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Introduction to the concept of business ecosystem

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Introduction to the concept of business ecosystem Powered By Docstoc
					**BUK*RG

The concept of business ecosystem is a concept derived from the strategic analysis of
companies. Business ecosystems entail the multiplicity of more or less direct links that will build
a business with a multitude of partners, forming what is otherwise known as a community of
strategic destiny.

Principles

Work on this concept can consider the following operating principles:

    - A standard technique is used by several companies.
    - Companies using these skills base on a common destiny regarding the strategic principle
of coevolution.
    - One (or more) companies will have the leading role.
    - The business leader must develop a vision shared by other members of the business
ecosystem.

    - Based on the of critical contributions and built-in power, the leader will guide the evolution
of core competencies.
    - The market leader is scalable and its performance is crucial in the evolution of the
business ecosystem.
    - Components of business ecosystems are heterogeneous (companies, institutions, trade
unions and pressure groups).

     - The actors in the business ecosystem come from different industries.
     - There is not necessarily an exclusive membership to a single ecosystem.
     - Business ecosystems are driven by significant competitive dynamics of the
intra-ecosystem (to gain the leadership position);
     - The competitive processes exist in the inter-ecosystems (competition from several
business ecosystems).

    - A business ecosystem will involve cooperation and competition and thus corresponds to
the logic of 'co-opetition'.
    - A business ecosystem is more efficient than another if it demonstrates a superior ability to
develop, utilize and protect a set of skills and resources. Shareable ecosystemic skills that will
enable it to maintain a sustainable advantage.

Scope

The concept of business ecosystem is often used to describe the sector of information
technology to analyze the strategies of firms such as IBM, Microsoft, SAP or Linux.

Although based primarily on the idea of standard, this concept can be used in other industries.

The practice of making use of ecological metaphors to outline business structure and activities
instead of the physical/biological environment is becoming common. This is particularly true in
the area of information technology (IT).

Some have defined the business ecology as “a more productive set of processes for developing
and commercializing new technologies.” Which is symbolized by the rapid prototyping,
options-based compensation, short product-development cycles, early test marketing as well as
venture funding.

Internationalization is eradicating the usual advantages of the big business, such as privileged
access to capital and markets, in addition to economies of scale. Hence, for some
internationalization and the advent of world wide web are the equivalents of large-scale climate
change on the commercial front.

				
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