vivaldi 2024
Fig. 31 - Source: “How Companies Plan to Use Generative AI” © MIT Technology Review Insights Survey 2024
Fig. 32 - Source: “Our Persona Maker, a Lead-in to the Customer Journey Map” by Michael Olenick | © Virtustrat 2024
Fig. 33 - Source: “Access to Full Potential” by Oliver Smykacz © BE LIGHT 2024
Fig. 34 - Source: “Before and After Using BE LIGHT” by Oliver Smykacz © BE LIGHT 2024
Fig. 35 - Source: “Fashion and Apparel Brands Will Contend with More than 35 pieces of Significant New Legislation in the Next Two to Four Years” © BCG Research 2023 - https://web-assets.bcg.com/2f/a3/8bf925184dfe969547a484ddc5d4/bcg-sustainable-raw-materials-will-drive-profitabilityoct-23.pdf
Fig. 36 - Source: “Circularity Project Motors” by Sandra Vidal | © ABB 2024
Fig. 37 - Source: “Sustainable Value Creation With Circular Business Models” by Stephan Fester | © SAP 2024
Fig. 38 - Source: “From Sales Model to Circular Economy Model” © Rich Bulger 2024
Fig. 39 - Source: “Why Now? This Model is Smart Business and Right for the Environment” © Rich Bulger 2024
Fig. 40 - Source: “Global Levelized Cost of Electricity (LCOE) Benchmarks, 2H 2023” © BloombergNEF 2023 - https://about.bnef.com/blog/2h-2023lcoe-update-an-uneven-recovery/
Fig. 41 - Source: “The Difference Between Linear and Circular Economy”
Fig. 42 - Source: “What is UN-ECE Transformative Innovation Network (ETIN)” © UNECE 2023 - unece.org/eci/icp/ETIN
Fig. 43 - Source: “Platforms Companies’ Response to the Release of Generative AI” by Xinyu Li © 2024
Fig. 44 - Source: “Increased Platform Power and Shifting Network Effects” by Xinyu Li © 2024
Fig. 45 - Source: “B2C & B2B Marketplace Platforms” by Geoffrey Parker © 2024
Fig. 46 - Source: “3 Stages for Digital Transformation” by Geoffrey Parker © 2024
Fig. 47 - Source: “Collaboration, Control & Commoditization and Competition” by Sangeet Paul Choudary © 2024
Fig. 48 - Source: “Cross-border E-commerce Will Grow to $1 - $2 trillion by 2030” McKinsey © March 17, 2022
Fig. 49 - Source: “Monetization Approaches: Marketplace 1.0 vs Marketplace 2.0” by Tom McFadyen | © McFadyen Digital 2024
Fig. 50 - Source: “Lifecycle of a Vehicle: The Car as a Digital Platform” by Arda Arslan | © Bosch Mobility Aftermarket 2024
Fig. 51 - Source: “Success Factors for Corporate Platform Building” by Milja Van’ t Noordende | © TheNTWK 2024
Fig. 52 - Source: “The Platform Organization” by Simone Cicero | © Boundaryless 2024
Fig. 53 - Source: «…but, the service providers are my CUSTOMERS, not SUPPLIERS!» by Daniel Trabucchi & Tommaso Buganza © 2024
Fig. 54 - Source: “Platform Thinking Cardset” by Daniel Trabucchi & Tommaso Buganza © 2024
Fig. 55 - Source: “GenAI makes us work” by Daniel Trabucchi & Tommaso Buganza © 2024
Fig. 56 - Source: “The Platform Thinking Journey” by Daniel Trabucchi & Tommaso Buganza © 2024
Fig. 57 - Source: “End-to-end Platform Building and Scaling” by Nathalie Lamborghini Dumas | © Flying Rhino Studio 2024
Fig. 58 - Source: “Corporate Venturing Enablers: How They Help Open Innovation” © IESE Business School 2021 -
Fig. 59 - Source: “Possible Pathways” © GSMA 2022
Fig. 60 - Source: “Top Four Funding Models for Achieving Scale” © GSMA 2022
Fig. 61 - Source: “U.S. Startups Backed in Average $12M, When Europeans Get $3.7M” data by Dealroom Database, adapted by Marina Planas | © TheNTWK 2024
