1. Platform-based innovation strategies in network markets Erkki Ormala Professor of Practice, Innovation Management Aalto University, Business School

2. Future of Computing Future Internet Personalized Interactive Context aware Semantic Digital convergence Cloud computing New user experience Mobile sensing Nanotronix Ubicom Ultra fast internet access …

3. 3 Digital Convergence Content Services Delivery Consumption In the Digital World all will be digitalized and packaged into which can be delivered over all channels and consumed with a variety of devices

4. 4 Cloud will change the communication landscape Lähde: Wikipedia

5. Software platforms are in the heart of ecosystems of mutually dependent communities  Windows  Videogames: Xbox  Ebay  Google  Linux  Apple iPhone  At their core: a software platform offering API’s (Application programming interface)  Support ecosystems consisting of mutually dependent communities of businesses and customers (MULTI-SIDED)

6. Insights so far  Software platforms empower many modern industries: digital music, mobile phones, on-line auctions, PCs, video games, web-based advertising, on-line searching  Most software platforms are composed of modules that provide software services to other software programs. APIs provide application programmers access to these services. APIs enable platform developers to write code that can be used by application developers, reducing effort  Software platforms provide services to stakeholder groups (users, developers, hardware makers)  Businesses based on software platforms follow multisided strategies to harness positive feedbacks  The design of software platforms and the business models they serve has important implications for the structure of industries based on computing infrastructures: modular architecture with different players specializing in different modules (computers, telecoms, automotive)

7. Platform leaders strategies and dilemmas  Examples of platform leaders: Amazon, Microsoft, Google, Apple, Akamai, Alibaba, Baidu  Driving the evolution of the platform based on modular architecture with players specializing in different modules  Normally firms would control their innovation by controlling key suppliers, building strong brands, acquire patents as barriers to entry -> control strategy  Platform leaders and complementary innovators to cooperate, to increase the size of the market for everyone -> cooperation strategy  Platform leaders interest is to stimulate and channel innovation on complementary products (network effects)  As platforms are made of components whose interactions are built around standard interfaces, standards strategies are critical

8. Global platform players Google Amazon AkamaiBaidu Alibaba

9. Google  Initially the search engine, its platform was the Internet  Downloadable and free toolbar accelerates critical mass  Built Internet portal to surround the search engine  Android operating system and Chrome browser to facilitate mobile computing, search, advertising  Acquired Motorola’s mobile business  Broad view on platforms and business models (free and open) making it difficult for companies that charge for technology and lack advertising income

10. Microsoft - Apple  Microsoft – limited its scope to Windows and reluctant to cannibalize this business. But moving gradually into other areas  Always had potential to compete with software and even hardware complementors  Developed close relations with hardware vendors to bundle Microsoft applications with Windows into their PCs  Apple: user interface design, product innovation are basis for success with iPod, iPhone, iTunes, iPad and transformation into a global platform leader on multiple integrated devices

11. Nokia Developers Community 2011 – Large and Active Over 4,5 million developers Over a million monthly visitors within our community sites (wiki, blog, discussion boards)

12. Media Storage, Processing, and Delivery on AWS

13. AWS Media Customers

14. Shifting the Workflow to the Cloud

15. Recent example: Platforms developed within the Future Internet Public Private Partnership Open Standard Platform A true open innovation ecosystem

18. that consumer lot of energy resources and are inefficient

19. E-lancing in Practice Elance/Upwork; 940 m$ revenues; 2,8 m job postings, 9.7 m elancers and 3.8 m companies 99designs; 1.2 m elance designers, 250000 employers Amazon mechanical Turk; approx 250000 ’turkers’, human intelligent tasks Transfluent; immediate translation services for all

20. 20

21. OCEAN Cloud Computing in Finland Aalto University Experts from EIT ICT Labs, UC Berkeley, DIGILE

22. Open Cloud Ecosystem for New Value Creation (OCEAN) The project defines state of the art specifications and value adding opportunities for next generation open cloud computing ecosystems. OCEAN builds on earlier state of the art research and experimentation in initiatives like EIT ICT Labs, FI PPP, FIRE, Digile - National ICT SHOK… The project is conducted in collaboration with Aalto University, DIGILE and the BRIE Institute in Berkley, USA. The project runs from 1.1.2015-31.12.2015

23. Schedule and Activities

24. Thank you