Most firms lack the agility to implement a business ecosystem due to their adherence to traditional hierarchical management. This structure impedes the flow of ideas, stifles innovation, and slows down the decision-making process. In contrast, firms that adopt an ecosystem approach, where different entities collaborate and interact in a network, tend to be more agile and innovative.
A business ecosystem approach involves creating value through the interaction of diverse participants, rather than solely through internal processes. This requires a shift from command-and-control management to a more collaborative, inclusive style. It also necessitates the adoption of a customer-centric mindset, where the focus is on delivering superior customer value rather than simply maximising shareholder returns.
However, transitioning to a business ecosystem approach is not without challenges. It requires a cultural shift within the organisation, necessitating changes in mindset, behaviours, and practices. It also demands a high degree of trust and openness among participants, which can be difficult to achieve in a competitive business environment.
Despite these challenges, the benefits of a business ecosystem approach are significant. It fosters innovation, promotes agility, and can lead to superior customer value. Therefore, firms that are able to successfully implement a business ecosystem approach are likely to gain a competitive advantage in today’s fast-paced, ever-changing business environment.
Go to source article: https://www.forbes.com/sites/stevedenning/2020/08/06/why-most-firms-lack-the-agility-to-implement-a-business-ecosystem/#7c4a540137b2