11. gov.uk
“Compatibility or interface standards
help to expand market opportunities
because they help to increase
network effects (or externalities).”
17. John Hagel III
Marc Singer
https://hbr.org/1999/03/unbundling-the-corporation
John Hagel
Marc Singer
Unbundling the Corporation
18. John Hagel III
Marc Singer
https://hbr.org/1999/03/unbundling-the-corporation
John Hagel
Marc Singer
Unbundling the Corporation
“Interaction costs represent the money and time that
are expended whenever people and companies
exchange goods, services, or ideas.”
19. John Hagel III
Marc Singer
https://hbr.org/1999/03/unbundling-the-corporation
John Hagel
Marc Singer
Unbundling the Corporation
“Taken together, interaction costs determine the way
companies organize themselves and the way they form
relationships with other parties.”
20. John Hagel III
Marc Singer
https://hbr.org/1999/03/unbundling-the-corporation
John Hagel
Marc Singer
Unbundling the Corporation
https://hbr.org/1999/03/unbundling-the-corporation
21. John Hagel III
Marc Singer
https://hbr.org/1999/03/unbundling-the-corporation
John Hagel
Marc Singer
Unbundling the Corporation
https://hbr.org/1999/03/unbundling-the-corporation
22. John Hagel III
Marc Singer
https://hbr.org/1999/03/unbundling-the-corporation
John Hagel
Marc Singer
Unbundling the Corporation
https://hbr.org/1999/03/unbundling-the-corporation
Under the pressures of deregulation, global competition, and
advancing technology, a number of industries are already
fracturing along the fault lines of customer relationship
management, product innovation, and infrastructure
management.
“
”
25. John Hagel III
Marc Singer
https://hbr.org/1999/03/unbundling-the-corporation
If you lose the CRM Business, where do you focus?
Option 1: Compete with the UX Providers
capability
provider
experienceuser
platform
experience
26. John Hagel III
Marc Singer
https://hbr.org/1999/03/unbundling-the-corporation
If you lose the CRM Business, where do you focus?
Option 2: Make the UX providers your new customer
capability
provider
experience
platform
27. John Hagel III
Marc Singer
https://hbr.org/1999/03/unbundling-the-corporation
If you lose the CRM Business, where do you focus?
Option 3: Focus on powering the UX providers with
infrastructure capability
capability
provider
experience
platform
28. John Hagel III
Marc Singer
https://hbr.org/1999/03/unbundling-the-corporation
If you lose the CRM Business, where do you focus?
Option 4: Focus on providing innovative features to UX
providers
capability
provider
experience
platform
new
capability
This is a serial bus.
Prior to the late 90s, this was one of the ways that you might connect electronic and computer devices together. There were lots of other connectors too: the PS/2 connector for keyboards, the Apple desktop bus, Parallel ports for printers and scanners and game ports if you happened to have a joystick.
Managing all of these different types of connections and cables was a bit of a pain.
This all became easier because of this connector.
The first version of the USB was released in 1994, but really came into its own in the late 90s. This simple cable did away with the proliferation of different types of connectors and simplified life for consumers. No longer, did we have to install expansion cards or manage a disparate set of cables, instead a small set of USB cables would not allow us to connect anything to anything. USB ports began showing up on all kinds of devices and with the exception of a few product vendors became the standard interface for power and data transmission in consumer electronics.
Important when we have interchangeable parts
Important when we have interchangeable parts
Important when we have interchangeable parts
Important when we have interchangeable parts
Avialable on Gov.uk
Avialable on Gov.uk
Avialable on Gov.uk
One thing we know is that the way customers are interacting with businesses is changing. And we know this because people won’t shut up about it. But, there is probably a good reason for that.
Before things started changing, capability providers had a monopoly on the experience they provided.
Before things started changing, capability providers had a monopoly on the experience they provided.
We want to make it easy for app devs to build new experiencds on the platform. This is good for everyone as we’ve learned (but may not be in the interests of the individual providers)
It does seem like there is an inevitability to this type of thing happening.
One thing we know is that the way customers are interacting with businesses is changing. And we know this because people won’t shut up about it.
These form the fault lines
These form the fault lines
These form the fault lines
Before things started changing, capability providers had a monopoly on the experience they provided.
These form the fault lines.
Option 1: cede the end users and build a business that serves the new CRM players
Optoin 2: compete with the CRM players (possible, but difficult given the costs of running the platform and all of the UX applications)
Optoin 3: focus on powering the CRM players by focusing on infrastructure (commoditization play)
Optoin 4: focus on providing innovative products to the CRM players and differentiating from other platforms.
These form the fault lines.
Option 1: cede the end users and build a business that serves the new CRM players
Optoin 2: compete with the CRM players (possible, but difficult given the costs of running the platform and all of the UX applications)
Optoin 3: focus on powering the CRM players by focusing on infrastructure (commoditization play)
Optoin 4: focus on providing innovative products to the CRM players and differentiating from other platforms.
These form the fault lines.
Option 1: cede the end users and build a business that serves the new CRM players
Optoin 2: compete with the CRM players (possible, but difficult given the costs of running the platform and all of the UX applications)
Optoin 3: focus on powering the CRM players by focusing on infrastructure (commoditization play)
Optoin 4: focus on providing innovative products to the CRM players and differentiating from other platforms.
These form the fault lines.
Option 1: cede the end users and build a business that serves the new CRM players
Optoin 2: compete with the CRM players (possible, but difficult given the costs of running the platform and all of the UX applications)
Optoin 3: focus on powering the CRM players by focusing on infrastructure (commoditization play)
Optoin 4: focus on providing innovative products to the CRM players and differentiating from other platforms.
These form the fault lines.
Option 1: cede the end users and build a business that serves the new CRM players
Optoin 2: compete with the CRM players (possible, but difficult given the costs of running the platform and all of the UX applications)
Optoin 3: focus on powering the CRM players by focusing on infrastructure (commoditization play)
Optoin 4: focus on providing innovative products to the CRM players and differentiating from other platforms.
USB doesn’t constrain me to the types of peripheals I want to use.
We should be wary of agreeing to industry standards that contrain the intercations and reduce our ability to differentiate.
Market leaders gain from having proprietary interfaces, but a forced standardized interface would hurt them. A more flexible interface may be the less bitter pill to swallow
USB doesn’t constrain me to the types of peripheals I want to use.
We should be wary of agreeing to industry standards that contrain the intercations and reduce our ability to differentiate.
Market leaders gain from having proprietary interfaces, but a forced standardized interface would hurt them. A more flexible interface may be the less bitter pill to swallow
Business is changing
“I know this because people won’t shut up about it.”
“digital innovation master… of the universe”
But hasn’t that always been true?
