Managing the Ecosystem
Optimize Magazine
By Marco Iansiti
Presented by:
Noha Zaki
Concept
 Increasingly
interconnected world
 Smart companies rely on networks
(partners, Suppliers, and customers)
 Networks are like biological ecosystems
(companies succeed and fail as a
collective whole)
 Ecosystems help companies become
more resilient to market changes and
more responsive to customer needs
concept
 Business
ecosystems are wide spread in
industries such as: banking,
biotechnology, insurance and software
 IBM and Microsoft: remain at the hub of
their business ecosystems by working with
a network of partners to bring products
and services to customers
Question
How a company best manages
assets it doesn’t own but are
critical to its success?
First Step
 Understand
ecosystem strategies
 Executives must craft new strategies that
fit the new networked world
 Rely on ‘key stone’ species to maintain the
health and productivity of the entire
system
 eBay, Wal-Mart
Second Step
 Use
technology as the connective tissue
that lets the ecosystem function, grow and
develop
 Technical infrastructure that allows them to
share information and encourage
collaboration
 CIOs have central roles
Wal-Mart






Success depends on IT decisions that are closely
tied to its understanding of its ecosystem
Supply chain ecosystem (from manufacturing to
consumer)
Creates value by providing massive new channels to
reach consumers worldwide
Capturing customers and sales data by using a
computer system that manages thousands of stockkeeping units from thousands of vendors
Analyse data and share it with suppliers
Significant cost advantage
Measuring the health of
performance
 Robustness:



ability to survive disruptions and unforeseen
changes
Provides a buffer against external shocks and
provides a degree of predictability
Survival rate of ecosystem members
( customers, suppliers, distributors)
Measuring the health of
performance
 Productivity:


Ability to consistently transform technology
and raw materials( labour, process) into
lowered costs, new products, and functions
Measured by return on investment
 Niche

creation:
Ability to create new, valuable functions and
foster diversity that creates real value
EBay Vs Enron
 EBay:
 keystone
strategy, benefiting entire
ecosystem
 Easy- to use tools (simple for buyers and
sellers)
 Transparent trust system
 85% of web-based auction revenue
EBay Vs Enron
 Enron
 Make
profit ignoring the health of its
network
 No sharing of information
 No transparency
 Flamed out through combination of
misguided strategic decisions and
unethical behaviour
Steps to be followed by
CIOs
 First
month: Take stock of your system
 Know your ecosystem and how it’s
working
 Analyze your role
 Understand role of technology
 Analyze how your changing ecosystem is
impacting your role, your strategy, and
your business model
Steps to be followed by
CIOs
 Second
month: look at where you and
your ecosystem are going
 Is your role in the ecosystem the one you
want
 Identify the network strategies that work
best for you
 Determine the assets needed to manage
and execute your strategy (potential new
partners)
Steps to be followed by
CIOs






Third month: Set up metrics to help manage
ecosystem
Examine need for new information sources and
business applications
Define critical ecosystem measures
Examine partners and develop metrics to assess
ongoing evolution
Build ecosystem dashboard
Examine critical technology and information
assets that help in shaping the business
ecosystem