Market niches are no longer just comprised of companies, consumers, and things. Today, each industry segment shares its own digital ecosystem.
Gartner Research defines a digital ecosystem as an “interdependent group of actors sharing standardized digital platforms to achieve a mutually beneficial purpose.” The lines between companies and their industries are murky, and success requires new levels of collaboration.
Today, a lot of conversations about innovation include the term, digital ecosystems.
But just what is a digital ecosystem? How are they structured? Why are they so important now? And what makes them successful?
Forward-thinking executives understand digital ecosystems are the future of how organizations improve internal business processes, and how they’ll interact with consumers, which is why they are an essential portion of innovation systems today.
Playing It Safe: Risky Business
Play it safe. Minimize risk. Making business decisions with this type of mindset is a thing of the past. Doing what used to be considered safe is now risky. However, in many organizations, the decision-making process is based on old-school mindsets which can torpedo the company from within.
Famous business horror stories of companies like Blockbuster Video, and Kodak that were casualties of changing times blame market disruptions, when the truth is, they simply would not adapt.
Organizations that perceive change as risk must realize the actual risk is maintaining the status quo and do nothing new while the world keeps changing around them. The real risk is not changing.
The recent Digital Research Project conducted by MIT Sloan Management Review and Deloitte stated, “Companies that avoid risk-taking are unlikely to thrive and likely to lose talent, as employees across all age groups want to work for businesses deeply committed to digital progress.”
What are these companies waiting for? Do they want to be like Blockbuster and go down with the ship? The longer they wait the more marginalized they’ll become, as conducting business properly today can’t be accomplished with mindsets and methods from 20 years ago.
Adapt or Perish
Change is taking place whether you like it or not— and it’s happening at a rapid pace.
Modern enterprises are much more likely to succeed when they evolve to understand shifts in the marketplace, and adapt to make their offerings relevant; including the way their offerings are delivered so consumers readily embrace them. Having a great product or service can be sabotaged when simply transacting with a company creates friction.
As consumer behavior continues to evolve and people increasingly engage with brands via digital touchpoints, long-term success requires forward-thinking strategies, careful planning, and collaboration with every department within organizations.
Over the past few years, we’ve witnessed how the scopes of certain leadership roles have widened and changed. Breaking down silos has become essential as organizations must transform and adapt to modern strategies required to conduct business today.
As brands maneuver to become obsessed with delighting consumers, and industrial companies seek new ways to increase productivity, digital ecosystems will become even more essential to organizations’ growth in revenue and profit.
Delivering exceptional customer experiences is more important than ever before, as Gartner’s research indicates that 89% of companies now believe they are competing based on customer experiences.
Consumer loyalty is fleeting, and the inability to meet the increases in consumer expectations is the top reason for consumers to end their relationship with a brand.
Research reveals that consumers say they value customer experiences more than cost savings.
Harvard Business Review carried out a study that showed customers who have excellent experiences spend about 40% more than those who have bad experiences.
Think about that for a minute; 40 percent more…
Consumer expectations continue to rise and they expect consistent stellar experiences via every touch point they have with brands regardless of where they are in their customer journey.
To say the very least, digital ecosystems must be built with a keen focus on customers.
Staying competitive in disruptive marketplaces requires organizations to innovate rapidly and continually provide value.
The rate of change doesn’t allow companies to be lackadaisical or take a “wait and see” approach. Going from idea to implementation expeditiously helps companies adapt and stay relevant.
Rapid innovation requires being in touch with customers, consumers, vendors, suppliers and all aspects of the market to have an excellent understanding of wants and needs so they can be anticipated and offered proactively rather than by reacting and eventually releasing a dreaded “me too” offering.
When organizations foster an adaptive culture where employees are encouraged and rewarded for sharing information from the market across the enterprise so it can be integrated, those companies are much better positioned for long-term success.
Leaders must embrace the mindset that “live and learn” mistakes are going to occur while their organizations are continuously implementing, learning, understanding, adapting, and improving – and those mistakes are necessary for the organization as a whole to learn and grow.
This unending cycle of discovery and insight enables companies to transform, improve internal business processes, develop competitive advantages, and even disrupt markets.
Copyright © 2020 Stephen Monaco All rights reserved.