COMPASS MAGAZINE #11
COMPASS MAGAZINE #11
#11COVER STORY

THE RISE OF PLATFORM BUSINESSHow digital networks are changing competition

Whether we have purchased a book through Amazon or watched videos on YouTube, most of us have used a digital platform – an online framework for social and marketplace interactions. From Alibaba to eBay to Google, platform dealings have become part of everyday life for consumers. Now businesses are creating these high-value exchange environments to facilitate interaction with one another and, in the process, a pivotal change in the way businesses compete.

#11COVER STORY

BIG PROFITS FROM BIG DATAPlatforms create another potential revenue stream with platform-generated data

Platforms collect data from many sources, with multiple benefits for the platform provider and member companies. The data they generate can enable the platform company to make smart business decisions, while opening new markets to its members. Whether a platform operator chooses to analyze the data itself or sell it to others for analysis, the data represents money to be earned.

#11COVER STORY

COMPLEMENTARY GROWTHOffering related products and services can help platforms keep expanding

A typical product line has linear growth – a direct result of a product or service sold to increasing numbers of consumers. A multisided business platform that connects customers or groups with multiple products or services, however, allows for complementary growth. By first creating a healthy ecosystem, multisided platforms are benefiting from additional revenues by expanding into unexpected areas.

#11COVER STORY

EXPERT OPINION Businesses are moving to platform-powered ecosystems

B2B platforms are very different to launch and to scale from B2C platforms. Ironically, 15 years ago, many people felt that B2B platforms would be more successful than B2C platforms. The opposite happened, partly due to the fact that many large firms were not prepared to relinquish control of their business relationships to a platform, or could not agree to governance principles. Small firms were rarely connected to the Internet at the time and, therefore, could not participate.

#9COVER STORY

HYPERCONNECTED BUSINESSAlways-and-everywhere connectivity is re-inventing every aspect of business

As mobile devices proliferate, individuals generate data trails that businesses can use to instantly fulfill every whim. Things, too, are getting connected through the Internet of Things (IoT), raising the level of customer experience. The result is a hyperconnected world where communities collaborate to solve challenges and every company must rethink its fundamental assumptions about the business it is in, the services it provides and its relationships with customers, competitors and the world at large.

#9COVER STORY

PLACEMENT GETS PERSONALMarketing tech delivers customized messages to each consumer

You Google “green stilettos.” Minutes later, the pages you surf all feature advertisements for high heels. How? Your browsing ‘cookie’ relayed your search to an ad placement algorithm, which processed automated bids from companies eager to sell just what you want to buy. Personalized advertising is just one way that hyperconnected technology is enabling 1:1 marketing … and the bots will only get smarter.

#9COVER STORY

THE VOICE OF EXPERIENCEArnaud Ribault, Executive Director, Global Sales & Marketing, DS Automobiles

As the luxury division of PSA Group, DS Automobiles - a company launched in 2015 - is a 21st century brand. So we wanted to develop a system of communication, distribution and sales of the 21st century. Our customers are all connected, and this is their way of life. If we want to be with them we have to be in their environment, and so we have an ongoing digital conversation with our customers, primarily on Facebook, Instagram and Twitter. 

#3COVER STORY

NAVIGATING CHANGEConnecting people, ideas and data accelerates market leadership

In an increasingly “always on” world, connected consumers are using the power of information to drive prices down and services up – and their expectations for stellar experiences with everything from retail to healthcare will only increase as smart devices proliferate. To keep up with the pace of change in the connected world, enterprises must transform unprecedented data complexity into operational simplicity while generating the rich insights and responsive service certain to delight even the most demanding customers.

#3COVER STORY

THE VOICE OF EXPERIENCEDidier Evrard, Executive Vice President and Head of the Airbus A350 XWB Program

In today’s fast-paced environment, market needs change so quickly that staying connected to the customer is critical. We learned this lesson the difficult way when our first definition of the Airbus A350 didn’t suit our customers. This gave our competitor the lead in an environment of massive competition. We had to close the gap, which is when we developed the A350 XWB (extra-wide body).

#3COVER STORY

WORKING SMARTERPowerful new tools make technology work for everyone

An automotive supplier uses a social innovation tool to unite its employees worldwide in dreaming up the automotive electronics of tomorrow. A mining company “explores” unmined ore deposits in 3D. A global economic development lender uses a dynamic search tool to “mine” past projects for insights that will make future projects more successful. From New York to New Zealand, innovative companies are employing intuitive digital tools to increase their operational agility and empower employees to serve customers better.

#2COVER STORY

GLOBAL SHIFTWhy manufacturing is anybody’s game ... again

The equation for deciding where to locate manufacturing on either side of the Pacific Ocean is shifting. With the opening of China decades ago, the labor cost differential was so big, and communications had improved so dramatically, that you could make a lot of money. The cost differential was anywhere from 30-to-1 to 100-to-1 in terms of labor costs. I could shift production to China, and even if it took three times as many people, or ten times as many, I was still ahead. We saw dramatic decreases in costs for sneakers, electronics and many other products. Massive numbers of jobs were offshored.

#2COVER STORY

3D PRINTINGDisruptive technology poised to transform manufacturing

3D printing – a technology that builds products layer by layer rather than milling or forming them from metal or plastic – is beginning to earn its place in everyday use at some of the world’s largest manufacturers. As the technology becomes more powerful and less expensive, the potential to locate small factories everywhere for everything from automobiles to fashion, even for a market of one, becomes a distinct possibility.

#2COVER STORY

MANUFACTURING in the Age of ExperienceMANUFACTURING in the Age of Experience

CEOs knows that the competitive playing field in manufacturing is a shape-shifter – and its transitions are gaining speed. It took 70 years for the Industrial Revolution to replace handcrafting with mass-produced goods, but just 20 years for the Offshoring Revolution and other factors to erase China’s wage advantage at make manufacturing a new game once again. Within a decade, led by disruptive technologies such as 3D printing, mass production itself may be threatened. Compass investigates the forces that are dramatically – and rapidly – reshaping Manufacturing in the Age of Experience.

#11BERNARD CHARLÈS

BERNARD CHARLÈS

Vice Chairman,

Chief Executive Officer

Dassault Systèmes


Major trading powers of the past built upon trading routes and posts. Today, platforms are the way to make your business indispensable. They are the value creation environment, operating system and business model of the Experience Economy. Today, content, products and services are not enough. Being experts, manufacturers or engineers aren’t enough. The companies that succeed will be those that reduce to zero the distance between places, people, ideas and solutions.