

Ecosystem Strategy
/ Digital Transformation through Successful Ecosystem Strategies
Did you know that the integrated network economy, like ecosystems, is estimated to account for a $100 trillion value pool by 2030, or about a third of the world’s total sales output? But how do ecosystems work, what are the benefits of being a part of one and why is it important to think in ecosystems rather than `ego-systems´?
An ecosystem is a fluid network of companies that offer customers a holistic value proposition with complementary products and services orchestrated from multiple actors and sectors, and thereby meet a broad range of their needs. For example, new healthcare platforms and ecosystems provide holistic solutions for the diverse needs of patients, including everything from seamless hospital and acute care to support for chronic conditions, nutrition, and well-being. Such a healthcare ecosystems can include hospitals, pharma companies, insurance companies, medical equipment manufacturers, diagnostic centers and more.
Companies in an ecosystem benefit in many ways: The integration of products from different sectors unites the customers of each company and opens-up new markets for every member of the ecosystem, hence enlarging the pie and moving away from head-to-head competition and a zero-sum game. In addition, bundling products and services increases stickiness and leads to recurring transactions, as shared platforms provide new data on customers and user behavior to improve existing or launch entirely new offerings. In the long run, ecosystem collaboration drives innovation and creates new and optimized value propositions.
Figure 1
/ Lessons in developing an ecosystem strategy

Source: bluegain Analysis [2023]

For Executives, one of the biggest challenges in developing an ecosystem strategy is to reimagine themselves and their company in a business environment where former competitors can become potential partners and the lines between different sectors are blurring. With this in mind, three lessons should be considered:
- Think Eco-system versus Ego-system: A common problem is that companies are used to think inside-out with them as the ‘center of the universe’ and limit themselves by focusing on what they can do alone, rather than recognizing the opportunities that open-up when they partner with other companies in an ecosystem.
- Consciously decide on the Right Role: While most executives aspire to the role of orchestrator, most companies are more likely to adopt the role of complementor or partner. Complementors focus on a strong value proposition for the orchestrator, other partners and customers. Orchestrators, on the other hand, need to build strong capabilities in technology, governance, and partner relationships, and therefore need sufficient brand visibility and market share to attract partners, as well as the skills and resources to manage the ecosystem.
- Find your bespoke Ecosystem Strategy: To ultimately choose the right path, it is important to be able to answer the following questions: What is your scope that you are bringing to the ecosystem? Which are the right partners to help you reach your goals? What do you need to offer that will make other companies want to work with your organization? And most importantly: How does it add value for the customers and users?
In conclusion, by moving beyond traditional, insular ways of operating and collaborating with diverse partners, companies can unlock new markets, foster innovation, and create more compelling value propositions for customers. To succeed in this evolving landscape, executives must strategically define their roles within ecosystems, form meaningful partnerships, and continuously align their offerings to customer needs. Embracing this ecosystem mindset not only drives growth but also positions companies to thrive in a more interconnected, dynamic economy.
/ ABOUT THE AUTHOR
- Dr. Carsten Linz is the CEO of bluegain. Formerly Group Digital Officer at BASF and Business Development Officer at SAP, he is known for building €100 million businesses and leading large-scale transformations affecting 60,000+ employees. He is represented on boards including Shareability’s Technology & Innovation Committee and Social Impact. A member of the World Economic Forum’s Expert Network, Dr. Linz is also a published author who shares his expertise as an educator in executive programs at top business schools.
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