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Chapter 4 METHODOLOGY

4.2 System Architecture

technology, which can lower the development cost and can increase the efficiency, has somehow interdependent with decreasing the negative effect and help the digital ecosystem reaching the critical mass.

 Fulfillment of Critical Mass:

Critical mass in this research represent a concept of the number of participants in the digital ecosystem meeting a critical point that is able to trigger network effect (or we can say as network externality). As the Internet provides an universal access media for people all over the world, the connection between each node of the access and the power of its effect is unable to be underestimated. The universal access alike the concept of a public service that every participant can not be prevented from enjoying even if they do not contribute to the ecosystem. In addition, the participant of the ecosystem should entail the mutual interdependence of the previous participants and afterwards (Markus, 1987). Consequently, for providing a value-added service, for increasing the participants of the ecosystem, and for lasting out the duration of the digital ecosystem, we deem that reaching the critical mass will be the first priority to do and also the prerequisite of the design pattern. As a result, our research proposition is to measure fulfillment of critical mass in order to help service designers acquaint with their position of service design and to give some hints of direction that can improve the design.

4.2 System Architecture

Our system intends to provide a guideline and a measure instrument for service designers to come up with a framework that is capable of being a destination of de-centralized digital ecosystem. In this section, we will illustrate the complete system

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architecture of our research, that is to provide a method based on the conceptual framework.

The system architecture is show in Figure 4.2 consists of two modules, which is the Fulfillment of Critical Mass Module and the Network Effect Testing Module, and a supporting module, D3 Accelerator Assistant Module

Figure 4.2 System Architecture

1. Arising Level of Network Effect Factors’ Testing Module

In this research we assume that triggering the network effect should accumulate enough participants in the ecosystem network, which means every service design has to scale up in order to reach the critical mass. We believe when the number of participants reach to a critical point, there is crucial point to trigger the bigger network effect and lead the service into the explosion stage, that is also our definition of the Critical Mass in this research as well. Based on the assumption, we attempt to manifest

network effect within the digital ecosystem and try to reinforce it in this section.

According to the network effect propose by a book named Platform Revolution:

An Innovation of Business Model Sweeping Global Social, Commercial, Game, and Media Industry (Chen & Yu, 2013), it says that to initiate the network effect should have positive same-side effect and cross-side effect. That also means the interactions between the designed digital ecosystem should be corroborated as none negative.

To achieve the objective of our research, which is to strengthen the network effect level by the improvement of the D3 Accelerator Assistant Module, we examine those dimensions in high level perspective and look out for their solution for our research propose. We try to ascertain that every improvement of each dimension can lead the designed ecosystem a better state in the digital ecosystem lifetime. At that time, we can give a feedback to those dimensions, support them to their completeness of operant configuration, degrees of operant empowerment, and the operation flow of linkware design. Last but not least is to scrutinize the network effect on the alteration of those dimension, make certain the improvement is conducting the whole digital ecosystem operation towards the maximum network effect level.

2. Fulfillment of Critical Mass Module

In order to substantiate the digital ecosystem design having the ability to reach the critical mass, we provide a verification module for facilitating designers to orientate the service design. Furthermore, with the designed position, designers may know the expansibility of the ecosystem design and then ponder the ability to improve the service ecosystem design.

Networks are characterized by positive size externalities, which is commonly called network externalities. The benefits of the addition of an extra participant exceed the private benefits accruing to the particular participant (Economides & Himmelberg,

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1995). So as to measure the participants that is empower to expand the network effect, we put forward the Digital Ecosystem Situation Analysis for designers to comprehend the ability and expansibility of the design at the very beginning.

According to previous research, customers’ willingness to accede to the service system and patronize the same service again is determined by the comparison analysis of the costs and benefits which is associate with the customer and the service provider (Lee & Cunningham, 2001). All things considered, the Digital Ecosystem Situation Analysis measures the cost and benefit of all stakeholders in the digital ecosystem, and simulates the participants in the lifetime of the digital ecosystem. Focusing on the vacuum stage of the lifetime (show in Figure 4.2.1), endeavor to meliorate the design to reach the critical mass.

With the condition's analysis, next we are going to gauge and control the negative effect of the operation of digital ecosystem, so that we can make certain the designed ecosystem will expand positively then evolve into mature. After the negative effect measurement, for designers we try to estimate the probability of the digital ecosystem participants to realize their service acceptability and the increment in future. Aiming to help designers to position, to arrange, and to adjust their design to fulfill a better service ecosystem that is in line with demand expectations.

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Figure 4.2.1 Digital Ecosystem Development with Network Effect

The following section will go into details and explicate the operation of these modules and sub-modules.

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