Organizations were once linear and one dimensional. No more. The modern organization exists in a multi-dimensional ecosystem sustained by a potent combination of trust, technology and management. A business ecosystem is a way of transcending the boundaries of a firm to add value to customers.
Why is it important for a business to transform?
In the 20th Century, firms relied on the static concept of a brand. Today, leading firms use the dynamic concept of an ecosystem. It is so transparent that unless a firm takes advantage of their ecosystem, it will be challenging for them to survive.
3 reasons to embrace an Ecosystem Business:
- Creates Stickier Solutions: With modern technology and collaboration with partners you create new opportunities so customers of all sizes can benefit from a particular product without leaving their current ecosystem rather they get a chance to expand it.
- Lowers The Barrier For Entry: With constant innovation and enhancements by partnering you create those advanced solutions that help companies to evolve and uniquely stand out in the market.
- Coopetition Opens The Door To New Markets: To be able to create meaningful solutions for customers and meet business goals you need to partner work with an ecosystem that allows your solutions to expand to new customer bases and new markets, fitting your offering for a new purpose.
Three Key Elements Of The Ecosystem Model
A Forbes article suggests that you must pay attention to this three key enablers of the ecosystem model:
- The Mindset - focused on problem-solving, value creation, and shared wealth. You must work collaboratively with the ecosystem and create interactions rather than just transactions.
- The operating model - It's important for your business to have a sturdy operating model that runs on collaboration and collective engagement.
- The company structure - You need to design a structure that is flexible, so that it can accommodate new participants of different types with different needs.
The Advantage of An Ecosystem
A well organized business ecosystem can solve a broader set of customer needs. So make sure you surround yourself with an ecosystem for value creation and driving success. An ecosystem is a way of providing adjacent products or services by collaborating with other companies or businesses and sharing data generated on the platform.
Check out this article and learn more about it with well explained examples.
Summary
The future is going to be about creating value for everyone. Businesses that solve immediate challenges of people today and also the major social and economic challenges of the future are the ones that will survive and grow. There is only one key to success here and that is about embracing your ecosystem.
