A design-led approach to embracing business ecosystems. Business leaders around the world are increasingly turning to the ecosystem business model to achieve top-line goals such as growing core businesses, generating revenues from new products and services, and creating new value pools.
The appeal of ecosystems—interconnected sets of services through which users can fulfill a variety of cross-sectoral needs in one integrated experience—has only grown as the global pandemic accelerated consumers’ migration to digital. Consumers are embracing this shift, with 71 percent saying they’re ready for integrated ecosystems. Indeed, by 2030 the integrated network economy could account for 25 percent of the total economy—up from 1 to 2 percent today—with global revenues of $70 trillion (Exhibit 1). 4 Steps for Building an Agile Marketing Organization. Agile marketing is more important than ever before as marketing leaders have more complex performance expectations.
Marketing leaders must build a diverse, adaptable range of team capabilities to meet expanding responsibilities and keep their brands competitive amid rapid marketplace shifts. Utilize this research to help you build an agile marketing organization with a few simple recommendations: Develop a plan to adopt the right agile marketing approachBuild a flexible team with broad skills across multiple areas of expertiseAssess critical skills and align with external resources to fill any gapsEmpower your agile marketing organization with the right tools and technology to support collaboration. The (Un?)Solvable Puzzle of Business Design. How anthropology can help shape the world of business. In this edition of Author Talks, McKinsey’s Raju Narisetti chats with award-winning financial journalist and anthropology PhD Gillian Tett.
In her new book, Anthro-Vision: A New Way to See in Business and Life (Simon & Schuster, June 2021), Tett explores how anthropologists get inside the minds of people to help them understand other cultures and appraise their own environment—from studying big-box warehouses to shedding light on practical questions such as why corporate projects fail and how companies sell products like pet food. An edited excerpt of the conversation follows. Why did you write this book? I believe that so many of the mistakes that came out of the great financial crisis and so many of the other mistakes that have beset both companies and countries in recent years have occurred because of tunnel vision and a lack of lateral vision, or as I call it, “anthro-vision.” A Framework for Working in Ecosystems. A Bit of Optimism with Simon Sinek: Episode 30.
Strategy+business. The concept of a business ecosystem was first articulated by the strategist James F.
Moore in his seminal 1993 Harvard Business Review article, “Predators and Prey: A New Ecology of Competition,” and the idea has since gained substantial currency. A business ecosystem is a community of enterprises and related organizations that coevolve over time and align themselves with directions set by one or more central companies. Examples of business ecosystems include a computer company and its users, investors, and third-party app developers; or an energy company with its network of suppliers, customers, traders, and resellers; or an auto manufacturer and the suppliers, retailers, and marketers that surround it.
The ecological analogy is apt because it emphasizes the fact that ecosystem members may both cooperate and compete with one another in complex ways that lead the entire community of enterprises to thrive. Networked, Scaled, and Agile: A Design Strategy for Complex Organizations (3 March 2021) by Amy Kates, Greg Kesler, Michele DiMartino, Michele and Julie Sweet. California Management Review - Leigh Thompson and David Schonthal. How to Do Design Thinking Better. Design thinking has, perhaps, reached peak popularity.
Businesses in every industry talk about ideating and iterating, a linguistic nod to the creative process made famous by design and consulting firm IDEO. The design-thinking approach loosely follows a four-step process that involves observing a problem, reframing it, designing solutions, and testing them—all with the end goal of improving how humans experience a product or service. We’ll send you one email a week with content you actually want to read, curated by the Insight team. C’est quoi au juste le Design Thinking? - Factry.
L'Organisation Opale, c'est pour tout le monde ? How Do You “Design” a Business Ecosystem? At the same time, you must not neglect your core product.
In 2004, Microsoft’s Internet Explorer captured close to 95% market share and was widely considered to have won the browser war. However, with no serious competitor left, Microsoft underinvested in the further development of the browser and its underlying ecosystem. Inferior product execution and product innovation from 2004 to 2015 allowed Firefox and Chrome to enter and eventually dominate the market. In the end, the only way to defend your leading position as an ecosystem is to be the technology and innovation leader in your industry, to encourage all partners in the ecosystem to relentlessly innovate, and to continuously adapt and reinvent your ecosystem, before others do. How can you expand the ecosystem? McKinsey&Company. Non, Le Design Thinking Ce N’est Pas De La Magie ! McKinsey: CEOs have no clue what chief design officers do.
The North Face trains designers in the principles of circularity. The Social Ecosystem Dilemma — And How to Fix It. An estimated $12 trillion in market opportunities are embedded within the Sustainable Development Goals.
Companies can unlock these opportunities with shared value, addressing social challenges in ways that improve a business’ competitive positioning and profitability. But long-entrenched social and environmental problems often thwart shared value strategies. While executives know how to manage their corporate ecosystem of suppliers, distributors, and related businesses, those approaches do not work for the social ecosystem of governments, NGOs, and local communities.
This guide outlines concrete and actionable steps for companies to build shared value ecosystems, based on insights from 12 companies across industries from around the world. While executives know how to manage their corporate ecosystem of suppliers, distributors, and related businesses, those approaches do not work for the social ecosystem of governments, NGOs, and local communities. Structured problem solving strategies can help break down problems to find better insights. Blitzscaling: The Lightning-Fast Path to Building Massively Valuable Companies (2018) by Reid Hoffman and Chris Yeh. Martin Reeves: How to build a business that lasts 100 years. The Enlightened Capitalists: Cautionary Tales of Business Pioneers Who Tried to Do Well by Doing Good (2019) by James O'Toole. The Surprising Value of Obvious Insights. Confirming what people already believe can help organizations overcome barriers to change.
MIT SMR Frontiers This article is part of an MIT SMR initiative exploring how technology is reshaping the practice of management. Editor’s note: This is the first post in a new MIT SMR series about people analytics. Introducing the next-generation operating model. The Emerging Art of Ecosystem Management. Cross-Industry Focus.
Many ecosystems are set up to bring in expertise from other industries. Our research showed that 83% of digital ecosystems involve partners from more than three industries and 53% from more than five industries. Bowing before Dual Gods : How Structured Flexibility Sustains Organizational Hybridity. To Be Agile, You Need Fewer Processes and Policies. Story Highlights Companies make decisions only as fast as their culture allowsFast decisions require simple processes -- but most are needlessly complexSpeed decision-making by removing outdated policies This is the second article in a series for leaders about agility.
Don't miss the first article. Putting organizational complexity in its place. Not all complexity is bad for business—but executives don’t always know what kind their company has.
They should understand what creates complexity for most employees, remove what doesn’t add value, and channel the rest to employees who can handle it effectively. Despite widespread agreement that organizational complexity creates big problems by making it hard to get things done, few executives have a realistic understanding of how complexity actually affects their own companies. When pressed, many leaders cite the institutional manifestations of complexity they personally experience: the number of countries the company operates in, for instance, or the number of brands or people they manage. By contrast, relatively few executives consider the forms of individual complexity that the vast majority of their employees face—for example poor processes, confusing role definitions, or unclear accountabilities (see sidebar, “Institutional vs. individual complexity”). HQ 2.0: The Next-Generation Corporate Center.
Not so very long ago, corporate executives commuted to a gleaming headquarters building, often in a beautifully landscaped suburban campus. Greeted by attentive security guards and smiling receptionists, they walked down well-appointed hallways lined with mahogany paneling and expensive artwork to their offices on the executive floor. There, they reviewed petitions that had percolated up the ladder, and dispatched decisions to be executed by the army of troops on the front lines.
After decades of hard work, these individuals had ascended to the top of their pyramid, overseeing the processes and practices that made the enterprise work, and enjoying all the perquisites and power of a C-suite functional officer in the corporate center of a major company. Does this sound like executive headquarters at your company today? If so, then start to worry.
Design actions to boost revenue growth and engagement. Design, whether it’s of products or experiences, is not only about aesthetics but also about specific actions taken to boost revenues and customer engagement. In this episode of the McKinsey Podcast, Simon London speaks with McKinsey partners Ben Sheppard and Hyo Yeon about new research that demonstrates the dramatic impact that specific design actions have on the revenue growth of companies that are considered top performers in design. Podcast transcript Simon London: Hello, and welcome to this edition of the McKinsey Podcast, with me, Simon London. Today we’re going to be talking about one of the fuzziest words in the business dictionary: “design.” 13 Simple Ways to Start Thinking Like a Designer Right Now. IQ is a number that depicts a person's intelligence, assessed through a series of tests. EQ is the measure of your abilities in "such areas as self-awareness, empathy, and dealing sensitively with other people," according to Collins English Dictionary.
You need both IQ and EQ in today's organizations, but that still leaves an important ability out. What today's leaders and teams need for agile organizations is DQ--Design Quotient. Design Quotient is your ability to think like a designer in a world of complex and constant change. Leaders and teams that can think like a designer are the foundation of agile, empathic, problem-solving cultures. Holacracy – A complete system for self-organization. The business value of design. We all know examples of bad product and service design. The USB plug (always lucky on the third try).
The experience of rushing to make your connecting flight at many airports. The exhaust port on the Death Star in Star Wars. Audio. Design for Your Strengths.