Published by JP on 03 Jun 2008
Business Ecosystem
In an effort to define, to me, what have been some abstract terms in the business and IS/IT world, I thought I would start posting some reference material. I have discovered some of this through one of the classes I am currently taking on Information Systems Management. Feel free to comment, suggest additions, etc.
The concept of business ecosystems is that internetwork of relationships around one or more companies. An ecosystem behaves more like a biological environment and less like a machine-link system. Business ecosystems are more flexible and ever mutating. These frequent changes require a different approach than from those in the traditional business in the past. A keystone is a vital biological or business species that maintains the health and efficiency of the whole ecosystem. Keystones utilize their position indirectly to influence the ecosystem to create value for everyone in the ecosystem. A keystone strategy improves the overall health of the business ecosystem and maintains the functioning of a company. Three factors influence the success of a keystone strategy. These factors are robustness, productivity, and niche creation. Robustness is the ability to be fluid in dealing with the unpredictable situations and disturbances that occur in the ecosystem. Productivity is the capacity to reliably innovate through changing raw materials and technology into lowered costs, new products, and functions. Niche creation is the ecosystem’s talent to form useful functions and cultivate diversity that produces genuine value.
Text use for reference: Information Systems Management in Practice (7th Edition): Barbara C. McNurlin, Ralph H. Sprague: Books
