LTKA #4: Digital Ecosystems

Connected Services and Cloud Computing: Digital Ecosystems, Examples of Digital Ecosystem.

LTKA #4: Digital Ecosystems:

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Abstract Device Model

1. OEMs (HW Vendors)
2. Accessories Manufacturers
3. Platform/OS Vendors
4. Framework Owners
5. Market Owners
6. Developers

Connected Services Model

1. Users
2. OEMs (HW Vendors)
3. Accessories Manufacturers
4. Platform/OS Vendors
5. Framework Owners
6. Market Owners
7. Developers
8. Operators
9. Advertisers
10. Other Partners

Apple Ecosystem Strategy

• While the App Store is a relatively minor source of income for Apple, strong app sales are essential to the company’s health. It depends on apps as a reason for people to buy iOS devices.
• People who buy iOS apps are also more likely to be “locked” into the Apple ecosystem, since they would suddenly lose that content after switching to Android or Windows.

Ecosystem Business Models

1. Redefine Market (Explore/Extend)
2. Identify Complements
3. Boost Demand for Complements (but Ensure Supply)
4. Bundle Product (to Satisfy Demands)