The Network Effects Canvas is used for detailed modeling of ecosystem relationships. The breakdown of each relationship into value unit, value proposition and relevance of the relationship for the respective stakeholder - together with the subdivision into same-side and cross-side effects - creates clarity about all significant interactions in the ecosystem.
1. Identify the core relationship first. This is currently responsible for the major part of the ecosystem's value creation. When mapping this relationship, start by naming the stakeholders (consumer and producer) and defining the core value unit.
2. Then add the respective value proposition and assess the relevance of the core relationship for the respective stakeholder.
3. Now proceed in the same way with the other relationships. Pay attention to the subdivision into cross-side and same-side network effects.
4. Finally, evaluate the relationships from the perspective of the moderator of the platform or ecosystem. First assess the relevance of the respective relationship for the platform or ecosystem. Then collect starting points to strengthen the particular relationship.
Core elements of the canvas
As a stakeholder, every relationship has a producer and a consumer. Think in roles, not in organisations.
• Who is consuming the values?
• Who is producing the values?
02 Value Proposition
Each relationship must have a sufficiently resilient value proposition for both stakeholders involved – otherwise the relationship will not work!
Ask 5 times why to discover the true reasons – or use the Value Proposition Canvas to get a deeper understanding of the jobs-to-be-done, pains and gains of the stakeholders.
03 Cross-side network effects
Appears when more users on one side of the market attracts additional users on the other side of the market.
In cross-side network effects the stakeholders involved differ from each other.
04 Same-side network effects
Appears more users on on side of the market attracts additional users on the same side.
In same-side network effects they belong to the same group.
05 Platform view
Relevance: The importance of the respective relationship is assessed from the point of view of the moderation of the ecosystem.
Stimulation activities: Provides a collection of starting points to strengthen the particular relationship. This is the core outcome of the Network Effects Canvas!