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What is a Business
Ecosystem ?
By Morad O. Mouhsine
Université de Nice Sophia-Antipolis
Laboratoire GREDEG - CNRS
250 Rue Albert Einstein 06560Valbonne, France
1Monday, July 8, 13
• PhD research in strategic management in
Laboratoire GREDEG - CNRS in Sophia
Antipolis, France.
• Research Director: Laurence SAGLIETTO,
Université de Nice Sophia Antipolis
• Theme: Business Ecosystems
Context
2Monday, July 8, 13
Seeking inspiration in Nature
There is a long history of economists and management scholars seeking
inspiration in nature in order to explain the structure of business
networks and their dynamics.
Studies on ants, bees can help identify similarities with human
organization of labor, crowd behavior...
Toyota studied the legs of cockroaches to improve the steering systems
of its recent cars...
A management consultant decided to learn more
about natural ecosystems...
...and draw lessons for the business world.
3Monday, July 8, 13
The concept of BE takes its roots in ecology
It is the systems so formed which,
from the point of view of the
ecologist, are the basic units
of nature on the face of the
earth (...) These ecosystems, as we
may call them, are of the most
various kinds and sizes.
“
”
Arthur G Tansley (1935)
“The use and abuse of vegetational concepts and terms”
Origins of Business Ecosystems
4Monday, July 8, 13
Natural ecosystems consist of
heterogeneous species sharing and/or
competing for limited resources.
In natural ecosystems members co-evolve
and develop, therefore strengthening the
whole ecosystem.
For instance, if one species is weakened or disappears, it results in
the entire ecosystem being affected: it may be better off or,
inversely, in danger of collapse.
Natural Ecosystems
5Monday, July 8, 13
The Metaphor
There are lessons to be learned from natural ecosystems structure and
dynamics, especially in the field of strategic management.
Natural
ecosystem
Business
ecosystem
analogical thinking
limits of the analogy
Tansley (1935) Moore (1993)
6Monday, July 8, 13
James Moore, “Predators and Preys: A new ecology of
competition”, Harvard Business Review
I suggest that a company be viewed not as a member
of a single industry but as part of a business
ecosystem that crosses a variety of
industries. In a business ecosystem, companies
coevolve capabilities around a new innovation:
they work cooperatively and competitively to
support new products, satisfy customer needs, and
eventually incorporate the next round of innovations.
1993
1996
“
”
Business Ecosystems defined
7Monday, July 8, 13
A BE is an original type
of business network.
With a specific
structure.
And specific dynamics.
8Monday, July 8, 13
Structure of Business Ecosystems
• The main point about the structure of a BE is the diversity
of actors.
• Actors can be organizations, individuals or groups of
individuals, operating on profit or non-profit logics,
governmental or non-governmental, etc.
• A BE is usually organized around one or more leaders.
• The leader(s)’ role is to align the resource & competence
complementarities between the actors of the BE with an
innovation agenda that inspires them all.
• In a BE, different actors play different roles. Businesses
can either be keystones, dominators, or niche players.
9Monday, July 8, 13
Dynamics of BEs include...
• Coopetition: alternative moments of cooperation and competition
between actors within the BE.
• Co-evolution: the dynamics by which different actors evolve
together with other actors thanks to the relationships they foster
with each others.
• Leadership: one or more actors inspire the whole community and
set the direction for the years to come.
• Leaders emerge, they are not appointed.
• Leadership changes overtime. IBM created and led the
PC ecosystem around hardware until Microsoft and Intel
took its leadership and developed it dramatically around
software.
• Leaders could be non-business organizations or
governmental institutions. It depends on the BE...
10Monday, July 8, 13
Dynamics of BEs include...
• Innovation: actors in a BE innovate individually, in small groups or
altogether. Innovations can be products/services, ideas/values,
organizational forms, work processes...
• Shakeouts: such as financial crisis, natural disasters, new players,
radical innovations... Shakeouts survival is a strong indicator of the
health of the BE.
• Creation of niches: such as the electric car in the automotive
industry. It is also an indicator of the health of the BE.
2004
11Monday, July 8, 13
Famous Business Ecosystems
I-tunes platform and its leader,Apple
Amazon Web Services and its leader Amazon
The PC industry and its leaders Microsoft and Intel
but also
Premium quality coffee production, led by IllyCaffé
12Monday, July 8, 13
The bigger the BE the more
complex the relationships
between actors
13Monday, July 8, 13
TTechnology
A
I
C AccessChannel
Interest
Business
Assets
CompaniesHW, devices, gadgets, screens
UI, Usability, accessibility, visualization,
Interface to Interest (I2I)
Down
T
r
e
n
d
Up
T
r
e
n
d
Down
T
r
e
n
d
Up
T
r
e
n
d
Operators
Print media, web media
Communities
Search
Cable
TV
Media
datasort/filterengine,search
provider,walled-garden-door-key
content, people, ideas, literature, music,
films, art, hobbies, culture, civilization,
history, stories, drama
cables,pipelines,
networks,charging&billingservices,
cloud,tie-insales,points-of-sales
Trend DownUp
Market
TAIC SIMO model
Juhani Risku
2011
MIST UI
+
Systemic products
+
TAIC ecosystem
Business
Ideal
Model
2011
Blogs
Mobile phones
Vodafone
Telefonica
Orange
China Mobile
T Mobile
Facebook
Gowalla
Twitter
MySpace
LinkedIn
Google
YouTube
Social
networking
Microblogging
Tablets, e-books
Pads, laptops, PCs, TV
News Corp.
Sony
SonyEricsson
LG
HTC
Samsung
RIM ZTEHuawei
Android
Apple
Nokia+Microsoft
Amazon
Walt Disney
Time Warner
Viacom
CBS
Skype
Mashable
Huffington
TechCrunch
Engadget
Gizmodo
InternetOperator
Screen
Media
Apple ruleshorizontally
SIMO – TAIC models
Entertainment reservoirSoftware reservoir
Black Horse reservoir
Technology – Access – Interest – Channel
TAIC – SIMO business model
Juhani Risku 2011Screen – Internet – Media – Operator
Technology reservoir Screen – Internet – Media – Operator Technology – Access – Interest – ChannelSIMO
business model
TAIC
business model
BEs are usually vast, complex networks
14Monday, July 8, 13
But it depends on the frontiers that
you set to analyze the activity...
15Monday, July 8, 13
Because, yes,“business ecosystem”
is also a perspective...
...powered by a paradigm shift.
We don’t think anymore in terms of
“our organization’s strategy vs our competitors’...”
but rather in terms of
our business ecosystem’s strategy vs
competing business ecosystems’
16Monday, July 8, 13
Many questions arise
• What does each member individually contribute to the survival
and development of the BE ?
• Who are the key actors in the BE and why ?
• What type of innovation does the BE produce ? how ?
• Are the actors of a BE conscious of their belonging to the BE
in question ? does it make any difference in their day-to-day activities ?
• What are the factors that can threaten the BE ?
• How do actors from different “species” work together (for
the good of the BE) ?
• Who is the competition ? for whom ? and how ?
17Monday, July 8, 13
What are the determinants of the
longevity of a business ecosystem?
My doctoral research
in strategic management
More specifically, I am looking at the links between
elements of structure and dynamics of a BE
in order to suggest a “model” of BE longevity.
“
”
18Monday, July 8, 13
I suggest that basket-ball be viewed as an original type of BE
Women professional basket-ball in France
is the field of investigation.
19Monday, July 8, 13
Why basket-ball ?
Because it displays all the characteristics of a Business Ecosystem
20Monday, July 8, 13
Because it seems to be an original case of Business Ecosystem
21Monday, July 8, 13
Because competition is a key element in (and outside) basket-ball...
22Monday, July 8, 13
Qualitative Research
Interviews of more than 20 different actors
of the French Women Basket-Ball Ecosystem
1.Actors of women pro basketball in France
II. Longevity of the French Women BE
Themes
2
months of
interviews6
23Monday, July 8, 13
First Results in September 2013...
24Monday, July 8, 13
Please send your questions and comments to:
Morad-Otmane.Mouhsine@gredeg.cnrs.fr
25Monday, July 8, 13

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Basket-Ball Business Ecosystem

  • 1. What is a Business Ecosystem ? By Morad O. Mouhsine Université de Nice Sophia-Antipolis Laboratoire GREDEG - CNRS 250 Rue Albert Einstein 06560Valbonne, France 1Monday, July 8, 13
  • 2. • PhD research in strategic management in Laboratoire GREDEG - CNRS in Sophia Antipolis, France. • Research Director: Laurence SAGLIETTO, Université de Nice Sophia Antipolis • Theme: Business Ecosystems Context 2Monday, July 8, 13
  • 3. Seeking inspiration in Nature There is a long history of economists and management scholars seeking inspiration in nature in order to explain the structure of business networks and their dynamics. Studies on ants, bees can help identify similarities with human organization of labor, crowd behavior... Toyota studied the legs of cockroaches to improve the steering systems of its recent cars... A management consultant decided to learn more about natural ecosystems... ...and draw lessons for the business world. 3Monday, July 8, 13
  • 4. The concept of BE takes its roots in ecology It is the systems so formed which, from the point of view of the ecologist, are the basic units of nature on the face of the earth (...) These ecosystems, as we may call them, are of the most various kinds and sizes. “ ” Arthur G Tansley (1935) “The use and abuse of vegetational concepts and terms” Origins of Business Ecosystems 4Monday, July 8, 13
  • 5. Natural ecosystems consist of heterogeneous species sharing and/or competing for limited resources. In natural ecosystems members co-evolve and develop, therefore strengthening the whole ecosystem. For instance, if one species is weakened or disappears, it results in the entire ecosystem being affected: it may be better off or, inversely, in danger of collapse. Natural Ecosystems 5Monday, July 8, 13
  • 6. The Metaphor There are lessons to be learned from natural ecosystems structure and dynamics, especially in the field of strategic management. Natural ecosystem Business ecosystem analogical thinking limits of the analogy Tansley (1935) Moore (1993) 6Monday, July 8, 13
  • 7. James Moore, “Predators and Preys: A new ecology of competition”, Harvard Business Review I suggest that a company be viewed not as a member of a single industry but as part of a business ecosystem that crosses a variety of industries. In a business ecosystem, companies coevolve capabilities around a new innovation: they work cooperatively and competitively to support new products, satisfy customer needs, and eventually incorporate the next round of innovations. 1993 1996 “ ” Business Ecosystems defined 7Monday, July 8, 13
  • 8. A BE is an original type of business network. With a specific structure. And specific dynamics. 8Monday, July 8, 13
  • 9. Structure of Business Ecosystems • The main point about the structure of a BE is the diversity of actors. • Actors can be organizations, individuals or groups of individuals, operating on profit or non-profit logics, governmental or non-governmental, etc. • A BE is usually organized around one or more leaders. • The leader(s)’ role is to align the resource & competence complementarities between the actors of the BE with an innovation agenda that inspires them all. • In a BE, different actors play different roles. Businesses can either be keystones, dominators, or niche players. 9Monday, July 8, 13
  • 10. Dynamics of BEs include... • Coopetition: alternative moments of cooperation and competition between actors within the BE. • Co-evolution: the dynamics by which different actors evolve together with other actors thanks to the relationships they foster with each others. • Leadership: one or more actors inspire the whole community and set the direction for the years to come. • Leaders emerge, they are not appointed. • Leadership changes overtime. IBM created and led the PC ecosystem around hardware until Microsoft and Intel took its leadership and developed it dramatically around software. • Leaders could be non-business organizations or governmental institutions. It depends on the BE... 10Monday, July 8, 13
  • 11. Dynamics of BEs include... • Innovation: actors in a BE innovate individually, in small groups or altogether. Innovations can be products/services, ideas/values, organizational forms, work processes... • Shakeouts: such as financial crisis, natural disasters, new players, radical innovations... Shakeouts survival is a strong indicator of the health of the BE. • Creation of niches: such as the electric car in the automotive industry. It is also an indicator of the health of the BE. 2004 11Monday, July 8, 13
  • 12. Famous Business Ecosystems I-tunes platform and its leader,Apple Amazon Web Services and its leader Amazon The PC industry and its leaders Microsoft and Intel but also Premium quality coffee production, led by IllyCaffé 12Monday, July 8, 13
  • 13. The bigger the BE the more complex the relationships between actors 13Monday, July 8, 13
  • 14. TTechnology A I C AccessChannel Interest Business Assets CompaniesHW, devices, gadgets, screens UI, Usability, accessibility, visualization, Interface to Interest (I2I) Down T r e n d Up T r e n d Down T r e n d Up T r e n d Operators Print media, web media Communities Search Cable TV Media datasort/filterengine,search provider,walled-garden-door-key content, people, ideas, literature, music, films, art, hobbies, culture, civilization, history, stories, drama cables,pipelines, networks,charging&billingservices, cloud,tie-insales,points-of-sales Trend DownUp Market TAIC SIMO model Juhani Risku 2011 MIST UI + Systemic products + TAIC ecosystem Business Ideal Model 2011 Blogs Mobile phones Vodafone Telefonica Orange China Mobile T Mobile Facebook Gowalla Twitter MySpace LinkedIn Google YouTube Social networking Microblogging Tablets, e-books Pads, laptops, PCs, TV News Corp. Sony SonyEricsson LG HTC Samsung RIM ZTEHuawei Android Apple Nokia+Microsoft Amazon Walt Disney Time Warner Viacom CBS Skype Mashable Huffington TechCrunch Engadget Gizmodo InternetOperator Screen Media Apple ruleshorizontally SIMO – TAIC models Entertainment reservoirSoftware reservoir Black Horse reservoir Technology – Access – Interest – Channel TAIC – SIMO business model Juhani Risku 2011Screen – Internet – Media – Operator Technology reservoir Screen – Internet – Media – Operator Technology – Access – Interest – ChannelSIMO business model TAIC business model BEs are usually vast, complex networks 14Monday, July 8, 13
  • 15. But it depends on the frontiers that you set to analyze the activity... 15Monday, July 8, 13
  • 16. Because, yes,“business ecosystem” is also a perspective... ...powered by a paradigm shift. We don’t think anymore in terms of “our organization’s strategy vs our competitors’...” but rather in terms of our business ecosystem’s strategy vs competing business ecosystems’ 16Monday, July 8, 13
  • 17. Many questions arise • What does each member individually contribute to the survival and development of the BE ? • Who are the key actors in the BE and why ? • What type of innovation does the BE produce ? how ? • Are the actors of a BE conscious of their belonging to the BE in question ? does it make any difference in their day-to-day activities ? • What are the factors that can threaten the BE ? • How do actors from different “species” work together (for the good of the BE) ? • Who is the competition ? for whom ? and how ? 17Monday, July 8, 13
  • 18. What are the determinants of the longevity of a business ecosystem? My doctoral research in strategic management More specifically, I am looking at the links between elements of structure and dynamics of a BE in order to suggest a “model” of BE longevity. “ ” 18Monday, July 8, 13
  • 19. I suggest that basket-ball be viewed as an original type of BE Women professional basket-ball in France is the field of investigation. 19Monday, July 8, 13
  • 20. Why basket-ball ? Because it displays all the characteristics of a Business Ecosystem 20Monday, July 8, 13
  • 21. Because it seems to be an original case of Business Ecosystem 21Monday, July 8, 13
  • 22. Because competition is a key element in (and outside) basket-ball... 22Monday, July 8, 13
  • 23. Qualitative Research Interviews of more than 20 different actors of the French Women Basket-Ball Ecosystem 1.Actors of women pro basketball in France II. Longevity of the French Women BE Themes 2 months of interviews6 23Monday, July 8, 13
  • 24. First Results in September 2013... 24Monday, July 8, 13
  • 25. Please send your questions and comments to: Morad-Otmane.Mouhsine@gredeg.cnrs.fr 25Monday, July 8, 13