Understanding The Concept of Business Ecosystem

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The concept of business ecosystem is a concept derived from the strategic analysis of companies. Business ecosystems entail the multiplicity of more or less direct links that will build a business with a multitude of partners, forming what is otherwise known as a community of strategic destiny.

Principles

Work on this concept can consider the following operating principles:

    – A standard technique is used by several companies.
    – Companies using these skills base on a common destiny regarding the strategic principle of coevolution.
    – One (or more) companies will have the leading role.
    – The business leader must develop a vision shared by other members of the business ecosystem.

    – Based on the of critical contributions and built-in power, the leader will guide the evolution of core competencies.
    – The market leader is scalable and its performance is crucial in the evolution of the business ecosystem.
    – Components of business ecosystems are heterogeneous (companies, institutions, trade unions and pressure groups).

    – The actors in the business ecosystem come from different industries.
    – There is not necessarily an exclusive membership to a single ecosystem.
    – Business ecosystems are driven by significant competitive dynamics of the intra-ecosystem (to gain the leadership position);
    – The competitive processes exist in the inter-ecosystems (competition from several business ecosystems).

    – A business ecosystem will involve cooperation and competition and thus corresponds to the logic of ‘co-opetition’.
    – A business ecosystem is more efficient than another if it demonstrates a superior ability to develop, utilize and protect a set of skills and resources. Shareable ecosystemic skills that will enable it to maintain a sustainable advantage.

Scope

The concept of business ecosystem is often used to describe the sector of information technology to analyze the strategies of firms such as IBM, Microsoft, SAP or Linux.

Although based primarily on the idea of standard, this concept can be used in other industries.

The practice of making use of ecological metaphors to outline business structure and activities instead of the physical/biological environment is becoming common. This is particularly true in the area of information technology (IT).

Some have defined the business ecology as “a more productive set of processes for developing and commercializing new technologies.” Which is symbolized by the rapid prototyping, options-based compensation, short product-development cycles, early test marketing as well as venture funding.

Internationalization is eradicating the usual advantages of the big business, such as privileged access to capital and markets, in addition to economies of scale. Hence, for some internationalization and the advent of world wide web are the equivalents of large-scale climate change on the commercial front.
 

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