Business Ecosystems
1. Definition
Business Ecosystem is a strategic planning concept originated by James F. Moore . The basic definition appears in Moore's book, The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems, published in 1996. Moore proposed the following definition: “An economic community supported by a foundation of interacting organizations and individuals – the organisms of the business world. This economic community produces goods and services of value to customers, who are themselves members of the ecosystem.” Investopedia (2010) provides a simplified definition of business ecosystem; it is “the network of organizations – including suppliers, distributors, customers, competitors, government agencies and so on – involved in the delivery of a specific product or service through both competition and cooperation.” Organizations operating in this business environment interact and affect each others. The constantly evolving and symbiotic relationships established across different businesses are mutually beneficial, self-sustaining and somewhat closed. A business ecosystem is a value chain enhanced by a culture. Culture is important because different players in a business ecosystem should share the same vision as they share the same interests and the same values. This results in a long-term sustainability of the whole community. Members of a business ecosystem must be flexible and adaptable in order to survive, as in a biological ecosystem.
2. Components
The success of a business ecosystem lies in the combination of efforts from all the interconnected elements of this community. Participants in business ecosystems can be divided into three categories according to their position and strategy: Keystone Players, Dominators and Niche Players. This typology refers to the three types of behaviour among species in biological ecosystems.
Keystone players are neither the largest nor the most powerful among business ecosystem players but they
Business Ecosystem is a strategic planning concept originated by James F. Moore . The basic definition appears in Moore's book, The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems, published in 1996. Moore proposed the following definition: “An economic community supported by a foundation of interacting organizations and individuals – the organisms of the business world. This economic community produces goods and services of value to customers, who are themselves members of the ecosystem.” Investopedia (2010) provides a simplified definition of business ecosystem; it is “the network of organizations – including suppliers, distributors, customers, competitors, government agencies and so on – involved in the delivery of a specific product or service through both competition and cooperation.” Organizations operating in this business environment interact and affect each others. The constantly evolving and symbiotic relationships established across different businesses are mutually beneficial, self-sustaining and somewhat closed. A business ecosystem is a value chain enhanced by a culture. Culture is important because different players in a business ecosystem should share the same vision as they share the same interests and the same values. This results in a long-term sustainability of the whole community. Members of a business ecosystem must be flexible and adaptable in order to survive, as in a biological ecosystem.
2. Components
The success of a business ecosystem lies in the combination of efforts from all the interconnected elements of this community. Participants in business ecosystems can be divided into three categories according to their position and strategy: Keystone Players, Dominators and Niche Players. This typology refers to the three types of behaviour among species in biological ecosystems.
Keystone players are neither the largest nor the most powerful among business ecosystem players but they
References: Bailetti, T. (2009). Business Ecosystems: A new form of organizing creative individuals worldwide. Retrieved April 22, 2010, from http://www.carleton.ca/tim/events/2009/Ecosystems_Feb12_TO_FOCUS.pdf Cedric, T Define That. (2003). Ecosystem Definition. Retrieved April 18, 2010, from http://www.definethat.com/define/302.htm Gueguen, G Kotelnikov,V. (n.d.). Business Ecosystem. Retrieved April 18, 2010, from http://www.1000ventures.com/business_guide/business_ecosystem.html Live Business Chat Malik, V. (2010). What is Business Ecosystem? And How it Works? Retrieved April 28, 2010, from http://www.linkedin.com/answers/management/organizational- development/MGM_ODV/661780-37471811 Moore, J Moore, J. (2005). Business ecosystems and the view from the firm. Retrieved April 22, 2010, from http://cyber.law.harvard.edu/blogs/gems/jim/MooreBusinessecosystemsandth.pdf Xianghui, Z