Designing the Business Ecosystem Approach
I have been looking at different ways to pitch Business Ecosystems recently for some evolving and hopefully sustaining work.
You can “pitch” to clients in several different ways. Some know their problems, while others don’t recognize them until they are prompted or confronted. If you have a tried and tested way to solve problems, you can become a little blocked from considering something that looks on the surface as radically different, but underneath might be the pathway (to salvation) for new sustaining solutions.
Pitching business ecosystems has to gain attention and be seen as a (radically) different way to tackle growing complex and challenging business problems. The problem for many is that it does “confront” them in considering the multiple layers of what this might mean regarding changes in mindset, organization thinking, and design, rethinking trust by opening up to others outside your existing network and adapting to a new way of design and thinking.
I will tackle different approaches over several posts, but first, let’s look at organizational strategies and the distinct advantages Business Ecosystems can have compared to the more traditional ways of tackling challenges today.
Here are some reasons why explicit consideration of ecosystems is valuable, not just for considering but also for debating and forming an opinion of how and where they can fit in your organization’s future design.
Irrespective of how you see this, my opening advice is “go slowly”, firstly think Partner Ecosystems but let’s go step by step :
Firstly, let’s start with the Holistic Perspective:
- Why Ecosystems? Traditional approaches often focus on individual elements or functions within an organization. Ecosystem thinking encourages a more holistic perspective that considers the interconnectedness of various internal and external elements, providing a comprehensive view, diversity of opinions and greater exposure to broader knowledge and solution consideration.
The appeal of Adaptability and Resilience:
- Why Ecosystems? Ecosystems are inherently adaptable and resilient. In a rapidly changing business environment, explicitly considering ecosystems enables organizations to navigate uncertainty better, respond to dynamic challenges, and build capabilities for sustained adaptability. They provide real resilience and adaptability and respond constantly.
Extending into Collaborative Innovation:
- Why Ecosystems? Ecosystems foster collaboration and innovation by bringing together diverse entities. Unlike siloed approaches, explicit ecosystem thinking encourages organizations to tap into external expertise, share resources, and co-create solutions, leading to a more innovative culture.
Resolving those tougher, Complex Problem Solving needs
- Why Ecosystems? Many of today’s challenges are complex and interconnected. Ecosystem thinking allows organizations to address these challenges by considering the broader network of relationships, dependencies, and influences, facilitating more effective problem-solving.
The appeal of having a more Agile Response:
- Why Ecosystems? Ecosystems support agility. By acknowledging the interconnected nature of business functions, organizations can respond more quickly and flexibly to changes, market trends, and emerging opportunities than rigid, compartmentalized approaches. Moving to an agile organization does not happen overnight; agility needs to be consciously built through growing trust and flexibility between partners and sharing emerging practices.
Building Out the External Collaborations:
- Why Ecosystems? Ecosystems extend beyond organizational boundaries, emphasizing collaboration with external partners, suppliers, customers, and competitors. This collaborative approach enhances collective problem-solving and value creation. Building a network is critical to adapting, adjusting, exchanging, and exploring with your peers for that hidden knowledge, insights, or strands of intelligence that make that decisive difference.
The vulnerability in Value Chains and different ways to Optimization:
- Why Ecosystems? Traditional approaches might focus on optimizing internal processes. Ecosystem thinking extends this optimization to the entire value chain, identifying opportunities for efficiency, cost-effectiveness, and improved value delivery through collaboration. So much disruption and interruptions are occurring in the global supply chains, and they need a very adaptive system and trusted network of partners working to resolve issues. The ability to respond, make decisions, and secure supplies has increased quickly. It is less squeezing others, it is more recognizing and sharing values to achieve consistency and sustainability of your core needs.
The real power of Innovation Ecosystems comes from collaborating:
- Why Ecosystems? The explicit consideration of innovation ecosystems enables organizations to tap into external sources of innovation, fostering a culture of continuous learning, experimentation, and adaptability for sustained competitiveness. Creating an environment that provides for shared experiments, exploring mutual options and mitigating investment risks has significant appeal to bridge the uncertainties of (rapid) market change.
The new scope of different Business Models
Why Ecosystems? The dynamics of change require an increasing capacity for agile, adaptive thinking. Internal competencies and competencies can only stretch so far in spotting, exploring and investing in new business designs due to investment, uncertainty and “single” mindedness. Opening up to different possibilities offers the ability to overcome limited lines of sight and combine possibilities across radical combinations and market scope, which gives tremendous potential for future growth and value.
The need to build Responsible and Sustainable Practices:
- Why Ecosystems? Ecosystem thinking encourages a broader consideration of environmental, social, and economic impacts. Organizations can develop more responsible and sustainable practices by understanding their role in the larger ecosystem and mitigating potential negative consequences.
The influence of governments in establishing standards requires open collaboration.
Why Ecosystems? Aligning and influencing Governments and sharing a more open approach to standards requires a greater regional and global dimension. It is through sharing, exchanging, and understanding the objectives of others enables a faster pathway of establishing standards that drive optimisation, efficiencies and effectiveness. Forming early partnerships across society, government, and institutions enables those within the ecosystem to focus resources and build solutions that conform, comply and build out on the existing in more optimal ways.
In summary, being explicit about ecosystems provides a more dynamic, adaptive, and collaborative framework for organizations to navigate the complexities of the modern business landscape. It allows for a more holistic understanding of challenges and opportunities, leading to innovative, resilient, and sustainable business practices.
Ecosystem considerations are becoming essential for organizations to embrace and explore. Learning differences need a structured process of understanding, assessing and addressing the differences from the existing organization design.
Recognizing Business Ecosystems needs good guidance, exchanges and clarifications. Why not give me a call to trigger and stimulate your thinking?
*Extended out the post building from the one posted in January 2024, “Why Ecosystems- let’s get explicit”
