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Aligning Innovation Strategy with Ecosystem

This document discusses innovation ecosystems and strategies for managing risks within them. An innovation ecosystem involves collaborative arrangements where firms combine offerings into customer-facing solutions. There are various risks to consider, including whether the market will emerge, setting unrealistic expectations for results. Common managerial mistakes are fully planning the ecosystem and rushing to deliver without properly assessing ecosystem risks like feasibility, competition, and supply chains. Risks include initiative risks, interdependence risks if other projects must succeed first, and integration risks if widespread adoption is needed before customers can use the solution. Strategies for competing include addressing ecosystem leadership requirements, managing expectations to avoid destroying value, and being ready with components before rivals but not too far ahead of other participants.

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pritish chadha
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9 views1 page

Aligning Innovation Strategy with Ecosystem

This document discusses innovation ecosystems and strategies for managing risks within them. An innovation ecosystem involves collaborative arrangements where firms combine offerings into customer-facing solutions. There are various risks to consider, including whether the market will emerge, setting unrealistic expectations for results. Common managerial mistakes are fully planning the ecosystem and rushing to deliver without properly assessing ecosystem risks like feasibility, competition, and supply chains. Risks include initiative risks, interdependence risks if other projects must succeed first, and integration risks if widespread adoption is needed before customers can use the solution. Strategies for competing include addressing ecosystem leadership requirements, managing expectations to avoid destroying value, and being ready with components before rivals but not too far ahead of other participants.

Uploaded by

pritish chadha
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Innovation

MATCHING INNOVATION STRATEGY TO INNOVATION ECOSYSTEM Strategy

What is an innovation ecosystem?


Initiative Interdependence Integration
The collaborative arrangements through which firms combine their individual Risks Risks Risks
offerings into coherent, customer-facing solution.
What are some risks?
Modify
• Market may not emerge, even if a firm innovates brilliantly Performance
• The benchmarks against which the results will be measured - setting unreal WHERE TO COMPETE?
expectations.
• An opportunity with low external risk and high
Common Mistakes by Managers internal risk is better than opposite risk profile
• When ecosystem risks are high, markets are
• Managers plan out full eco-system, pick their position within it, and act with all uncertain
haste to deliver the product or service.
• Success lies in how well do we assess eco-system’s risks WHEN TO COMPETE?
• In an ecosystem, being ready with your
components ahead of rivals is good but
INITIATIVE RISKS INTERDEPENDENCE RISKS INTEGRATION RISKS probably not so good being ahead of
• Feasibility of product “Whose project must succeed before “Who has to adopt the complementors.
• Benefit to customer ours does” solution before
• Relevant competition Causes: customer can” HOW TO COMPETE?
• Appropriateness of • Internal developmental challenges Risk is assessed by • Address the question of ecosystem leadership
the supply chain • Regulatory delays adding the adoption as it requires massive investments
• Quality of project • Incentive problems cycles to estimate delays • Bad expectations can destroy value as easily as
team • Financial difficulties etc. Integration delays are bad execution
Joint Probability: .9 x .9 x .9 x .9 = 66% also rooted in sales cycle.

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