The Power of Ecosystems – leveraging the Digital Nervous System
Ecosystems are everywhere, not confined to natural environments (Forest, cities, towns etc) — increasingly, we see businesses, public sector institutions (e.g. Victorian Government, Australia) all moving beyond their traditional operational borders and creating or participating in new, flexible, and adaptive networks of enterprises jointly pursuing ambitious purposes.
We are moving towards a new management of innovation where ‘greater’ collaboration is fueling new business models built on platforms, formed around ecosystems of communities with aligned interests, contributing and extracting value.
Today and in the future, the value is created outside the individual company/Organization and not within.
This is based on a relationship-based, networked designed concept built for collective activities. Relationships where shared value leads to a value creation that no one single organization can provide.
Example: Health Insurance.
Stakeholders: Customer buying the insurance, Insurance company (Product, IT, CDO, Mktg & Sales), Insurance Agents, Insurance contact Centre, hospitals.
Insurance company want their customers to be healthy.
Customers want to be healthy, do their own research reading books, watching videos, subscribing to apps, groups etc.
Today Insurance sell is a Stress Sell.
Opportunity: how do we make it a nudge sell.
This requires open collaboration and an environment seeking mutual promise from individual input, contribution and extraction, delivering an integrated set of services and solutions being constructed on the platform from a sharing of knowledge, for delivering into evolving value propositions, all benefiting from, both collectively and individually
The greater the collaboration improves chances of creating even greater value, finding solutions that are unique, radical in design that customers rate and seek out to resolve their needs.
The value for all stakeholders being involved in a dynamic platform offers the provision of constantly building and increasing the value of the services and content found on that platform, it continues to evolve and improve.
A single industry focus is in decline
Opportunities exist everywhere. We need to look well beyond our own industry to evaluate different perspectives, seek out the potential of different concepts that can be adapted to our own industry. Many companies are exploring the value of becoming involved in a business ecosystem that crosses a variety of industries to build new communities that have the capacity to transform existing environments.
We need to shift from Product to Ecosystem Platforms.
Products = Features (e.g. Banks, Cars, IRCTC)
Platform = Communities. (e.g. AirBnB, Facebook, Uber, Redbus, Ola, Spotify)
Nike+ is showing how the shoe can become a connected platform.
New age Car manufacturers like Tesla are building connected cars.
The increasing value of participating in ecosystems allows organizations to
a.Co-Create with Customers & Partners
b.Share common interests
d.serve markets intelligently by nudging.
e.Extract more value together.
g.Create a dynamic and constantly evolving where everyone contributes, everyone benefits.
h.offering sustaining competitive advantage
i.solving complex problems but providing individual needs and returns
Ecosystem Platforms disrupt gatekeepers, create new sources of value and aggregate fragmented markets.
In an ecosystem world, leverage user capabilities outside your business.
In an ecosystem world, solve consumer problems using spare resources.
The ability to interact and co-create in increasingly sophisticated and novel ways on ecosystem platforms opens several new opportunities.
At Invente we work with Inventors / Disruptors to co-create new ecosystems for their industry.