Building Successful Business Ecosystems
Whether you have just got your start-up off the ground or whether you are piloting a business that is generating millions in profit year upon year, having the right business ecosystems in place is critical to securing and solidifying your success over the long-term.
But what exactly are business ecosystems? And what factors should you be taking into consideration when building them? Here is everything that you need to know.
What are business ecosystems?
Business ecosystems revolve around partnerships – the partnerships that are directly involved in creating a product and releasing it out into the market,
as well as the partnerships that come together to provide a customer or a client with a reliable, quality service. Business ecosystems, therefore, comprise multiple organisations, including distributors, suppliers, companies to which you outsource specific business functions, and even your customers themselves.
Many experts also insist that business ecosystems extend further than just the organisations and individuals that your company associates with directly – that they encompass all other organisations and individuals, such as your competitors, the media, etc., that have an impact on your company’s sales, strategy, and the products and/or services that you have to offer.
Why are business ecosystems so important?
When an entrepreneur is aware of the ‘bigger picture’ and how different business ecosystems operate, they immediately unlock a world of great potential. By building the right relationships with the right partners and the right customers, entrepreneurs can:
- Reach new customers
- Build better products and services and, as a result, improve their company’s reputation
- Make it easier, cheaper, and more profitable to run their business
- Hire the right employees who have a shared vision and similar ethics
How to build and nurture the right business ecosystems
Every entrepreneur must realise that there are a few important drivers when it comes to the success of business ecosystems – particularly those ecosystems that revolve around coming together to provide a quality product or service to an end-user.
First and foremost, it must be evident that the organisations will be able to produce better value by coming together than what they would be able to produce as standalone entities.
Secondly, the ecosystem of organisations must be managed as a unit with united goals, visions, ethics, and ways of working. The more organisations that are involved in the ecosystem, the more challenging this can be to achieve. However, with strong communication, adaptability, and fool-proof systems in place, it is wholly possible.
Thirdly, the rewards, profits, and equities need to be fairly distributed amongst the organisations involved in the ecosystem based on their unique contributions. There cannot be a sense of competition where each organisation is trying to get a bigger piece of the pie for themselves.
Getting it right
Now that it is obvious what it takes to create a high-functioning business ecosystem, many entrepreneurs will be wondering how to go about getting it right the first time. As already mentioned, regular, transparent communication amongst all of the organisations is key.
Most will opt to make use of a communication and collaboration platform to make it easier to keep in touch and stay on top of all relevant processes. Luckily, there are countless options when it comes to selecting one of these platforms – however, it may take some trial and error to find the right one to fit in with the needs and objectives of the ecosystem.
Along with ensuring adequate communication, it is vital for all participating organisations to be on the same page regarding the division of equities from the very start. Ultimately, this division must be done fairly and transparently, and in such a way that each company generates enough value from being actively involved in the ecosystem that it makes the collaboration worthwhile for them.
Finally, it is important to examine the ecosystem from a future-focused perspective, avoiding thinking only of the value that will be achieved in the ‘here and now’. There must be consideration in terms of how future growth can be ignited and how value can be dramatically increased for all participating organisations over time. There should also be a detailed plan in place in terms of attracting respectable organisations into the ecosystem from the beginning so as to ensure that even more sought-after organisations follow suit shortly thereafter.
Ultimately, business ecosystems are the lifeblood of thriving industries and help to ensure that the customer receives the treatments and quality of products and services that they deserve. If you have yet to consider how embracing the power of business ecosystems can help to boost the growth of your own organisation, now is the time to kick-start those investigations. You will be very glad that you did.