How to Implement Business Ecosystem Marketing in 2024

To recap the previous article, a business ecosystem is a commercial arrangement among two or more companies for the purpose of collectively creating value propositions that are greater than each can create individually (Greg Sarafin).

In every business ecosystem, there must be an orchestrator.  This is usually a firm that creates and coordinates the network of peers within the ecosystem. Aside from orchestrators, there are two additional types of ecosystem contributors: complementors and suppliers. Complementors directly provide customers with products or services that enhance the value of other components of an ecosystem. Suppliers operate upstream by providing products or services to orchestrators and complementors (BCG, 2022).

Extracting Value From Business Ecosystems

Remember, the best way to benefit from a business ecosystem is to focus on creating value for the customer. An ecosystem where every contributor is focused on their own gains will find it hard to achieve the level of cooperation that is required to create the desired value.

Additionally, consider whether your organization has value propositions to qualify for joining a business ecosystem. What can you contribute to the ecosystem? Do you have the essential assets and capabilities required for a business ecosystem? Do you possess underutilized assets (such as data) that could be of value to another party?

Having considered the above factors, then proceed as follows:

1. Join the right business ecosystem

First, identify ecosystems that are aligned with your strategic priorities. Pick the ecosystem with the highest plausibility for success. You should only seek collaborations that will create a win-win situation.  

2. Determine your level of engagement

Ask yourself two main questions:

• Should you commit to just one ecosystem or be part of several ecosystems?
• Should you be fully invested in your offering or focus on specific products and services?

A high level of commitment to one ecosystem will allow you to strategically focus your efforts, limit the complexity of your operating model, and realize economies of scale. Conversely, this commitment can increase exposure to risks, dependency on the ecosystem and reduce strategic flexibility and bargaining power.

3. Stand out from other contributors

This can be done by enhancing the value your organization adds to the ecosystem by becoming a category leader, dominating a niche, creating a new category, or finding creative dynamics within the ecosystem that you can harness.

4. Determine whether to stay or to exit

Regularly review the impact of the business ecosystem on your organization. Some red flags of a malfunctioning ecosystem include; an increasing risk of brand damage, competitive discrimination, distrust, under-performance of the ecosystem, and stiff competition from the emergence of better ecosystems.

In Conclusion…

By strategically collaborating within the interconnected landscape of a business ecosystem, your brand can unlock new levels of market reach, credibility, and value creation. Tapping into the power of business ecosystem marketing will set you on the way to long-term success. Strive to exist beyond your current realities by leveraging the ever-evolving world around you for brand growth in 2024.

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