1. The Network Imperative Facilitator’s Guide Presentation

2. The Network Imperative
WHY: The Value is in the Network
WHAT: 10 Strategies to Network Value
HOW: 5 Steps to PIVOT Your Business Model
WHO: Becoming a Network Leader
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3. The Value is in the Network
Overview
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4. Networks are Eating the World
Digital network
Brands
World’s largest taxi company owns no taxi’s
Uber
Largest accommodation provider owns no real estate
Airbnb
Largest phone companies own no infrastructure
Skype, We Chat
World’s most valuable retailer has no inventory
Alibaba
World’s most popular media provider creates no content
Facebook
Fastest growing banks have no actual money
SocietyOne
World’s largest movie house owns no cinemas
Netflix
Largest software vendors don’t write the apps
Apple, Google
Source: IBM
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5. Largest Companies vs. Biggest Networks
Brands
Market Value
Uber
$70B
Airbnb
$25B
Alibaba
$192B
Facebook
$341B
Netflix
$40B
Apple
$545B
Brands
Market Value
Hertz
$4.7B
Starwood*
12.66B
Walmart
$222B
WSJ
Regal Cinemas
$3.1B
Microsoft
$405.7B
* Denotes recently combined value
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6. Intangible Assets have grown significantly
Source: Ocean Tomo

7. copyright, OpenMatters, LLC
We researched the S&P1500
1,519
Companies in the S&P1500 Index
Companies excluded for insufficient data
-76
Companies excluded by REIT status
-92
Companies analyzed
1,351
Asset Builders
Service Providers
Technology Creators
Network Orchestrators
64%
24%
11% 1%
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8. Business Models Scale in Different Ways
Characteristics
Network Orchestrators
Near zero Marginal Cost
Network leverage
Many Make, Many Sell
Technology Creators
Low Marginal cost
Operating leverage
Make One, Sell to Many
Service Providers
Moderate Marginal Cost
No leverage
Hire One, Sell to One
Asset Builders
High Marginal Cost
Financing leverage
Make One, Sell to One

9. Examples of Business Model Leaders
Example Companies
Asset Builder
Ford, Walmart, Exxon, Boeing
Service Provider
Humana, Accenture, JPMorgan Chase
Technology Creator
Microsoft, Oracle, Medtronic, Pfizer
Network Orchestrator
eBay, Uber, Visa, Redhat, Tripadvisor
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10. Business Models Span All Industries
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11. Networks are the most valuable5x 8x 2x 3x
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12. $1 invested in Networks produce higher returns
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13. Migrate Firm-Centric to Network-Centric
Focuses internally Grows slowly Uses its own capabilities Sells its own products and services Has high marginal costs Has low profit margins Has a low multiplier Firm-Centric
Focuses externally Grows quickly Uses the capabilities of its networks Lets others make and sell products Has near-zero marginal costs Has high profit margins Has a high multiplier Network-Centric
Legacy Organization
Network Organization
More OpenSpace, growth and profit
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14. 10 Strategies for Creating Network Value
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15. 10 Strategies for Business Model Success
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16. Rule1: Technology - Build Digital Platform
Physical
Digital
Technology

17. Rule 2: Assets - Invest in Intangibles
Finance

18. Rule 3: Assets - Reallocate your Capital
Operator
Allocator
Strategy

19. Rule 4: Leadership - Co-Create Value
Commander
Co-Creator
Leadership

20. Rule 5: Customers – Reward Co-creation
Consumers
Co-Creators
Customers

21. Rule 6: Revenues -Transition to Subscriptions
Transactions
Subscription
Revenues

22. Rule 7: Employees - Embrace Freelancers
Workers

23. Rule 8: Accounting - Use Big Data
Metrics

24. Rule 9: Boards - Share Authority
Shared
Governance

25. Rule 10: Mindset - Think Open
Closed
Open
Innovation

26. 5 Steps to PIVOT your Business
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27. PIVOT Your Business Model
Pinpoint
Inventory
Visualize
Operate
Track
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28. Step 1: PINPOINT Your Business Model
Technology Creators
Network Orchestrators
Asset Builders
Service Providers 5x 8x 2x 3x
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29. Step 2: INVENTORY Your Sources of Value
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30. Step 3: VISUALIZE your platform
Customers
You
Suppliers

31. Step 4: OPERATE your network
Company
Value Provided
Value Received
Platform
Value Provided
Network
Measurement
Company Management
Network Management
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32. Step 5: TRACK Your Progress and Performance
Financial Capital
Physical Capital
Human Capital
Intellectual Capital
Relationship Capital
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33. copyright, OpenMatters, LLC
The Enterprise Story
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34. Become a Network Leader
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35. Your Beliefs Determine Your Results
Guiding Principles
Capital Allocation
Skills and Revenues
KPI’s & Results
Core Beliefs
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36. To PIVOT, Invert Your Beliefs
Old Beliefs
New Beliefs
Invert
Extrapolate
Act
Identify
Uncover
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37. copyright, OpenMatters, LLC
Thank You!
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