This document discusses ecosystems and how they differ from traditional networks. It defines an ecosystem as a network of organizations and individuals that co-evolve their capabilities to create additional value or improve efficiency. The key differences discussed are that in an ecosystem partners optimize the entire ecosystem rather than just themselves, there is co-evolution of capabilities between partners, and alignment with partners is at the core of strategy rather than just a firm's own competitive advantage. The document also discusses design questions for ecosystems, such as who does what and how open the ecosystem is. It provides examples of an ecosystem manager's role versus an alliance manager's more limited role. Finally, it discusses challenges in managing ecosystems and the importance of design and influence over direct control.

1. Prof. dr. Ard-Pieter de Man

2. 2
Ecosystem?

3. 3
Ecosystem?

4. 4
Ecosystem?

5. Definition ecosystems
‘a network of organizations and
individuals that co-evolve their
capabilities and roles and align their
investments so as to create additional
value and/or improve efficiency’
Williamson and Meyer (2012)
5

6. What’s new?
Traditional network Ecosystem
Each partner optimizes itself Partners optimize the ecoystem
Strengthen own capabilities (learning
from the network)
Co-evolution of capabilities (learning
with the network)
Decomposable: set of bilateral
transactions
Non-decomposable: set of multilateral
interactions
Resource control (who owns what) Resource orchestration (who has
access to what)
Competition at firm level Competition within and across
ecosystems
Firm’s competitive advantage is core
of strategy
Alignment with partners is core of
strategy
Source: Based on Adner (2017), Alstyne et al. (2016),
DeMeyer and Williamson (2012)
6

7. The extent to which management is different
depends highly on:
 Is there a platform?
• How integrated is it? Is it API driven or not?
• Facebook vs Toyota
 Is there a central player?
• Or is it a decentral ecosystem or multi-core?
• Open source vs Apple
 Is the ecosystem open to anyone?
• Or are there substantial barriers to entry?
• Appstore vs Toyota
 Is IP open?
• Or closed or half open?
• Google’s Android vs Apple
7

8. Source: based on Gawer en Cusumano (2008); De Man (2008)
8
•Who does what in the
ecosystem?
•What is in the platform?
•Openness of interfaces
•Managing the pro’s and
cons of open vs closed
•Who’s allowed in?
•Free-riding, knowledge transfer,
incentives
•Ecosystem focused
organisation
•Ensure trusworthy
reputation
Scope
Internal
organization
Technology
& IP
External
relationships
Design questions in ecosystems

9. Design of the Future Store Initiative
Executive
Committee
Project
Committee
Chair
Scope: technologies,
RFID, brands, SI, swim
lanes
Technology & IP: open
External relationships:
select friends
Internal organization:
separate unit
Source: based on De Man (2013)
9

10. Alliance manager vs ecosystem manager
Alliance manager Ecosystem manager
Manage relationship… Manage an ecosystem climate…
…with one (or a few) known partner …for a portfolio of known and unknown
partners
Involved in partner selection Set conditions for access and incentives
to attract new partners
Connect partner to own company Connect partners to each other to
develop new value props
Manage churn in partners Manage churn of partners
Governance by contract and committee Governance by smart contracts,
permissions, guidelines
Measure and report on pipeline (sales
and innovations)
Measure and report on interactions and
engagement
Manage exit No exit management
10

11. Changing from an income tax chain (LAK)…
11

12. …towards an ecosystem
12

13. What did this approach deliver?
Benefits of this approach
Start of change in thinking in LAK
 Involvement of partners in the change
 Overview of the ecosystem through value mapping
 Mutual learning and creation of new insights/opportunities
 New policy ideas around big data, information sharing with salary
administrations in companies etc.
Insight about ecosystems in the public sector
 No free choice of partners to join the ecosystem
 Owners of the platform do not decide about openness
 Maintaining dynamics depends on politicians, leadership by civil servants and
pressure from society, not competition
 Experience with collaboration makes the transition easier
13

14. Can we manage ecosystems?
 Design
• Key ingredients are known and can be developed
• Whether the recipe works is harder to foresee
• It depends on others accepting your design
 Manage
• A number of tools and approaches have been developed
• It is more about influencing than directing
 Change
• If, for traditional organizations, radical change is impossible, joint
learning works
• A collaborative capability needs to be in place
14