The successful creation of a product depends on quite a number of factors such as the company’s collective health. Organizations have a special role in the business ecosystem and should enlighten its stakeholders on issues regarding the ecosystem. The use of stand-alone strategies is no longer suitable for companies that have an intention of improving their production and delivery systems.
Business ecosystems are very critical in the day to day running of organizations. Companies that have enjoyed considerable success such as Microsoft and Wal-Mart employ aggressive strategies that enhance the success their business ecosystems. A business ecosystem is a network of different companies ranging from suppliers, outsourcing firms, distributers, product manufacturers and technology providers.
All the components of a business ecosystem have a special contribution towards the success of an organization. The internal capabilities of a company can only be enhanced with a healthy business ecosystem. The sharing of real-time information among different members of a business ecosystem enhances its performance and at the same time making organizations to be very competitive.
The symbiotic relationship between different members of a business ecosystem brings customer satisfaction. Companies that have a working relationship with market leaders such as Microsoft and Wal-Mart benefit from the creativity and innovation within the industry. Some companies establish business networks beyond their respective industries o promote a healthy business ecosystem.
The concept of business ecosystems has become very popular in modern business due to the success that companies like Microsoft and Wal-Mart continue to enjoy. Many organizations are not well informed about the concept of business ecosystems and this has led to the mismanagement of ecosystems. The health of a company’s business ecosystem should be assessed on regular basis using the recommended framework.
There are lot of companies involved in the manufacturing and distribution of a single product such as a personal computer. All the companies involved in the manufacturing and distribution of a product form a business ecosystem. A complex eco-system can also be subdivided into different segments known as business domains.
The domains should be healthy for the entire ecosystem to deliver the desired results. There are a lot of similarities between a business ecosystem and a biological ecosystem especially when it comes to assessment. The health of an ecosystem depends on its productivity, robustness and niche creation. The transformation of inputs such as raw materials and technology into quality products at a lower cost demonstrates the productivity of a particular company.
The productivity of a company can be used to determine how healthy a business ecosystem is. The returns from a capital investment reflect the effectiveness of a business ecosystem. The ability of a business to survive all kinds of disruptions is another indicator of the state of an ecosystem’s health. The disruptions may be brought about by unexpected technological changes or other external shocks.
Companies should be able to create new business niches to demonstrate diversity. Diversity is another perfect indicator of a healthy business ecosystem. The biological ecosystem is therefore a very useful analogy when it comes to modern business networks. Companies that have common assets which are predictable and stable enjoy healthy ecosystems.
Organizations with stable systems and assets are referred as keystone organizations. Keystone organizations are very important especially when it comes to introducing robustness in a business ecosystem. The keystone strategy is meant to create and share value among other organizations within a business ecosystem. The aims and objectives of an organization determine the ecosystem strategy of a company.
Keystone strategies are very useful when a company is involved in complex interrelationships with other companies. A company can benefit a lot from business ecosystems by extracting some maximum value form the assets within the network. The ecosystem strategy is not a must for companies that operate independently. Flexibility and innovation are some of the benefits that companies with effective keystone strategies continue to enjoy.
Some keystone organizations may want to dominate an ecosystem because of their powerful position within the system. The domination of a business ecosystem by keystone organizations can either be direct or indirect. Physical domination takes a direct form whereas the value domination takes an indirect form.
The niche strategies are very useful when it comes to differentiating a company from others within the same business ecosystem. Companies tend to leverage their niche as a way of enhancing their domain. Leveraging a company niche within a business ecosystem protects smaller firms from staying in the shadow of keystone organizations.
The ecosystem strategy clearly highlights the need for companies to work together. Business managers have to consider a business ecosystem strategy when it comes to product design and policy implementation. Business ecology enables companies to access resources from other companies within the ecosystem. Integration is a new form of innovation that promotes business operations within a business ecosystem.
Technological evolution is a product of innovation across the different domains of a business ecosystem. Business competition has shifted from individual companies to between ecosystems and the trend is expected to remain the same in the future.