“Networks Effects (NfX) Construction Guide” Method

Would you like to build a Digital Ecosystem with your company? Then we at Fraunhofer IESE are the right partner at your side. During a workshop, we will jointly develop an effective network effects cycle between the providers and consumers of the Digital Ecosystem.

Collaboration in a Digital Ecosystem is facilitated by a platform created by an initiator. It provides the basis for generating added value for providers and consumers, which are ultimately the core of network effects cycle. 

We have a solution to the chicken-and-egg problem! The 1-day workshop is accompanied by at least two Fraunhofer IESE experts. The workshop for, ideally, 4-8 participants is about developing an effective network effects strategy of your own platform in a Digital Ecosystem. The workshop will ensure that all relevant aspects of the network effects cycle are taken into account in order to enable sustainable growth of all market sides of the platform through indirect (cross-market-side) network effects.

Our network effects cycle covers all relevant phases, from the creation of direct and indirect network effects to the generation of added value for the users of the ecosystem and the design of suitable retention strategies for providers and consumers. With the help of the acquired understanding of network effects, you will be able to ensure the growth of the Digital Ecosystem.

“NfX Construction Guide” Workshop – Overview

Prerequisites for participation

• Group size: 4-8 people in a maximum oft wo groups 
• The participants know (1) who operates the platform, (2) which asset the platform brokers, (3) who the asset consumers are, and (4) who the asset providers are.
   

Goals

• Definition of a network effects strategy 
• Continuous growth of the platform’s market sides through indirect network effects
  
  

Method

• One-day workshop on sire or digitally 
• The workshop consists of four steps: 
  1. Answering four key questions to ensure a common starting point for all participants
  2. Determining the strategies for marketing, onboarding, and customer retention for both the consumer and the provider side
  3. Generation of direct network effects within each market side 
  4. Generation of indirect network effects by means of which the provider side fuels the growth and added value of the consumer side and vice versa  
• The Creativity Workshop is prepared, moderated, and documented by IESE 
   

Results

• Documentation of the workshop – incl. Photo record in the case of an analog event 
• “Big Picture” of the network effects cycle, showing the added value for providers and consumers 
• Overview of the direct and indirect network effects 
• Concrete measures for marketing and onboarding as well as for retaining providers and consumers
   

Recommendations

We recommend using the NfX Construction Guide after a “Tangible Ecosystem Design” workshop and the “Business Model Construction Kit” workshop.