How Do You Manage a Business Ecosystem?

It is widely acknowledged that business ecosystems offer great potential. Compared to more traditionally organized businesses, such as vertically integrated companies or hierarchical supply chains, business ecosystems are praised for their ability to foster innovation, scale quickly, and adapt to changing environments.

However, many companies that try to build their own ecosystems struggle to realize this potential. Our research has shown that less than 15% of business ecosystems are sustainable in the long run and that the most prevalent reason for failure is weakness in the governance model—the way the ecosystem is managed.

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