An ecosystem refers to the convergence of IT, media, entertainment and hardware where products support and enhance each other's value through network effects. There are two types of ecosystems - homogeneous, where all products share a common goal like fitness, and heterogeneous, where unrelated products still complement each other. However, heterogeneous ecosystems are less successful long-term as companies are more likely to be acquired or split up. The key to a strong ecosystem is having an integrated, accessible and well-managed platform where outside participants can easily connect and exchange value, demonstrating both gravity and flow.

1. Ecosystems

2. What is an ecosystem?
 A convergence between IT, Media, Entertainment and hardware

3. Why are ecosystems important?
 The network effect, creating products that support each other
Base platform product/service
Additional Service Additional Product
Client
Service
Additional ProductAdditional Service
Additional value Provided by partners
Each product enhances and extends the value of previous
products

4. But…
Base platform product/service
Additional Service Additional Product
Client
Service
Additional ProductAdditional Service
Additional value Provided by partners
THE UNDERLYING PRINCIPLE OF WHAT WE WANT TO ACHIEVE

5. Homogenous ecosystems
 Each product is similar or has a common use or goal
 Eg. Nike products are centred around sport and fitness

6. Heterogeneous ecosystems
 Products are unrelated, they have little bearing on the core service
being offered, however they still compliment each other
 Eg. Apple iPod – music device, not related to Apple’s core business
when they first came out, iPhone a step once again out of core
product cycle

7. Smart strategy means evolution
 Apple demonstrates a smart strategy, a seemingly heterogeneous
ecosystem becomes homogenous through evolving technology
 Apple is now homogeneous

8. Where does innovation lie?
 Building an ecosystem from disparate products with a long term
vision, homogenous integration, and accessibility
 Innovation lies at the point of turning heterogeneous into
homogenous, eg. A phone that becomes part of a digital
ecosystem – the smartphone is born

9. Does heterogeneous win?
 No.
 Companies with disparate product offerings are bought out, split, or
sold
 Eg. Blackberry, currently focused on business/enterprise security, the
smartphone ecosystem failed

10. Why?
 Quality, quality, quality
 Ecosystems need to be integrated and well managed, accessibility
is key
 Never think about individual products, ecosystem all the way

11. 3 keys
 Connection: how easily others can plug into the platform to share
and transact
 Gravity: how well the platform attracts participants, both producers
and consumers
 Flow: how well the platform fosters the exchange and co-creation
of value