‘Eco system’ business models
13 January 2011
By on 21:52

We live in dynamic times and business structures are evolving. With boundaries between organisations becoming blurrier, models becoming more hybrid and new types of cooperations abound, we might need a shift in business model thinking as well.

Whereas traditionally a business (and revenue) model is characterised basically by: cash in > cash out, this linear type of thinking may no longer suffice. Primarily because the definition of 'in' and 'out' is changing in light of he developments described above. I increasingly like to refer to the new ways how organisations deal with each other and other stakeholders as an eco system.

And how is an eco system characterised in nature: by different elements existing together and seeking not just synergy but benefiting from symbioisis, Let's call that intrinsic synergy. How does that materialise? By the different elements of the 'system' interplaying with each other, strengthening each other in natural ways, thereby creating a much larger whole than the sum of the isolated parts.

Ecosystems are characterised by flow, grow, blossom, in expected and unexpected places and many of these not subject to formal management, or measuring. Now how does that translate to the business world? Businesses need revenues, profit. So we have invented transactions, and these are monitised.

All this leads to the big question: which 'transactions' (flows) in a (business) eco system should be monitised, and how? Which flows should be managed and how? What is the ultimate optimum between letting everything blossom and reaping the benefits, and measuring how much it blossoms exactly and who specifically should benefit financially from that? How would measurement, especially monetary one perhaps be counterproductive if it is done in the wrong way?

Fascinating questions, I think. It does seem like modern day innovation will therefore not only come from technology or even application, but from the way we manage to productively deal with these questions. Any thoughts on this, anyone?

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