Michael Lissack
“We used to talk about ‘going digital’ as if it were a one-way journey,” reflects a technology executive. “Now we understand it’s about creating fluid connections between digital and physical realities.” Organizations that master this frontier gain significant advantages in operational efficiency, innovation capability, and customer experience. Those that treat digital and physical as separate domains struggle with disconnected systems, fragmented experiences, and missed opportunities for optimization. Value Creation in Ecosystem Business Models “Traditional business thinking focuses on clearly defined industries with stable boundaries,” explains a strategy executive to her team. “Today’s complex challenges require ecosystem approaches where multiple organi- zations combine capabilities to create value that none could create alone.” Traditional business models focused on creating products or ser- vices within clear industry boundaries. Today’s complexity frontiers have eroded these boundaries, creating both challenges and opportunities for value creation and capture: Ecosystem Business Models: Organizations increasingly participate in complex ecosystems rather than linear value chains. Value creation happens through the interactions of multiple participants, with platforms often serving as orchestrators. This shift requires new approaches to strat- egy, partnership, and competition. The ecosystem model creates new forms of complexity in gover- nance, revenue sharing, intellectual property management, and strategic alignment. Participating organizations need to establish clear boundar- ies around proprietary technology while enabling enough openness for effective collaboration. They need revenue models that fairly distribute value while incentivizing continued investment. They need governance structures that balance individual organizational interests with ecosys- tem health.
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