Idea in Brief
The Challenge
In an increasing number of contexts, the firm is no longer an independent strategic actor. Its success depends on collaboration with other firms in an ecosystem spanning multiple sectors.
Why It Arose
The growing importance of ecosystems is linked to the convergence of three big structural changes: a rollback of regulatory protections, a blurring of the separation between products and services, and technology that revolutionizes how firms can serve customers.
How to Meet It
An ecosystem-focused framework can help managers answer five key questions: Can you help other firms create value? What role should you play? What should the terms be? Can your organization adapt? and How many ecosystems should you manage?
When Nestlé was preparing to go mainstream with Nespresso, its single-use espresso capsule, it knew that users would need a machine specifically designed to work with the pod. So the company cultivated a network of manufacturers. It didn’t tell customers to buy a Jura, a Krups, or a Braun—it just decided which manufacturers could be on the list. And because the capsule and its interface were patented, other manufacturers could not make Nespresso-compatible machines without permission.
