Frequently Asked Questions
Frequently Asked Questions
Ask Me Anything
In your roll-royces example, they have a specific issue to solve in SIngapore - getting skilled workers - and in ARM example - they wanted to extend designs to mass storage systems. It seems to me at this point, that if you were to set up an ecosystem as the leader, you use that primary objective to set the direction of the ecosystem. Is that right?
When one creates an ecosystem the first question always needs to be what the additional value is the ecosystem will create? Often such additional value is the product of the network effects between the ecosystem partners. But it is not the only way that it can be created. Once you have understood what that additional value can be, the ecosystem leader can design a broad roadmap on how to deliver it. That is probably what you mean by the primary objective you refer to. Yes indeed such a roadmap is essential to create a vibrant ecosystem.
I’m at Chapter 9 now and I felt that the ecosystem model in your book is very orientated towards tech sort of companies... ... if I were the CEO of say Banyan Tree, what value do I have in reading your book?
Ecosystems exist in all sectors, thus also in the hospitality business. Think about the ecosystem between hoteliers, airlines, rental cars, blog writers and travel guides. They work closely together, but do not necessarily work in a supply chain or a buyer-seller relationship. Such ecosystems can become very important if you want to innovate and bring a new travel product to the market. But we do argue in the book that the highest value of an ecosystem is when you have to innovate in the face of uncertainty and complexity.
Michael Porter’s classic strategies are applicable for a wide range of business in different sizes and sectors, according to you, do you think the "ecosystem" is more constrained and limited?
Our analysis of the ecosystem logic for competitive analysis as compared to the classic Porter’s strategies of focus, differentiation and cost leadership, apply in our opinion in all industries and for all businesses that have the ambition to innovate. As we are convinced that currently the need to innovate has grown compared to the past, we see our logic for competitive analysis as becoming more relevant to virtually all businesses.
You talked about the signposts in creating a roadmap to kickstart an ecosystem in chapter 4. Specifically referring to Rolls Royce - what are these signposts? Are these the signposts: "_RollsRoyce set hot how it could contribute to these initiatives, including the provision of industry-specific education materials, help with curriculum developments, internships?
Your example of specific education materials is perhaps more a tool than a signpost. We argue that an ecosystem leader needs to develop a high level roadmap, which can guide partners in the ecosystem to understand how they have to co-invest in order to help the ecosystem grow and deliver value. In the case of Rolls Royce an example of signposts could be the definition of the learning objectives for the different courses and modules i.e. what the graduates need to learn in order to be effective on the job. The education materials are a translation of that, and can be seen as an investment in the ecosystem.