One of the most promising and proven digital business models now is digital platforms and ecosystems. This is why it’s important to understand what digital ecosystems are and how individuals and organisations can play their roles and embrace as well as accelerate these ecosystems.
Digital ecosystems, defined by EY, is an interconnected sets of offerings that fulfil consumer needs in one integrated experience that comprises businesses across different sectors to collectively offer a broad range of products and services. The characteristics of a digital ecosystem are: Customer-Centric, Data-driven, Automated, Global, and Dynamic. The level of how organisations navigate digital ecosystems can be based on their maturity level, be it scaling the transformation to a company and industry level or driving large-scale transformation across multiple industries through cross-sector collaborations and leverage technology across different parts of the value chain. Then they can define their roles as System Orchestrator, Modular Producer, or Customer. The business model as a participant in the digital ecosystem, will be based on parameters such as the nature of the ecosystem, the scale of industry partnerships, and the revenue model.
While it’s quite easy to explain why digital ecosystems can perform so well, it is also worth-reminding how difficult it is to set up such successful robust ecosystems. Loyal customer base, consistent value creation, clear alignment of a diverse range of partners, customers, and technologies as well as a very agile mindset are required. Understanding the power and implications of the rising digital ecosystems around the globe and also find ways to contribute, participate, and interact with the actors in the ecosystem to harness the power, we will all have the potential to create a new era of sustainable modernised platform.