A relatively quick post, partly as Hannover Messe 2024 is in full flow and tuning into events like this, you realize where we are all being pushed to the future,. Although GenAI gets a lot of central billing in the talks and demonstrations, the future “buzz words” that tell much of the immediate future are wrapped up in the solutions being offered.

Hannover is seemingly emphasizing the power and need of Ecosystems, platforms, marketplaces, end-to-end processes, and sustainability to set up so as to gain value and impact from all the data and AI coming towards us. These events are always forward-looking; you get the impression there are some big, even mega ecosystems, being built, but the reluctance and convincing are still lagging from those attending, transformation is a very tough call.

I am not sure we have crossed that “tipping point” needed from the essential missing piece—customers of all sizes and shapes—being convinced that opening up to far more collaboration and co-creation is in their interest. They need to cross the chasm and start with, perhaps, extending their existing thinking on “Partner Ecosystems” and opening them up to real collaboration and co-creation sharing.

Crossing the chasm into a new way of doing business through Ecosystem thinking and design is upon us all.

Companies and CEOs, I think, are seeing it and are beginning to understand all the talk around Ecosystems and the imperative to get organized for this. Yet the reluctance comes partly from not knowing how to do it, who to trust to do it with, who to partner with, who to advise on any Ecosystem building, and what impact, cost, and time this will take.

The talk is (as always) the out-of-the-box solutions. I wish it was that easy, but it is not. Understanding the value, impacts, costs and changes you need to undertake in moving to any Business Ecosystem undertaking is in need of well-reasoned thinking and demonstration, step-by-step. And finding the necessary resources, commitment to change and the willingness to experiment and explore. There comes a time when you do have to cross-the-chasm.

Where to start on Ecosystem building? Start thinking Partner Ecosystems

It seems many businesses are like the deer trapped in the oncoming headlights of a fast-moving car. They react far too late.

We do get caught up in all the “bells and whistles” of this future-looking world, but they become so loud that you stay a little frozen in what you have and know. The “fear” of the unknown needs explaining as best as you can and building out the business case for change so you begin to see where the new “return on investment” is emerging and potentially providing a greater impact and growth than you currently have

I have focused in my last two posts specifically on Partner Ecosystems. I wrote firstly about “Are you thinking of Partner Ecosystems? You should. Making the opening Business Case“. Then in my second post I outlined choices of how to set about thinking and working through partner ecosystems, with this post of “Who is best to facilitate the building out of a Business Partner Ecosystem?“

As you build any argument for change, in this case moving towards a broader Partner Ecosystem approach, you need to “flush out” a host of alignment details with a company’s strategic objectives and show how you intend to provide the potential benefits and different value creation by undergoing this transformation.

It is never easy to lay out the shift to Business Ecosystem thinking and design. You always need to recognize that senior executives often have multiple priorities, competing initiatives, and limited resources to allocate.

So how can we bring Partner Ecosystems to the attention of the Board and senior board members and generally seek understanding and, eventually, approval?

Here are nine points to consider

1. Address specific pain points or challenges: Instead of presenting a broad, theoretical case, tailor your argument to address specific pain points, challenges, or missed opportunities that the company is currently facing. For example, if the company struggles to enter a new market or faces intense competition, highlight how a partner ecosystem can provide a real alternative solution that will build a different level of necessary resources, expertise, or market access to overcome these challenges.
2. Start small and demonstrate success: Instead of proposing a large-scale, company-wide partner ecosystem initiative, consider starting with a small pilot project or a specific business unit or product line. This allows you to demonstrate a partner ecosystem’s tangible benefits and ROI before scaling it across the organization. Success breeds confidence, and a successful pilot can provide the proof and momentum needed to secure broader buy-in and investment.
3. Involve influential stakeholders and champions from day one of any kick-off: Identify influential organisational stakeholders who can act as champions for the partner ecosystem initiative. Start to identify external partners or what gaps are missing from the internal resources. These need to be a growing group of diverse people, such as respected leaders, subject matter experts, or individuals with a vested interest or growing curiosity in the initiative’s success. Engage them early, seek their input, and leverage their support to consider my point 4.
4. Build a coalition of advocates. Holding regular internal “town hall meetings” to open up the thinking across the company builds a real undercurrent of curiosity, questioning, and debate. It takes time and investment to undertake, but remember that ecosystem thinking needs sharing and explaining so that more can recognize its value. If it’s awkward here, it will be tougher when you seek new investment.
5. Quantify the opportunity cost: In addition to quantifying the potential benefits, highlight the opportunity cost of not investing in a partner ecosystem. This is not easy, but lost market opportunity and slowing market share are all quantifiable to get the necessary attention. This could include lost revenue opportunities, market share erosion, decreased competitiveness, or missed opportunities for innovation and differentiation. These should be stressed as “soft” indicators but hardened ones, guaranteeing a clear ROI. As you investigate, build and demonstrate, you “harden” those numbers, and any phasing can be a “reality check” or validation point for continuing or scaling the project differently. New innovation often goes through the same iterative learning process.
6. Leverage external validation and industry trends: Supplement your argument with external validation from industry analysts, research firms, or successful case studies from competitors or industry leaders. Demonstrate that partner ecosystems are an emerging best practice or industry trend that the company cannot ignore. As you bring in partners, they offer a different perspective and can give access to different data and market perspectives.
7. Propose a phased investment plan: Instead of requesting a large upfront investment, present a phased investment plan that aligns with the company’s budgeting cycles and risk tolerance. Start with a smaller initial investment to build the foundation and demonstrate early wins, and then propose incremental investments based on achieved milestones and realized benefits. Building Ecosystems often cover complexity and challenges that “span” different annual investment cycles and tackle challenging problems. Establishing phased investments enables all involved and interested to stay appraised and will give their opinions. Addressing this head-on gives rigour and identification to this emerging approach to opening up to Business Ecosystems.
8. Emphasize agility and adaptability: Highlight the ability of a well-designed partner ecosystem to adapt and evolve with changing market conditions, customer needs, and technological advancements. This positions the investment as a long-term strategic asset that can provide sustained value and competitive advantage. You gain knowledge, experience, and ways to approach partnerships as you learn.
9. Having a trusted, experienced third party alongside you throughout the journey helps considerably to encourage, force the pace, and document the journey so those more on the sidelines or becoming part of an evolving network of contributors can track back and support the initiative far better than being caught by surprise.

So in my view, to sum up

Combining a well-reasoned argument with a pragmatic approach, external validation, and a phased investment plan that addresses specific pain points and demonstrates early success can increase the likelihood of securing senior management’s buy-in and investment in a partner ecosystem initiative.