Networks 3.0: Defined by digital dimensions

  • Strategy and planning
  • Competitive assessment
  • Opportunity and risk considerations
  • Financial evaluation

Thesis

Illustrations

Blueprint

  1. The original core asset: from which the opportunity evolves
  2. First network effect: original product functionality improves with usage
  3. First data wealth: network effects enrich the data sets
  4. Network expansion: related product introductions add to depth of data layers
  5. Second network effect: network reach and data depth enrich the evolving asset and its integrated network products, improving the portfolio with usage and new network dimensions
  6. Optionality: opportunities for growth emerge from the deep new network asset

Commentary

  • Machine learning
  • Machine connectivity and optimization
  • Multi-sided marketplaces
  • Information exchanges
  • Internet of things (IoT)
  • Software subscription services
  • Mapping and logistics
  • Monitoring and alerts
  • by startups to build valuable networks in a “winner take most” environment
  • by more mature businesses to branch out or reposition to defend with network effects against product or technology disruption that may occur
  • by strategic buyers to identify long-term needs in building, expanding, or enhancing their networks
  • by strategic sellers to identify potential targets, fit and opportunities to add value
  • by investors and other funding sources to assess upside, sustainability and risk

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