Business ecosystems come of age
Published in: Business
Transcript
- 1. Businesses are moving beyond traditional industry silos and coalescing into richly networked ecosystems, creating new opportunities for innovation alongside new challenges for many incumbent enterprises.
- 2. Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Business ecosystems come of age | @DU_Press #businessecosystems3 Ecosystems are dynamic and co- evolving communities of diverse actors Ecosystems enable and encourage the participation of a diverse range of (large and small) organizations, and often individuals, who together can create, scale, and serve markets beyond the capabilities of any single organization. who create and capture new value Participating actors interact and co-create in increasingly sophisticated ways that would historically have been hard to formally coordinate in a “top-down” manner, by deploying technologies and tools of connectivity and collaboration that are still proliferating and disseminating. through both collaboration and competition Participants—often including customers—are bonded by some combination of shared interests, purpose, and values which incents them to collectively nurture, sustain, and protect the ecosystem as a shared “commons.”
- 3. Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Business ecosystems come of age | @DU_Press #businessecosystems4 Ecosystems create new ways to address fundamental human needs and desires carsharing couchsurfing Ecosystems drive new collaborations to address rising social and environmental challenges child poverty inner-city violence food safety Ecosystems create and serve communities, and harness their creativity and intelligence social media open source movement crowdsourcing Ecosystems often exist on top of powerful new business platforms VISA Uber App development Ecosystems accelerate learning and innovation InnoCentive Mahindra Group FIVE WAYS TO THINK ABOUT ECOSYSTEMS EXAMPLES
- 4. Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Business ecosystems come of age | @DU_Press #businessecosystems5 The world is entering an era in which ideas and insights come from everywhere, and crowds, clouds, collaborators, competitions, and co-creators can fundamentally help define our shared future. As a result, we have identified the following trends that are permanently altering the business environment:
- 5. Copyright © 2015 Deloitte Development LLC. All rights reserved. Deloitte University Press | Business Ecosystems come of age | @DU_Press #businessecosystems6 Long-standing boundaries and constraints that have traditionally determined the evolution of business are dissolving, allowing new ecosystem possibilities to flourish.
- 6. Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Business ecosystems come of age | @DU_Press #businessecosystems7 EXAMPLES IBM • Consumers are increasingly active participants, becoming inseparable from “producers” of content, data, and even physical products. • New technological advances in artificial intelligence are now transforming machine capabilities in the nonroutine cognitive domain. • Further transformations are likely as lifelike digital worlds become increasingly accessible through virtual reality technology. YouTube Nest
- 7. Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Business ecosystems come of age | @DU_Press #businessecosystems8 Cybersecurity: Maintaining a secure, global, open Internet. Data: Determining the appropriate use of the mushrooming data we are all generating every day in myriad ways. Organization designs: Organizations will continue to be further optimized for effective networking, collaboration, and fluidity. Talent models: Long-term employment has been eroding while contracting talent only “as needed” becomes more common. Dynamic strategy: More than anything, business leaders will have to adopt new approaches to strategy, increasingly capable of rapid flex and adaptation. New possibilities will be discovered and deployed that will have transformative impact and some new boundaries will surely also arise to present different challenges. The new art of the possible can help create a more sustainable, global, and prosperous civilization. WHAT’S NEXT? IMPLICATIONS
- 8. Copyright © 2015 Deloitte Development LLC. All rights reserved. Deloitte University Press | Business Ecosystems come of age | @DU_Press #businessecosystems9 “Wicked problems” are being reframed as “wicked opportunities” and tackled by networks of non-governmental organizations, social entrepreneurs, governments, and big businesses.
- 9. Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Business ecosystems come of age | @DU_Press #businessecosystems10 EXAMPLES Robert Wood Johnson Foundation • When talents and resources of all kinds of players converge on a shared objective, the effects can be truly transformative. • Central organizers must be capable of “holding the whole” and creating the space for aligned action by others. • A full portfolio of strategic interventions has the best chance of hitting the goal. • Solution ecosystems are engines for collaboration, ingenuity, and innovation. • Well-functioning markets are key to solution sustainability. RE-AMP Unilever
- 10. Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Business ecosystems come of age | @DU_Press #businessecosystems11 Business: It will take business leaders who are committed to social goals and able to work effectively with external partners. Foundations & Investors: Be open to taking the broadest view of challenges, and willing to convene the whole of the community seeking to overcome them. Government: Understand the potential of incentives to spur innovation, and the power of using large-scale procurement budgets to create markets. Expect the leaders who rise in business to have more encompassing visions and more passionate points of view on the biggest social problems of their era. These leaders will be “tri-sector athletes,” capable of engaging, collaborating, and driving outcomes across all realms. WHAT’S NEXT? IMPLICATIONS
- 11. Copyright © 2015 Deloitte Development LLC. All rights reserved. Deloitte University Press | Business Ecosystems come of age | @DU_Press #businessecosystems12 As ecosystems enable more rapid, cross-cutting innovation, regulators are challenged to create policies and solutions that protect the public’s interests and are also dynamic enough to keep pace with innovation.
- 12. Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Business ecosystems come of age | @DU_Press #businessecosystems13 EXAMPLES Uber • Regulatory frameworks are being challenged by a new world of ecosystems and constant innovation. • Policymakers are confronted with the exponential expansion of digital information assets. • Innovators are seeking legitimate ways around current regulatory hurdles. • The sheer diversity of competitors and competitive modes is a complicating factor for regulators. • As today’s innovators cross boundaries of regulatory frameworks, who has the capability or mandate to respond? Okanagan Specialty Fruits Mobile payment models
- 13. Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Business ecosystems come of age | @DU_Press #businessecosystems14 Increase self-regulation: As business leaders think and act more with an ecosystems perspective, self- policing may become more common— and more readily encouraged. Increase agility: Regulatory bodies must find ways to act with greater agility, historically a difficult feat for bureaucracies. Focus on ends versus means: Innovation is best preserved when regulators focus on outcomes rather than on process. Perform as a regulatory ecosystem: The rise of business ecosystems also suggests that regulators must move past their traditional fixation on the question of primary jurisdiction. Surely the regulatory mindset—the basic rules of thumb followed by policy makers—will need to evolve as innovation, dynamism, and flexibility come to matter to our society just as much as, if not more than, its desires for stability, control, and compliance. WHAT’S NEXT? IMPLICATIONS
- 14. Copyright © 2015 Deloitte Development LLC. All rights reserved. Deloitte University Press | Business Ecosystems come of age | @DU_Press #businessecosystems15 Supply chains are increasingly becoming value webs that span and connect whole ecosystems of suppliers and collaborators; properly activated, they can play a critical role in reshaping business strategy and delivering superior results.
- 15. Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | Business ecosystems come of age | @DU_Press #businessecosystems16 EXAMPLES Nestlé • Supply chains are helping lead their businesses into the dynamic, hyper- connected, and collaborative world of ecosystems. • Value webs are augmenting the goals of supply chains with new imperatives: learning, agility, and renewal. • Collaboration is an addition to, not a replacement of, traditionally more closed, contractual arrangements. • Businesses are now becoming increasingly adept at activating and deploying assets they don’t control. The Coca-Cola Company Dachangjiang