Power of platform management

The infinite possibilities with Siemens Industrial IoT.

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I recently listened to a great topic from a panel of experts that certainly opens all our thinking to all the possibilities ahead of us in the Industrial IoT world.

At the Siemens Digital Enterprise Virtual Experience, held in the Hannover Messe 2021 week, entitled “Infinite opportunities from infinite data”, one specific panel discussion stood out.

When you have three leading experts offering insights into a new world of industrial possibilities, you do expect some exciting opinions from each of these leaders in their specialized area.  You hope and get some fascinating insights.

The discussion was between Rainer Brehm, CEO Siemens Digital Industries Factory Automation, Raymond Kok, Senior Vice President, Cloud Application Solutions and Derek Roos, the Co-founder and CEO of Mendix, the low-code application and development platform, facilitated by Sebastian Wolf, the Senior Marketing Director for Siemens MindSphere.

IT and OT have been notoriously hard to bring together, can this be a game-changer?

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The battle of the energy ecosystems

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We are currently locked into a ‘battle of ecosystems.’ where our very existence is requiring one side to win, it simply must, to be more dominant.

This ecosystem battle is between those that are highly vested in the fossil-based energy supply system of today and those that are forcing change into a more renewable reliant energy system as quickly as possible.

We are pushing so much of the principles and theories of ecosystems to the maximum test in the outcomes we wish to achieve, in the energy transition we require.

We are determining our future planet and what defines a healthy ecosystem in a very ad-hoc, self-determining way. The ambitions of so many vested interests need fresh evaluations in any new socio-economic structure. We must bring these two competing energy views into a balance. A balance that allows the planet to return to one where we, as humans, can be more in harmony with all that is around us, in the air we breathe, in sharing this earth in its diversity of resources, living creatures, and what it offers in natural wonder.

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A dark day for the climate and the fight over global warming?

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Sadly, yesterday, 4th November 2019, the United States began the process of withdrawing from the Paris Agreement, notifying the UN of its intention to leave.

The notification starts a one-year process of exiting the global climate change accord, culminating the day after the 2020 US election.

The Paris agreement brought together 188 nations to combat climate change. The Paris accord agreed in 2015, committed the US and 187 other countries to keep rising global temperatures below 2C above pre-industrial levels and attempting to limit them even more, to a 1.5C rise. Climate change, or global warming, refers to the damaging effect on the atmosphere of gases, or emissions, released from industry and agriculture.

In a publication “The Paris Climate Agreement versus the Trump Effect: Countervailing Forces for Decarbonisation,”  IIEA Senior Fellow Joseph Curtin argues that the “Trump Effect” has created a powerful countervailing force acting against the momentum which the Paris Agreement on climate change hoped to generate. The real concern is that this decision will give instability and uncertainty until broader and deeper structural factors within the US political economy can be addressed as their (the USA) issues around energy resourcing, infrastructure, and urbanization are as much in crisis as anyone else. Can this national determination by the present administration go against the tide of so many?

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The Orchestration Role in Any Business Ecosystem Design

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This visual has held my attention for a reasonable time. It deals, in my mind, with orchestration well for reflecting the managing of a business ecosystem and how to organize the partners and parts within this.

Although its original intention was a digital orchestration, it tells the story for any orchestration of platforms or working within ecosystems that a business needs to manage.

Here, the model is a singular operating model, but applying it to a collaborative environment has most of the essential components that need true orchestrating.

There is a growing body of work about “orchestration” and its need in the business world. Orchestration has become synonymous with managing or dealing with (specifically) external partners. The need is to learn to cooperate to produce something different and original, usually in a platform and ecosystem arrangement.

I am continually reading about scale, modular structures, governance, the advantage of asset-light business models where the possibilities of speed and breadth of open innovation need to “kick in.” Orchestration can take on a lot, but we need to define the role a little more, in my opinion.

I often wonder if all this orchestration through ecosystem design does achieve that radical breakthrough or have become just another solution or coordinating mechanism and a convenient “tag” to attach to it to consider?

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Grappling with complex ecosystems, energy transitions, and planet earth.

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Source: https://theconversation.com/humanitys-sustainability-is-no-excuse-for-abandoning-planet-earth-80699. Time to go? Shutterstock

It has been fashionable to “hang” any network of relationships with the ecosystem tag; it has become the de jour or trendy label to suggest this announced initiative indicates it is complicated and highly valuable.

Well, in all honesty, most ecosystem “tags” are only an extension of building out a more significant community than the one previously, looking to deal with increasing complexity and expecting commercial gain, well that alone is not an ecosystem approach.

Ecosystems fascinate me; they do have a significant opportunity to change what is existing for something new. The need is to balance the healthy interactions and the conditions for that environment to flourish. Of course, many people might argue, “so what is wrong with what we have got?” Often I can’t disagree with this view, we do replace what works seemingly well because of our need to leave our own “footprint” in the world.

In Business we have “stolen” this ecosystem concept from its original meaning: “An ecosystem is a geographic area where plants, animals, and other organisms, as well as weather and landscape, work together to form a bubble of life.”

In business terms, we have taken this into these larger communities that interact through their network connections; they are dynamic or aim to be better than the previous structure.

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Compressing innovations time needs platforms and ecosystems

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We all facing this growing pressure of time. In our daily work, in managing product and service life-cycles, as well as constantly considering business model overhauls as they become ever more connected.

We are not in stable markets anymore but increasingly volatile ones. Innovation needs to be at the forefront of the changes occurring and it above all else needs to find solutions to compress its time from ideation to commercialization.

It is through acknowledging that platforms and ecosystems are today’s new order to deliver innovation. Platforms that connect into the customer needs within its broader ecosystem of design, so the innovation needed to be delivered is capable to match those needs. Innovation requires greater collaboration, a process that is connecting everyone involved in the process from discovery, to design, through to the final viable product, to be on the same platform and contributing their part to the final offering.

Let’s explore some of the parts of the new innovation order:

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So are you considering a new platform business model? Good luck!

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You cannot escape the discussions around platform business models. Recently I saw that 50% of all organizations are either investing or considering a new platform business model. In a report provided by the IBM Institute for Business Value, released last year called “The Incumbents Strike Back” they really encapsulated the survey work they undertook in four topics that tell a story of today, or it certainly should do.

What’s required, now more than ever, according to IBM, is the fortitude for perpetual reinvention and these four topics tell the story of why these are important:

Firstly we are all “dancing with disruption” and it is the reinventors that are finding the way to balance the existing with the designs of the future. This was described as a “balance between stability and dynamism” and exploring the forces at play.

Secondly, reinventors are placing their “trust in the journey” as they are investing in design thinking, testing the assumptions and re-orientating their organizations to engage with their customers to create deep bonds based on trust, the path to personalization.

Thirdly, the whole value is changing based on “orchestrating the future” where organizations scale differently their partner networks, reconsider their value propositions and allocate resources more on business platform designs.

Fourthly, there is a liberating for “innovation in motion” where constant experimentation, getting close to customers and delving deeper into ever-evolving ecosystems of dynamic teams and partnerships are transforming their landscape.

Two really important points for me in this short report was the pull of the platform business model shown in the visuals provided

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China and Asia for Ecosystem Dynamism

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I was trying to capture the Asian dynamism in how they go about Ecosystem designs for their businesses.

The critical captures for me are based on three critical aspects to create this dynamism.

Firstly, in the social conditions within Asia and China for especially smart technology-led connected solutions.

Secondly, the ability of the solution provider in having the capabilities to push the boundaries, in regulatory change and technology innovations, and ‘impose’ radically different structures along the complete supply chain and have as their central focus the customer engagement processes, that delivers the solution needed in the quickest possible time, at the most economical and convenient cost, at increasing scale to drive down costs.

Thirdly having that significant engagement at the top of the organizations, in designing, directing and determining the outcomes and injecting the enthusiasm, drive, and passion for change and commitment.

I believe these three aspects are creating more dynamic ecosystem environments in Asia and especially China.

In Asia, it is a far more top-down but highly entrepreneurial mindset for those that have broken through and built real scale and really very big businesses on their platforms with the excellent technology and a sharp-minded approach to connecting up the ecosystem within the design and solutions.

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Seamless experience – give me a break!

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How can we achieve seamless experiences when we don’t have seamless organizations?

Before we get to argue for this real customer need of seamless experiences we have to resolve the lack of our seamless organizations.

How can any digital transformation take hold within the organization when there is such a serious lack of customer-centricity?

Business units stay locked in silo’s, being measured by how they perform their tasks, they continue to build their individual business case, often over the detriment of others.

They continue to fall into the trap still, they are internally competing for scarce resource and capital and no one actually resolves this, they relish it!  There is this accepted practice to push constantly on the need to invest in the front-and-back-end solutions when they lack this understanding of the customer journey, and in so doing totally filter out part of the customer expectations, preferences and values, if they do not fit their task at hand for them, as the company providing the product or service.

They fail to recognize that today, the decision is in the hands of the customer, not theirs. Can they continue to ignore knowing everything they should need to know about the customer?

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Are You Struggling with Technology Evolution and New Designs?

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I have been struggling with a fair amount on a repositioning within my business offering. I think firstly, that innovation has become digital innovation and that is one space I need to keep going towards. Not only in understanding all of the implications of this shift but in my own capability building, to deliver more support to this significant change we are undergoing, through so much technology connecting up all of the innovation “pieces,” from insight triggering, to final delivery of the finished design.

The other focus area is continuing to extend out my approach and understanding of the growing importance of platforms and ecosystems within a business. They form the future approach to build a thriving and sustainable business.

My questions recently have been where is my fit in this thinking or supporting platforms and ecosystems, beyond what I am presently doing?

The visual shown above is attempting to frame this for me. There are four critical aspects of platforms and ecosystems that need to be shaped. Let me explain:

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