The Right Type of Digital Ecosystem For Your Business.
More and more companies are choosing to surround themselves with an open ecosystem to accelerate their digital transformation. But such an environment only creates value under certain conditions.
Going back to the Apple Case Study…
With the iPhones bringing in 54.7% revenue, other products at 9.4%, iPad 8.2% revenue, the Macbook 9.9%, and Services 17.8%. This all contributes to Apple’s ecosystem as well.
Now, you might say that my business is not as big as Apple(apple case study link) or my business is different. This won’t work for me. And before you say so,
I want to bring to this point more about the mindset shift.
An ecosystem is a customer-centric approach to looking at your business. In other words, some competitions will be partners and you will work together to offer value to the customers. The customer is at the center of everything you do when you’re building an ecosystem.
“83% of digital ecosystems involve partners you can do without a partner from four or more industries, and 53% involve partners from six or more industries”.
It’s almost hard to ignore the fact that you’re going to have to forge strategic partnerships in driving revenue growth and entering new markets.
The Rockefeller principle of leverage.
Bucky fuller says, I run a 1% of 100 people’s efforts, that 100% of my efforts.
Great things mean you need to collaborate with people, or other businesses, even your competition as well, to provide great value for your customer.
Because the customer comes first, and three core foundational elements of a customer-centric ecosystem are observing the customer.
- What will your customer buy before doing business with you?
- What are your customers still buying while they’re doing business with you?
- What is the customer buying after doing business for you?
Because customer acquisition cost is high. You know, for many businesses, An ecosystem helps you break even faster, and also drives retention, and increases the customer value to your business.
So in other words, you have the customer winning, spending more than anybody else, because of the wide array of services you are offering that gives them the desire or the desired result that they seek.
And here in forming partnerships, here’s what you need to look at.
First, you need to define your vision.
- What do you want out of life?
- What do you want to achieve with this defined vision is the first step.
The next is,
Determine the strengths and weaknesses of your business or company
- What can we do?
- And what do we have the capacity to do?
You are just being very honest. And by identifying that, brings us to the next question…
- Which is understanding the ecosystem?
- Who has and who has what we don’t have
- Whose strengths complement our weakness
- Whose weakness do we complement?
- How do we make this work?
And next is organizing the partnership, which is incubating partners coming together to see how they can make it work right.
- Also figuring out what angles you want to cover?
- How do we get maximum value from it?
And next is implementing the partnerships.
- What is the desired goal that we want to achieve?
Two businesses may come together in partnership for totally different goals and goals need to be met for that partnership to be maintained.
That evaluated partnership, how good is it?
Well, from what it was, in terms of the business goal of Company A, as well as Company B?
How are we aware we want to go because this is a win-win situation where both parties need to be satisfied in terms of achieving what they want to achieve, as the overall strategy, the vision they have.
And last is
After evaluating the partnerships, you can even forge even more mega partnerships to go into new levels, which is what most of the world’s valuable brands consider a partnership.
Work 1% from 100 people goes a long way trying to get 100% from your own business. And this is where the foundation of the ecosystem lies. Forming alliances, forming partnerships with people.
Defining the vision around the customers’ needs.
- What do we offer this customer?
- What are they engaging with that we can also offer them to increase the lifetime value and drive revenue growth and boost retention?
I want you to take time to look into your business and study the customer
Figure out what they would be engaging with, that you can offer to them by way of strategic partnerships to drive revenue growth for your business and offer maximum value to the customer.