The Minimum Enterprise Viable Platform William El Kaim – Oct. 2016 - V 2.1

This Presentation is part of the Enterprise Architecture Digital Codex http://www.eacodex.com/ Copyright © William El Kaim 2016 2

Executive Summary • Ecosystems are dynamic and co-evolving communities of diverse actors who creates and capture New Value through both Collaboration and Competition • A “platform” is a powerful type of ecosystem that could not be bought off- the-shelves! • Need to design and implement one for your business: • Build from scratch: follow the blue ocean approach • Leverage & Extend: by reusing and orchestrating the core business services already existing, but no more adapted to new usages and demands. • And organize the ecosystem around … Copyright © William El Kaim 2016 3

Executive Summary • Introducing the Minimum Enterprise Viable Platform • Plug-and-play bus. model allowing participants to connect, exchange, & create value. • Adapted to Enterprise: Migration paths leveraging legacy when needed. • Resilient & anti-fragile: API, new technologies, new architecture (microservice), etc. • Governed: Enterprise Architect / CDO / Marketing Technologist Copyright © William El Kaim 2016 4

Plan Welcome to The Digital Age • What is an Ecosystem? • What is a Platform? • Platform vs. Product • Platform Guiding Principles • Platform Taxonomy • Platform Value Creation • The Minimum Viable Enterprise Platform • Technical Considerations to Design a Platform • Conclusion • Recommended Resources Copyright © William El Kaim 2016 5

Three Waves of Digital Disruptions • First wave of the commercial Internet, aka. the dot-com era • Falling transaction costs altered the traditional commerce, rich information could suddenly be communicated broadly and cheaply, forever changing how products are made and sold. • Second wave, Web 2.0, aka. “Small is beautiful” • It was the era of the "long tail" and of collaborative production on a massive scale. • Minuscule enterprises and self-organizing communities of autonomous individuals performed certain tasks better and more cheaply than large corporations. • Because these communities could grow and collaborate without geographic constraint, major work was done at significantly lower cost and often zero price. • Third wave: Hyperscaling, aka “Big is beautiful” • Software is replacing hardware, rapidly accelerating the speed of innovation: the life cycle of many products and services (previously defined by physical obsolescence) is shrinking from decades to just days between software updates. • Information is comprehended and applied through fundamentally new methods of artificial intelligence that seek insights through algorithms using massive, noisy data sets Source: BCG Copyright © William El Kaim 2016 6

Entering The Digital Age … Copyright © William El Kaim 2016 7

Ex: IDC Third Platform • The 3rd Platform is built on a foundation of cloud, mobile, social, and big data technologies. • To respond to these dynamics, enterprises are undertaking digital transformation initiatives. Source: IDC Copyright © William El Kaim 2016 8

Rise of the 4th Platform? Copyright © William El Kaim 2016 9

Major Technology Shifts Copyright © William El Kaim 2016 10

Pace of Changes Copyright © William El Kaim 2016 11

Looking For A Needle In A Haystack! Copyright © William El Kaim 2016 12

Plan • Welcome to The Digital Age What is an Ecosystem? • What is a Platform? • Platform vs. Product • Platform Guiding Principles • Platform Taxonomy • Platform Value Creation • The Minimum Viable Enterprise Platform • Technical Considerations to Design a Platform • Conclusion • Recommended Resources Copyright © William El Kaim 2016 13

What is an Ecosystem? • The word was coined in the 1930s by British botanist Arthur Tansley • A localized community of living organisms interacting with each other and their particular environment of air, water, mineral soil, and other elements. • These organisms influence each other, and their terrain; they compete and collaborate, share and create resources, and co-evolve; and they are inevitably subject to external disruptions, to which they adapt together • In the context of a digital world • Business ecosystems are dynamic and co-evolving communities of diverse actors who create new value through increasingly productive and sophisticated models of both collaboration and competition. • As James Moore said in 1993 • Innovative businesses can’t evolve in a vacuum. They must attract resources of all sorts, drawing in capital, partners, suppliers, and customers to create cooperative networks. Source: Deloitte Univ. Press Copyright © William El Kaim 2016 14

Copyright © William El Kaim 2016 15

Business Ecosystem Nebula Copyright © William El Kaim 2016 16

Business Ecosystem Nebula Source: Nicolas Colin & Henri Verdier Copyright © William El Kaim 2016 17

Ecosystem Properties • Ecosystems enable and encourage the participation of a diverse range of (large and small) organizations, and often individuals, who together can create, scale, and serve markets beyond the capabilities of any single organization. • Participating actors interact and co-create in increasingly sophisticated ways that would historically have been hard to formally coordinate in a “top-down” manner, by deploying technologies and tools of connectivity and collaboration that are still proliferating and disseminating. • Participants, including customers, are bonded by some combination of shared interests, purpose, and values which incents them to collectively nurture, sustain, and protect the ecosystem as a shared “commons.” Everyone contributes, everyone benefits. This enhances the longevity and durability of ecosystems. Source: Deloitte Univ. Press Copyright © William El Kaim 2016 18

Ecosystem Benefits • Ecosystems create new ways to address fundamental human needs and desires • Ex: Emergence of a very different ecosystem to satisfy the desire for fast, affordable, safe, and convenient personal mobility • Ecosystems drive new collaborations to address rising social and environmental challenges • Large societal problems that no individual organization is able, or incented, to resolve • Ecosystems create and serve communities (or Tribes), and harness their creativity and intelligence • People want to belong, to understand and be understood, to achieve acknowledged competence in their chosen arena, and to make a positive difference in their world. • Open source, online-gaming, crowdsourcing, challenges (Kaggle), Lego, etc. Source: Deloitte Univ. Press Copyright © William El Kaim 2016 19

Plan • Welcome to The Digital Age • What is an Ecosystem? What is a Platform? • Platform vs. Product • Platform Guiding Principles • Platform Taxonomy • Platform Value Creation • The Minimum Viable Enterprise Platform • Technical Considerations to Design a Platform • Conclusion • Recommended Resources Copyright © William El Kaim 2016 20

What Is a Platform? • Platforms enable the “pull-based” approaches which have long been seen as the future of serving customers profitably (see “A brief history of the power of pull”, HBR, 2010) • Some are designed primarily to create new markets by enabling connections between previously separated potential buyers and sellers and reducing drastically barriers of entry • like VISA for credit card, Airbnb for renting apartments and Uber for mobility • Others are more focused on the distributed development of new products, services, and solutions (open innovation). • Millions of app created on Apple, Facebook, Google, Samsung, Salesforce, and others. Copyright © William El Kaim 2016 21

What is a Platform? Source: Platform Thinking Across all platforms, we observe the following 3 layers Every platform is a different configuration of this stack Copyright © William El Kaim 2016 22

What is a Platform? Source: Platform Thinking Copyright © William El Kaim 2016 23

Platform Definition • A “platform” is a powerful type of ecosystem, typically created and owned by a single business or entity, but deliberately designed to attract the active participation of large numbers of other actors. • It is “a technical and organizational context in which a community can interact to achieve a specific purpose.” • A “platform”, by definition, is at least two-sided. • Most Platforms start as product (one-sided), then adds a second side (developers, merchants, crowdsourcing, etc.) when the product gets traction. • The two sides of the platform should be able to interact through it (but not outside it in general). Source: Deloitte Univ. Press Copyright © William El Kaim 2016 24

Example: Gov. Platforms France UK Copyright © William El Kaim 2016 25

Example: Room77 Uses Expedia Platform Copyright © William El Kaim 2016 26

Example: Spotify Copyright © William El Kaim 2016 27

Plan • Welcome to The Digital Age • What is an Ecosystem? • What is a Platform? Platform vs. Product • Platform Guiding Principles • Platform Taxonomy • Platform Value Creation • The Minimum Viable Enterprise Platform • Technical Considerations to Design a Platform • Conclusion • Recommended Resources Copyright © William El Kaim 2016 28

Platform vs. Product: Market Differences • Platforms are multi-sided while products are rarely so • Market potential for platform are then bigger… • Platforms offer the potential for economies of scale for platform owner and app developers by enabling extensive customization and extension • More effective than mass-produced product • Platforms supply chains and production networks are more larger, more diverse and more fluid than products • Think partner network on steroid! • On the drawback side, the ecosystem is more complex than the ones used in supply chain • 37 firms were involved to producing the Iphone, but millions of developers leveraged it Source: Amrit Tiwana Copyright © William El Kaim 2016 29

Platforms Get Value from 3rd Party Developers Parker, Van Alstyne (2011), “Innovation, Openness & Platform Control,” SSRN.com. Copyright © William El Kaim 2016 30

Platform vs. Product: Structural Differences • Platforms Ownership and Intellectual property are segmented, while products in general are controlled by one firm • Platforms are based on revenue stream, while products are generally based on lump-sum sales. • Platform, unlike products, should attract at least two distinct group of participants, not product. • You know you have a successful platform when your customers do something with it that you didn't anticipate • Products have features, platforms have communities Source: Amrit Tiwana Copyright © William El Kaim 2016 31

Platform vs. Product: Innovation • Platform innovation risks and costs are mainly borne by outsiders, not products • Requires a shift in managerial mindset: platform success is linked to all side success • Requires control without ownership and a balance in interests. • Platform innovations are manly emergent, instead of product innovation which is mainly planned • Platforms ecosystem thinking could be summarized as how to extend the “pie”, instead of how to split the “pie” • Product ecosystem is more about mass-consuming the same pie • Platform architecture should be thought to evolve • Requires API, and functional reactive programming • Platform data are often a shared treasure, to create value for all side, while protecting privacy and business of each side Source: Amrit Tiwana Copyright © William El Kaim 2016 32

It takes two to Tango! • Co-evolution is the most difficult part for platform success. • Starting from a product is often a good option, but at some point the transition should be made for co-evolution. • Boundaries of a product should become porous to ideas, innovations and business model evolutions, to give birth to a platform. • The platform adopters on all side are fluid, and can migrate quickly and easily to another platform, even if offering less at a given time • The key ingredient being the capacity to grow, expand, attack new niches • Developers should be given a lot of attention, but not only. Each side of the platform has to be offered the right services and “hook” points • Like Tango dancers: be strong on the commonalities (the platform rules), but open to variability in some pre-defined open extension point • Think product line with business and technical extension points Source: Amrit Tiwana Copyright © William El Kaim 2016 33

Synthesis: Product vs. Platform • A platform is a foundational product that moves beyond product status by encouraging others to build, play, and/or iterate on top of it. • The value and utility of the system is continually being discovered and expanded not just by the organization, but by its users and customers. Copyright © William El Kaim 2016 34

Spotting Platform Opportunities • If you could answer Yes for at least two of these questions, your product is ready to become a platform. 1. Can you identify at least two distinct groups that can interact with each other? 2. Are there long tails (niche market or low volume) in your industry that are unattractive for you, but that small players found highly attractive and can leverage? 3. Do you already have one side, the core customers, on board (aka. you have a great product)? 4. Can you envision ways to generate cross-side network effects by adding a new group that will increase value of your product for existing or potential new customers? Source: Amrit Tiwana Copyright © William El Kaim 2016 35

Platform Strategy: 3 Key Factors to Consider • In the future, we will see more and more companies shifting from products to platforms. • Every business today is faced with the fundamental question that underlies Platform Thinking: How do I enable others to create value? • There are Three key factors to consider • Connection • How easily others can plug into the platform to share and transact • Gravity • How well the platform attracts participants, both producers and consumers • Flow • How well the platform fosters the exchange and co- creation of value source HBR Copyright © William El Kaim 2016 36

Platform Strategy: 3 Key Factors to Consider • The Toolbox creates connection by making it easy for others to plug into the platform. • This infrastructure enables interactions between participants. • Apple provides developers with the OS and underlying code libraries; YouTube provides hosting infrastructure to creators; Wikipedia provides writers with the tools to collaborate on an article • The Magnet creates pull that attracts participants to the platform with a kind of social gravity. • For transaction platforms, both producers and consumers must be present to achieve critical mass. • Platform builders must pay attention to the design of incentives, reputation systems, and pricing models. • They must also leverage social media to harness the network effect for rapid growth. source HBR Copyright © William El Kaim 2016 37

Platform Strategy: 3 Key Factors to Consider • The Matchmaker fosters the flow of value by making connections between producers and consumers. • Data is at the heart of successful matchmaking, and distinguishes platforms from other business models. • The Matchmaker captures rich data about the participants and leverages that data to facilitate connections between producers and consumers. • For example, Google matches the supply and demand of online content, while marketplaces like eBay match buyers to relevant products. • Not all platforms place the same emphasis on all three building blocks. • Amazon Web Services has focused on building the Toolbox. • eBay and AirBnB have focused more on the Magnet and Matchmaker. • Facebook has focused on the Toolbox and Magnet, and is actively building its Matchmaker ability source HBR Copyright © William El Kaim 2016 38

Plan • Welcome to The Digital Age • What is an Ecosystem? • What is a Platform? • Platform vs. Product Platform Guiding Principles • Platform Taxonomy • Platform Value Creation • The Minimum Viable Enterprise Platform • Technical Considerations to Design a Platform • Conclusion • Recommended Resources Copyright © William El Kaim 2016 39

TRUST is Key! • The Platform’s paradox is that its hyper centralization and proprietary nature make it possible to form a wide network of trusted decentralized trust relationships between actors in context, in ways that the Web never did and never will do, enabling new multi-party business models. • If you remove the Platform you force every actor to establish many-to-many trust relationships with all of the other actors. Source: B=MC2 Copyright © William El Kaim 2016 40

http://www.betrustman.com/ Copyright © William El Kaim 2016 41

Nine Guiding Principles in Platform Markets • Red Queen effect: The increased pressure to adapt faster just to survive is driven by an increase in the evolutionary pace of rival technology. • Ckicken-or-egg problem: the dilemma that neither side will find a two-sided technology solution with potential network effects attractive enough to join without a large presence in the other side. • The penguin problem: when potential adopters of a platform with potentially strong network effects stall in adopting it because they are unsure whether others will adopt it as well. • Emergence: Properties of a platform that arise spontaneously as its participants pursue their own interests based on their own expertise but adapt to what other ecosystem participants are doing. • Seesaw Problem: the challenge of managing the delicate balance between app developers’ autonomy to freely innovate and ensuring that apps seamlessly interoperate with the platform. Source: Amrit Tiwana Copyright © William El Kaim 2016 42

Nine Guiding Principles in Platform Markets • Humpty Dumpty problem: when separating an app from the platform makes it difficult to subsequently reintegrate it. • Mirroring principle: The organizational structure of a platform’s ecosystem must mirror its architecture. • Co-evolution: Simultaneously adjusting architecture and governance of a platform or an app to maintain alignment between them. • Goldilocks rule: Humans gravitate towards the middle over the two extreme choices given any three ordered choices. Source: Amrit Tiwana Copyright © William El Kaim 2016 43

The Network Effect • Network effect refers to the degree to which every additional user of a platform or app makes it more valuable to other existing users. • Different from virality: a viral product is one whose rate of adoption increases with adoption. Within a certain limit, the product grows faster as more users adopt it. • Network effect is usually seen as having positive effects. • But once a threshold (to be determined) is reached, this could lead to negative effect (like having too much demand and not enough offer). • Network effect could be same-side or cross-side • Same-side: adding a new user gives more value to other users (Facebook, Skype) • Cross-side: adding a new user gives more value to the other side (more iOS users, more developers want to create app) Source: Amrit Tiwana Copyright © William El Kaim 2016 44

Red Queen and Network Effect Copyright © William El Kaim 2016 45

Other Guiding Principles • Platforms are shared innovation engines that outsource the costly and uncertain discovery process. • Many platforms today are 100% software, but they don’t have to be. • AirBnB and Uber turned the physical world (cars and housing) into a platform for millions. • Platforms can be accidental or intentional. Source: Aaron Dignan Medium blog Post Copyright © William El Kaim 2016 46

Plan • Welcome to The Digital Age • What is an Ecosystem? • What is a Platform? • Platform vs. Product • Platform Guiding Principles Platform Taxonomy • Platform Value Creation • The Minimum Viable Enterprise Platform • Technical Considerations to Design a Platform • Conclusion • Recommended Resources Copyright © William El Kaim 2016 47

Platform Taxonomy Source: Deloitte Univ. Press Copyright © William El Kaim 2016 48

Aggregation Platforms • Aggregation platforms bring together a broad array of relevant resources and help users of the platform to connect with the most appropriate resources. • These platforms tend to be very transaction or task-focused • the key is to express a need, get a response, do the deal, and move on. • They also tend to operate on a hub-and-spoke model. That is, all the transactions are brokered by the platform owner and organizer. • For example • Data or information aggregation platforms like stock performance databases for investors or scientific databases • Marketplace and Broker Platforms providing an environment for vendors to connect more effectively with relevant customers wherever they might reside (like eBay, Etsy, and the App Store online store) • Contest platforms like InnoCentive or Kaggle where someone can post a problem or challenge and offer a reward or payment to the participant who comes up with the best solution Source: Deloitte Univ. Press Copyright © William El Kaim 2016 49

Social Platforms • Social platforms are similar to aggregation platforms in the sense of aggregating a lot of people • Facebook and Twitter are leading examples. • They differ from aggregation platforms on some key dimensions. • Focused on building and reinforcing long-term relationships across participants on the platform: it’s not just about doing a transaction or a task but getting to know people around areas of common interest. • Tend to foster mesh networks of relationships rather than hub-and-spoke interactions • People connect with each other over time in more diverse ways that usually do not involve the platform organizer or owner. Source: Deloitte Univ. Press Copyright © William El Kaim 2016 50

Mobilization Platforms • Mobilization Platforms focus on moving people to act together to accomplish something beyond the capabilities of any individual participant. • Tend to foster longer-term relationships rather than focusing on isolated and short-term transactions or tasks. • The participants are often viewed as “static resources”: they have a given set of individual capabilities and the challenge is to mobilize these fixed capabilities to achieve the longer-term goal. Source: Deloitte Univ. Press Copyright © William El Kaim 2016 51

Learning Platforms • Learning platforms not only make work lighter for their participants, but also grow their knowledge, accelerate performance improvement, and hone their capabilities in the process. • Critically depend on the ability to build long-term relationships rather than simply focusing on short-term transactions or tasks. • Unlike the other platforms, learning platforms do not view participants as “static resources.” • On the contrary, they start with the presumption that all participants have the opportunity to draw out more and more of their potential by working together in the right environment. • Learning platform are also used for marketing, customer satisfaction, recruitment and HR. Copyright © William El Kaim 2016 52

Plan • Welcome to The Digital Age • What is an Ecosystem? • What is a Platform? • Platform vs. Product • Platform Guiding Principles • Platform Taxonomy Platform Value Creation • The Minimum Viable Enterprise Platform • Technical Considerations to Design a Platform • Conclusion • Recommended Resources Copyright © William El Kaim 2016 53

The New Digital Operating Model • Establishing a platform in the center of a robust digital ecosystem requires then a new digital operating model, one that is appropriately permeable to third parties that can co-create new value from what a company and others have to offer. • The Shift: From a platform the company builds upon to a platform the world builds upon! Source: Aaron Dignan Medium blog Post Copyright © William El Kaim 2016 54

The New Digital Operating Model Source: PWC Copyright © William El Kaim 2016 55

The New Digital Operating Model Key characteristics of the digital operating model contrasted with the way many companies typically operate Source: PWC Copyright © William El Kaim 2016 56

The New Digital Operating Model Need to Create and Govern Porous Enterprise Frontiers for Business Interactions Copyright © William El Kaim 2016 57

The New Digital Operating Model Open APIs -> Platforms -> Bus. Ecosystems Copyright © William El Kaim 2016 58

The New Digital Operating Model • Ming Zeng, Chief Strategy Officer at Chinese platform Alibaba: • “Most successful platforms evolved from a very strong product that has profound customer value”. There’s danger in the shift from product to platform as well, since moving toward a platform means shifting your focus form running a tangible business to running an intangible virtual ecosystem. In order to succeed, Zeng said, “your whole organization has to change, in mindset, in culture and in core competencies.” • And even then building a platform was difficult. “It takes three years for a platform to take shape, five years to get initial traction and eight years to hit critical mass at scale” • Peter Coffee, VP for Strategic Research at Salesforce • “if you’re not going to play like a platform, then you deserve to be shoved off the field.” • “It’s not what products or services you sell but what problem you solve” that determines success. • Andrew Rosenthal, Jawbone • “Platforms always win at behavior change”. Platforms can bring together the combination of people, data and technology that can deliver the right information at the right time in order to influence behavior. Source: Applico Copyright © William El Kaim 2016 59

Platform Value Creation • The success of a platform strategy is then determined by three factors: • Connection: how easily others can plug into the platform to share and transact • Gravity: how well the platform attracts participants, both producers and consumers • Flow: how well the platform fosters the exchange and co-creation of value Source: Meedabyte & HBR Copyright © William El Kaim 2016 60

Value Creation Through Channels • Channels must be implemented to facilitate emerging value exchanges. • In platforms, currencies such as trust and reputation may be required to facilitate transactions and should be clearly valued. Source: Simone Cicero - meedabyte.com Copyright © William El Kaim 2016 61

Platform Business Model Weill & Woerner (2013), “Optimizing Your Digital Business Model,” MIT Sloan Management Review Copyright © William El Kaim 2016 62

Platform Business Model: Design Canvas Copyright © William El Kaim 2016 63

Platforms Tactics For Value Creation • Platforms tactics for value creation depend on whether : • You see a platform as a way to improve performance (by focusing on what they do best), • You see a platform as a way to grow your footprint (by leveraging capabilities that in the past they would have had to own) • You see a platform as a way to innovate (drawing on that vast majority of smart people who aren’t strictly in their employ) • You see a platform as a way to capture more value Source: Deloitte Univ. Press & Aaron Dignan Medium blog Post Copyright © William El Kaim 2016 64

Platforms Tactics For Value Creation • Performance improvement • Allows participants to focus on the activities that they do exceptionally well and to shed other activities to others to whom they connect through the platform. • Leveraged growth • Firms hoping to expand the footprint of their businesses have traditionally opted for either organic growth or growth by acquisition. Some platforms open up a third path. They allow participants to connect with the capabilities of others and make them available to their customers in ways that create significant value for the platform participants and the customers. • Distributed innovation • Use of platforms to tap into creative new ideas and problem-solving from a broad and diverse range of third parties • Shaping strategies • Ability to change how an entire marketplace operates and capture more value by doing so. Source: Deloitte Univ. Press Copyright © William El Kaim 2016 65

The Main Risk … Commoditization. • Platforms can be effective vehicles to create new value. • The risk is that they might also undermine the ability of individual companies to capture their fair share of the value being created, especially if they do not own the platform. • By creating far more visibility into options and facilitating the ability of participants to switch from one resource or provider to another, platforms can commoditize business and squeeze the margins of participants. • Platforms are also information factories without control over inventory. The challenge of building and managing platforms is that you do not exert direct control over your value proposition. Source: Deloitte Univ. Press Copyright © William El Kaim 2016 66

Plan • Welcome to The Digital Age • What is an Ecosystem? • What is a Platform? • Platform vs. Product • Platform Guiding Principles • Platform Taxonomy • Platform Value Creation The Minimum Viable Enterprise Platform • Technical Considerations to Design a Platform • Conclusion • Recommended Resources Copyright © William El Kaim 2016 67

Enterprise Business Platform IT core services Legacy Bus. App Commodity services CRM, social network, etc. Product-As-A-Service Sovereign IT Enterprise Business Platform could not be bought off-the-shelves Avoid accidental architecture and build your own! Create a Minimum Enterprise Viable Platform Copyright © William El Kaim 2016 68

MEVP definition • In product development, the minimum viable product (MVP) is the product with the highest return on investment versus risk. • Provide just the core features that allow the product to be deployed, and no more. • Use iterative process of idea generation, prototyping, presentation, data collection, analysis and learning. The process is iterated until a desirable product/market fit is obtained, or until the product is deemed to be non-viable. • The Minimum Viable Enterprise Platform (or MEVP) is the minimum viable set of core platform services required by the platform owner and the multi- sided business services that will make the platform valuable and extendable by each sides. • The term “enterprise” refers to the fact that the platform will have to interact and extend existing enterprise legacy Information System assets, in a secure and performant way. Copyright © William El Kaim 2016 69

Build Your Own MEVP! IT core services Legacy Bus. App Commodity services CRM, social network, etc. Product-As-A-Service Sovereign IT Core renaissance Beyond running the heart of the business, these assets can form the foundation for growth and new service development through Platforms Copyright © William El Kaim 2016 70

Core Renaissance Source: Deloitte 71 Copyright © William El Kaim 2016

Build Your Own MEVP! IT core services Legacy Bus. App Commodity services CRM, social network, etc. Product-As-A-Service Sovereign IT Do not re-invent the Wheel Leverage existing “commodity services” either by integrating them in your platform or by being integrated in their platform. Think ecosystem and co-creation! Copyright © William El Kaim 2016 72

Build Your Own MEVP! Give rooms for others to innovate Listen to the crowd for open innovation + network effect MEVP Leverage the Core Business Advantage Copyright © William El Kaim 2016 73

MEVP = Instance of Digital Metabolism! Copyright © William El Kaim 2016 74

Plan • Welcome to The Digital Age • What is an Ecosystem? • What is a Platform? • Platform vs. Product • Platform Guiding Principles • Platform Taxonomy • Platform Value Creation • The Minimum Viable Enterprise Platform Technical Considerations to Design a Platform • Conclusion • Recommended Resources Copyright © William El Kaim 2016 75

MEVP: Enterprise Architect Vision Source: Club URBA-EA MEVP Copyright © William El Kaim 2016 76

New Strategy New Technologies Business Architecture Information Architecture Application Architecture Technical Architecture Lean Startup New Business Model Service Design Hybrid Cloud Infrastructure as Code & Lego Devops & Elastic Infra. New Databases Non structured and immutable data Authentication & Digital Keys Mgt. API – Restful Big Data Analytics & Intelligence Minimum Enterprise Viable Platform Appstore Mgt. Agile Dev Hackathon Elastic App Microservices & APIs Ephemeral Apps Adaptive UX External SaaS Services CRM, Marketing, Ads Copyright © William El Kaim 2016 77

MEVP: Technology Elements • Platform: The extensible codebase of a software-based system that provides core functionality shaped by apps that interoperate with it, and the interfaces through which they interoperate • App: Add-on software subsystem or service that connect to the platform to add functionality to it. • Ecosystem: The collection of the platform and the apps specific or linked to it Platform A API App Platform Dependent Services App App Ecosystem Platform B API Platform owner Complementors mono or Multi-sided Copyright © William El Kaim 2016 78

MEVP: Cathedral or Bazaar? • The mega-monopolistic brands build cathedral • Each industry will see the rise of two or three walled digital ecosystems controlled by a short number of well recognized brands. • Short-lived digital bazaar emerge and live in fast growing industry niches. • Any idea, innovation, will be funded (by the crowd sometimes), created (maker movement), and sold directly to the public (no more intermediary!). • Created by networked individuals working in small teams and localized physically all over the world, but digitally near. • The product and team will stay alive until the demand stops. Copyright © William El Kaim 2016 79

MEVP: Build of Buy? Use off-The-Shelves Technical PaaS Platform • Leveraging existing and ready to deploy technology platforms to enable immediate agility • Mobile Backend As A Service like Convertigo • Integration Platform as a Service like Moskitos or Dell Boomi • (big) Data Science Studio like Dataiku and Hadoop Platform On Demand • Deploy fast in the public cloud (Amazon & IBM) and build secure access (SSH tunnel, Secured VPN) to internal Information System Copyright © William El Kaim 2016 80

MEVP: Build of Buy? Building Ecosystem via (Open) API Source: PWC Copyright © William El Kaim 2016 81

MEVP: Build of Buy? Building Ecosystem via (Open) API Copyright © William El Kaim 2016 82

1. All teams will expose their data… 2. Teams must communicate through interfaces. 3. … no other form of interprocess communication allowed 4. Interfaces, without exception, must be externalizable. 5. Anyone who doesn’t do this will be fired. Jeff Bezos MEVP: Build of Buy? Building Ecosystem via (Open) API “A platform is a system that can be… adapted to countless needs and niches that the platform’s original developers could not possibly have contemplated…” Mark Andreessen Main objective is to setup and develop the Ecosystem with Copyright © William El Kaim 2016 83

MEVP: Build of Buy? Build: Rise of Microservices Source: Martin Fowler Copyright © William El Kaim 2016 84

MEVP: Build of Buy? Build: Microservices are Deployed in Containers Source: PWC Copyright © William El Kaim 2016 85

MEVP: Build of Buy? Build: Platform Infrastructure as Code • The On-Demand infrastructure is built dynamicall for the platform based on the context. • AWS CloudFormation: A template can be used repeatedly to create identical copies of the same stack • Ansible: App deployment, configuration management and orchestration - all from one system. Copyright © William El Kaim 2016 86

MEVP: Build of Buy? Build: Use a Four-Tier Architecture to Scale Source: Mobile Needs A Four-Tier Engagement Platform, Forrester report, October 18, 2013 Rise of NodeJS and full Javascript stack for building platform Backend Copyright © William El Kaim 2016 87

MEVP: Build of Buy? Build: Think Big Data Since Day One Dashboards, Reports, Visualization, … CRM, ERP Web, Mobile Point of sale Big Data Platform Business Transactions & Interactions Business Intelligence & Analytics Unstructured Data Log files DB data Exhaust Data Social Media Sensors, devices Classic Data Integration & ETL Capture Big Data Collect data from all sources structured &unstructured Process Transform, refine, aggregate, analyze, report Distribute Results Interoperate and share data with applications/analytics Feedback Use operational data w/in the big data platform 1 2 3 4 Source: HortonWorks Copyright © William El Kaim 2016 88

MEVP: Build of Buy? Build: Think Reactive and Serverless to Scale! Copyright © William El Kaim 2016 89

MEVP: Embedded Analytics • Oracle (with ) and SAP (with Hana) are embedding their analytics capabilities in their products. 90 Copyright © William El Kaim 2016

MEVP: Build of Buy? Possible Platform Architecture API App API App API Product Microservice Architecture Core Platform Services: Identity Mgt, API Mgt, Key Mgt, App store Mgt, Integration Mgt, Messaging Mgt, Sync & Storage Mgt, Metrics & Analytics, Billing & Payment Mgt, Deployment & “ilities”. Buy or Rent (On Premise vs. Cloud) Multi-Sided Business Services: API, Business Process as orchestration, Ready to use documentation and Tools for each stakeholder, etc. Build (On Premise vs. Cloud) Platform owner Complementors mono or Multi-sided MEVP Copyright © William El Kaim 2016 91

Build Your Own MEVP: 3 Options Inside IT Build platform internally Edge IT Reassemble, orchestrate & publish Cloud IT Start from scratch or mirror IT Platform is built internally Reuse Enterprise IAM, EAI, ESB, Databases Gateway via API Platforms (3Scale, Apigee, etc.) & segmented network Buy or Rent Enterprise Mobile Back-end as a Service (MBAaS) Deploy On Premise or in the Cloud Delegate Security through existing Enterprise IAM Use MBAaS connectors to build services, to orchestrate them and to expose them Provide MBAaS SDK to developers and let them create apps from services Build Full Platform in the Cloud, No Sovereign IT access Copy and Sync Data, and use Virtual Machine or Container with devops Provide SDK to developers and let them create apps Leverage one Cloud Platform: AWS, Azure, Google, Heroku, etc. Cost Risk Agility TTM Cost Risk Agility TTM Cost Risk Agility TTM 1 2 3 Copyright © William El Kaim 2016 92

Inside IT Example: WSO2 Platform Source: WSO2 1 Copyright © William El Kaim 2016 93

Edge IT Example: Convertigo Multi-Sided Business Services Create & orchestrate business logic Multi-Sided Business Services Support Developers via SDK Enable easy mobile app development via templating Core Enterprise Platform Services (CEPS) • Identity Mgt (delegation to Ent. IAM if needed) • Orchestration • Data management (Disc. Mode and storage) • API and Service exposure (SOAP/Rest) • Log generation (transactions, sequences, access….) • Transaction count & (re-) billing capability • Notification (Push) service • High availability and scalability MEVP Source: Convertigo 2 Copyright © William El Kaim 2016 94

Cloud IT Example: AWS Source: Amazon AWS 3 Copyright © William El Kaim 2016 95

Ex: Taxi Hailing Gov. Platform in France • Law passed in France in October 1st 2014 • All Taxis will be identified in one system (instead of being managed by each region or city). All other Transport On Demand solutions are excluded from this system, Taxi only solution • Taxi “availability” and physical position for e-hailing will be pushed in real-time to a state governed system • Taxi “availability” and physical e-hailing will be possible by using an API provided by the state. So the information could be integrated in any application or search engine. • The full code of Open Data Taxi will be open-source • Resources • Web site (English) • API Documentation Copyright © William El Kaim 2016 96

Ex: Taxi Hailing Gov. Platform in France • Two-sided platform: • Search Engines (Demand Side): people using the API and providing the information to clients (B2C) through mobile, web, etc. • Query the Open Data Taxi API to get the list of taxi around a GPS coordinate passed in the query and let the user select the taxi they want and hail it virtually • Taxi Operators (Supply Side): in charge of managing the transaction between the clients and the Taxi and of registering the taxis in the system • Taxi operator is in charge of background checking of taxis and registering them in the system • Taxi operator should provide a solution to the Taxi in order to let him register its position every 5s in the Open Data Taxi system • Taxi operator should manage dispute between taxis and clients and is in charge of ensuring the transaction is done or cancelled • Taxi Operators should be background checked by the French Gov. Copyright © William El Kaim 2016 97

Ex: Taxi Hailing Gov. Platform in France Search Engine Taxi Operators Supply API MEVP Demand API Copyright © William El Kaim 2016 98

Plan • Welcome to The Digital Age • What is an Ecosystem? • What is a Platform? • Platform vs. Product • Platform Guiding Principles • Platform Taxonomy • Platform Value Creation • The Minimum Viable Enterprise Platform • Technical Considerations to Design a Platform Conclusion • Recommended Resources Copyright © William El Kaim 2016 99

Business Ecosystems Trends The rise of business ecosystems is fundamentally altering the key success factors for leading organizations, forcing them to think and act very differently regarding their strategies, business models, leadership, core capabilities, value creation and capture systems, and organizational models. Copyright © William El Kaim 2016 100

The Age of The Platform • Before, value creation took place within the firm by turning blocks and primary products in complex products and services, which then submitted to the market in a shareholder value maximization process. • The new company’s goal becomes to maximize the opportunities of value exchange between peers through two core activities: • The creation of blocks, modules and contexts for creation (eg, APIs, Tools, Contests, Conferences …) and the identification, establishment and improvement of channels for the exchange of value between peers (e.g.: marketplaces). Source: Meedabyte and Apigee Before Copyright © William El Kaim 2016 101

The Age of The Platform • Platform are changing the rules of competition! • The attractiveness of a platform to end-users comes not from the platform itself, but from what they can do with it. • Platform ecosystems are composed of externally produced complements that augment the capabilities of a platform (co-evolution) • Innovations that differentiate platforms often emerge in the downstream part of the platform’s value chain, the upstream part being the creation of the platform. • The fate and survival of a platform then critically hinges on the diversity and vibrancy of its downstream ecosystem. • Platform should leveraged best of both worlds: new technologies and advanced in computing AND existing core business services of a company • Business should evolve to avoid disruption • MEVP could help sustain the approach! Copyright © William El Kaim 2016 102

The Minimum Enterprise Viable Platform Enterprise Business Platform could not be bought off-the-shelves Need to avoid accidental architecture and build your own! Create the Minimum Enterprise Viable Platform using Technology Platform Copyright © William El Kaim 2016 103

The Minimum Enterprise Viable Platform The new digital, networked, real-time society forces us to start thinking and acting as an ecosystem. Ecosystems are developed using platforms to glue services via API and funds to encourage startups and partners to hook in Source: PWC, Exploiting the growing value from information Build your own Minimum Viable Digital Platform And create Open APIs To encourage startups and partners to hook in Copyright © William El Kaim 2016 104

Managing The Red Queen Effect • Strategy (value creation) and Architecture are the two gears of a platform’s evolutionary motor that must interlock and align. • Platforms that thrive are ones that whose ecosystems outpace rival ones in the evolutionary race. • At the same time the architecture should evolve to sustain change and innovation Source: Meedabyte Copyright © William El Kaim 2016 105

MEVP: Need For Enterprise Architect • Enterprise Architect should be the man-in-the-middle • Business Innovation. Understand future business needs and create agile paths to enable them at the right cost without breaking today’s day to day business. • IT Governance. Leverage existing internal business and technical assets without breaking the current day to day business. • Craftsmanship. Assess and Test new ways to evolve the legacy, to create new services from scratch (microservice) and to hook business services to the MEVP. • EA should take the lead to design, support implementations and govern MEVP • MEVP is the new agile business backbone (imagine a company “façade + BPM” on steroids). • MEVP requires strong governance of information and data exchanged. • MEVP requires access to the enterprise back-offices using API. • MEVP should leverage the enterprise Identity and Access Management already in place. • MEVP should provide to external developers the freedom to innovate by providing them the right logistic and rules to follow. Copyright © William El Kaim 2016 106

Plan • Welcome to The Digital Age • What is an Ecosystem? • What is a Platform? • Platform vs. Product • Platform Guiding Principles • Platform Taxonomy • Platform Value Creation • The Minimum Viable Enterprise Platform • Technical Considerations to Design a Platform • Conclusion Recommended Resources Copyright © William El Kaim 2016 107

Recommended Resources • Amrit Tiwana • Platform ecosystems: Aligning architecture, governance and strategy • Eamonn Kelly director with Deloitte Consulting LLP and chief marketing officer (CMO) of the Strategy and Operations practice. • Business ecosystems come of age • Eric Raymond • The Cathedral and the Bazar: Musings on Linux and Open Source by an Accidental Revolutionary, 2001, O'Reilly Media John Hagel, co-chairman for Deloitte LLP’s Center for the Edge • The power of platforms and The Power of Pull Copyright © William El Kaim 2016 108

Recommended Resources • Philip Evans and Patrick Forth from The Boston Consulting Group • BORGES' MAP: Navigating a World of Digital Disruption • Jean Jacques Dubray & al. • Service-as-a-Software and B=MC2 • PWC Technology Forecast • Exploiting the growing value from information and Reinvent IT in the digital enterprise • Sangeet Choudary, Founder and CEO of Platform Thinking Labs, • Platform Thinking Blog • Simone Cicero from meedabyte.com • The Platform Design Canvas: a tool for Business Design Copyright © William El Kaim 2016 109

Recommended Books 2015 2011 2011 2013 2012 Copyright © William El Kaim 2016 110

Twitter http://www.twitter.com/welkaim SlideShare http://www.slideshare.net/welkaim EA Digital Codex http://www.eacodex.com/ Linkedin http://fr.linkedin.com/in/williamelkaim Claudine O'Sullivan Copyright © William El Kaim 2016 111