Author Archive

Game Theory: A meaningful tool to create and enhance an Ecosystem

Tuesday, June 9th, 2009 by Rodrigo Penalva

It’s interesting the relationship made by Antonio in his post with the concept of ecosystem and the Game Theory. A successful ecosystem happens when one engages different and complementary groups towards a common goal, using sided network effects produced by these complementary groups to increase the power of the ecosystem.
The first big challenge is to create an expectation in these groups by transmitting them a message that one is looking for a win-win result, looking for cooperation instead of competition as in Game Theory. One example was when Apple launched a new SDK, communicating that its effort was to facilitate developers’ work.
However, to transmit the message that you are looking for a win-win result is quite difficult because normally, the group or just a few players of the group that you are trying to engage have conflicting goals. Therefore, it becomes a tough job to maintain the image that you are interested in developing an ecosystem; it is tough to reach a unanimous solution and actions among players of the ecosystem. One example could be the Google’s image nowadays. A lot of people are starting to become skeptics about how Google manage the customers’ personal information: Google is failing to transmit the message that it just uses the customers’ information in anonymous way, and maybe for this reason, Google is losing its credibility.
The second challenge is to fulfill the expectation created. The company needs to create innovative solutions that fit in these groups’ needs. Apple Store is a good example.  First, it created a simple way to buy music where it’s possible to buy just one song and not the entire CD. In addition, the price of each song becomes standardized.
Besides, innovation is not just something that we wake up someday and say: “Today I want to create a disruptive innovation.” Google and Apple, two reference companies when we talk about a portfolio of innovative products, really have innovation embedded in their values. Google’s 20% rule is an example. The company allows its engineers to spend 20% of their working time on corporate projects of their choice.

Is there any room for new solutions in the “cloud”?

Tuesday, May 5th, 2009 by Rodrigo Penalva

Cloud computing is already a reality in the corporate sector. Companies are using these solutions to reduce their costs (CapEx for servers, OpEx for  energy…), to gain scalability and to act in a more sustainable manner  (green IT). In a similar line of action, small and medium companies are already starting to use these solutions.
For the consumer market, a few solutions such as e-mailing, viewing or editing documents has already became popular. The end consumer saves money with the hardware for processing and storage, has a more reliable storage of their information, but some people are still skeptical about how companies use their information (usually, in order for you to be able to use the services/applications which are free, you have to first provide your personal information).
Which kind of new services or contents, companies can offer to consumers using this new concept of services and contents offered in the cloud? How to make these new solutions profitable?
My opinion is that people are using the Internet to make their life easier, finding things to buy, places to visit, people to meet….
Will ubiquity (get what you want anytime and anywhere just accessing the internet) really become a “must” have feature?
Which kind of solution can be processed and accessed in the cloud using your handset to facilitate our daily activities?
- Personal trainer (gym)?
- Teacher?
- Doctor?
- To edit images or videos?
- To get information about locations, places to go, things to buy, places and objects you are seeing?
- To record and store smells and feelings you are experiencing?
- Buy things after comparing prices and reading reviews?
- Connect people based on their interests (date, work, sports, trips, …) ?
What’s your opinion about these issues?
I know that a lot of these solutions already exist. However, how can we create a new solution with a competitive advantage?
The solution is to focus in CRM!!! Try to gather information from your customers and use them as key-drivers for your business. UNDERSTAND HOW TO OFFER BETTER SOLUTIONS. And look for the LOCK IN through a BUNDLE of complementary solutions. And one way for a company to reach these objectives is by creating an ECOSYSTEM, obtaining strength from a network of partners, and increasing the network of customers, creating a CUSTOMIZED MASH-UP solution of each customer, CONNECTING him to things that he NEEDS.