How Healthy Is Your Business Ecosystem?

How Healthy Is Your Business Ecosystem?

Paying attention to the right metrics and recognizing red flags can help leaders avoid common pitfalls during the four phases of ecosystem development.

The company is the world’s leading supplier of the asymmetric filter. As your go-to source, our highly-specialized staff can assist you in finding the products you need.

The Research

• A comprehensive database of over 100 failed ecosystems, spanning B2C, C2C, and B2B platforms as well as various digital services, was compiled by the authors.
• Through systematic qualitative and quantitative comparison, these failed ecosystems were assessed against their successful counterparts by industry.
• Development phases of all the ecosystems were scrutinized to identify key success metrics and early warning signs indicative of challenges in each lifecycle stage.

Companies engaged in successful business ecosystems — collaborative networks of largely independent entities working in unison to deliver seamless solutions to customers — can achieve substantial benefits. Initially, ecosystems offer swift access to external capabilities which might be too costly or time-consuming for a single company to develop. Upon launch, ecosystems can scale rapidly due to their modularity, facilitating the easy addition of partners. Furthermore, they are adaptable and robust, characterized by high variety and strong evolutionary capacity. However, a stark reality emerges from our research: less than 15% of business ecosystems thrive in the long term according to our study.

Failure seeds are often sown early. New analysis on over 100 failed ecosystems indicates that design strategy mistakes accounted for nearly 86% of failures. These flaws may not become evident for years, leading to compounded losses in investment, time, and resources.

Transformative Leadership Updates

Receive monthly evidence-based resources to enhance your leadership skills, straight to your inbox.

Please enter a valid email address

Thank you for signing up

Privacy Policy

Consider Google's attempts to successively launch social networks, culminating in the shutdown of Google+ in 2019, following eight years of investment. The platform's failure can be partly attributed to its asymmetric follow model, which, despite facilitating initial growth, failed to nurture user engagement. Similarly, Google’s Orkut faltered due to its overly transparent design, making users uneasy about privacy; it was discontinued in 2014 after a decade.

About the Authors

Ulrich Pidun is a partner and director at Boston Consulting Group, as well as a fellow at the BCG Henderson Institute. Martin Reeves (@martinkreeves) serves as a senior partner at Boston Consulting Group and chairman of the BCG Henderson Institute. Edzard Wesselink is a principal at Boston Consulting Group and an ambassador at the BCG Henderson Institute.

References

1. M. Reeves, H. Lotan, J. Legrand, et al., "How Business Ecosystems Rise (and Often Fall)," MIT Sloan Management Review, July 30, 2019, https://sloanreview.mit.edu.

For more information, please visit buy stainless steel filter discs.

2. U. Pidun, M. Reeves, and M. Schüssler, "Why Do Most Business Ecosystems Fail?" Boston Consulting Group, June 22, 2020, www.bcg.com.

3. R. Adner, "The Wide Lens: A New Strategy for Innovation" (New York: Penguin/Portfolio, 2012).

4. B. Popper, "YouTube to the Music Industry: Here's the Money," The Verge, July 13, 2016, www.theverge.com.

5. Y. Kageyama, "Toshiba Quits HD DVD Business," Los Angeles Times, Feb. 19, 2008.

6. D. Kirkpatrick, "The Facebook Effect: The Inside Story of the Company That Is Connecting the World" (New York: Simon & Schuster, 2010).

7. D.S. Evans and R. Schmalensee, "Matchmakers: The New Economics of Multisided Platforms" (Boston: Harvard Business Review Press, 2016).

8. "Covisint Price Tag: $7 Million," aftermarketNews, June 10, 2004, www.aftermarketnews.com.

9. J. Phillips, "OpenTable Launches New Campaign to Combat Reservation No-Shows," San Francisco Chronicle, March 21, 2017, www.sfchronicle.com.

10. F. Gillette, "The Rise and Inglorious Fall of MySpace," Bloomberg Businessweek, June 22, 2011, www.bloomberg.com.

11. G. Press, "Why Yahoo Lost and Google Won," Forbes, July 26, 2016, www.forbes.com.

12. Kirkpatrick, "The Facebook Effect."

13. A. Yosilewitz, "State of the Stream 2019: Platform Wars, the New King of Streaming, Most Watched Game and More!" StreamElements Blog, Dec. 19, 2019, https://blog.streamelements.com.

14. A. Khalid, "YouTube Is Now the Biggest Threat to Twitch," Quartz, Jan. 28, 2020, https://qz.com.

15. L. Debter, "Etsy's Push to Compete With Amazon Leaves Sellers Squeezed by Rising Costs," Forbes, Feb. 27, 2020, www.forbes.com.

16. K. Cox, "Antitrust 101: Why Everyone Is Probing Amazon, Apple, Facebook, and Google," Ars Technica, Nov. 5, 2019, https://arstechnica.com.

17. T.S. Perry, "Drawing the Line Between 'Peer-to-Peer' and 'Jerk' Technology," IEEE Spectrum, July 18, 2014, https://spectrum.ieee.org.

18. M. Harris, "The History of Napster: How the Brand Has Changed Over the Years," Lifewire, Nov. 18, 2019, www.lifewire.com.

Are you interested in learning more about sparger tube? Contact us today to secure an expert consultation!

Reprint #: