Europe is happy - how much longer?

Ecosystem Espresso Edition?#4?:

1| Thank you for 496 Subscribers.

Highly appreciated. Please keep sharing with friends, colleagues, former peers and people that could benefit.?Please help us crack 1.000! Together.

2| Europe: Rich & happy & descending?

Europe is rich and happy. However, are we hungry enough?!?

3| Switzerland: Very Rich & very happy but losing?

Switzerland is especially rich and happy.?#UBS?&?#CreditSuisse?is a new chapter of shaking things up on macro-level, but also a draw back on Ecosystem Play?

2| Rich and happy, really?

The factors that contribute to happiness are as subjective and specific as the billions of humans they influence, but there are a few that have continued to resonate over time.?

#Family. #Love. #Purpose. #Wealth.

The first three examples are tough to measure, but the latter can be analyzed in a data-driven way. Does money really buy happiness? Let’s find out.

Look at this data from?#CreditSuisse?(interesting, isn′t it?!):

Of course we would have to look at purchasing power...

While the results don’t definitively point to wealth contributing to happiness, there is a strong correlation across the board. Broadly speaking, the world’s poorest countries have the lowest happiness scores, and the richest report being the most happy.

Lower Inequality leads tendentiously to higher happiness

Countries with lower income inequality tend to also report more happiness. The 15 countries in this dataset with the highest inequality (shown above) have an average happiness score 1.3 lower than the 15 countries with the lowest inequality (shown below).

So what now?!

If more wealth and less inequality helps. What is our outlook in Europe? I am not doing a full-fetched analyses but look at the area of expertise we cover (source: Visual Capitalist).

Dealing with Platform Dominance

By defnition, a proprietary platform provider is the central participant in its ecosystem. This can be a position of considerable?#power, especially when the platform is a?#monopolist?in its market. Managers of proprietary platform providers must consider how to leverage their dominance without provoking a damaging response from end?#users,?#complementors,?#regulators?and?#antitrust?authorities (Gawer and Cusumano, 2002; Iansiti and Levien, 2004; Yoffie and Kwak, 2006; Gawer and Henderson, 2007).

Negative #externalities are a related but distinct concept from the risks of "platform empires". They refer to the negative impacts that a platform's business model can have on its users, customers, or society as a whole. For example, a platform that relies on gig workers may contribute to the growth of the gig economy and the erosion of traditional employment models. Another example is a platform that relies on targeted advertising, which can lead to privacy violations and manipulation of user behavior. The negative externalities of a platform's business model can also create risks for the platform itself, including regulatory and reputational risks.

Successful proprietary platform providers are often able to #extract a large share of the economic value generated through platform transactions, leaving little for demand- and supply-side users. When they fully exploit their market power, proprietary platform providers can earn high profits, which may attract entrants who hope to usurp the platform leadership role (Source: Van Alstyne).

Too much is not good

So, there is a macroeconomic - society lens and a platform business owner lens. Platforms and Ecosystems are like living systems. #resilience is achieved through #dynamic #equilibriums. If one side extracts too much, then partners and complementors switch or new players are attracted.

Regulating > Learning vs. Learning > Regulating

Europe tends to first focus on regulating. Then we can play safely. While many regulations are positive and role models, e.g. #DSA #DMA or #DecentralizationBlockchain. The strong focus on regulation paired with far less start up funding and willingness to spend long enough lead to a sad but true picture in platforms and ecosystems in Europe.

We do have a 16x platform challenge!

Yes, Europe has not one language, one set of regulations, one culture. Of course it takes longer to scale. However, it is also about the aiming at global in the first place, from an ambition, mindset and funding perspective. Even the most successful European platforms are only regional: e.g. #Zalando. is serving 25 European countries.

Do not get this wrong, it is great that Zalando is following a staged expansion strategy creating density. Fashion to me is global in nature. So why not more markets since incorporation 2008?! I acknowledge the open marketplace strategy of Zalando is only a hand full of years old and the pandemic did not help either when consumers did not "need" fashion.

European Corporates instead of European Start Ups!

Large enterprises have many resources, access to markets, partners, deep pockets and great brand names. The book of Andrew Binns #CorporateExplorer is making the case for the huge opportunity innovation in corporates would have.

Now the challenge is, even the biggest European enterprises are not yet playing platform and ecosystem systematically enough. We see a lot of #Innovationtheater with the whole list of start ups, venture building, accelerators etc. In most of the cases the focus is on product innovation. Sometimes also service innovation, hardly experiences or even #businessmodelinnovation.

What has not happened many times is adjusting the operating model, that motherships can take on more than the usual suspects. In doubt or crises like now, all good will is defaulting back to business as we know it.

Hey, it is you leaders!

Innovation Maturity research outlines for example for automotive and manufacturing an average Innovation Level labelled "Novice", an industry avg. Innovation Maturity Score of 1,89|4,0 and the least developed innovation ecosystem pillar: "Leadership" (source: D. Toma, C. Beswick).

3 things YOU can do for you AND Europe.

We are not criticising you. We hope to inspire you to take this challenge serious. You are great managers! Europe needs you to be also great platform innovation leaders:

1. Platform and Ecosystem Discovery Camps: the enlarged leadership team needs to understand fundamental principles, speed of change and the need for dual operating models, new metrics and mindset. You need to create an intention that lays the foundation to move with focus, determination and consequence.
2. Marketplace Grand Strategy: A?marketplace grand strategy provides?a roadmap for achieving a company's long-term goals and objectives in the context of the growth of the platform economy. It helps the company make strategic decisions that align with its overall direction and focus. A well-defined corporate grand strategy provides a framework for the company to evaluate potential opportunities and make strategic decisions about its future.
3. Second Mover Disadvantage: Platform dynamics favor first movers. Companies that wait to build a marketplace can find themselves at a significant competitive disadvantage.?Your #products and #brands will be devaluated because you lack access to customers, insights and personalisation. Your and OUR wealth is at risk. Why do you not create more FOMO. Most boards are still male dominated. So, why not use it to your advantage: "the window of opportunity is closing fast, we need to be among the winners!"...

3| Switzerland: Very Rich & very happy but losing?

Dear Swiss friends! #Switzerland is doing great. Being number 1 globally on innovation. Not struggling with inflation that much, unemployment low - business as usual.

However, the last days were less comfortable. A lot was written about it. I want to look at it from an #ecosystem and #transformation angle.

#UBS and #CreditSuisse are one now.

Well, can they be really? Those are two strong brands with their histories. I do have friends working for both sides. We did not talk about this. I have an outsider lens here. Imagine #Coke and #Pepsi were one now. Unimaginable.

I left Coca-Cola in 2007, but I would never drink a Pepsi consciously. I think Pepsi is doing a lot of great things. That is not the point here. For example I think being the lead client for #TeslaSemi is a super smart move. It is a matter of respect for the brand Coca-Cola. I could imagine something similar on #Paradeplatz.

It was the "enemy" across the street, the one charts would be benchmarked with. And see those different developments.

#UBS Ecosystem Play at the core.

UBS ticked many boxes to at least enable being among the winners in the #DecadeoftheEcosystem:

In contrast to this very clear, simple direction setting at UBS, Credit Suisse felt more like the same. A good old bank. No purpose and meaning. Defensive mindset, just numbers (just read above on happiness: purpose is critical to happiness). The last New Credit Suisse Strategy from October 2022 is just a generic, financials driven document:

For Switzerland as a super trusted country the crisis was #CodeRed. Therefore, a quick big Swiss solution was found. Unfortunately with that also focus on ecosystem play was gone. I understand psychologically that a nation is bigger than a company. Yet, exchanging the CEO Ralph Hamers is a blast to Europe's platform and ecosystem ambitions. Another contender that might not scale.

Good luck to the new #UBSCS Sergio P. Ermotti leadership team! Please do not drop platform and ecosystem play. Please continue investing in your MVEs further. AND get #CS side of business a better strategic destination framework. This was poor. Sorry.

Will we now all be rich and happy?

Ecosystem Espresso - let me know how you like your espresso!

So, please let me know what you would like to hear and read about. I am working in an ecosystem of great partners and thought leaders like?Peter C. Evans, PhD?and?Andrea Kates. The Espresso has to taste (help) you. AND we enjoy learning as well. As no-one knows it all.?

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