In recent years, the business world has undergone a profound transformation. The traditional view of organizations as rigid hierarchies with clear boundaries and linear processes is rapidly becoming obsolete.
Instead, we’re witnessing the emergence of fluid, interconnected ecosystems where value creation is distributed, collaborative, and dynamic, moving across multiple Ecosystems of collaborators to solve more complex challenges and enhance business value. This shift is not just semantic; it represents a fundamental change in how we understand and operate within the modern business landscape.
My move with the repositioning from “Hierarchy of Business Ecosystems” to “Interconnected Business Ecosystem Framework” reflects this paradigm shift.
Many business organizations have already attracted and worked with various ecosystem partners to solve immediate and longer-term issues.
Those who work within Partner Ecosystems recognize the value and benefits of overcoming many immediate operational issues.
When you view Partner Ecosystems as far more strategic to your business, you require another completely different level of collaborative work and mindset to solve challenges and complex issues that can bring a fresh dimension to your growth ambitions.
copyright SIA Partners, with permission on Partner Ecosystems
I have entered into a collaborative partnership with SIA Partners on Partner Ecosystems. Combining expertise, connections, methodologies, capabilities, and client work in advising, mentoring, and consulting is exciting; in offering some genuinely unique IP methodology in concept designs, research, and industry and institution connections, a compelling service offering is emerging. We believe the diversity within the proven application and combined strengths offer much.
The time to engage to discuss what this might mean to different businesses, institutions, and societies requires radically new thinking. Partner Ecosystems can solve complex issues, make a real difference in enhancing lives, and, in many cases, save lives through collaborative efforts.
Irrespective of providing solutions to the immediate and surface-level issues we are facing today, we encourage and all need to dive deeper into those systemic challenges and position at the forefront of collaborative and co-creation approaches. This requires a progressive mindset, a recognition we must change so you can differentiate your propositions and demonstrate a deep understanding of the complexities involved in tackling systemic business issues.
Are you considering building a greater understanding of where Ecosystem thinking and design can fit within your organization?
The Interconnected Business Ecosystem Framework is a pioneering and holistic approach that redefines how organizations create value, drive innovation, and achieve long-term success in an increasingly complex and dynamic business environment.
“Deploying a design that recognizes the layers of an Innovation Ecosystem that feeds the Business Ecosystem, and these provide the Dynamic Ecosystem to adjust and respond and, when combined, allow the Enterprise Ecosystem to unlock untapped potential driving sustained growth and achieving collective prosperity that thrives on its interdependence and interconnectedness.”
The selling of Business Ecosystems needs facilitation and realization
So often, you get the question, “What are the arguments for selling B2B business ecosystems?”
Then why would enterprises invest in such a significant change to their systems and structures? Where is the value and payback?
It should be recognized that selling B2B business ecosystems to enterprises can be a compelling proposition as it offers several potential benefits and value propositions. Here are some key top level arguments for why enterprises might invest in adopting a B2B business ecosystem approach:
Building Effective Business Governance has multiple challenges.
We must emphasise the importance of ecosystem governance, providing a comprehensive structure for designing a practical framework. The robustness and depth of Governance understanding make or break Business Ecosystems. Building a robust governance framework clarifies that managing business ecosystems is not for the faint-hearted or light-of-pocket in all the aspects that need to be considered.
Managing governance is challenging but essential if we recognize that business ecosystems offer immense potential for innovation, rapid scaling, and adaptability. Otherwise, Ecosystems can become expensive and often disruptive ventures. They need to be managed well.
Early research indicates that less than 15% of business ecosystems are sustainable in the long run, with the primary reason for failure lying in the governance model, according to MIT Sloan in How Business Ecosystems Rise and Often Fall, published in 2019.
We have made significant progress in the past few years due to a growing understanding of Governance needs across all parties and the appreciation of the real differences in thinking, designing, and operating in business ecosystems.
The growing recognition of the real power of ecosystems is in the diversity and knowledge sharing today. Also, the recognition that balancing collective interests, mitigating risks, enforcing compliance, and promoting long-term sustainability from kick-off.
Interdependence and Feedback Loops are pivotal to Interconnected Business Ecosystems
In any interconnected business ecosystem design, two pivotal components work in tandem to ensure the system’s overall health, adaptability, and success. The interdependence and feedback loops are intrinsically linked and mutually reinforcing. This recognition and emphasis on their importance are critical to building a robust business ecosystem.
The combination of interdependence and feedback loops creates a dynamic and self-regulating system. Interdependence highlights the need for coordinated action and shared awareness among ecosystem participants, while feedback loops provide the necessary information and insights to inform that coordinated action.
This post aims to break down the two and combine them in explanations and initial understanding. Examples of measuring them at operational and strategic levels and providing a more comprehensive and systematic approach are not discussed here. That is better at any designing and implementing stage.
Applying Super Governance to Interconnected Business Ecosystems
I have been working on further developing and creating a comprehensive framework for the Interconnected Business Ecosystem that addresses various aspects of ecosystem design, management, and governance.
I debated if I needed to add a super governance layer that ensures alignment, stability, and ethical practices across the entire ecosystem.
I have resisted this and have not added a further layer, as much of what is required from governance lies within any layer. I believe that within each of the four layers—Innovation, Business, Dynamic, and Enterprise—you add these suggestions to give them each a “super governance” managing aspect that can be “rolled up” in the final Enterprise layer if needed for any Enterprise Collaboration Board level resolution.
I am working to validate and expand on the value proposition of the Interconnected Business Ecosystem Framework and have tried to create, hopefully, a compelling pitch that will bring others on board to advance this initiative. I have published this pitch on both of my primary sites, discussing innovation, business, and ecosystems, as they both provide a combination effect for understanding this framework.
I initially called this “the hierarchy of business ecosystem needs,” which built out an interconnected framework of business ecosystems that give organizations a real alternative to how they operate today and in the future.
I provided a comprehensive series of outline papers as the introduction phase earlier this year, which provided the concepts forming a cohesive outline structure of how organizations should think through the future. Also, I provided an earlier view on my paul4innovating.com posting site of “pitching business ecosystems opens up the possibility of real change.”
We need to really open our thinking towards collaborative ecosystems. This is one of openly collaborating and co-creating in different Ecosystem structures and designs to provide a greater diversity of opinions, knowledge, and resources.
This “pooling or network effect” forms around more complex challenges to tackle, thus giving a more sustaining and hopefully greater value in solutions to the needs of their customers, markets, or areas of need.
I have recognized this needed rebranding- hierarchy has some negative connotations.
I have now entitled this The Interconnected Business Ecosystem Framework as it reflects the essence of what I believe this framework provides
We live in a world of interconnected Ecosystems. Businesses have been actively working in their own connected ecosystems to suit their own business needs. That needs to change. We need to open up our thinking to collaborative ecosystems.
Let’s briefly examine why and what I have been working on as my focus for some time—the need for interconnected business ecosystems. They are highly valuable and very relevant today in dealing with complexity. They are interlinked in different ecosystems to generate greater returns and resolve complexity and challenges that need co-creation and cooperation.
