Your business ecosystem is the network of suppliers, distributors, competitors, partners, with which you cooperate and compete to offer a value proposition to your customer. For example, in the music industry a record label interacts with artists, producers, composers, lyricists, publishers, radio stations, online streaming services, listeners, competing record labels, and other stakeholders. This is the ecosystem of the record label. Our vision is that if you want to innovate your business, you must innovate your ecosystem. The alternative is that your ecosystem innovates , leaving you behind.
With new technology, an ecosystem evolves new capabilities around innovations. New entrants arise and existing actors change their capabilities. For example, Spotify and i-Tunes introduced radical innovation in the music industry. Online technology enabled some artists to distribute their music directly to listeners bypassing record labels. In general, new technology will affect the capabilities of your partners, suppliers, distributors and competitors.
All of this means that to innovate your business, you must innovate your ecosystem. New technology not only allows you to innovate your value-adding activities and perform new ones. Other activities may be outsourced to partners or suppliers, and this involves your ecosystem. New competitors may arise, and the capabilities of suppliers, distributors and customers may change. The coordination with all these stakeholders may need to be innovated.
We apply an engineering approach to ecosystem innovation. This means that we not only generate different scenarios for innovating your ecosystem. We also quantify the impact of a potential innovation, and assess different innovation scenarios. Our value engineering tools and techniques help you to estimate cash flows through the innovated ecosystem and to assess and mitigate risks of the technology. And to make it all work, our methods help you to map your business idea to the enterprise architecture and coordination processes of your ecosystem.