Natural ecosystems and business ecosystems share a common trait: survival of the fittest. Companies, like species, must adapt to changes in their environment or face extinction. However, many firms have short lifespans, often due to a failure to adapt to a shifting business landscape.
Adaptability is critical, and it can be achieved through three key biological principles. Firstly, redundancy, which in business terms translates as diversification. Having a diverse portfolio of products or services can protect a company from market fluctuations.
Secondly, modularity, the concept of building a system from loosely connected, well-defined parts. This allows for quick and easy adaptation to changes.
Lastly, the principle of embeddedness, where a species is deeply intertwined with its ecosystem. For businesses, this means creating strong relationships with other companies, customers, and even competitors.
In addition, companies should strive for a balance between exploration (innovation) and exploitation (efficiency). Too much focus on the latter can lead to a failure to adapt to new trends.
In essence, companies should view themselves as living organisms in a larger ecosystem, constantly adapting and evolving to survive and thrive.
Go to source article: https://hbr.org/2016/01/the-biology-of-corporate-survival