Ecosystem strategy?
NOVEMBER 2019
Martin Reeves | Chairman, BCG Henderson Institute
Ecosystem strategy?
What is a business ecosystem?
Vertically
integrated
Static
supply chain
Ecosystem
Open market
Company
Consumer
Product/
Component
Source: "Myths and Realities of Business Ecosystems," J. Fuller, M. Jacobides, M. Reeves (SMR, Feb. 2019)
When do you
need an
ecosystem?
Source: "Do You Need a Business Ecosystem?," U. Pidun, M. Reeves, M. Schüssler (BCG, Sep. 2019)
How to
develop
an ecosystem?
Market Share
Time
Won it all
temporarily
Never
took off
Sustainable
ecosystem
Fork
in the
road
Seize the
opportunity
Evolve the
model
Lock in
leadership
~50%
~25%
~10%
~15%
Source: "How Business Ecosystems Rise (and Often Fall)," M. Reeves, H. Lotan, J. Legrand, M. Jacobides (SMR, Jul. 2019)
C
A
B
Old wine in
new bottles?
New choices
•
Ecosystem or not
•
Design choices: open? nested? …
New thinking
•
Boundaries
•
Multilateralism
•
Emergence
•
Succession
•
Shaping …
New questions, where practice leads
•
Complementer strategy?
•
Regulation?
•
Health indicators?....
Business ecosystems are dynamic networks of interconnected stakeholders, from suppliers to consumers, shaping the market environment. Understanding the evolving nature of ecosystems is crucial for sustainable growth and competitive advantage. Explore the strategies for developing and leveraging ecosystems to drive innovation and adapt to changing market dynamics. Discover the role of open markets, modular structures, and coordination needs in ecosystem success. Learn from the experiences of industry leaders and gain insights into the challenges and opportunities presented by ecosystem development.
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Presentation Transcript
Ecosystem strategy? Martin Reeves | Chairman, BCG Henderson Institute NOVEMBER 2019
What is a business ecosystem? Vertically integrated Static Ecosystem Open market supply chain Product/ Component Company Consumer 1 Source: "Myths and Realities of Business Ecosystems," J. Fuller, M. Jacobides, M. Reeves (SMR, Feb. 2019)
high OPEN MARKET ECOSYSTEM MODULARITY MODULARITY When do you need an ecosystem? HIERARCHICAL SUPPLY CHAIN VERTICALLY INTEGRATED low NEED FOR COORDINATION NEED FOR COORDINATION low high 2 Source: "Do You Need a Business Ecosystem?," U. Pidun, M. Reeves, M. Sch ssler (BCG, Sep. 2019)
How to develop an ecosystem? Sustainable ecosystem ~15% Evolve the model Market Share Fork in the road B C ~10% Lock in leadership Seize the opportunity Never took off Won it all temporarily ~50% ~25% A Time 3 Source: "How Business Ecosystems Rise (and Often Fall)," M. Reeves, H. Lotan, J. Legrand, M. Jacobides (SMR, Jul. 2019)
New choices Ecosystem or not Design choices: open? nested? New thinking Boundaries Multilateralism Emergence Succession Shaping Old wine in new bottles? New questions, where practice leads Complementer strategy? Regulation? Health indicators?.... 4
