Creating a powerful ecosystem to sustain competitiveness
Strategy + Business
The four ways in which the development of an ecosystem can unlock new value - through new product bundles, new customer solutions, new platform economies, and the spawning of new industries - have a common characteristic:
They require a process by which new customer value is discovered. The new value is not just assembled or delivered from existing elements by following a predetermined blueprint; it has to be identified. Business ecosystems come into their own by facilitating the process of discovery.
Discovering new sources of value requires the three key capabilities at which ecosystems excel: a huge potential for rapid, joint learning and innovation; the ability to harness the capabilities of diverse players and channel them toward a common goal through the leadership of an enlightened company; and the flexibility for continuous reconfiguration in the face of an uncertain, fast-changing environment.
Given these demands, what can you do as a leader to catalyse and promote the discovery of new value through your ecosystem strategy?
Business tracker shows deterioration in UK confidence
The Opinium Business Distress Tracker checks the pulse of the UK business community on a fortnightly basis. The tracker is based on a survey of 500 businesses representing a broad range of industries. Key findings include:
- Business sentiment has deteriorated significantly over the past four weeks, as the spectre of renewed lockdown restrictions looms over the economy. 35% of businesses described trading conditions as good at the end of September, down from 39% in the previous wave The share with a positive outlook for the next 12 months has also dropped from 52% to 45%.
- Businesses are expecting to lay-off more than a third (35%) of furloughed workers after the scheme expires at the end of October. Crucially, the survey was carried out after the new Job Support Scheme was announced as a replacement for the furlough scheme. The survey results show that the share of furloughed employees that businesses plan to retain was not affected by the announcement of this scheme.
How COVID-19 has pushed companies over the technology tipping point - and transformed business forever
McKinsey & Company
This new survey shows that responses to COVID-19 have speeded the adoption of digital technologies by several years and that many of these changes could be here for the long haul.
The survey data suggests that the COVID-19 crisis is a tipping point of historic proportions -and that more changes will be required as the economic and human situation evolves.
The results also show that some significant lessons can be drawn from the steps organisations have already taken. One is the importance of learning, both tactically, in the process of making specific changes to businesses (which technologies to execute, and how), and organisationally (how to manage change at a pace that far exceeds that of prior experiences).
Both types of learning will be critical going forward, since the pace of change is not likely to slow down.