Why are some companies struggling to succeed while others grow exponentially? The search for growth in the age of digital disruption and slowed global economy call for new methods. Organic growth or even mergers and acquisitions need to be replaced by more creative approaches. The winners of today have something in common: They apply a strategy we call digital ecosystem management – a platform-based approach that works not only for Apple and Uber, but many other companies willing to embrace a new approach to growth.
Global trend to seek new growth by digital ecosystem deployment reaching Scandinavia
While the companies that have struck gold in the last years come from different fields, there is a unifying theme: Players like Uber, Apple and Amazon have been amazingly successful by setting up and maintaining their own digital ecosystems where they welcome third party innovation, enabling them to profit from a network of service providers, innovations and customers. There are also numerous Scandinavian examples – consider Telia Company, who have recently launched Telia Zone, which brings broadband-based services like Spotify and co. under one ecosystem. Nordea Open Banking is enticing developers to create their apps on the platform to help push banking forward. There’s also Schibsted, a Norwegian media group that is taking a fully ecosystems-based approach to their business.
Simon Torrance, Senior Advisor on Digital Innovation at BearingPoint, emphasizes that Scandinavia with its technological advancement, wealth and connectedness is in a great position to utilize digital ecosystem management: “All the building blocks are there for Scandinavian companies. The way ahead is open, but what is sorely needed right now is a change of mindset. To get ahead, board members and executives need to have a clear understanding of how the most successful ecosystem companies of today operate.”
Plenty of drivers creating favourable environment to leverage potential of digital ecosystem management
Digital ecosystem management is a great way to manage an unstable situation. Business landscape has changed rapidly – economic slowdown is not the only factor in why it is so hard to achieve growth. Capital markets are geared to push for short-term profits, which makes long-rage planning difficult. The demands of customers have risen and are arguably higher than ever. On top of that, myriad distractions call for their attention. The situation is not helped by the fact that IT is not yet the savior it’s described to be – on the contrary, corporate IT is often the obstacle standing in the way of effective innovation. Changes are also brought about by regulations. European fintech and PSD2 are a great example – we blogged about the matter here.
But how to actually benefit from digital ecosystem management and what it means in practice? To get the big picture about digital ecosystems management and why it’s such an efficient way to achieve growth, here’s a compact summary video on the topic, released by our parent company, BearingPoint.
Second post of the DEM series can be found here.