Business Ecosystems in Industries

The Robot Revolution and Industrial IoT International Symposium 2022
Japan-Germany Expert Forum
Shuhei Sugie (Future Corporation)
Prof. Dr. Ulrich Löwen (Plattform Industrie 4.0 AG6 / Siemens AG)
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AgendaJapanese Activity

Mr. Shuhei Sugie- Analyzing Business Ecosystem -German Activity

Prof. Dr. Ulrich Löwen- Example of an evolving Business Ecosystem -Future discussions and outlook

Prof. Dr. Ulrich Löwen

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Proposal from Prof. Kagermann at RRI Symposium 20183

Business Ecosystem in Japan• Challenges in building Business Ecosystem in Japan
Difficulties in collaborating with competitors in collaborative areas using
digital technology
Lack of ability to conceptualize business models
Lack of understanding of digitalization by management andmanufacturing sites
Lack of human resources and lack of technology, knowledge, andknow-how to use digital technology
Others• Change in Business Ecosystem objectives• From Business Ecosystem for individual company’s business to Business
Ecosystem for resolution of social problems• Carbon neutral• Circular economy
4Society 5.0• Society 5.0 was proposed as a future society that Japan should
aspire to.
"A human-centered societythat balances economic
advancement with theresolution of social problems
by a system that highly
integrates cyberspace andphysical space.”

Source: Cabinet Office HP
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From RRI Symposium 2021 discussion

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RRI activities in 2022 to understand business ecosystems• In 2022, RRI studied and considered “The death of competition” inorder to deepen understanding of business ecosystems• The purpose is below• Fully understand the contents of "THE DEATH OF COMPETITION“• Organize learning and questions after understanding "THE DEATH OFCOMPETITION“• Consider suggestions for strengthening Japan's competitiveness bybuilding B2B platforms• 11 Samurais (persons involved in the manufacturing industry)held discussions for half a year and summarized their learnings,considerations, and recommendations in a report.
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Our understanding of ecosystems• The business world has similar properties to biological systems.
• A business ecosystem develops through four distinct stages:
Pioneering, Expansion, Authority and Renewal or Death.
• In the biological world and the business world, there aredifferences in "existence of a leader", "control of the surrounding
environment", and "existence of the end of the ecosystem".
• There are various types of ecosystems, such as those centeredon business, those centered on society, and those centered on
the environment. In order to solve social issues, it is important tounderstand the value of ecosystems of business, society, andenvironment, and then consider trade offs and reciprocal
adaptations made.
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Towards the formation of viable business ecosystems• The need for a "whole ecosystem" that allows for coordination
among ecosystems of business, society, and environment isincreasing more and more.
• The role of business ecosystems in solving social issues isincreasing, and a global cooperative system is required.
• The development of decentralized technology accelerates theformation of “leaderless” ecosystems.
⇒ While understanding the nature and changes of businessecosystems, we would like to work together with Germany andJapan to develop business ecosystems for solving globalissues.
9AgendaJapanese Activity

Mr. Shuhei Sugie- Analyzing Business Ecosystem -German Activity

Prof. Dr. Ulrich Löwen- Example of an evolving Business Ecosystem -Future discussions and outlook

Prof. Dr. Ulrich Löwen

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Example of an evolving business ecosystem
Introduction• Purpose• Create awareness for designing business ecosystems from a businessperspective• Illustration of design options for business ecosystems using a concrete
example• Considered example: “Sustainability”• Considered challenge: calculation of the PCF of a product based on
primary data

11Perspective of manufacturing company
Manufacturing company wants to declare PCF based on primary data
Value streams
varioussupplier

providescomponent

Challenge
manufacturingcompany
providesproduct

customer

Manufacturing company wants to declare the PCF ofits product to the customer• Manufacturing company calculates direct emissions(“scope 1”) of manufacturing the product• Manufacturing company calculates energy (“scope2”) required for manufacturing the product…

• Manufacturing company requests for PCF of thecomponents supplied by the supplier (“scope 3”)• Manufacturing company calculates PCF of theproduct by adding the values of the three scopes• Manufacturing company provides the PCF of theproduct to its customer
A customer must trust the declared PCF because thecustomer cannot verify it himself
12Perspective of software application provider
Software application provider wants to offer PCF management software
Value streams
supplier

Value proposition software application provider
manufacturing
company
providescomponent

providesproduct

PCF management software based on primary datacustomer• Trustworthy obtaining the PCF of the suppliedcomponents• Trustworthy providing the PCF of the own product tothe customer

providessoftwareapplication

softwareapplication < / >provider13Perspective of trustworthiness services provider
Trustworthiness services provider acts as service provider
Value streams
supplier

Value proposition software application providermanufacturing
company
providescomponent

providesproduct

PCF management software based on primary data
customer• Trustworthy obtaining the PCF of the suppliedcomponents• Trustworthy providing the PCF of the own product tothe customer

providessoftwareapplication

softwareapplication < / >providerprovidestrustworthinessservices

Value proposition trustworthiness services
providerProviding trustworthiness services to software
application provider

trustworthinessservices provider
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Software application provider
Supporting interoperability with other software application provider
Value streams

Interoperability of software applications
manufacturingcompany

supplier

providescomponent

providessoftwareapplication

softwareapplication < / >providerprovidesproduct

providessoftwareapplication
providesinteroperability
withprovides
trustworthinessservicestrustworthinessservices provider

customer

Manufacturing company may choose any software
application provider
Manufacturing companies will require interoperabilityof software applications
Designing interoperability is responsibility of thesoftware application providers, who are in competition
with each othersoftware< / > application
providerprovidestrustworthinessservicestrustworthinessservices provider
15Trustworthiness services provider
Intermediary between manufacturing company and software application provider
Value streams
manufacturing
company

supplier

providescomponent

providessoftwareapplication

providesproduct

Extension of value proposition of trustworthinessservices provider
customerIn addition to providing trustworthiness services, thetrustworthiness services provider also acts as amarketplace operator for software applications

providessoftwareapplication</>softwareapplication
providerprovidestrustworthiness trustworthinessservices

services provider

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The “play of forces” in the market
Each business stakeholder will try to push the own interests
Value streamsIndependent acting in the market
manufacturing
company

supplier

providescomponent

providessoftwareapplication

providesproduct

providessoftwareapplication

softwareapplication < / > provides tws.
provider</>trustworthinessprovidestrustworthinessservices provider
services

customer• Manufacturing companies can choose software
application provider and trustworthiness services
provider• Software application provider must differentiatethemselves and define their sales channel toaddress their customers• Challenge for trustworthiness services provider
will be to acquire large market share for theirservicestrustworthinessservices provider
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Conclusion• Discuss further dimensions• Differentiation of the software application provider through specificfunctionality or addressing specific market segments• Scaling opportunities of platform provider by supporting additional(complementary) use cases• Observation from GER perspective• Currently the technical discussions are conducted with great commitment• But the discussion of how technical solutions can be used commerciallyand the development of a business perspective in a more systematic way
should be stimulated• The concrete subject and the regulatory framework are still underdevelopment• Various approaches are currently introduced on the market• The market will decide which approaches will ultimately prevail
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AgendaJapanese Activity

Mr. Shuhei Sugie- Analyzing Business Ecosystem -German Activity

Prof. Dr. Ulrich Löwen- Example of an evolving Business Ecosystem -Future discussions and outlook

Prof. Dr. Ulrich Löwen

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Future discussions and outlook• All examples shown are business ecosystems• The examples have different setup• The business owner have to decide which role they want to assume inthe business ecosystem• The approach is inline with the JPN-GER report of 2020
• Future discussions• GER experts will consolidate their considerations and discuss them withJPN experts• JPN experts will consolidate their considerations and discuss them withGER experts• Outlook• Common white paper combining the GER and JPN perspectives• Concrete content and time schedule to be discussed

20Thank you!
Shuhei Sugie

Prof. Dr. Ulrich Löwen

Strategy Innovation Group Open Innovation Unit Director

Senior Principal Key Expert Engineer

FUTURE CORPORATION

Siemens, T RPD1 CES

Phone +81 50 (5306) 0556

Phone +49 (9131) 17 - 33155

E-mail s.sugie.zt@future.co.jp

Mobile +49 (173) 9770999
E-mail ulrich.loewen@siemens.com

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