s GBE Siemens Global Business Ecosystem GBE Jose
s GBE Siemens Global Business Ecosystem (GBE) Jose C. Lacal Product Manager, Open. Source Applications Jose. Lacal@icn. siemens. de „We do not lack resources; we lack dreams. “ 1 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s Table of Contents • • • GBE Jose C. Lacal Global Business Ecosystem Definition Plan of Action: the “Sea of Business” „Competing for the Future“ Market Potential Pyramid Open Standards = Open Software + Open Hardware + Open Networks Create Your Own Future „Virtualize“ Siemens Assets, Core Competencies Sample Open Bo. IP Products and Services Open Source Value Creation „We do not lack resources; we lack dreams. “ 2 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Jose C. Lacal • 1986 - 1994: First business at age 21. – Founder, President of industrial bakery in Miami, FL. – In charge of 40 employees, Sales, Customer Care, Marketing. • 1995 - 1996: First ISP in SE Mexico. – Founder, investor and Chief Vision Officer. 10 employees. – Introduced the Internet culture to this area. • 1995 - now: founder of 02 Open Source start-up ventures. • 1997 - now: – Siemens ICN Boca Raton. Customer Service engineer, daily contact with large telco operators in the US and worldwide. – Munich: Open Source, developed „Business over IP“ • I know business, I know telcos, I know Open Source. „We do not lack resources; we lack dreams. “ 3 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Reality Check • Value created in the IP market since 1984: US$_____ Billions Percentage of such value to Siemens? _____% • More of the same actions = more of the same results. • Amazing that young people, who live closest to the future, are the most disenfranchised in strategy-creating exercises. „We do not lack resources; we lack dreams. “ 4 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Global Business Ecosystem Definition • No company is large enough to survive and prosper alone • Characteristics of a GBE: – A group of independent entities (partners, internal companies, external members) and individuals, geographically unbounded; – that share a common vision of what the future should look like; – and that join forces (temporarily and voluntarily); – to make that future happen in their own terms. • Cisco, Intel, Microsoft, Nortel nurture their ecosystems • Business ecosystems: – – adapt and adopt compete evolve grow or die together „We do not lack resources; we lack dreams. “ 5 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Plan of Action: the “Sea of Business” • Siemens as an aircraft carrier “task force: ” provide support logistics to thousands of airplanes (startups, associates). All types: long-range reconnaissance; fighters; bombers. Future Opportunity Island 01 Past Opportunity Island 01 Future Opportunity Island 02 „We do not lack resources; we lack dreams. “ 6 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s Competing for the Future • • GBE Envision new markets: strategic purpose Establish the market: set standards Lead those markets As a result: – we drive perceptions, we make the rules => Trendsetter – create a new global business ecosystem with ICN at the center • Continued reactive planning ensures: – – shrinking market share diminishing mind-share shrinking market (stock) value become an economic dinosaur „We do not lack resources; we lack dreams. “ 7 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s Market Potential Pyramid „We do not lack resources; we lack dreams. “ GBE 8 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Where is the money? „We do not lack resources; we lack dreams. “ 9 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s Open Standards = Open Software + Open Hardware + Open Networks „We do not lack resources; we lack dreams. “ 10 GBE Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s Create Your Own Future GBE • With right tools, create alternative futures (Isaac Asimov) • “The future is not what it used to be. ” Disruptive, non-linear • Three huge industries in the XXIst Century: – edutainment (education + entertainment) – experiential tourism – safety / security • Three massive societal changes in the XXIst century: – rise of the Third Age – transnational companies = global clans – more humans per square meter • Common thread along all outcomes: I & C technologies. „We do not lack resources; we lack dreams. “ 11 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s „Virtualize“ Siemens Assets, Core Competencies Forces Open Siemens’ Unique Assets 130 LCs People Brand name Manufacturing Customers Installed base GBE Courses Sponsor Open Source Standards E-Business Global salesforce Worldwide tax, legal Worldwide certification Large system expertise Global distribution Finance expertise Trusted global partner Integration management Open Bo. IP „We do not lack resources; we lack dreams. “ 12 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE What is next? • „The basic economic resource -‘the means of production, ‘ to use the economist's term- is no longer capital, or natural resources (the economist's ‚land‘), nor ‚labor. ´ It is and will be knowledge. “ Peter F. Drucker, „Post-capitalist Society, “ 08. · The ability to exploit the firm's „core competencies“ and strategic assets, the building blocks for new businesses. „We do not lack resources; we lack dreams. “ 13 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE The new role of the CEO • The notion of white-space opportunities is proving especially compelling for highly decentralized companies such as Hewlett. Packard Co. HP Chairman Lewis E. Platt now believes his most important role in strategy formulation is to build bridges among the company's various operations. „I don't create business strategies, “ argues Platt. “My role is to encourage discussion of the white spaces, the overlap and gaps among business strategies, the important areas that are not addressed by the strategies of individual HP businesses. “ „We do not lack resources; we lack dreams. “ 14 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s What‘s next „We do not lack resources; we lack dreams. “ 15 GBE Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Sample Open Bo. IP Products and Services Forces Open Standards E-Business Siemens’ Unique Assets 130 LCs People Brand name Manufacturing Customers Installed base Global salesforce Worldwide tax, legal Large system Global expertise distribution Worldwide certification Finance expertise Courses Sponsor Open Source Trusted global partner Integration management Tele. Med Personal CO Safe. Life Open. Business Open Bo. IP Tele. Know Tele. Work Reinvestment „We do not lack resources; we lack dreams. “ 16 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Traditional Model Switch - low margin - low customization Initial Sale Open. Bo. IP Model arket After-m services Cumulative Income Open Source Value Creation Time Switch Initial Sale „We do not lack resources; we lack dreams. “ Cumulative Income - higher margin - higher value ==> higher volume (bigger base) base d r e g n bi ducts a o e enu -pro - rev addon w - ne ces vitional after-market services serdi eroded tra Time 17 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Backup slides „We do not lack resources; we lack dreams. “ 18 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Introducing Open. Source and GNU/Linux • Open. Source software (OSS) – Freely distributed with source code • Widespread acceptance – OSS is at the heart of the Internet: • • Apache ( >65% of all websites) DNS and BIND (all name resolution) Perl (behind most CGI scripts) sendmail (processes 90% of e-mail) • GNU/Linux, best example of OSS: – Beat common Operating Systems (OSs) – Superior stability and usability* – GNU/Linux, fastest growing Network OS * - OS of the year, Info. World magazine „We do not lack resources; we lack dreams. “ 19 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE The numbers behind Open Source • Red Hat: Linux distributor. IPO 30 days ago. US$90/share. • Cobalt: Linux mini-servers. IPO 10 days ago. US$100/share. • Hewlett-Packard: entire business unit only for Open Source; free e-speak (broker system) and mail server software. • Sun Mycrosystems: will release source code of Solaris; free Star Office package; publicly available Sparc 64 spec files. • IBM Consulting Group: 300 out of 1, 800 are Linux experts. • SCO (Santa Cruz Operation): Linux consulting group. • Microsoft was recently declared a monopoly by a US judge. That will generate a cascade of interest in Open Source. „We do not lack resources; we lack dreams. “ 20 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Virtualize Siemens assets, core competencies Turn around weaknesses Corporate weaknesses Core competencies Trusted global Sponsor partner OS “geeks” Integration management Slow moving Large size Obsolete mindset Global salesforce Worldwide tax, legal Worldwide certification Large system expertise Global distribution Finance expertise „We do not lack resources; we lack dreams. “ 21 130 LCs People Brand name Manufacturing Customers Installed base Corporate assets Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
s GBE Example of Global Business Ecosystem Support organizations Open documents Current customers Future customers Siemens Current offerings Join development Future offerings Open interfaces External content providers „We do not lack resources; we lack dreams. “ External developers 22 Jose. Lacal@icn. siemens. de Questioning the silly answers since 1997.
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