Unlock value with business ecosystem analysis

Unlocking value withEcosystem analysis

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Ecosystem

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Ecosystem

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Ecosystem

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Ecosystem

A business ecosystem is a dynamic structure of interconnected organizations that depend on each other for mutual survival.

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Ecosystem: Entities

• Individuals: Funder, Sponsor, Lawyer, …

• Groups: Marketing team, Engineering departments, …

• Providers: Vendords, contractors, suppliers, …

• Customers: End users, clients, resellers, …

• Organization: Industry analyst, media outlets, …

Entity

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Ecosystem: Transactions

• Transactions are exchanges between entities in an ecosystem• Can be tangible• Mandated by the system• Required for successful product or service delivery

• Extra activities• Not mandated by the system• Provided in order to share knowledge, accelerate progress or smooth delivery• Called intangible

Tangible Deliverable

Intangible Deliverable

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Ecosystem: Value networks

• A set of roles and interactions that generate a specific business, economic or social good

• F.e.

• Equipment repairs in a electrical utility• Medicare system• Property & casualty insurance

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Mapping your Business Ecosystem

Roles

• List at least 15 roles played in your ecosystem.• Don’t worry about specifics; Focus on types

Get specific

• Write down some specific examples of each role• Jog your thinking when you return to the map in the future.

Draw

roles

• Start by drawing one circle for each role on your map• Make sure there’s enough room between them• You may wish to space those that you believe have more interaction closer

together

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Mapping your Business Ecosystem

Tell the

story

• Tell the story of how roles interact in the ecosystem• Start with the customer• Draw arrows between entities to show the flow of transactions

Analyze your ecosystem

• Look at your ecosystem map and analyze what you see.

Use your

ecosystem map

• Orienting new employees to your company / department• Demonstrating the value of a potential partnership to others in your company or ecosystem• Giving you a quick view of the environment you need to monitor for disruptive changes and

opportunties

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Ecosystem Map

Innovator FirmMarket

Competing Innovator

Complementor

Competing Innovator

Supplier

Technology Supplier

Tech

nolo

gy

Product Part

Product Part

License to Produce

Product CProduct B

Com

plem

enta

ry

Prod

uct/S

ervi

ce to

Prod

uct A

Product A

Relation

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Business model

A Business Model spells out the core logic through which the firm creates and captures value from its ecosystem analysis.

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Value proposition & ecosystem surplus

Innovator FirmMarket

Competing Innovator

Complementor

Competing Innovator

Supplier

Technology Supplier

Tech

nolo

gy

Product Part

Product Part

License to Produce

Product CProduct B

Com

plem

enta

ry

Prod

uct/S

ervi

ce to

Prod

uct A

Product A

Relation

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Business logic within the ecosystem

• Plot the ecosystem of roles relevant to your company

• Conduct a use case analysis of your opportunity within this ecosystem

• Understand how your opportunity creates customer and producer surplus in the ecosystem

• Pain points relevant to your opportunity• Leverage potential

• Iterate until you have a business model for your opportunity that• Maximizes value created in the ecosystem• Maximizes value captures for your company• Deals with the roles’ pain points• Leverage the players that are willing to use their power to speed up the

opportunity adoption

• Have a business model roadmap

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Identify compelling market opportunity

Identify customer pain points

Assess how many suffer from this pain

Define the willingness to pay for pain relief

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Manage the roadmap

Backup

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Question to guide during analysis

• How much reciprocity is there between roles?

• Are some roles giving much more than receiving?

• Are others receiving more than they’re giving?

• Do specific roles provide resources, work, and/or sustenance for others?

• How dependent is your company on these roles?

• How stable are the companies that fill these roles?

• What part does your company play in the ecosystem?

• Does it provide a low-cost, commodity service that can easily be replaced by someone else?

• Does it fight for limited resources with many other companies?

• Does it set the pace for other entitiies?