This document outlines Peter Evans' agenda for 2016 focusing on trends in the digital economy. It discusses the growth of networks, data, and platforms which will intensify in 2016. Specific trends covered include the increasing scale and speed of the industrial internet compared to the consumer internet, the core and periphery of the API economy, alliances in IoT and whether companies will balance or bandwagon, the rise of large platform companies globally, and if digital diplomacy can make Europe more competitive through a digital union. The agenda positions organizations for changes in these areas in the coming year.

1. Agenda 2016
Peter Evans, PhD
Vice President
Center for Global Enterprise
Photo by Maria Carrasco Rodriguez
Corporate Strategy and Digital Diplomacy
EEC15- Reshaping the Future
of the Digital Economy
Bilbao, Spain
November 18-19th, 2015

2. 2
Corporate
Strategy
Agenda
2016

3. Complex forces of change
Firm
Age of
Networks
Mesh networks
linking physical,
digital and social Age of
Data
Surge in availability
data and tools that
can manage and
analyze data
Age of
Platforms
New business models that
achieve that leverage
networks and intelligence
We will see these trends continue and intensify in 2016
Source: P. Evans, “Networks, Data and Platforms,”
in Growing Global: Lessons for the New Enterprise,
Center for Global Enterprise, 2015.
4

4. IoT… from basic necessities …
4

5. 5
> 8,500 apps
… to strategic platforms
>11,000 developers have
accessed Nest’s APIs
> Billions of calls

6. Industrial Internet/ Industry 4.0
Steam & gas turbines 52 million man-hours per year: $7 billion in labor services
6

7. IoT speed and scale
Jeff Immelt, GE Minds & Machines
conference, San Francisco, Nov. 2012
Tim Cook, Apple Special Event,
San Francisco, Sept 2014
Industrial Internet vs. consumer internet
9

8. 8
Will the Industrial Internet catch
up to the Consumer Internet?

9. Source: Rahul Basole and Peter Evans, API Economy
Visualized, Center for Global Enterprise, 2015
Information = API Economy
9

10. 10Source: Rahul Basole and Peter Evans, API Economy
Visualized, Center for Global Enterprise, 2015

11. 11
Social Mapping eCommerce Images Music
API mashups
Top sectors building on open APIs
Source: Peter Evans and Rahul Basole, with data from ProgrammableWeb, Center for Global Enterprise, 2015

12. Open API mashups
Source: Peter Evans and Rahul Basole, with data from
ProgrammableWeb, Center for Global Enterprise, 2015
Other areas lag social, mapping and images
Weather Medical Health Energy Sustainability
12

13. API Economy: Core vs. Periphery
Source: Peter Evans and Rahul Basole, with data from
ProgrammableWeb, Center for Global Enterprise, 2015
Social media / web
Job search / work
E-commerce
Tools / analytics / big data
Payments
API Clusters
Messaging services
Walmart
Amazon
Companies
Enterprise
Amazon SNS
Alexa Web Inform
Amazon
Marketplace
Amazon
SimpleDB
Amazon Product
Advertising
Amazon
CloudWatch
Amazon
Flexible
Amazon
Redshift
Amazon SC2
Amazon S3 Amazon
Mechanical TurkAmazon RDS
Amazon DynamoDB Amazon Queue Service
Walmart
13
Amazon vs. Walmart

14. 14
What companies will move
from periphery to the core
of the API economy?

15. Internet of things
How many firms are actively engaged?
1,550
Source: Peter Evans and Rahul Basole,
IoT Alliance Database, Center for
Global Enterprise and GT, 2015
17

16. Internet of Things- large vs. small companies
150 companies
>$1billion sales
1,400 companies
Source: Peter Evans and Rahul Basole,
IoT Alliance Database, Center for
Global Enterprise and GT, 2015
18
Companies most actively developing new products and services
<$1billion sales

17. IoT large vs. small industry
2016
Today
2001 2004 2007 2010 2013
Open Mobile
Alliance
Source: P. Evans, CGE, 2015
Proliferation of alliances
19

18. “Before you go to war, assemble allies”
Carl Shapiro and Hal R. Varian
Art of Standards Wars

19. IoT companies by alliance
Source: Peter Evans and Rahul Basole, IoT Alliance Database,
Center for Global Enterprise and GT, 2015
21

20. 20
IoT Alliances
To balance or bandwagon?

21. Platform business
Expanding value through matching, interaction and innovation
Platform
companies
Innovation
Software
developers MatchingSupply +
Demand
Interaction
Ecosystem
23

22. Global rise of platform companies
135 Companies – Market cap $3.7 trillion
Source: P. Evans, Global Platform Database,
Center for Global Enterprise, 2015
92% of market cap
8% “
24

23. Platform companies by region
135 Companies – Market cap $3.7 trillion
N. America Asia Europe
Africa &
L. America
Source: P. Evans, Global Platform Database, Center for Global Enterprise, 2015
63/ $2.8 trillion 42/ $670 billion 27/ $161 billion 3/ $61 billion
25

24. Platform employment
135 Companies – over 1.3 million direct employees*
Source: P. Evans, Global Platform Database, Center for Global Enterprise, 2015
Africa &
L. America
EuropeAsiaN. America
Note: Given the challenges in collecting accurate employment for the 78 private platform companies, this figure only includes direct
employment for the 57 publically traded platforms.
26
1.3 million

25. Platforms and innovation hubs
Key clusters around the world
Source: Global Platform Database, Center for Global Enterprise, 2015
Note: Hubs represent cities with 4 or more platform companies that
have a market value of $1 billion or more and includes publicly traded
as well as private platform companies.
27

26. EU leaders Call for “Digital Union”*
Digital “Unions” globally
China Europe
* “A Digital Single Market: The Key to Europe's Industrial Leadership in the Digital Economy” Günther Oettinger,
EU Commissioner for Digital Economy and Society at ICT2015, October 20, 2015.
United States
28

27. Will digital diplomacy
succeed in making Europe
more competitive?

28. Future of the digital economy
1. IoT speed and scale… consumer vs. industrial
2. API economy … periphery vs. core companies
3. IoT alliances… to balance or bandwagon
4. Digital diplomacy… digital unions and competitiveness
Positioning for change in 2016
29

29. Agenda 2016
Peter Evans, PhD
Vice President
Center for Global Enterprise
Photo by Maria Carrasco Rodriguez
Corporate Strategy and Digital Diplomacy
EEC15- Reshaping the Future
of the Digital Economy
Bilbao, Spain
November 18-19th, 2015