Business Ecosystems are interconnected and integrated networks to build unique value and greater resilience
Ecosystems are living adaptive networks: these forms the basis of the integrated Business Ecosystems where Connection, Dynamism, and Evolution Converge.
Central to my thinking in my Business Ecosystem offering is a core concept of multi-dimensional applications that combine the different ecosystem types (Innovation, Entrepreneurial or Start-Up, Business, Dynamic, (solo) Enterprise and Enterprise-to-Enterprise) as interconnected layers with the different dimensions (or building blocks) to explore around Purpose, Relationship, Value Creation, Governance and Enabling Technology. This provides a comprehensive, rigorous way to analyze and build ecosystems.
But firstly in this post let me tell the Integrated Business Value Story.
Managing for the signs of risk and failure within Business Ecosystems
Recognizing the telling signs of failure or those necessary moments of timely intervention are critical for the continuous building of a successful Business Ecosystem.
Failures happen, recognizing the early warning signals becomes important. I am outlining here a more simplified guide. The more extensive one contact me and we can discuss it and build from this.
As an Introduction
Business ecosystems are becoming essential for success in today’s interconnected world. However, these complex systems carry inherent risks, and failures can be costly, embarrassing but more importantly undermine your organizations position.
This guide provides a structured approach to understanding, preventing, and mitigating ecosystem failures, to enable the empowering of leaders to recognize different mitigating risk and warning signs and then build a greater resilience into thriving ecosystem initiatives.
A structured approach to ecosystem failure analysis could be highly valuable to recognize and avoid with a deeper appreciation for ecosystem health and risk management.
The relationship between emerging technologies and business ecosystems is not a simple one-way street. It’s a highly interactive and co-evolutionary relationship where each influences and reshapes the other.
I wanted to take this one stage further to break out these emerging technologies to related them more specifically to their influence on Ecosystems. Arguably it is increasingly a critical intersection.
Interconnected Business Ecosystems- the imperative in a modern world
Background and Introduction
I enjoy the value of building different thoughts through Mind Mapping. They trigger as well as pull together different strands. In a world that seems to be facing a new world order in trade, collaboration and cooperation, we need building mechanisms that can adapt and give a better resilience in “selective” networks. For me, building and designing Business Ecosystems offers a different way of enabling growth, different value and worth.
So let me tell you the story of Business Ecosystems in a modern world
In today’s rapidly evolving world, the concept of ecosystems has emerged as a critical model for achieving sustainable growth and addressing complex challenges. Ecosystems, in this context, refer to networks of interconnected entities—whether they be businesses, communities, or technologies—working collaboratively to create value and drive innovation.
The imperative of ecosystems is becoming increasingly evident as we navigate a more interconnected world, where working together isn’t just beneficial, but essential.
Building a new Interconnected Business Ecosystem Design
I have recently been reworking my views on Business Ecosystems in their thinking and design. They are recognizing a fundamental shift in how we approach problem-solving and value creation. We need to continue to urge businesses to move away from often isolated, linear models towards this thinking and design, forming around being interconnected, based on dynamic systems.
It is moving towards a collaborative, interconnected design that makes for a radically different mindset where complex relationships, where value co-creation and balancing both short-term and long-term become central for sustainability and protecting a viable future.
We do need to recognize Business is on a Burning Platform: Why Traditional Approaches Are Failing
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.
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.
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.
Including Start-up and Entrepreneurial Ecosystems into the Interconnected Business Framework, makes it more comprehensive and reflective of the full spectrum of business activities. It can enable how ideas flow from innovation through entrepreneurship and into established business practices, and how larger businesses can engage with and benefit from entrepreneurial energy.
This inclusive approach would make the framework more robust and applicable across a wider range of organizations and scenarios, from nascent start-ups to multinational corporations, while still allowing for specific focus on entrepreneurial challenges when needed.
Entrepreneurial or Start-up Ecosystems: Let me explain their role in supporting startups and new ventures, driving economic growth and innovation. Each has its own unique characteristics and focus.
Let’s define this ecosystem:
The Entrepreneurial or Start-up Ecosystem, while sharing some similarities with Innovation Ecosystems, is distinct in its focus on new venture creation and the specific needs of early-stage companies. It intersects with other ecosystem types but maintains a unique identity due to its emphasis on entrepreneurship, risk-taking, and the particular challenges faced by new ventures.
Ecosystems in the business environment are taking on a growing importance to manage greater complexity and challenges in unique collaborations than the one single organization cannot handle themselves, so limiting their growth and value potential
We need a different framing of Ecosystems, in appreciating the whole as well as its parts. Often, we describe Ecosystems in far too simplistic terms and fail to recognize the interconnected value we need to bring together from multiple Ecosystems and Networks to extract the value potential that is possible in today’s connected world.
In constructing these Ecosystems I have here provided a short explainer of the Integrated Business Ecosystem Frame and then a summary page of each of its parts with specific definitions and key component parts outlined. These are Ecosystems specifically dealing with innovation, start-up and entrepreneurial, business, dynamism, business, enterprise and enterprise to enterprise (E2E)
