1. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 1 “Creating Value in Your Business Ecosystem” and “Strategy for Small Fish” Authors: Marco Iansiti and Roy Levien Presented by: Laila Safouh

2. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 2 Brief Overview of Book and Authors The book; “ The Keystone Advantage: What the New Dynamics of Business Ecosystems Mean for Strategy, Innovation and sustainability” The authors –Marco Iansiti –Roy Levien

3. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 3 Outline How Keystones Enhance Ecosystems Keystone Strategy Six Elements of Strategy for Small Fish: 1.Specialize in Unique capabilities 2.Leverage Other Capabilities From Keystones 3.Sustain Innovation 4.Tight Coupling 5.Loose Coupling 6.Niche Leverage Conclusion

4. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 4 How Keystones Enhance Ecosystems Increase productivity by connecting network participants to one another Increase the efficiency of creating new products by third parties Encourage ecosystem niche creation Keystone’s importance: removal could lead to collapse of entire system

5. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 5 Keystone Strategy Two parts: 1.Value creation: –Creation of a platform or asset (physical or intellectual) –Value created is crucial to community’s survival 2.Value sharing: –Achieving right balance Example: eBay

6. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 6 Strategy for Small Fish One: Specialize in Unique Capabilities –Select a specialization truly different –Ensure that it is sustainable –Key is to find large enough market requiring specialized capabilities

7. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 7 Strategy for Small Fish (cont’d) Two: Leverage Other Capabilities From Keystones –No longer bound by constraints of vertical integration –Combine specialized assets with complementary products –Trading off risk with productivity: niche players should diversify by multiple connections

8. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 8 Strategy for Small Fish (cont’d) Three: Sustain Innovation –Sharpen niche offering by integrating technology available from ecosystem –Fundamental change in technology strategy models

9. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 9 Strategy for Small Fish (cont’d) Four: Tight Coupling (Manage Risk and Dependencies) –Tightly coupled relationships are by nature more efficient –However, some disadvantages: Keystones have greater power over niche playersKeystones have greater power over niche players Niche players more vulnerable to technology and business model changesNiche players more vulnerable to technology and business model changes

10. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 10 Strategy for Small Fish (cont’d) Five: Loose Coupling (Embrace Mobility and Flexibility) –Niche player no longer as threatened by replacement of technologies –Firms can easily change in response to massive shifts in technological environment

11. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 11 Strategy for Small Fish (cont’d) Six: Niche Leverage and Power Over Keystones –Enormous collective negotiating power over keystones –Niche players keep a check on keystones –Ecosystems compete for mobile niche players –Finally, niche players can become keystones

12. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 12 Conclusion Different Entities within the business and economic ecosystem are symbiotic Keystones must create value and share it Niche players must leverage themselves by taking advantage of Keystone value A cycle where each affects the other and thus the health of the ecosystem

13. © 2002 By Default! A Free sample background from www.awesomebackgrounds.com Slide 13 Thank You !