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.