From “competition and collaboration” era
towards “Digital Business Ecosystem” era

The Robot Revolution and Industrial IoT International Symposium 2021
Japan-Germany Expert Forum
Naoaki Fujino (Nomura Research Institute)Prof. Dr. Ulrich Löwen (Plattform Industrie 4.0 AG6 / Siemens AG)
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AgendaProblem awarenessMr. Naoaki Fujino

Japan-Germany collaboration history

Prof. Dr. Ulrich Löwen

Types of ecosystems

Prof. Dr. Ulrich Löwen

Future work

Prof. Dr. Ulrich Löwen
Mr. Naoaki Fujino

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KEIDANREN Society5.0
Fundamental andrevolutionary changes inindustry• Industrial and social changes by DX• Next-generation industrial structure
in Japan and international

Business ecosystem
Theme:
From “competition and collaboration”
towards “Digital Business Ecosystem”

DX: Digital Transformation
Source: KEIDANREN (Japan Business Federation), Digital Transformation - Opening Up the Future through Co-creation of Values -3

Background•Accelerating Innovation•

New resource called Data•

Exponentially growing data•

Systematization of Systems•

Solving social issues•

Aiming higher Quality of Life

It is impossible to solve these issues for individuals or individual companies.
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Japan’s understanding of international trends
Second stage in Europe, social implementation stage••

Circular Economy
Digital Economy• Industrial infrastructure• Business Ecosystem

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Problem awareness of Dr. Kagermann
Digital Platforms: Self-reinforcing Growth Engines• Multi-sided markets with network effects• With more users, the platform becomes more attractive to potential new users(e.g. social networks)• The more users on side of the platform, the more attractive the platform
becomes for users of the other side (e.g. smartphones)• Dynamic digital ecosystems are critical to success• Provide complementary data, services, products and competencies• New growth opportunities for SMEs and Startups• Cloud-based: Fast scaling on a global level with low investments
Platform enterprises are more powerful than traditional enterprises.
Source: Presentation material of Dr. Kagermann at RRI international symposium on Oct 18, 2018

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Global ecosystem in apparel industry
7https://youtu.be/IpVB3FgxaSQ

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Global ecosystem in apparel industry• The Li & Fung video is an example of the apparel industry.
• In Japan, we consider it not just a platform, but an ecosystem.
• IT platform and agent business on it are run by different entities.
• IT platform provider is E2Open and anyone can use it.
• Agent companies are not limited to Li-Fung, but multiple Agent companies
such as Karner.
• There are more than 20,000 networked companies, but they are based on
the standard IT interface and are not locked in the E2Open system.
• User is not technically locked in also.

• We think it is a specific platform ecosystem.

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AgendaProblem awarenessMr. Naoaki Fujino

Japan-Germany collaboration history

Prof. Dr. Ulrich Löwen

Types of ecosystems

Prof. Dr. Ulrich Löwen

Future work

Prof. Dr. Ulrich Löwen
Mr. Naoaki Fujino

10International collaboration on Digital Business Models
History and Conclusion• History• October 2018: JPN-GER workshop on Digital Business Models• April 2019: GER-JPN web-conference on Digital Business Models• December 2019: JPN-GER expert forum on B2B Platform Economy• Elaboration of joint paper Digital Platforms in Manufacturing Industries• April 2021: contribution of topic “Digital Platforms in Manufacturing Industries”
to GER-JPN economic forum• Conclusion• JPN-GER collaboration has developed well-founded andinternationally recognized results• Germany and Japan observe, however, that the context ofthe overall discussions of “digitization in the manufacturing industry”
continuously evolves• Therefore, in the future, Germany and Japan will take an“ecosystem perspective”
11AgendaProblem awarenessMr. Naoaki Fujino

Japan-Germany collaboration history

Prof. Dr. Ulrich Löwen

Types of ecosystems

Prof. Dr. Ulrich Löwen

Future work

Prof. Dr. Ulrich Löwen
Mr. Naoaki Fujino

12There are many different understandings of the term “ecosystem”
Nevertheless, three basic types of ecosystems can be identified

An ecosystem can be characterized by a specific value proposition and by a clearly defined,albeit changing, group of actors with different roles & relationships (such as producer,supplier, orchestrator, complementor)

traditional value
networks

supplychain/
business
partners

knowledge
ecosystems
Source: Siemensintermediary facilitating theinteraction of two or moremarket participants
platformecosystems

knowledge sharing
orchestrated by
non-profit organization
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In the past GER and JPN experts focused on platform ecosystems
There can be identified different kinds of platform architectures

supplychain/
business
partnersplatformecosystems

transaction
platform

innovation
platform

integrated
platformknowledge
ecosystems
Source: EVANS, P.; GAWER, A.: The Rise of the Platform Enterprise – A global
survey. The Emerging Platform Economy Series No. 1, 201614

Plattform Industrie analyzed digital ecosystems in industry
Typology, examples and future development

value network
value-based service

supplychain/
business
partners

value network
standardization community

knowledge
ecosystems

value network
IIoT platform

platformecosystems

value networktransaction platform
value network
innovation community

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AgendaProblem awarenessMr. Naoaki Fujino

Japan-Germany collaboration history

Prof. Dr. Ulrich Löwen

Types of ecosystems

Prof. Dr. Ulrich Löwen

Future work

Prof. Dr. Ulrich Löwen
Mr. Naoaki Fujino

16Current Conclusions• Thesis: successful platform ecosystems in manufacturing industries are ourfuture, nevertheless• There will continue to be lucrative and successful other businesses thanoperating a digital platform in the manufacturing industry• Platform ecosystems can develop over time from traditional value
networks such as supply chains or business partners• The description of value networks as used by Germany and Japan helps withanalysis and design• But the environment is complex, so different perspectives have to betaken• Examples: platform operator – platform user; static view – evolution overthe time; network effects• Germany and Japan will further sharpen their common understanding of thescope, importance and impact of these different perspectives to shape theimportant overarching topic “digital business models”
17Future work
We would like to discuss the following in the Japan-Germany collaboration• Description of platform ecosystem• Benefit of and motivation for platform ecosystem• How to build platform ecosystem
Consider from 3 perspectives based on the use case.
• Standardization• Open Innovation• Servitaization

Reference for origin of ecosystem:
The Death of Competition by James F. Moore, 1996
Written by MIT prominent professors:
What’s Your Digital Business Model? by Peter Weil, Stephanie L Woerner, 201818

Thank you very much.

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