1. 1 Trust Enabled Ecosystems SAP Global Ecosystem Marketing September 2, 2008

2. 2 Rethink Success ! © SAP 2008 / Global Ecosystem and Partner Group Page 2 Rethink boundaries Rethink innovation Rethink time

3. 3 Rethink Criteria for Success! Rethink control Rethink exclusivity Rethink expediency

4. 4 Think Value! Think trust Think collaboration Think agility Think Customer Focused Ecosystem.

5. 5 Trust stimulates innovation Trust raises overall innovative capacity Trust facilitates innovative actions Trust is of fundamental importance for the diffusion of a new technological style Trust substantially reduces transaction, control, monitoring and enforcement costs Innovative networks with a high level of trust tend to reinforce innovative capacity and trust Volken, T. (2002) Elements of Trust: The Cultural Dimension of Internet Diffusion Revisited, University of Zurich, Electronic Journal of Sociology See The Facts on Trust at http://trustenablement.com/opt/The_Facts_on_Trust.pdf http://trustenablement.com/opt/The_Facts_on_Trust.pdf

6. 6 Trust requirements vary Time Value High Moderate None Communicative Coordinated Agility - Expedient Efficient Effective Sustainably Innovative Trust Gap Trust Equity StrategicTactical Blazer Barn Trust Enabled Supply Networks: Uncovering the trust-building secrets of highly collaborative supply chains, Alex Todd Collaborative Co-opetitive Specificity None Moderate High

7. 7 Change mindset Trust Leadership Trust-based Optimistic Offensive Active Stakeholder-oriented Bonus: Golden Rule compliant Risk Management Control-based Pessimistic Defensive Passive Organization-oriented Loss: Isolated self-interest

8. 8 A B What role does trust play in marketing?

9. 9 Trust Definitions Mirriam-Webster: intransitive verb 1 a : to place confidence : DEPEND b : to be confident : HOPE 2 : to sell or deliver on creditDEPENDHOPE Wikipedia: trust is the willing acceptance of one person's power to affect another "In sociology, trust is the willing acceptance of one person's power to affect another. transitive verb 1 a : to commit or place in one's care or keeping : ENTRUST b : to permit to stay or go or to do something without fear or misgivingENTRUST 2 a : to rely on the truthfulness or accuracy of : BELIEVE b : to place confidence in : rely on c : to hope or expect confidently BELIEVE

10. 10 Trust Reputation Trust when agents expect a particular agent to do something. Reputation when agents believe a particular agent to be something. Cabral, L.M.B. (2005) The Economics of Trust and Ruputation: A Primer, New York University and CEPR

11. 11 Trust is Always Contextual A trusts (or relies on) B for (a specific) C

12. 12 My Definition of Trust Trust is a person's willingness to accept (and/or increase) their vulnerability by relying on implicit or explicit information. Trust = Acceptable Uncertainty

13. 13 Conditions for Trust Trust Enablement ® Framework Motive Forces Factors influencing the actions of the beneficiary (trusted party). Proficiencies Aptitude, knowledge, behaviour and disciplines employed to consistently deliver expected value (people, processes & technology). Risk Transference Mechanisms and processes that transfer risk away from the relying party. Develop TrustProtect Trust Experiential Sources of Trust Personal experiences of the relying party or those of objective witnesses. Interpretive Sources of Trust Subjective assertions of the source of the information, the relying party, or third parties. Empowerment Relying partys ability to choose. CertaintyAcceptability Trust = Acceptable Uncertainty

14. 14 Trust Enablement ® Mapping of John Hagels Building Dynamic Trust for Orchestrators of Process Networks ExperientialMotivation Forces (Will) AuthoritativeProficiencies (Skill) EmpowermentRisk Transference Develop TrustProtect Trust Hagel III, J., Brown, J.S. (2005) The Only Sustainable Edge: Why business strategy depends on productive friction and dynamic specialization, Harvard Business School Press Willingness Incentives (rewards/penalties) Forward-looking Outcome-specific Long-term Shared meaning Senior executive evaluation Reputation system Notification system Loose coupling Performance bonds Assurance mechanisms Safety nets Exception handling Joint capability

15. 15 A Trust Enablement ® View How eBay Enables Trust Trust Empowerment Identify reliable providers of feedback Interpretive Sources ID Verify from Equifax Product Opinions & Grading Product Appraisals Privacy Policy TRUSTe seal Proficiencies Industry practices (SSL, etc.) Risk Transference User Agreement Fraud Protection Insurance PayPal Buyer Protection Experiential Sources Feedback Forum Tradenable escrow Product authentication Motive Forces Policies (comprehensive) SafeHarbor investigations Disallowed products SquareTrade dispute resolution VeRO notice of IP infringement Protect Trust Develop Trust

16. 16 Trust Enablement ® Based Ecosystem Governance Meta-Policies Experiential The ecosystem shall define, implement and document the experiential sources of trust that providers of stakeholder resources can rely on to establish the higher levels of trust they require to provide such resources. Motive Forces The ecosystem shall define, satisfy and document the levels of acceptable uncertainty (in other words trust threshold) required by providers of stakeholder resources. The ecosystem shall define, implement and document applicable motivation (decision-influencing) mechanisms that establish and enforce the methods for acquiring stakeholder resources. Authoritative The ecosystem shall define, implement and document the authoritative sources of trust that providers of stakeholder resources can rely on to establish initial trust prior to providing such resources. Proficiencies The ecosystem shall define, implement and document its ability to solicit, acquire, steward and productively apply stakeholder resources. Empowerment The ecosystem shall provide stakeholders with access to resources and information they need to determine the validity of their contributions to the business and means to express their preferences. The ecosystem shall periodically review and adjust its Trust Enablement policies, standards and procedures in order to optimize them for changing business conditions. Risk Transference The ecosystem shall define, implement and document mechanisms and/or instruments that transfer risk away from providers of resources. Develop TrustProtect Trust

17. 17 Discovery Identity Value of goods/services Vendor reliability Rules of engagement Credit worthiness Authorization to commit Fulfillment Customer services Shipper reliability Transfer of responsibility Quality control Applicable standards Tariffs & customs Negotiation & Order Product fit Negotiation criteria Cultural issues Quality assurance Viability of seller Applicable exchange rate Order placement and verification Settlement & Compliance Governing laws Agreement Payment method Non-compliance protection Disputes Recourse Transaction reversal

18. 18 How can SAPs and its business partners sales forces use the Ecosystem to help Customers attain their trust objectives? Motive Forces Factors influencing the actions of the beneficiary (trusted party). Proficiencies Aptitude, knowledge, behaviour and disciplines employed to consistently deliver expected value (people, processes & technology). Risk Transference Mechanisms and processes that transfer risk away from the relying party. Develop TrustProtect Trust Experiential Sources of Trust Personal experiences of the relying party or those of objective witnesses. Interpretive Sources of Trust Subjective assertions of the source of the information, the relying party, or third parties. Empowerment Relying partys ability to choose.

19. 19 Thank you Alex Todd +1 416.487.1497 AlexTodd@TrustEnablement.com http://www.TrustEnablement.com