How do organizations plan and develop value points? Value network analysis provides insight into how systemic structure influences innovation potential. Consider the iphone vs. Google phone value propositions: “The good side of networks is that they can make it easier for ideas to spread. The problem with networks is that to get people to actually adopt your new idea, you often have to get them to break links within their existing network, and this can be very difficult. That is why it is important to understand how to build a position within the value network.”
Understanding innovation and value in the mobile space is important for technology and media organizations. Mobiles far outnumber PCs/laptops in number and in the manner in which they are integrated into daily habits. Google has moved aggressively into mobiles. The author of this insightful analysis builds on the value network analysis of Google and Apple:
Apple don’t want to destroy the telcos; they just want to use them as a conduit to sell their user experience. Google, however, are another matter.
Google is an advertising corporation. Their whole business model is predicated on breaking down barriers to access — barriers which stop the public from accessing rich internet content plastered with Google’s ads. Google want the mobile communications industry to switch to Version 2, pure bandwidth competition. In fact, they’d be happiest if the mobile networks would go away, get out of the users’ faces and hand out free data terminals with unlimited free bandwidth. More bandwidth, more web browsing, more adverts served, more revenue for Google.
Microsoft has been strangely absent from mobiles. I remember reading in early 2000 that Microsoft was shifting its focus to mobiles. Since that time, they’ve been quite ineffective. Who actually uses Windows Mobile? I find it odd that a company with the resources and intelligence of Microsoft is unable to develop a strategy for competing in the mobile market place.