Workshop on Digital Eco-Systems

While in the early days of software engineering, a software product was the result of an independent software company, modern software strongly relies on components and infrastructure from third party vendors or open source suppliers. The relationship between software development companies and solution/service providers will shapte the product software landscape into software ecosystems. In such an eco-system suppliers and buyers of software products collaboratively create competitive value. Software has no physical limitation, therefore the main limitations are conceptual, social and of economic nature. While fixed value-chains are transformed into value networks the process goes hand in hand with some kind of “digital disruption”. Some popular examples to be mentioned are:

• The world’s largest taxi company owns no taxis (Uber)

• One of the largest accommodation providers own no real estate (Airbnb)

• Largest phone companies own no telecommunication infrastructure (Skype)

• The world’s most valuable retailer has no inventory (Alibaba)

• The fastest growing banks have no actual money (SocietyOne)

• The world’s largest movie house owns no cinemas (Netflix)

• The world’s largest software vendors don’t write the apps (Apple & Google)

Change in the information age primarily has addressed automation and thus efficiency. With the advent of PCs and later with the internet and clients-server architectures the competition among companies required effectiveness on top of automation and efficiency. With mobiles, apps, the cloud and web services we have entered the digital age in which eco-systems play a major role. The capability to innovate has become paramount on top of being automated, efficient and effective. This transition is accompanied in terms of the following market characteristics:

• Defined industry boundaries vanish and evolve into platforms and digital eco-systems

• Single purpose products are substituted by connected-services

• Competition as a zero-sum game turns into strategic co-operation

• Producers and users turn into co-creating prosumers

• The traditional buyer and seller relationship is redefined and customers are sharing goods and services shaping the collaborative economy value chain (sharing economy).