The need is to recognize that Business Ecosystems do need to be distinctive to succeed. They are complex and challenge much of what and how we undergo Business today.
Business Ecosystems do matter. Briefly they can transform the linear value chains we have in place today and make them more dynamic value networks. By expanding beyond existing and our traditional borders and markets we can create those potentially exponential growth opportunities. We can provide enhanced and highly interconnected customer value and through the selection of partners within the Ecosystem network we can can build real, sustaining competitive advantage.
Recognizing different thinking and design
To achieve a significant change to how you undertake business you need to firstly evaluate and then undergo some fundamental shifts from product solutions to solution ecosystems. A whole architecture needs building with four fundamental building blocks of having in place 1) a core platform, 2) an evolving and resilient partner network, 3) the value exchange mechanisms well sorted out for multi-directional flows and 4) a powerful, fully connected innovation engine.
Recognizing Ecosystems are an evolutionary path.
Ecosystems do not occur over night they have an evolution path, going through 1) a foundation learning and building stage, followed by 2) well-thought through expansion in core capabilities, partners, the platform benefits extracting all the connected value building out a clear but refining value definition, that 3) leverage the maturity and returns the investment requires.
This evolution is where the distinctiveness of Ecosystems comes out in the reciprocal network effects, innovation leadership advantages, market influence that shape behavior and give new often game changing choices that can build into sustaining value due to this investment, over time
Reverse engineering peels away layers and triggering points
I have been experimenting with some reverse engineering structured thinking and been amazed at the business ecosystem of Salesforce for example. There are plenty of others that provide a real clarity of purpose, design and business model evolution. Recognizing the different triggering points of Walmart, DBS Bank, John Deere, Siemens AG, Alibaba,, Siemens Healthineers, Philips , Apple, and Amazon. Great learning lessons to open your thinking up to the needs and the options.
When you look at these organizations you recognize the distinctive and evolving layers of 1) the evolving core ecosystem architecture, 2) the operational layer where dynamic ecosystems are embedded, 3) the governance and orchestration layer for control, measurement and growth and resolution management, 4) the evolution layer providing their transformation path and finally here 5), the strategic layer for the competitive positioning in market making.
Adding the Unique Secret Sauce
What emerges, by looking at these five layers you begin to see an even deeper core. One made up of a simple framework that “fills out” from all the related analysis. Let me share these five, they are powerful to focus upon. These are 1) Network Mapping and Relationship Dynamics, 2) Network Effects Architecture, 3) Innovation Pattern Distinctiveness, 4) Value Capture Mechanisms and 5) Fundamental Ecosystem Distinctiveness and the recognition of the differences.
I wrote about suggesting to forget those operating within more traditional mindsets. When these are all fully recognized and then bundled up you begin to discover the secret sauce of successful Business Ecosystems through these five layer framing.
Looking for your own recipe to Ecosystem design and thinking?
Ecosystems are changing the business world. Are you changing and adopting for the growth and impact these opportunities can bring?
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