A Guide for Ecosystem Business Model Building for Mid-Sized Firms

Building the Mid-sized Ecosystem Business Model

Building Ecosystem Business Models for Mid-Sized Firms are so often under-looked in much of the literature we are referred too. We get caught in the bigger players, often provided by the large consultant companies, for our references- such as Alibaba, Salesforce, Amazon, Apple, Siemens, etc,.

How can Mid-sized Business Organizations set about to build out an Ecosystem Business Model using third party providers for platforms, communication technology, data analysis and use of Gen AI?

Are these as expensive as initially feared, can they work as effectively as those provided for the bigger players offering Ecosystem solutions? You need to build out a projection of possible budgets for costs in the first year and then annual ongoing ones. Ecosystem building often runs into sometimes hundred of millions of dollars but taking a really small step I (really) hesitate here, but $2.0m to $3.0m for the first year to eighteen months provides you your dedicated Ecosystem, and yearly $1m, including team costs BUT it so depends. It is where you take this, in recognizing its value, diversity to your business and worth, determines where you take this out.

So please take these numbers as only a starters point to get your levels of interest up or otherwise I recommend you don’t bother to read the rest of the post! Scaling, then the numbers rise fast but so can the accelerated returns!

This is only a brief guidance to get you to relate and see if the “ecosystem juices” are flowing. It is not comprehensive but it does go into a starting point of a Mid-sized firms starting point to Business Ecosystems. Even if I hear some readers mutter these numbers are crazily low you have a initial framework to build up into a project

I want to here address a number of questions any organization contemplating this building a ecosystem would need to go through. There are a good few more but lets limit this to a level where they can be absorbed and then I suggest to go further then come and ask me.

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Recognizing that Gen AI will be the innovation game-changer

Gen AI will be the innovation game-changer

Everywhere you turn it seems to be all about Gen AI and how it will change the world. The fears, excitement, opportunity and the huge amounts of money being invested is mind-boggling. Any fundamental change is exactly that- full of fear and opportunity.

So where does innovation fit within this?

I have read different views but most seem to be simply dressing their existing tools and methods in the those brighter new clothes of Gen AI appeal.

I would suggest we have been given a chance, a real chance, to transform the way we undertake innovation and that is not just a “lick of paint” or a hasty re-fit of the existing, this needs something a whole lot more.

I took a look at 1) how can AI drive innovation in different ways, 2) would this require a new operating model and 3) how the innovation workflow will require a transformational change to the operating model and 4) the outcome of a fundamental rethinking of how innovation is approached and executed.

We need to leverage speed, scale and impact of Gen AI and delivering this at fast rates for consumer appeal and market development need and growth.

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